YPF Sociedad Anonima
Annual Report 2014

Plain-text annual report

Morningstar® Document Research℠ FORM 20-FYPF SOCIEDAD ANONIMA - N/AFiled: March 30, 2015 (period: December 31, 2014)Annual and transition report of foreign private issuers under sections 13 or 15(d)The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The userassumes all risks for any damages or losses arising from any use of this information, except to the extent such damages or losses cannot belimited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31, 2014Commission file number: 1-12102 YPF Sociedad Anónima(Exact name of registrant as specified in its charter) Republic of Argentina(Jurisdiction of incorporation or organization)Macacha Güemes 515C1106BKK Ciudad Autónoma de Buenos Aires, Argentina(Address of principal executive offices)Diego M. PandoTel: (011-54-11) 5441-3500Facsimile Number: (011-54-11) 5441-3726Macacha Güemes 515C1106BKK Ciudad Autónoma de Buenos Aires, Argentina(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which RegisteredAmerican Depositary Shares, each representing one Class D Share, parvalue 10 pesos per share New York Stock ExchangeClass D Shares New York Stock Exchange* *Listed not for trading but only in connection with the registration of American Depositary Shares.Securities registered or to be registered pursuant to Section 12(g) of the Act: NoneSecurities for which there is a reporting obligation pursuant to Section 15(d) of the Act: NoneThe number of outstanding shares of each class of stock of YPF Sociedad Anónima as of December 31, 2014 was: Class A Shares 3,764 Class B Shares 7,624 Class C Shares 40,422 Class D Shares 393,260,983 393,312,793 Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934. Yes ¨ No xNote – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934from their obligations under those Sections.Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filingrequirements for the past 90 days. Yes x No ¨Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required tobe submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period thatthe registrant was required to submit and post such files). Yes ¨ No ¨Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer andlarge accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: U.S. GAAP ¨International Financial Reporting Standards as issued by the InternationalAccounting Standards Board: xOther ¨Indicate by check mark which financial statement item the registrant has elected to follow. Item 17 Item 18 xIf this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ¨ No x 2Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsTABLE OF CONTENTS Page Conversion Table 6 References 6 Disclosure of Certain Information 6 Forward-Looking Statements 6 Oil and Gas Terms 7 PART I 9 ITEM 1. Identity of Directors, Senior Managers and Advisers 9 ITEM 2. Offer Statistics and Expected Timetable 9 ITEM 3. Key Information 9 Selected Financial Data 9 Exchange Regulations 11 Risk Factors 12 ITEM 4. Information on the Company 26 History and Development of YPF 26 The Argentine Market 29 History of YPF 30 Business Organization 32 Exploration and Production Overview 33 Downstream 67 Seasonality 80 Research and Development 80 Competition 81 Environmental Matters 83 Property, Plant and Equipment 87 Insurance 88 Regulatory Framework and Relationship with the Argentine Government 90 ITEM 4A. Unresolved Staff Comments. 116 ITEM 5. Operating and Financial Review and Prospects 116 Overview 116 Presentation of Financial Information 116 Segment Reporting 117 Summarized Statement of Comprehensive Income 117 Factors Affecting Our Operations 117 Critical Accounting Policies 125 Principal Income Statement Line Items 126 Liquidity and Capital Resources 139 Quantitative and Qualitative Disclosures about Market Risk 143 Off-Balance Sheet Arrangements 143 Research and Development, Patents and Licenses, etc. 143 ITEM 6. Directors, Senior Management and Employees 143 3Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsManagement of the Company 143 Board of Directors 143 Senior Management 150 The Audit Committee 151 Disclosure Committee 153 Compliance with New York Stock Exchange Listing Standards on Corporate Governance 154 Compensation of members of our Board of Directors and Supervisory Committee 155 Supervisory Committee 156 Employee Matters 157 ITEM 7. Major Shareholders and Related Party Transactions 159 Related Party Transactions 159 Argentine Law Concerning Related Party Transactions 160 ITEM 8. Financial Information 160 Financial Statements 160 Legal Proceedings 160 Dividend Policy 178 Significant Changes 178 ITEM 9. The Offer and Listing 178 Shares and ADSs 178 Argentine Securities Market 181 ITEM 10. Additional Information 184 Capital Stock 184 Memorandum and Articles of Association 185 Shareholders’ Meetings 186 Directors 187 Foreign Investment Legislation 188 Dividends 188 Amount Available for Distribution 189 Preemptive and Accretion Rights 190 Voting of the Underlying Class D Shares 190 Certain Provisions Relating to Acquisitions of Shares 191 Material Contracts 193 Exchange Regulations 193 Taxation 193 Argentine Tax Considerations 193 United States Federal Income Tax Considerations 195 Available Information 198 ITEM 11. Quantitative and Qualitative Disclosures about Market Risk 198 ITEM 12. Description of Securities Other than Equity Securities 200 PART II 201 4Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsITEM 13. Defaults, Dividend Arrearages and Delinquencies 201 ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 201 ITEM 15. Controls and Procedures 201 ITEM 16. 202 ITEM 16A. Audit Committee Financial Expert 202 ITEM 16B. Code of Ethics 202 ITEM 16C. Principal Accountant Fees and Services 203 ITEM 16D. Exemptions from the Listing Standards for Audit Committees 203 ITEM 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 203 ITEM 16F. Change in Registrant’s Certifying Accountant 204 ITEM 16G. Corporate Governance 204 PART III 204 ITEM 17. Financial Statements 204 ITEM 18. Financial Statements 204 ITEM 19. Exhibits 205 SIGNATURES 206 5Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsConversion Table1 ton = 1 metric ton = 1,000 kilograms = 2,204 pounds1 barrel = 42 U.S. gallons1 ton of oil = approximately 7.3 barrels (assuming a specific gravity of 34 degrees API (American Petroleum Institute))1 barrel of oil equivalent = 5,615 cubic feet of gas = 1 barrel of oil, condensate or natural gas liquids1 kilometer = 0.63 miles1 million Btu = 252 termies1 cubic meter of gas = 35.3147 cubic feet of gas1 cubic meter of gas = 10 termies1,000 acres = approximately 4 square kilometersReferencesYPF Sociedad Anónima is a stock corporation organized under the laws of the Republic of Argentina (“Argentina”). As used in this annual report,“YPF,” “the Company,” “we,” “our” and “us” refer to YPF Sociedad Anónima and its controlled companies or, if the context requires, its predecessorcompanies. “YPF Sociedad Anónima” refers to YPF Sociedad Anónima only. “Repsol” refers to Repsol S.A., its affiliates and consolidated companies. Wemaintain our financial books and records and publish our financial statements in Argentine pesos. In this annual report, references to “pesos” or “Ps.” are toArgentine pesos, and references to “dollars,” “U.S. dollars” or “U.S.$” are to United States dollars.Disclosure of Certain InformationIn this annual report, references to “Audited Consolidated Financial Statements” are to YPF’s audited consolidated balance sheets as of December 31,2014, 2013 and 2012, YPF’s audited consolidated statements of comprehensive income for the years ended December 31, 2014, 2013 and 2012, YPF’saudited consolidated statements of cash flows for the years ended December 31, 2014, 2013 and 2012, YPF’s audited consolidated statements of changes inshareholders’ equity for the years ended December 31, 2014, 2013 and 2012 and the related notes thereto.Unless otherwise indicated, the information contained in this annual report reflects: • for the subsidiaries that were consolidated using the global integration method at the date or for the periods indicated, 100% of the assets,liabilities and results of operations of such subsidiaries without excluding minority interests, and • for those joint operations whose results were consolidated using the proportional integration method, a pro rata amount of the assets, liabilitiesand results of operations for such joint operations at the date or for the periods indicated.For information regarding consolidation, see Notes 1.a and 1.b.5 to the Audited Consolidated Financial Statements.Certain monetary amounts and other figures included in this annual report have been subject to rounding adjustments. Any discrepancies in any tablesbetween the totals and the sums of the amounts are due to rounding.Forward-Looking StatementsThis annual report, including any documents incorporated by reference, contains statements that we believe constitute forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding the intent,belief or current expectations of us and our management, including statements with respect to trends affecting our financial condition, financial ratios, resultsof operations, business, strategy, geographic concentration, reserves, future hydrocarbon production volumes and the Company’s ability to satisfy our long-term sales commitments from future supplies available to the Company, our ability to pay dividends in the future and to service our outstanding debt, datesor periods in which production is scheduled or expected to come onstream, as well as our plans with respect to capital expenditures, business, strategy,geographic concentration, cost savings, investments and dividends payout policies. These statements are not a guarantee of future performance and aresubject to material risks, uncertainties, changes and other factors which may be beyond our control or may be difficult to predict. Accordingly, our futurefinancial condition, prices, financial ratios, results of operations, business, strategy, geographic concentration, production volumes, reserves, capitalexpenditures, cost savings, investments and ability to meet our long-term sales commitments or pay dividends or service our outstanding debt could differmaterially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, currency fluctuations,inflation, the price of 6Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentspetroleum products, the domestic and international prices for crude oil, the ability to realize cost reductions and operating efficiencies without undulydisrupting business operations, replacement of hydrocarbon reserves, environmental, regulatory and legal considerations, including the imposition of furthergovernment restrictions on the Company’s business, changes in our business strategy and operations, our ability to find partners or raise funding under ourcurrent control, the ability to maintain the Company’s concessions, and general economic and business conditions in Argentina, as well as those factorsdescribed in the filings made by YPF and its affiliates with the Securities and Exchange Commission, in particular, those described in “Item 3. KeyInformation—Risk Factors” and “Item 5. Operating and Financial Review and Prospects.” 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 results or condition expressed or implied therein will not be realized.Oil and Gas TermsOil and gas reserves definitions used in this annual report are in accordance with Regulations S-X and S-K, as amended by the U.S. Securities andExchange Commission’s (“SEC”) final rule, Modernization of Oil and Gas Reporting (Release Nos. 33-8995; 34-59192; FR-78; File No. S7-15-08; December 31, 2008) and relevant guidance notes and letters issued by the SEC’s Staff.The reported reserves contained in this annual report include only our proved reserves and do not include probable reserves or possible reserves.The following terms have the meanings shown below unless the context indicates otherwise:“acreage”: The total area, expressed in acres or km2, over which YPF has interests in exploration or production. Net acreage is YPF’s interest in therelevant exploration or production area.“basin”: A depression in the crust of the Earth formed by plate tectonic activity in which sediments accumulate. Continued sediment accumulation cancause further depression or subsidence.“block”: Areas defined by concession contracts or operating contracts signed by YPF.“concession contracts”: A grant of access for a defined area and time period that transfers certain entitlements to produce hydrocarbons from the hostcountry to an enterprise. The company holding the concession generally has rights and responsibilities for the exploration, development, production and saleof hydrocarbons, and typically, an obligation to make payments at the signing of the concession and once production begins pursuant to applicable laws andregulations.“crude oil”: Crude oil with respect to YPF’s production and reserves includes condensate.“field”: One or more reservoirs grouped by or related to the same general geologic structural feature or stratigraphic condition.“formation”: The fundamental unit of lithostratigraphy. A body of rock that is sufficiently distinctive and continuous that it can be mapped.“gas”: Natural gas.“hydrocarbons”: Crude oil, natural gas liquids and natural gas.“surface conditions”: Represents the pressure and temperature conditions at which volumes of oil, gas, condensate and natural gas liquids aremeasured for reporting purposes. It is also referred to as standard conditions. For YPF these conditions are 14.7 psi for pressure and 60 degrees Fahrenheit fortemperature. All volume units expressed in this report are at surface conditions.Abbreviations: “bbl”Barrels.“bbl/d”Barrels per day.“bcf”Billion cubic feet.“bcf/d”Billion cubic feet per day.“bcm”Billion cubic meters.“bcm/d”Billion cubic meters per day. 7Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents“boe”Barrels of oil equivalent.“boe/d”Barrels of oil equivalent per day.“cm”Cubic meter.“cm/d”Cubic meters per day.“dam 3”Dekameters cubic (thousand cubic meters).“GWh”Gigawatt hours.“HP”Horsepower.“km”Kilometers.“km2”Square kilometers.“liquids”Crude oil, condensate and natural gas liquids.“LNG”Liquefied natural gas.“LPG”Liquefied petroleum gas.“m”Thousand.“mbbl”Thousand barrels.“mbbl/d”Thousand barrels per day.“mcf”Thousand cubic feet.“mcf/d”Thousand cubic feet per day.“mcm”Thousand cubic meters.“mcm/d”Thousand cubic meters per day.“mboe”Thousand barrels of oil equivalent.“mboe/d”Thousand barrels of oil equivalent per day.“mm”Million.“mmbbl”Million barrels.“mmbbl/d”Million barrels per day.“mmboe”Million barrels of oil equivalent.“mmboe/d”Million barrels of oil equivalent per day.“mmBtu”Million British thermal units.“mmcf”Million cubic feet.“mmcf/d”Million cubic feet per day.“mmcm”Million cubic meters.“mmcm/d”Million cubic meters per day.“mtn”Thousand tons.“MW”Megawatts.“NGL”Natural gas liquids.“psi”Pound per square inch.“WTI”West Texas Intermediate. 8Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsPART I ITEM 1.Identity of Directors, Senior Managers and AdvisersNot applicable. ITEM 2.Offer Statistics and Expected TimetableNot applicable. ITEM 3.Key InformationSelected Financial DataThe following tables present our selected financial data. You should read this information in conjunction with our Audited Consolidated FinancialStatements, and the information under “Item 5. Operating and Financial Review and Prospects” included elsewhere in this annual report.Our Audited Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by theInternational Accounting Standards Board (“IASB”).On March 20, 2009, the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) approved Technical Resolution No. 26 onthe “Adoption of the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB)”. Such resolution wasapproved by the Argentine National Securities Commission (“CNV”) through General Resolution No. 562/09 on December 29, 2009 (modified by GeneralResolution No. 576/10 on July 1, 2010), with respect to certain publicly-traded entities subject to Law No. 26,831. Compliance with such rules wasmandatory for YPF for the fiscal year which began on January 1, 2012, with transition date of January 1, 2011.In this annual report, except as otherwise specified, references to “$,” “U.S.$” and “dollars” are to U.S. dollars, and references to “Ps.” and “pesos” are toArgentine pesos. Solely for the convenience of the reader, peso amounts as of and for the year ended December 31, 2014 have been translated into U.S.dollars at the exchange rate quoted by the Argentine Central Bank (Banco Central de la República Argentina or “Central Bank”) on December 31, 2014 ofPs. 8.55 to U.S.$ 1.00, unless otherwise specified. The exchange rate quoted by the Central Bank on March 20, 2015 was Ps. 8.80 to U.S.$ 1.00. The U.S.dollar equivalent information should not be construed to imply that the peso amounts represent, or could have been or could be converted into U.S. dollars atsuch rates or any other rate. See “—Exchange Rates.”The financial data contained in this annual report as of and for the years ended December 31, 2014, 2013 and 2012 has been derived from our AuditedConsolidated Financial Statements included in this annual report. See Note 15 to the Audited Consolidated Financial Statements. The financial datacontained in this annual report as of December 31, 2011 and for the year ended December 31, 2011 have been derived from our Audited ConsolidatedFinancial Statements as of December 31, 2011 not included in this annual report. 9Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents As of and for the year ended December 31, 2014 2013 2012 2011 (in millions of pesos, except for per shareand per ADS data) Consolidated Statement of Comprehensive Income Data(1) : Revenues(2) 141,942 90,113 67,174 56,211 Gross profit 37,450 22,019 16,907 15,068 Administrative expenses (4,530) (2,686) (2,232) (1,822) Selling expenses (10,114) (7,571) (5,662) (5,438) Exploration expenses (2,034) (829) (582) (574) Other (expense) income, net (1,030) 227 (528) (46) Operating income 19,742 11,160 7,903 7,188 Income on long-term investments 558 353 114 685 Interest expense (7,336) (3,833) (1,557) (1,045) Other financial income (expense), net 9,108 6,668 2,105 758 Income from sale of long-term investments — — — — Reversal (impairment) of other current assets — — — — Income before income tax 22,072 14,348 8,565 7,586 Income tax (7,323) (2,844) (2,720) (2,495) Deferred tax (5,900) (6,425) (1,943) (646) Net income 8,849 5,079 3,902 4,445 Total other Comprehensive income 16,276 12,031 4,241 1,852 Total comprehensive income 25,125 17,110 8,143 6,297 Earnings per share and per ADS(4) 22.95 13.05 9.92 11.30 Dividends per share and per ADS(4) (in pesos) 1.18 0.83 0.77 14.15 Dividends per share and per ADS(4)(5) (in U.S. dollars) 0.14 0.13 0.16 3.39 Consolidated Balance Sheet Data Cash 9,758 10,713 4,747 1,112 Working capital(3) (11,266) 1,706 (2,582) (7,750) Total assets 208,554 135,595 79,949 60,990 Total debt(6) 49,305 31,890 17,104 12,198 Shareholders’ equity(7) 72,781 48,240 31,260 23,420 Other Consolidated Financial Data Fixed assets depreciation and intangible assets amortization 20,405 11,433 8,281 6,499 Cash used in fixed asset acquisitions and intangible assets 50,213 27,639 16,403 12,156 (1)The consolidated financial statements reflect the effect of the application of the functional and reporting currency. See Note 1.b.1) to the AuditedConsolidated Financial Statements.(2)Revenues are net of payment of a fuel transfer tax and turnover tax. Customs duties on hydrocarbon exports are disclosed in taxes, charges andcontributions, as indicated in Note 2.k) to the Audited Consolidated Financial Statements. Royalties with respect to our production are accounted foras a cost of production and are not deducted in determining revenues. See Note 1.b.16) to the Audited Consolidated Financial Statements.(3)Working capital consists of total current assets minus total current liabilities as of December 31, 2014, December 31, 2013, December 31, 2012 andDecember 31, 2011.(4)Information has been calculated based on outstanding share capital of 393,312,793 shares. Each ADS represents one Class D share. There were nodifferences between basic and diluted earnings per share and ADS for any of the years disclosed.(5)Amounts expressed in U.S. dollars are based on the exchange rate as of the date of payment.(6)Total loans includes non current loans of Ps. 36,030 million, Ps. 23,076 million, Ps. 12,100 million and Ps. 4,435 million as of December 31, 2014,2013,2012 and 2011, respectively, and current loans of Ps. 13,275 million, Ps. 8,814 million, Ps. 5,004 million and Ps. 7,763 million as ofDecember 31, 2014, 2013, 2012 and 2011, respectively. See “Financial Risk Management—Liquidity Risk” in Note 1.d) to the Audited ConsolidatedFinancial Statements.(7)Our subscribed capital as of December 31, 2014 is represented by 393,312,793 shares of common stock and divided into four classes of shares, with apar value of Ps. 10 and one vote per share. These shares are fully subscribed, paid-in and authorized for stock exchange listing. See “Item 6. Directors,Senior Management and Employees—Compensation of members of our Board of Directors and Supervisory Committee,” “Item 16E. Purchases ofEquity Securities by the Issuer and Affiliated Purchasers” and Note 1.b.10.iii) to the Audited Consolidated Financial Statements in relation to sharespurchased by YPF and assigned as a result of our employee compensation plans. 10Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExchange RatesFrom April 1, 1991 until the end of 2001, the Convertibility Law (Law No. 23,928) established a fixed exchange rate under which the Central Bankwas obligated to sell U.S. dollars at one peso per U.S. dollar. On January 6, 2002, the Argentine Congress enacted the Public Emergency and ForeignExchange System Reform Law (Law No. 25,561, or the “Public Emergency Law”), formally putting an end to the Convertibility Law regime and abandoningover 10 years of U.S. dollar-peso parity. The Public Emergency Law, which has been extended until December 31, 2015 by Law 26,896, grants the NationalExecutive Office the power to set the exchange rate between the peso and foreign currencies and to issue regulations related to the foreign exchange market.Following a brief period during which the Argentine government established a temporary dual exchange rate system pursuant to the Public Emergency Law,the peso has been allowed to float freely against other currencies since February 2002 although the government has the power to intervene by buying andselling foreign currency for its own account, a practice in which it engages on a regular basis. Notwithstanding the annual rate of devaluation beingapproximately 31.1% considering the period-end exchange rates for U.S. dollars as of December 31, 2014 and 2013, the Argentine peso was subject to adevaluation of approximately 23% during January 2014. See “—Risk Factors—Risks Relating to Argentina—Our business is highly dependent uponeconomic conditions in Argentina.”The following table sets forth the annual high, low, average and period-end exchange rates for U.S. dollars for the periods indicated, expressed innominal pesos per U.S. dollar, based on rates quoted by the Central Bank. The Federal Reserve Bank of New York does not report a noon buying rate forArgentine pesos. Low High Average Period End (pesos per U.S. dollar) Year ended December 31, 2010 3.79 3.99 3.92(1) 3.98 2011 3.97 4.30 4.15(1) 4.30 2012 4.30 4.92 4.58(1) 4.92 2013 4.92 6.52 5.54(1) 6.52 2014 6.54 8.56 8.23(1) 8.55 Month September 2014 8.40 8.46 8.42(1) 8.46 October 2014 8.45 8.50 8.48(1) 8.50 November 2014 8.51 8.53 8.51(1) 8.53 December 2014 8.53 8.56 8.55(1) 8.55 January 2015 8.55 8.64 8.60(1) 8.64 February 2015 8.65 8.73 8.69(1) 8.72 March 2015(2) 8.73 8.80 8.77(1) 8.80 Source: Central Bank(1)Represents the average of the exchange rates on the last day of each month during the period.(2)Through March 20, 2015.No representation is made that peso amounts have been, could have been or could be converted into U.S. dollars at the foregoing rates on any of thedates indicated.Exchange RegulationsPrior to December 1989, the Argentine foreign exchange market was subject to exchange controls. From December 1989 until April 1991, Argentinahad a freely floating exchange rate for all foreign currency transactions, and the transfer of dividend payments in foreign currency abroad and the repatriationof capital were permitted without prior approval of the Central Bank. From April 1, 1991, when the Convertibility Law became effective, until December 21,2001, when the Central Bank closed the foreign exchange market, the Argentine peso was freely convertible into U.S. dollars.On December 3, 2001, the Argentine government imposed a number of monetary and currency exchange control measures through Decree 1570/01,which included restrictions on the free disposition of funds deposited with banks and tight restrictions on transferring funds abroad (including the transfer offunds to pay dividends) without the Central Bank’s prior authorization subject to specific exceptions for transfers related to foreign trade. Since January2003, the Central Bank has gradually eased these restrictions and expanded the list of transfers of funds abroad that do not require its prior authorization(including the transfer of funds to pay dividends). In June 2003, the Argentine government set restrictions on capital flows into Argentina, which mainlyconsisted of a prohibition against the transfer abroad of any funds until 180 days after their entry into the country. In June 2005, the government establishednew regulations on capital flows into Argentina, including increasing the period that certain incoming funds must remain 11Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsin Argentina to 365 calendar days and requiring that 30% of incoming funds be deposited with a bank in Argentina in a non-assignable, non-interest-bearingaccount for 365 calendar days. Under the exchange regulations currently in force, restrictions exist in respect of the repatriation of funds or investments bynon-Argentine residents. For instance, subject only to limited exceptions, the repatriation by non-Argentine residents of funds received as a result of the saleof the Class D shares in the secondary market is subject to a limit of U.S.$500,000 per person per calendar month. In order to repatriate such funds abroad,non-Argentine residents also are required to demonstrate that the funds used to make the investment in the Class D shares were transferred to Argentina atleast 365 days before the proposed repatriation. The transfer abroad of dividend payments is currently authorized by applicable regulations to the extent thatsuch dividend payments are made in connection with audited financial statements and are approved by a shareholders’ meeting.During 2012, additional foreign exchange regulations were imposed on purchases of foreign currency and transfers of foreign currency abroad. Suchregulations include the requirement for financial institutions to inform in advance and obtain approval from the Central Bank with respect to any foreignexchange transaction to be entered into through the foreign exchange market. See “—Risk Factors—Risks Relating to Argentina—We are subject toexchange and capital controls.”Risk FactorsThe risks and uncertainties described below are those known by us at the date of this report. However, such risks and uncertainties may not be the only onesthat we could face. Additional risks and uncertainties that are unknown to us or that we currently think are immaterial also may impair our businessoperations.Risks Relating to ArgentinaThe Argentine federal government will control the Company according to domestic energy policies in accordance with Law No. 26,741 (the“Expropriation Law”).The Argentine federal government controls the Company, and consequently, the federal government is able to determine substantially all mattersrequiring approval by a majority of our shareholders, including the election of a majority of our directors, and is able to direct our operations. TheExpropriation Law has declared achieving self-sufficiency in the supply of hydrocarbons as well as in the exploitation, industrialization, transportation andsale of hydrocarbons, a national public interest and a priority for Argentina. In addition, its stated goal is to guarantee socially equitable economicdevelopment, the creation of jobs, the increase of the competitiveness of various economic sectors and the equitable and sustainable growth of the Argentineprovinces and regions. In addition should Argentina be unable to meet its energy requirements, such occurrence could have a material adverse impact on theArgentine economy and negatively impact our results of operations. We cannot assure you that the decisions taken by our controlling shareholders for thepurpose of achieving the targets set forth in the Expropriation Law would not differ from your interests as a shareholder.Our business is largely dependent upon economic conditions in Argentina.Substantially all of our operations, properties and customers are located in Argentina, and, as a result, our business is to a large extent dependent uponeconomic conditions prevailing in Argentina. The changes in economic, political and regulatory conditions in Argentina and measures taken by theArgentine government have had and are expected to continue to have a significant impact on us. You should make your own investigation about Argentinaand prevailing conditions in that country before making an investment in us.The Argentine economy has experienced significant volatility in past decades, including numerous periods of low or negative growth and high andvariable levels of inflation and devaluation. Since the most recent crisis of 2001 and 2002, Argentina’s gross domestic product, or GDP, grew at an averageannual real rate of approximately 8.5% from 2003 to 2008, although the growth rate decelerated to 0.9% in 2009 as a result of the global financial crisis, butrecovered in 2010 and 2011, growing at an annual real rate of approximately 9%, according to preliminary official data. In 2012, the Argentine economyexperienced a slowdown with GDP increasing at a rate of 1.9% on an annualized basis compared to the preceding year according to the methodology ofcalculation prevailing until March 2014. On March 27, 2014, the Argentine government announced a new method of calculating GDP by reference to 2004as the base year (as opposed to 1993, which was the base reference year under the prior method of calculating GDP). As a result of the application of this newmethod, the estimated GDP for 2013 was revised from 4.9% to 2.9%. As of the date of this annual report, the provisional figures of the Argentina’s estimatedGDP for 2014 published by the National Statistics Institute (Instituto Nacional de Estadística y Censos) (“INDEC”) is 0.5%. No assurances can be given thatthe rate of growth experienced over past years will be achieved in subsequent years or that the economy will not contract. If economic conditions inArgentina were to slow down, or contract, if inflation were to accelerate further, or if the Argentine government’s measures to attract or retain foreign 12Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsinvestment and international financing in the future are unsuccessful, such developments could adversely affect Argentina’s economic growth and in turnaffect our financial condition and results of operations. In addition, Argentina has confronted inflationary pressures. According to inflation data published byINDEC, from 2008 to 2013, the Argentine consumer price index (“CPI”) increased 7.2%, 7.7%, 10.9%, 9.5% 10.8% and 10.9%, respectively; the wholesaleprice index increased 8.8%, 10.3%, 14.5%, 12.7%, 13.1% and 14.7%, respectively. In 2014, the INDEC established a new consumer price index (“IPCNU”)which more broadly reflects consumer prices by considering price information from the 24 provinces of the country, divided into six regions. According toINDEC, the IPCNU for 2014 was 23.9% and the wholesale price index was 28.3%. In addition, the IPCNU for January 2015 and February 2015 was 1.1% and0.9% respectively. However, certain private sector analysts usually quoted by the government opposition, based on methodologies being questioned by theArgentine government on the basis of the lack of technical support, believe that actual inflation is significantly higher than that reflected by INDEC.Increased rates of inflation in Argentina could increase our cost of operation, and may negatively impact our results of operations and financial condition.There can be no assurance that inflation rates will not be higher in the future.Argentine economic results are dependent on a variety of factors, including (but not limited to) the following: • international demand for Argentina’s principal exports; • international prices for Argentina’s principal commodity exports; • stability and competitiveness of the peso against foreign currencies; • levels of consumer consumption and foreign and domestic investment and financing; and • the rate of inflation.The Argentine economy is also particularly sensitive to local political developments. Argentina’s national election for president and vice-presidentwill take place in October 2015, and other relevant local and federal elections will also take place in 2015. We cannot guarantee that current programs andpolicies that apply to the oil and gas sector will continue in place in the future. See “—Limitations on local pricing in Argentina may adversely affect ourresults of operations” and “—Oil and gas prices, including the recent decline in global prices for oil and gas, could affect our business”.In addition, Argentina’s economy is vulnerable to adverse developments affecting its principal trading partners. A significant decline in the economicgrowth of any of Argentina’s major trading partners, such as Brazil, China or the United States, could have a material adverse impact on Argentina’s balanceof trade and adversely affect Argentina’s economic growth and may consequently adversely affect our financial condition and results of operations.Furthermore, a significant depreciation of the currencies of our trading partners or trade competitors may adversely affect the competitiveness of Argentinaand consequently adversely affect Argentina’s economic and our financial condition and results of operations.Furthermore, in 2005, Argentina successfully completed the restructuring of a substantial portion of its bond indebtedness and settled all of its debtwith the IMF. Additionally, in June 2010, Argentina completed the renegotiation of approximately 70% of defaulted bonds that were not swapped in 2005.As a result of the 2005 and 2010 debt swaps, over 91% of the country’s bond indebtedness on which Argentina defaulted in 2002 has now been restructured.Certain bondholders did not participate in the restructuring and instead sued Argentina for payment (“Holdout Bondholders”) in a litigation to whichYPF is not a party. In late October 2012, the United States Court of Appeals for the Second Circuit rejected an appeal by Argentina concerning paymentsallegedly due on bonds that had not been the subject of the swaps in 2005 and 2010. On November 21, 2012, the United States District Court for theSouthern District of New York ordered Argentina to make a deposit of U.S.$1.33 billion for payment to the Holdout Bondholders. Argentina appealed theDistrict Court’s November 21 order to the Second Circuit Court of Appeals, which granted Argentina’s request for a stay of the order. On March 19, 2013,Argentina submitted to the Second Circuit a proposed payment plan for Holdout Bondholders. That proposal was rejected by the plaintiff HoldoutBondholders on April 19, 2013. On August 30, 2013, the Second Circuit Court of Appeals affirmed the District Court’s November 21, 2012 order, but stayedits decision pending an appeal to the Supreme Court of the United States.On September 3, 2013, the District Court granted plaintiff Holdout Bondholders’ requests for discovery from Argentina and certain financialinstitutions concerning, among other things, Argentina’s assets and the relationship between Argentina and YPF. In January of 2014, the U.S. Supreme Courtagreed to hear the appeal filed by Argentina regarding the extent of discovery permitted concerning its assets, but eventually ruled on June 16, 2014 that theDistrict Court had the authority to allow creditors of Argentine debt to seek discovery about all of Argentina’s assets worldwide. 13Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAdditionally, also on June 16, 2014, the U.S. Supreme Court denied Argentina’s appeal for certiorari of the Second Circuit Court of Appeals’ rulingaffirming the District Court judgment, which held that Argentina had violated the pari passu clause with respect to the bondholders that had not participatedin the sovereign debt swaps in 2005 and 2010, and as a consequence was required pursuant to the judge’s ruling to pay 100% of the amounts due to theplaintiffs together with the payment of the amounts due on the next maturity date to bondholders who had participated in the debt swaps (ratable payment).With the appeals of the District Court’s order exhausted, the Second Circuit Court of Appeals on June 18, 2014 lifted its stay of that order. On June 23, 2014,Argentina requested that Judge Griesa of the District Court issue a new stay to allow for a reasonable period of negotiations to settle the dispute with theplaintiffs.On June 26, 2014, Argentina proceeded to deposit the amount applicable to the payment of service of principal and interest that matured on June 30,2014 due to holders of restructured bonds under foreign law who had voluntarily agreed to the debt swaps during the period 2005-2010, which wasequivalent to U.S.$832 million, of which U.S.$539 million was deposited in accounts of The Bank of New York Mellon (“BONY”), as trustee, in the CentralBank of Argentina. On that same date, Judge Griesa rejected the request for a stay made by Argentina on June 23, 2014.On June 27, 2014, in a hearing in the District Court, Judge Griesa ruled that the aforementioned funds should not be delivered to the holders ofrestructured debt in the absence of a prior agreement with the Holdout Bondholders. As of the date of this annual report, the parties have not arrived at anagreement and BONY has invoked the decision of the District Court judge to not deliver the funds deposited by Argentina to the holders of restructuredbonds under foreign law. Argentina has asserted that it has complied with its obligation to the holders of the restructured bonds by making said deposit, andthat BONY, as indenture trustee, has the obligation to deliver those funds to their beneficiaries.On September 11, 2014, Argentina promulgated Law No. 26,984 concerning sovereign payment, which provides for various mechanisms to pay 100%of the outstanding creditors under the terms of the 2005 and 2010 debt swaps, authorizing for that purpose, among other things, the Minister of Economy andPublic Finance to replace BONY as the indenture trustee with Nación Fideicomisos S.A. and to provide for a voluntary exchange of the outstanding bonds fornew bonds that would have identical financial terms but be governed by Argentine law and subject to Argentine jurisdiction.On September 29, 2014, the District Court judge declared Argentina in contempt of court but did not impose sanctions on the country. On October 3,2014, the District Court judge ordered Argentina to repair its relations with BONY, remove Nación Fideicomisos as indenture trustee for the restructured debtand resolve the situation with the Holdout Bondholder plaintiffs.On October 22, 2014, the Second Circuit Court of Appeals dismissed for lack of jurisdiction Argentina’s appeal with respect to the freezing of the fundsdeposited with BONY.On October 28, 2014, the District Court judge rejected a motion to attach the funds deposited by Argentina and frozen at BONY.At the request of Citibank, as trustee, the District Court judge has authorized the payment of U.S. dollar-denominated bonds under Argentine law to theextent that payments have become due, deferring a definitive decision on this question. At the request of Citibank, as agent, the District Court judge hasauthorized on an extraordinary basis on three occasions the payment of interest on U.S. dollar-denominated bonds under Argentine Law to the extent thatpayments became due, deferring a definitive decision on this question. However, the District Court judge, on March 12, 2015, entered an order in which hefinally determined that the Argentine Law Bonds constitute external indebtedness, rank equally (pari passu) with the bonds issued under the 1994 FAA, and,therefore, are covered by the amended injunction dated November 21, 2012.The actions initiated by the Holdout Bondholders against Argentina could result in attachments or preliminary injunctions of assets belonging to, oralleged to belong to, Argentina.In connection with the Holdout Bondholder litigation, the bondholders had served subpoenas on various financial institutions in New York seekingthe production of documents concerning the accounts and transfers of hundreds of entities allegedly owned or controlled, in whole or in part, by the Republicof Argentina, including YPF. At a hearing on September 3, 2013, the District Court judge ruled that this discovery from those institutions can go forward asto, among others, the accounts of YPF, in order for the bondholders to determine if those documents might support an argument that YPF is the alter ego ofthe Republic of Argentina. Notably, the New York courts previously held that Banco de la Nación Argentina is not an alter ego of Argentina, and a Californiamagistrate judge has recently ruled that bondholders’ factual allegations made in support of asset discovery were insufficient to find YPF to be an alter ego ofArgentina. YPF is not a recipient of any such subpoenas and, as such, has no obligation to produce discovery or otherwise participate in discovery. 14Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAfter the pari passu injunction became effective, litigation continued regarding Argentina’s efforts to make payments to exchange bondholders. Thesepayments have been made, however the chain of payments has been interrupted as a consequence of judicial orders, and various exchange bondholders havesought release of such funds through litigation before the District Court and in various jurisdictions. Additionally Argentina’s Congress has passed theSovereign Debt Payment Act, No. 26,984 in which it was allowed to remove the Bank of New York Mellon as trustee and appointed Nación FideicomisosS.A. in its place and authorized to make payments of the sovereign bonds in two accounts in Argentina in order to guarantee that the bondholders receive thepayment made. As of the date hereof, litigation initiated by the Holdout Bondholders seeking payments from Argentina continues in the U.S. and in courts inother jurisdictions. The consequences of potentially inconsistent rulings from different courts are unclear. There can be no assurances that the outcome of thiscontinued and potential future litigation, or the efforts of the bondholders to obtain payment from Argentina through other means, such as alter ego theories,will not have a material adverse effect on Argentina’s economy, YPF’s assets, and/or YPF’s ability to access international financing to repay its obligations.For additional information related to the evolution of the Argentine economy see “Item 5—Operating and Financial Review and Prospects—Macroeconomic Conditions.”Certain risks are inherent in any investment in a Company operating in an emerging market such as Argentina.Argentina is an emerging market economy, and investing in emerging markets generally carries risks. These risks include political, social andeconomic instability that may affect Argentina’s economic results which can stem from many factors, including the following: • high interest rates; • abrupt changes in currency values; • high levels of inflation; • exchange controls; • wage and price controls; • regulations to import equipment and other necessities relevant for operations; • changes in governmental economic or tax policies; and • political and social tensions.In particular, we continue to actively manage our schedule of work, contracting, procurement and supply-chain activities to effectively manage costs.However, price levels for capital and exploratory costs and operating expenses associated with the production of crude oil and natural gas can be subject toexternal factors beyond our control including, among other things, the general level of inflation, commodity prices and prices charged by the industry’smaterial and service providers, which can be affected by the volatility of the industry’s own supply and demand for such materials and services. In recentyears, we and the oil and gas industry generally experienced an increase in certain costs that exceeded the general trend of inflation. We cannot guaranteethat these cost pressures will lessen as result of the decline in prices of crude oil and other commodities in 2014.Any of these factors, as well as volatility in the capital markets, may adversely affect our financial condition and results of operations or the liquidity,trading markets and value of our securities.The Argentine economy has been adversely affected by economic developments in other markets.Financial and securities markets in Argentina, and also the Argentine economy, are influenced by economic and market conditions in other marketsworldwide. Considering the recent international turmoil, Argentina’s economy remains vulnerable to external shocks, including those relating to or similar tothe global economic crisis that began in 2008 and the recent uncertainties surrounding European sovereign debt. For example, the challenges faced by theEuropean Union to stabilize some of its member economies, such as Greece, Ireland, Italy, Portugal and Spain, have had international implications affectingthe stability of global financial markets, which has hindered economies worldwide. Although economic conditions vary from country to country, investors’perceptions of events occurring in one country may substantially affect capital flows into and investments in securities from issuers in other countries,including Argentina.Consequently, there can be no assurance that the Argentine financial system and securities markets will not continue to be adversely affected by eventsin developed countries’ economies or events in other emerging markets, which could in turn, adversely affect the Argentine economy and, as a consequence,the Company’s results of operations and financial condition. 15Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe implementation of new export duties, other taxes and import regulations could adversely affect our results.Since 2002, new duties have been implemented on exports, and have been progressively increased over the years. See “Item 4. Information on theCompany—Regulatory Framework and Relationship with the Argentine Government—Market Regulation.”As a result of the aforementioned export tax increases, we may be and, in certain cases, have already been forced to seek the renegotiation of exportcontracts that had previously been authorized by the Argentine government. We cannot provide assurances that we will be able to renegotiate such contractson terms acceptable to us.In addition, in 2012, the Argentine government adopted an import procedure pursuant to which local authorities must pre-approve any import ofproducts and services to Argentina as a precondition to allow importers access to the foreign exchange market for the payment of such imported products andservices.We cannot assure you that these taxes and import regulations will not continue or be increased in the future or that other new taxes or importregulations will not be imposed.To address recent declining international crude oil prices, as of December 30, 2014 the Argentine government reduced certain export taxes to theminimum allowed by law, so that exporting producers of certain hydrocarbon products, including crude oil, could also partially compensate for the decreasein the price of such products. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—MarketRegulation.”We may be exposed to fluctuations in foreign exchange rates.Our results of operations are exposed to currency fluctuation and any devaluation of the peso against the U.S. dollar and other hard currencies mayadversely affect our business and results of operations. The value of the peso has fluctuated significantly in the past, such as in January 2014 when theArgentine peso was subject to devaluation of approximately 23%, and may do so in the future. See “Item 5—Operating and Financial Review and Prospects—Macroeconomic Conditions” for additional information. The main effects of a devaluation of the Argentine Peso on our net income are those related to theaccounting of deferred income tax related mainly to fixed assets, which we expect would have a negative effect; current income tax, which we expect wouldhave a positive effect; increased depreciation and amortization resulting from the remeasurement in pesos of our fixed and intangible assets; and exchangerate differences as a result of our exposure to the peso, which we expect would have a positive effect due to the fact that our functional currency is the U.S.dollar.We are unable to predict whether, and to what extent, the value of the peso may further depreciate or appreciate against the U.S. dollar and how anysuch fluctuations would affect our business.Variations in interest rates and exchange rate on our current and/or future financing arrangements may result in significant increases in our borrowingcosts.We are permitted to borrow funds to finance the purchase of assets, incur capital expenditures, repay other obligations and finance working capital. Asof December 31, 2014 a significant part of our total debt is sensitive to changes in interest rates. See “Item 11. Quantitative and Qualitative Disclosures aboutMarket Risk—Interest rate exposure.” Consequently, variations in interest rates could result in significant changes in the amount required to be expected tocover to debt service obligations and in our interest expense thus affecting our results and financial condition.In addition, interest and principal amounts payable pursuant to debt obligations denominated in or indexed to U.S. dollars are subject to variations inthe Argentine/U.S. currency exchange rate that could result in a significant increase in the amount of the interest and principal payments in respect of suchdebt obligations.We are subject to exchange and capital controls.In the past, Argentina imposed exchange controls and transfer restrictions substantially limiting the ability of companies to retain foreign currency ormake payments abroad. Beginning in 2011, additional foreign exchange restrictions have been imposed which restrict purchases of foreign currency andtransfers of foreign currency abroad. Such restrictions include the requirement for financial institutions to inform in advance and obtain approval from theArgentine Central Bank with respect to any foreign exchange transaction to be entered into through the foreign exchange market with the exception ofpayments related to foreign debt previously liquidated in the domestic market. Since 2011, oil and gas companies (including YPF), among other entities,were required to repatriate 100% of their foreign currency export receivables. See “Item 4. Information on the Company—Regulatory Framework andRelationship with the Argentine Government—Repatriation of Foreign Currency.” 16Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThere can be no assurances regarding future modifications to exchange and capital controls. Exchange and capital controls could adversely affect ourfinancial condition or results of operations and our ability to meet our foreign currency obligations and execute our financing plans.Our access to international capital markets and the market price of our shares are influenced by the perception of risk in Argentina and other emergingeconomies.International investors consider Argentina to be an emerging market. Economic and market conditions in other emerging market countries, especiallythose in Latin America, influence the market for securities issued by Argentine companies. Volatility in securities markets in Latin America and in otheremerging market countries may have a negative impact on the trading value of our securities and on our ability and the terms on which we are able to accessinternational capital markets.Moreover, recent regulatory and policy developments in Argentina, including the enactment of the Expropriation Law, as well as the litigation of theArgentine government with Holdout Bondholders have led to considerable volatility in the market price of our shares and ADSs. See “—Our business islargely dependent upon economic conditions in Argentina.” We cannot assure that the perception of risk in Argentina and other emerging markets may nothave a material adverse effect on our ability to raise capital and on the trading values of our securities. As a result of the foregoing, we cannot assure you thatfactors previously mentioned may not affect our financial condition and/or results of operations. See “Item 4. Information on the Company—History andDevelopment of YPF.”Risks Relating to the Argentine Oil and Gas Business and Our BusinessOur domestic operations are subject to extensive regulation.The oil and gas industry is subject to government regulation and control. As a result, our business is to a large extent dependent upon regulatory andpolitical conditions prevailing in Argentina and our results of operations may be adversely affected by regulatory and political changes in Argentina.Therefore, we face risks and challenges relating to government regulation and control of the energy sector, including those set forth below and elsewhere inthese risk factors: • limitations on our ability to increase local prices or to reflect the effects from higher domestic taxes, increases in production costs, orincreases in international prices of crude oil and other hydrocarbon fuels and exchange rate fluctuations on our domestic prices. See“Limitations on local pricing in Argentina may adversely affect our results of operations;” • higher taxes on exports of hydrocarbons; • restrictions on hydrocarbon export volumes driven mainly by the requirement to satisfy domestic demand; • in connection with the Argentine government’s policy to provide absolute priority to domestic demand, regulatory orders to supplynatural gas and other hydrocarbon products to the domestic retail market in excess of previously contracted amounts; • legislation and regulatory initiatives relating to hydraulic stimulation and other drilling activities for unconventional oil and gashydrocarbons which could increase our cost of doing business or cause delays and adversely affect our operations; • restrictions on imports of products which could affect our ability to meet our delivery commitments or growth plans, as the case may be;and • the implementation or imposition of stricter quality requirements for petroleum products in Argentina.The Argentine government has made certain changes in regulations and policies governing the energy sector to give absolute priority to domesticsupply at stable prices in order to sustain economic recovery. As a result of the above-mentioned changes, for example, on days during which a gas shortageoccurs, exports of natural gas (which are also affected by other government curtailment orders) and the provision of gas supplies to industries, electricitygeneration plants and service stations selling compressed natural gas are interrupted for priority to be given to residential consumers at lower prices. Morerecently, the Expropriation Law has declared achieving self-sufficiency in the supply of hydrocarbons as well as in the exploitation, industrialization,transportation and sale of hydrocarbons, a national public interest and a priority for Argentina. In addition, its stated goal is to guarantee socially equitableeconomic development, the creation of jobs, the increase of the competitiveness of various economic sectors and the equitable and sustainable growth of theArgentine provinces and regions. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—TheExpropriation Law”, and “—Risks Relating to Argentina—The Argentine federal 17Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsgovernment will control the Company according to domestic energy policies in accordance with Law No. 26,741 (the “Expropriation Law”).” Moreover, wecannot assure you that changes in applicable laws and regulations, or adverse judicial or administrative interpretations of such laws and regulations, will notadversely affect our results of operations. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the ArgentineGovernment.”Limitations on local pricing in Argentina may adversely affect our results of operations.Due to regulatory, economic and government policy factors, our domestic gasoline, diesel and other fuel prices have in the past lagged substantiallybehind prevailing international and regional market prices for such products, and our ability to increase prices has been limited. In addition, revenues weobtain as a result of selling natural gas in Argentina (including amounts received through the Natural Gas Additional Injection Stimulus Program; see “Item5. Operating and Financial Review and Prospects—Market Regulation—Natural gas”) are subject to government regulations and could be negativelyaffected, principally in case the Natural Gas Additional Injection Stimulus Program is cancelled or not extended past its current expiration date. The pricesthat we are able to obtain for our hydrocarbon products affect, among others, the viability of investments in new exploration, development and refining, andas a result the timing and amount of our projected capital expenditures for such purposes. We budget capital expenditures by taking into account, amongother things, market prices for our hydrocarbon products. For additional information on domestic pricing for our products, see “Item 4. Information on theCompany—Regulatory Framework and Relationship with the Argentine Government—Market Regulation.” On April 10, 2013, Resolution 35/2013 of theArgentine Secretariat of Domestic Commerce determined a price cap for fuel at all service stations for a period of six months (subsequently extended untilNovember 24, 2013 and not extended any longer), which shall not exceed the highest outstanding price as of April 9, 2013 in each of the regions identifiedin the Annex of the Resolution. We cannot guarantee that we will be able to increase the domestic prices of our products, mainly to reflect the effects ofincreased production costs, domestic taxes, and exchange rate fluctuations, and limitations on our ability to do so would adversely affect our financialcondition and results of operations. Similarly, we cannot assure you that hydrocarbon prices in Argentina will match the increases or decreases inhydrocarbon prices at the international or regional levels.In addition, in July 2012, pursuant to the Expropriation Law, the Argentine government created the “Regulation of the Hydrocarbons SovereigntyRegime in the Argentine Republic” and established a planning and coordination commission for the sector (the “Hydrocarbons Commission”). TheHydrocarbons Commission consists of representatives of the federal government, and its objective is to address certain market asymmetries in the oil and gassector. The goals of the Hydrocarbons Commission are mainly to guarantee adequate investment by oil and gas companies to: • improve the level of oil and gas reserves, • expand oil refining capabilities, and • maintain an adequate supply of fuel at reasonable prices.For the purpose of granting reasonable commercial prices, the Hydrocarbons Commission will determine the criteria that shall govern the operations inthe domestic market. The Hydrocarbons Commission has the power to publish reference prices for oil and gas, which will be adjusted to cover the productioncosts attributable to the activity and to reach a reasonable margin of profit, monitor oil and gas prices charged by private companies and supervise and ensureinvestment in the oil sector. Each company within the sector must be registered in the National Hydrocarbons Investments Registry (Registro Nacional deInversiones Hidrocarburíferas) and must submit an annual investment plan for approval by the Hydrocarbons Commission. Non-compliance with thisrequirement may result in several sanctions, including termination of the authorization to exploit hydrocarbon reserves and operate within the sector. Formore information, please see “See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—MarketRegulation —Regulation of the Hydrocarbons Sovereignty Regime in the Argentine Republic—Decree No. 1,277/2012.”We are subject to direct and indirect export restrictions, which have affected our results of operations and caused us to declare force majeure undercertain of our export contracts.The Argentine Hydrocarbons Law, Law No. 17,319, allows for hydrocarbon exports as long as they are not required for the domestic market and aresold at reasonable prices. In the case of natural gas, Law No. 24,076 and related regulations require that the needs of the domestic market be taken intoaccount when authorizing long-term natural gas exports.During the last several years, the Argentine authorities have adopted a number of measures that have resulted in restrictions on exports of natural gasfrom Argentina. Due to the foregoing, we have been obliged to sell a part of our natural gas production previously destined for the export market in the localArgentine market and have not been able to meet our contractual gas export commitments in whole or, in some cases, in part, leading to disputes with ourexport clients and forcing us to declare force majeure under our export sales agreements. We believe that the measures mentioned above constitute forcemajeure events that relieve us from any contingent liability for the failure to comply with our contractual obligations, although no assurance can be giventhat this position will prevail. 18Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsSee “Item 4. Information on the Company—Exploration and Production—Delivery commitments-Natural gas supply contracts,” “Item 4. Informationon the Company—Exploration and Production—The Argentine natural gas market,” and “Item 8. Financial Information—Legal Proceedings.”Crude oil exports, as well as the export of most of our hydrocarbon products, currently require prior authorization from the Argentine Secretariat ofEnergy (pursuant to the regime established under Resolution S.E. No. 1679/04 as amended and supplemented by other regulation). Oil companies seeking toexport crude oil or LPG must first demonstrate that the local demand for such product is satisfied or that an offer to sell the product to local purchasers hasbeen made and rejected. Oil refineries seeking to export diesel fuel must also first demonstrate that the local demand of diesel fuel is duly satisfied. Becausedomestic diesel fuel production does not currently satisfy Argentine domestic consumption needs, we have been prevented since 2005 from selling dieselfuel production in the export market, and are obliged to sell in the local market at prevailing domestic prices.We are unable to predict how long these export restrictions will be in place, or whether any further measures will be adopted that adversely affect ourability to export gas, crude oil and diesel fuel or other products and, accordingly, our results of operations.Oil and gas prices, including the recent decline in global prices for oil and gas, could affect our business.We budget capital expenditures related to exploration, development, refining and distribution activities by taking into account, among other things,local and international market prices for our hydrocarbon products.The international price of crude oil has fluctuated significantly in the past and may continue to do so the future. In recent months, the internationalprice of a barrel of Brent crude oil fell below U.S.$ 55. This is a decrease of approximately U.S.$ 50 per barrel, representing an approximately 50% decreasefrom the 2014 average of U.S.$ 98.97 per barrel. While in the past domestic oil prices in Argentina have not reflected increases or decreases in internationaloil prices, the significant decline discussed above resulted in an approximately U.S.$7 reduction to the domestic price per barrel compared to the price ineffect on December 31, 2014. This change stemmed from negotiations between producers and refiners to reduce the domestic price of Medanito and Escalantecrude during January 2015 to U.S.$ 77 and U.S.$ 63 per barrel, respectively, and during February 2015 to U.S.$ 76 and U.S.$ 62 per barrel, respectively . Ifinternational crude prices remain at current levels or continue to drop for an extended period of time and this is reflected in the domestic price of oil, whichwe cannot control, it could cause the economic viability of drilling projects to be reduced, the loss of proved reserves as a result of the new economicconditions and proved undeveloped reserves as a result of changes to our development plans. It could also affect our assumptions and estimates and, as aresult, affect the recovery value of certain assets. Furthermore, if these conditions are reflected in the domestic prices of our refined products, which as of thedate of this annual report are in general above international prices, our ability to generate cash and our results of operations could be adversely affected.In addition, on February 4, 2015 the Commission issued Resolution 14/2015 creating the Crude Oil Production Stimulus Program (Programa deEstímulo a la Producción de Petróleo Crudo) which will be in force from January 1, 2015 through December 31, 2015 and through which the Argentinefederal government, subject to certain requirements, will pay an export stimulus and/or a production stimulus for companies registered under that program.The program aims to offset significantly the potential impact international crude oil prices have on the local industry which might, in turn, create acomparatively more attractive oil and gas market for Argentina during 2015. We cannot assure you that we will achieve the qualifications necessary to obtainthe incentive set by Resolution 14/2015, including the relevant level of production, which could negatively affect our financial conditions and results ofoperations. Furthermore, we cannot guarantee that the incentive program will be extended beyond December 2015 in the event international prices remain atcurrent or lower levels. “See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—MarketRegulation —Resolution No. 14/2015.”In light of the above and assuming current domestic prices for certain products do not match cost increases (including those related to the increase inthe value of the U.S. dollar against the Argentine peso) in accordance with higher and more complex investments, mainly as a result of the development ofunconventional resources, and also with evolution of the economy, our ability to improve our hydrocarbon recovery rates, find new reserves, developunconventional resources and carry out certain of our other capital expenditure plans are likely to be adversely affected, which in turn would have an adverseeffect on our results of operations. For more information on recent declines in the international Brent crude oil prices, domestic crude oil prices and domesticgasoline prices, see “Item 3. Operating and Financial Review and Prospects–Macroeconomic Conditions.” 19Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOur reserves and production are likely to decline.Most of our existing oil and gas producing fields in Argentina are mature and, as a result, our reserves and production are likely to decline as reservesare depleted. Our production declined by approximately 8.4% in 2011 and 0.6% in 2012 on a boe/d basis. However, as a result of increased development andexploration activity in 2013 and 2014, including the production that came from our aquired properties, our production increased by approximately 1.7% and13.5%, respectively, on a boe/d basis. In addition, the reserves replacement ratio (increases in reserves in the year, net divided by the production of the year)was 154% in 2013 and 163% in 2014.We face certain challenges in order to replace our proved reserves with other categories of hydrocarbons. However, the continuous comprehensivetechnical review of our oil and gas fields allows us to identify opportunities to rejuvenate mature fields and optimize new fields developments in Argentinebasins with the aim of achieving results similar to those achieved by mature fields in other regions of the world (which have achieved substantially higherrecovery factors with the application of new technology). Additionally, we have been completing the renewal of most of our concessions, allowing us todevelop certain strategic projects related to waterflooding, enhanced oil recovery and unconventional resources, which represent an important opportunitynot only for the Company but also for Argentina. We expect that unconventional development will require higher investment in future years, principally inconnection with the Vaca Muerta formation. These investments are expected to yield substantial economies of scale and to significantly increase recoveryrates from this resource play. Other resource plays, unconventional prospects, exist in Argentina and have positioned the country amongst the most attractivein terms of worldwide unconventional resource potential. Nevertheless, the financial viability of these investments and reserve recovery efforts will generallydepend on the prevailing economic and regulatory conditions in Argentina, as well as the market prices of hydrocarbon products, and are also subject tomaterial risks inherent to the oil and gas industry and may prove unsuccessful. See “—Our business plan includes future drilling activities for unconventionaloil and gas reserves, such as shale oil and gas extraction, and if we are unable to successfully acquire and use the necessary new technologies and othersupport as well as obtain financing and venture partners, our business may be adversely affected.”Our oil and natural gas reserves are estimates.Our oil and gas proved reserves are estimated using geological and engineering data to determine with reasonable certainty whether the crude oil ornatural gas in known reservoirs is recoverable under existing economic and operating conditions. The accuracy of proved reserve estimates depends on anumber of factors, assumptions and variables, some of which are beyond our control. Factors susceptible to our control include drilling, testing andproduction after the date of the estimates, which may require substantial revisions to reserves estimates; the quality of available geological, technical andeconomic data used by us and our interpretation thereof; the production performance of our reservoirs and our recovery rates, both of which depend insignificant part on available technologies as well as our ability to implement such technologies and the relevant know-how; the selection of third parties withwhich we enter into business; and the accuracy of our estimates of initial hydrocarbons in place, which may prove to be incorrect or require substantialrevisions. Factors mainly beyond our control include changes in prevailing oil and natural gas prices, which could have an effect on the quantities of ourproved reserves (since the estimates of reserves are calculated under existing economic conditions when such estimates are made); changes in the prevailingtax rules, other government regulations and contractual conditions after the date estimates are made (which could make reserves no longer economicallyviable to exploit); and certain actions of third parties, including the operators of fields in which we have an interest.Information on net proved reserves as of December 31, 2014, 2013 and 2012 was calculated in accordance with the SEC rules and FASB’s ASC 932, asamended. Accordingly, crude oil prices used to determine reserves were calculated at the beginning of each month, for crude oils of different qualityproduced by us. We considered the realized prices for crude oil in the domestic market taking into account the effect of exports taxes as in effect as of each ofthe corresponding years (until 2016, in accordance with Law No. 26,732). For the years beyond the mentioned periods, we considered the unweightedaverage price of the first-day-of-the-month for each month within the twelve-month period ended December 31, 2014, 2013 and 2012, respectively, whichrefers to the WTI prices adjusted by each different quality produced by us. Commodity prices declined significantly in the fourth quarter of 2014. If suchprices do not increase significantly, and domestic prices for crude oil were reduced to similar levels to those prevailing in the international market, our futurecalculations of estimated proved reserves would be based on lower commodity prices which could result in our having to remove non-economic reserves fromour proved reserves in future periods. Holding all other factors constant, if commodity reference prices used in our year-end reserve estimates were decreasedfor crude oil, thereby approximating the pricing environment existing as of the most recent practicable date in the international market (approximately U.S.$51 dollars per barrel for WTI), and considering such prices since January 1, 2015, our total proved reserves at December 31, 2014 could decrease byapproximately 22%. Holding all other factors constant, if commodity reference prices used in our year-end reserve estimates were decreased for crude oil,thereby approximating the realized prices for crude oil in the domestic market since January 1, 2015 (approximately U.S.$ 77 dollars per barrel for WTIequivalent quality), and considering such prices since January 1, 2015, our total proved reserves at December 31, 2014 could decrease by approximately 5%.In addition, as a result of the prices used to calculate the present value of future net revenues 20Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsfrom our proved reserves, in accordance with the SEC rules, which are similar to previously described for calculation of proved reserves, the present value offuture net revenues from our proved reserves will not necessarily be the same as the current market value of our estimated crude oil and natural gas reservesand, in particular, may be reduced due to the recent significant decline in commodity prices if such prices do not increase significantly and domestic priceswere reduced to similar levels as those prevailing in the international market.As a result of the foregoing, measures of reserves are not precise and are subject to revision. Any downward revision in our estimated quantities ofproved reserves could adversely impact our financial results by leading to increased depreciation, depletion and amortization charges and/or impairmentcharges, which would reduce earnings and shareholders’ equity.Oil and gas activities are subject to significant economic, environmental and operational risks.Oil and gas exploration and production activities are subject to particular economic and industry-specific operational risks, some of which are beyondour control, such as production, equipment and transportation risks, as well as natural hazards and other uncertainties, including those relating to the physicalcharacteristics of onshore and offshore oil or natural gas fields. Our operations may be curtailed, delayed or cancelled due to bad weather conditions,mechanical difficulties, shortages or delays in the delivery of equipment, compliance with governmental requirements, fire, explosions, blow-outs, pipefailure, abnormally pressured formations, and environmental hazards, such as oil spills, gas leaks, ruptures or discharges of toxic gases. In addition we operatein politically sensitive areas where native population has interests that from time to time may conflict with our production objectives. If these risksmaterialize, we may suffer substantial operational losses and disruptions to our operations and harm to our reputation. Drilling may be unprofitable, not onlywith respect to dry wells, but also with respect to wells that are productive but do not produce sufficient revenues to return a profit after drilling, operatingand other costs are taken into account.Our business plan includes future drilling activities for unconventional oil and gas reserves, such as shale oil and gas extraction, and if we are unable tosuccessfully acquire and use the necessary new technologies and other support as well as obtain financing and venture partners, our business may beadversely affected.Our ability to execute and carry out our business plan depends upon our ability to obtain financing at a reasonable cost and on reasonable terms. Wehave identified drilling locations and prospects for future drilling opportunities of unconventional oil and gas reserves, such as the shale oil and gas in theVaca Muerta formation. These drilling locations and prospects represent a part of our future drilling plans. Our ability to drill and develop these locationsdepends on a number of factors, including seasonal conditions, regulatory approvals, negotiation of agreements with third parties, commodity prices, costs,access to and availability of equipment, services and personnel and drilling results. In addition, as we do not have extensive experience in drilling andexploiting unconventional oil and gas reserves, the drilling and exploitation of such unconventional oil and gas reserves depends on our ability to acquirethe necessary technology and hire personnel and other support needed for extraction or obtain financing and venture partners to develop such activities.Furthermore, in order to implement our business plan, including the development of our oil and natural gas exploration activities and the development ofrefining capacity sufficient to process increasing production volumes, we will need to raise significant amounts of debt capital in the financial and capitalmarkets. We cannot guarantee that we will be able to obtain the necessary financing or obtain financing in the international or local financial markets atreasonable cost and on reasonable terms to implement our new business plan or that we would be able to successfully develop our oil and natural gas reservesand resources (mainly those related to our unconventional oil and gas business plan). Because of these uncertainties, we cannot give any assurance as to thetiming of these activities or that they will ultimately result in the realization of proved reserves or meet our expectations for success, which could adverselyaffect our production levels, financial condition and results of operations.We may not have sufficient insurance to cover all the operating hazards that we are subject to.As discussed under “—Oil and gas activities are subject to significant economic, environmental and operational risks” and “—We may incursignificant costs and liabilities related to environmental, health and safety matters,” our exploration and production operations are subject to extensiveeconomic, operational, regulatory and legal risks. We maintain insurance covering us against certain risks inherent in the oil and gas industry in line withindustry practice, including loss of or damage to property and equipment, control-of well incidents, loss of production or income incidents, removal of debris,sudden and accidental seepage pollution, contamination and clean up and third-party liability claims, including personal injury and loss of life, among otherbusiness risks. However, our insurance coverage is subject to deductibles and limits that in certain cases may be materially exceeded by our liabilities. Inaddition, certain of our insurance policies contain exclusions that could leave us with limited coverage in certain events. See “Item 4. Information on theCompany—Insurance.” In addition, we may not be able to maintain adequate insurance at rates or on terms that we consider reasonable or acceptable or beable to obtain insurance against certain risks that materialize in the future. If we experience an incident against which we are not insured, or the costs of whichmaterially exceed our coverage, it could have a material adverse effect on our business, financial condition and results of operations. 21Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsArgentine oil and gas production concessions and exploration permits are subject to certain conditions and may be cancelled or not renewed.As modified by Law No. 27,007 the Hydrocarbons Law provides for oil and gas concessions to remain in effect for 25 years as from the date of theiraward, 35 years for unconventional concessions and 30 years for offshore concessions. It further provides that concession terms may be extended for periodsof up to 10 years each. The authority to extend the terms of current and new permits, concessions and contracts has been vested in the governments of theprovinces in which the relevant area is located (and the federal government in respect of offshore areas beyond 12 nautical miles). In order to be eligible foran extension of a concession, under the modifications of Law No. 27,007, concessionaires must (i) have complied with their obligations, (ii) be producinghydrocarbons in the concession under consideration and (iii) submit an investment plan for the development of such areas as requested by the competentauthorities up to a year prior to the termination of each term of the concession. Under the Hydrocarbons Law, non-compliance with the obligations andstandards set out therein may also result in the imposition of fines and in the case of material breaches, following the expiration of applicable cure periods,the revocation of the concession or permit.We cannot provide assurances that any of our concessions will be extended as a result of the consideration by the relevant authorities of the investmentplans the Company would submit in the future for the development of the areas as of the date of requesting the extension periods for the relevant areas for theCompany, or other requirements will not be imposed on us in order to obtain extensions as of the date of expiration. Additional royalty payments of 3% up toa maximum of 18% are provided for in extensions under Law No. 27,007. The termination of, or failure to obtain the extension of, a concession or permit, orits revocation, could have a material adverse effect on our business and results of operations.Our acquisition of exploratory acreage and crude oil and natural gas reserves is subject to heavy competition.We face intense competition in bidding for crude oil and natural gas production areas, especially those areas with the most attractive crude oil andnatural gas reserves. As a result, the conditions under which we are able to access new exploratory or productive areas could be adversely affected. Inaddition, fewer offerings of exploratory acreages available to be bid upon could affect our future results.We may incur significant costs and liabilities related to environmental, health and safety matters.Our operations, like those of other companies in the oil and gas industry, are subject to a wide range of environmental, health and safety laws andregulations in the countries in which we operate. These laws and regulations have a substantial impact on our operations and those of our subsidiaries, andcould result in material adverse effects on our financial position and results of operation. In addition, YPF Holdings, a 100% subsidiary of YPF, has certainenvironmental liabilities. See “Item 8. Financial Information—Legal Proceedings—YPF Holdings.” A number of events related to environmental, health andsafety matters, including changes in applicable laws and regulations, adverse judicial or administrative interpretations of such laws and regulations, changesin enforcement policy, the occurrence of new litigation or development of pending litigation, and the development of information concerning these matters,could result in new or increased liabilities, capital expenditures, reserves, losses and other impacts that could have a material adverse effect on our financialcondition and results of operations. See “Item 8. Financial Information—Legal Proceedings,” “Item 4. Information on the Company—Regulatory Frameworkand Relationship with the Argentine Government—Argentine Environmental Regulations” and “Item 4. Information on the Company—RegulatoryFramework and Relationship with the Argentine Government—U.S. Environmental Regulations.”Environmental, health and safety regulation and jurisprudence in Argentina is developing at a rapid pace and no assurance can be provided that suchdevelopments will not increase our cost of doing business and liabilities, including with respect to drilling and exploitation of our unconventional oil andgas reserves. In addition, due to concern over the risk of climate change, a number of countries have adopted, or are considering the adoption of, newregulatory requirements to reduce greenhouse gas emissions, such as carbon taxes, increased efficiency standards, or the adoption of cap and trade regimes. Ifadopted in Argentina, these requirements could make our products more expensive as well as shift hydrocarbon demand toward relatively lower-carbonsources such as renewable energies.We may incur significant costs and liabilities depending on the final remedy selection proposed and approved by the U.S. Environmental ProtectionAgency (“EPA”) regarding the Focused Feasibility Study for remedial action with respect to environmental contamination of the lower eight miles of thePassaic River in New Jersey.As previously mentioned, YPF Holdings, a wholly-owned subsidiary of YPF, is subject to certain environmental liabilities. In particular, in June 2007,the EPA released a draft Focused Feasibility Study (“FFS”) that outlined several alternatives for remedial 22Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsaction in the lower eight miles of the Passaic River. Tierra, in conjunction with the other parties of the CPG, submitted comments on the draft FFS to the EPA,as did a number of other interested parties. As a result of the comments received, the EPA withdrew the FFS for revision and further consideration in light ofthe comments. On November 14, 2013, at a Community Advisory Group (“CAG”) meeting, the EPA described the alternatives it was considering in therevised FFS. The EPA stated that the FFS would set forth four alternatives: (i) no action, (ii) deep dredging with backfill of 9.7 million cubic yards over 12years, which it estimated would cost U.S.$1.4 billion to U.S.$3.5 billion, depending on whether the dredged sediment is disposed of in a confined aquaticdisposal facility (“CAD”) at the bottom of Newark Bay, at an off-site disposal facility or locally decontaminated and put to beneficial use; (iii) capping withdredging of 4.3 million cubic yards over six years, which it estimated would cost U.S.$1.0 billion to U.S.$1.8 billion, depending on whether there is a CAD,off-site disposal or local decontamination and beneficial use; and (iv) focused dredging and capping of 0.9 million cubic yards over three years, which itestimated would cost U.S.$0.4 billion to U.S.$0.6 billion, depending on whether there is a CAD, off-site disposal or local decontamination and beneficial use.The EPA has indicated that it has discarded alternative (iv) and it favors alternative (iii). On April 11, 2014, the EPA published the revised FFS for the lowereight miles of the Passaic River in final. Among the various measures considered in the final FFS, the EPA recommended as its preferred remedial action forthis area that approximately 4.3 million cubic yards of sediment be removed through bank-to-bank dredging, which sediments would then be dehydratedlocally and transported by train for their incineration or disposal at an off-site disposal facility. An engineering cap (a physical barrier mainly consisting ofsand and stone) would then be placed over the bank-to-bank dredged area. In its final FFS, the EPA estimated the cost of the preferred measure for the lowereight miles of Passaic River to be U.S.$1,731 million (present value estimated with a 7% discount rate). On August 20, 2014, Maxus and Tierra, on behalf ofOccidental Chemical Corporation (“OCC”), submitted extensive comments on the final FFS to the EPA. The main comments offered by Maxus, Tierra andOCC on the final FFS were: • The FFS is not a process legally authorized to select the type and size of remediation proposed by the EPA for the lower eight miles ofthe Passaic River; • The FFS is based on a flawed site design; • The FFS overstates the human health and ecological risk issues; and • The proposed remediation plan is not executable or economically reasonable in terms of cost-benefit.In addition to the comments received from Maxus and Tierra, the EPA also received comments from approximately 400 other companies, institutions,government agencies, non-governmental organizations and individuals, including the CPG, Amtrak (the federal railway company), NJ Transit, the AmericanArmy Corps of Engineers, the Passaic Valley Sewerage Commission, yacht clubs, public officials and others. In addition to commenting on the final FFS,Maxus and Tierra have proposed a preliminary project called In-ECO, which is an ecological and sustainable bio-remediation alternative, as a substitute forthe remediation chosen by the EPA in its final FFS. Maxus and Tierra presented In-ECO to the EPA in May 2014. The EPA provided comments in September2014, and Maxus and Tierra presented a revised version in November 2014. Currently, the EPA is considering these comments and will issue a responsebefore it makes its final decision regarding the remediation plan for the area. The EPA’s decision on the remedy will likely be published in a “Record ofDecision” sometime during 2015 or 2016. Based on the information available to us as of the issuance date of this annual report, considering the uncertaintiesrelated to the different remedial alternatives and those that may be incorporated in the Record of Decision and their associated costs, the results of the studiesand discoveries to be produced, the amounts previously incurred by YPF Holdings in remediation activities in the area covered by the FFS, the manypotentially responsible parties involved in the matter, the uncertainties related with potential allocation of removal and remediation costs, and alsoconsidering the opinion of external counsel, it is not possible to reasonably estimate a loss or range of losses on these outstanding matters. Therefore, noamount has been accrued for this litigation by YPF Holdings. Depending on the final remedy selection proposed and approved by the EPA regarding the FFS,and the potential assignment of responsibility to YPF Holdings for such remediation, our financial condition and result of operations could be affectednegatively. In addition, taking into account YPF Holdings’ economic and financial situation, we cannot assure you that as a result of the final costs of theFFS and the EPA’s Record of Decision, YPF Holdings would not fail to make payments related thereto. See “Item 8. Financial Information—LegalProceedings—YPF Holdings.”We face risk relating to certain legal proceedings.As described under “Item 8. Financial Information—Legal Proceedings,” we are party to a number of labor, commercial, civil, tax, criminal,environmental and administrative proceedings that, either alone or in combination with other proceedings, could, if resolved in whole or in part adversely tous, result in the imposition of material costs, fines, judgments or other losses. While we believe that we have provisioned such risks appropriately based onthe opinions and advice of our external legal advisors and in accordance with applicable accounting rules, certain loss contingencies, particularly thoserelating to environmental matters, are subject to change as new information develops and it is possible that losses resulting from such risks, if proceedings aredecided in whole or in part adversely to us, could significantly exceed any accruals we have provided. 23Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, we may be subject to undisclosed liabilities related to labor, commercial, civil, tax, criminal or environmental contingencies incurred bybusinesses we acquire as part of our growth strategy, that we may not be able to identify or that may not be adequately indemnified under our acquisitionagreements with the sellers of such businesses, in which case our business, financial condition and results of operation may negatively and adversely affected.Our business depends to a significant extent on our production and refining facilities and logistics network.Our oil and natural gas field facilities, refineries and logistics network are our principal production facilities and distribution network on which asignificant portion of our revenues depends. Although we insure our properties on terms we consider prudent and have adopted and maintain safety measures,any significant damage to, accident or other production stoppage at our facilities or network could materially and adversely affect our productioncapabilities, financial condition and results of operations.On April 2, 2013 our facilities in the La Plata refinery were hit by a severe and unprecedented storm, recording over 400 mm of rainfall (which was themaximum ever recorded in the area). The heavy rainfall disrupted refinery systems and caused a fire that affected the Coke A and Topping C units in therefinery. This incident temporarily affected the crude processing capacity of the refinery, which had to be stopped entirely. Seven days after the event, theprocessing capacity was restored to about 100 mbbl/d through the commissioning of two distillation units (Topping IV and Topping D). By the end of May2013, the Topping C unit resumed operations at full nominal capacity. The Coke A unit has been shut down permanently since the storm, affecting thevolume of crude processed in the refinery, due to a reduction in conversion capacity. The storm resulted in a decrease in the volume of crude oil processed.YPF has an insurance policy that provides coverage for the loss of income and property damage due to incidents like the storm that affected the La Platarefinery. See note 11.b to the Audited Consolidated Financial Statements for information regarding the amount recognized in our result of operations inconnection with our insurance coverage.In addition, on March 21, 2014, a fire occurred at the Cerro Divisadero crude oil treatment plant, located 20 kilometers from the town of BardasBlancas in the province of Mendoza. The Cerro Divisadero plant, which has 6 tanks, 4 of which are for processing and 2 are for dispatch of treated crude oil,concentrates the production of 10 fields in the Malargue area, which constitutes a daily production of approximately 9,200 barrels of oil as of the date of theincident. As of the date of this annual report, the production of the affected fields have almost returned to their previous levels, and the engineering of thenew oil treatment plant has advanced as planned.We could be subject to organized labor action.Our operations have been affected by organized work disruptions and stoppages in the past and we cannot assure you that we will not experience themin the future, which could adversely affect our business and revenues. Labor demands are commonplace in Argentina’s energy sector and unionized workershave blocked access to and damaged our plants in the recent past. Our operations were affected occasionally by labor strikes in recent years. See “Item 5.Operating and Financing Review and Prospects—Factors Affecting Our Operations—Macroeconomic Conditions.”We may not be able to pay, maintain or increase dividends.On July 17, 2012, our Shareholders approved a dividend of Ps.303 million (Ps. 0.77 per share or ADS) which was paid during November 2012. OnApril 30, 2013, our Shareholders approved a dividend of Ps. 326 million (Ps. 0.83 per share or ADS) which was paid during August 2013. On April 30, 2014,our Shareholders approved a dividend of Ps. 464 million (Ps. 1.18 per share or ADS), which was paid during July 2014. Notwithstanding the foregoing, ourability to pay, maintain or increase dividends is based on many factors, including but not limited to our net income, anticipated levels of capital expendituresand expected levels of growth. A change in any such factor could affect our ability to pay, maintain or increase dividends, and the exact amount of anydividend paid may vary from year to year.Our performance is largely dependent on recruiting and retaining key personnelOur current and future performance and the operation of our business are dependent upon the contributions of our senior management and our highlyskilled team of engineers and other employees. It is dependent on our ability to attract, train, motivate and retain key management and commercial andtechnical personnel with the necessary skills and experience. There is no guarantee that we will be successful in retaining and attracting key personnel andthe replacement of any key personnel who were to leave could be difficult and time consuming. The loss of the experience and services of key personnel orthe inability to recruit suitable replacements or additional staff could have a material adverse effect on our business, financial condition and/or results ofoperations.The Argentine government controls our company and has the majority of votes which allows to appoint the majority of members of our board ofdirectors at the General Shareholder’s meeting. See “—The Argentine federal government will control the Company according to domestic energy policies inaccordance with Law No. 26,741 (the “Expropriation Law”)” and “—Our business is largely dependent upon economic conditions in Argentina”.Risks Relating to Our Class D Shares and ADSsThe market price for our shares and ADSs may be subject to significant volatilityThe market price of our ordinary shares and ADSs may fluctuate significantly due to a number of factors, including, among others, our actual oranticipated results of operations and financial condition; speculation over the impact of the Argentine government as our controlling shareholder on ourbusiness and operations, investor perceptions of investments relating to Argentina and political and regulatory developments affecting our industry or theCompany. In addition, recent regulatory and policy developments in Argentina, including the passage of the Expropriation Law, as well as the litigation ofthe Argentine government with Holdout Bondholders (see “—Our business is largely dependent upon economic conditions in Argentina”), have led toconsiderable volatility 24Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsin the market price of our shares and ADSs. For example, the price of our ADSs closed at U.S.$54.58 on January 5, 2011, and fell to a low of U.S.$9.57 onNovember 16, 2012. In 2013, the price recovered to a high closing price of U.S.$34.17 on December 23, but subsequently fell to U.S.$21.85 on February 3,2014. The price recovered to a high closing price of U.S.$36.99 on July 1, 2014 but subsequently fell to U.S.$22.19 on January 2, 2015. See “Item 9. TheOffer and Listing.” We cannot assure you that concerns about factors that could affect the market price of our ordinary shares as previously mentioned mayhave a material adverse effect on the trading values of our securities.Certain strategic transactions require the approval of the holder of our Class A shares or may entail a cash tender offer for all of our outstanding capitalstock.Under our by-laws, the approval of the Argentine government, the sole holder of our Class A shares, is required to undertake certain strategictransactions, including a merger, an acquisition that results in the purchaser holding 15% or more of our capital stock or an acquisition that results in thepurchaser holding a majority of our capital stock, requiring consequently the approval of the National State (the holder of our Class A shares) for suchdecisions.In addition, under our by-laws, an acquisition that results in the purchaser holding 15% or more of our capital stock would require such purchaser tomake a public cash tender offer for all of our outstanding shares and convertible securities, which could discourage certain investors from acquiringsignificant stakes in our capital stock. See “Item 10. Additional Information—Certain Provisions Relating to Acquisitions of Shares.”Restrictions on the movement of capital out of Argentina may impair your ability to receive dividends and distributions on, and the proceeds of any sale of,the Class D shares underlying the ADSs.The government is empowered, for reasons of public emergency, as defined in Article 1 of the Emergency Law (Law No. 25,561), to establish thesystem that will determine the exchange rate between the peso and foreign currency and to impose exchange regulations. Although the transfer of fundsabroad in order to pay dividends currently does not require Central Bank approval, restrictions on the movement of capital to and from Argentina may, ifimposed, impair or prevent the conversion of dividends, distributions, or the proceeds from any sale of Class D shares, as the case may be, from pesos into U.S.dollars and the remittance of the U.S. dollars abroad. The Argentine government has recently tightened U.S. dollar exchange regulations.Under the terms of our deposit agreement with the depositary for the ADSs, the depositary will convert any cash dividend or other cash distribution wepay on the shares underlying the ADSs into U.S. dollars, if it can do so on a reasonable basis and can transfer the U.S. dollars to the United States. If thisconversion is not possible for any reason, including regulations of the type described in the preceding paragraph, the deposit agreement allows the depositaryto distribute the foreign currency only to those ADR holders to whom it is possible to do so. If the exchange rate fluctuates significantly during a time whenthe depositary cannot convert the foreign currency, you may lose some or all of the value of the dividend distribution.Under Argentine law, shareholder rights may be different from other jurisdictions.Our corporate affairs are governed by our by-laws and by Argentine corporate law, which differ from the legal principles that would apply if we wereincorporated in a jurisdiction in the United States or in other jurisdictions outside Argentina. In addition, rules governing the Argentine securities markets aredifferent and may be subject to different enforcement in Argentina than in other jurisdictions.Actual or anticipated sales of a substantial number of Class D shares could decrease the market prices of our Class D shares and the ADSs.Sales of a substantial number of Class D shares or ADSs by any present or future relevant shareholder could decrease the trading price of our Class Dshares and the ADSs.You may be unable to exercise preemptive, accretion or other rights with respect to the Class D shares underlying your ADSs.You may not be able to exercise the preemptive or accretion rights relating to the shares underlying your ADSs (see “Item 10. Additional Information—Preemptive and Accretion Rights”) unless a registration statement under the U.S. Securities Act of 1933 (the “Securities Act”) is effective with respect tothose rights or an exemption from the registration requirements of the Securities Act is available. We are not obligated to file a registration statement withrespect to the shares relating to these preemptive rights, and we cannot assure you that we will file any such registration statement. Unless we file aregistration statement or an exemption from 25Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsregistration is available, you may receive only the net proceeds from the sale of your preemptive rights by the depositary or, if the preemptive rights cannotbe sold, they will be allowed to lapse. As a result, U.S. holders of Class D shares or ADSs may suffer dilution of their interest in our company upon futurecapital increases.In addition, under the Argentine Corporations Law, foreign companies that own shares in an Argentine corporation are required to register with theSuperintendency of Corporations (Inspección General de Justicia, or “IGJ”) in order to exercise certain shareholder rights, including voting rights. If you ownour Class D shares directly (rather than in the form of ADSs) and you are a non-Argentine company and you fail to register with IGJ, your ability to exerciseyour rights as a holder of our Class D shares may be limited.You may be unable to exercise voting rights with respect to the Class D shares underlying your ADSs at our shareholders’ meetings.The depositary will be treated by us for all purposes as the shareholder with respect to the shares underlying your ADSs. As a holder of ADRsrepresenting the ADSs being held by the depositary in your name, you will not have direct shareholder rights and may exercise voting rights with respect tothe Class D shares represented by the ADSs only in accordance with the deposit agreement relating to the ADSs. There are no provisions under Argentine lawor under our by-laws that limit the exercise by ADS holders of their voting rights through the depositary with respect to the underlying Class D shares.However, there are practical limitations on the ability of ADS holders to exercise their voting rights due to the additional procedural steps involved incommunicating with these holders. For example, holders of our shares will receive notice of shareholders’ meetings through publication of a notice in anofficial gazette in Argentina, an Argentine newspaper of general circulation and the bulletin of the Buenos Aires Stock Exchange, and will be able to exercisetheir voting rights by either attending the meeting in person or voting by proxy. ADS holders, by comparison, will not receive notice directly from us.Instead, in accordance with the deposit agreement, we will provide the notice to the depositary. If we ask it to do so, the depositary will mail to holders ofADSs the notice of the meeting and a statement as to the manner in which instructions may be given by holders. To exercise their voting rights, ADS holdersmust then instruct the depositary as to voting the Class D shares represented by their ADSs. Due to these procedural steps involving the depositary, theprocess for exercising voting rights may take longer for ADS holders than for holders of Class D shares, and Class D shares represented by ADSs may not bevoted as you desire. Class D shares represented by ADSs for which the depositary fails to receive timely voting instructions may, if requested by us, be votedas we instruct at the corresponding meeting.Shareholders outside of Argentina may face additional investment risk from currency exchange rate fluctuations in connection with their holding of ourClass D shares or the ADSs.We are an Argentine company and any future payments of dividends on our Class D shares will be denominated in pesos. The peso has historically andrecently fluctuated significantly against many major world currencies, including the U.S. dollar. A depreciation of the peso would likely adversely affect theU.S. dollar or other currency equivalent of any dividends paid on our Class D shares and could result in a decline in the value of our Class D shares and theADSs as measured in U.S. dollars. ITEM 4.Information on the CompanyHistory and Development of YPFOverviewYPF is a corporation (sociedad anónima), incorporated under the laws of Argentina for an unlimited term. Our address is Macacha Güemes 515,C1106BKK Ciudad Autónoma de Buenos Aires, Argentina and our telephone number is (011-54-11) 5441-2000. Our legal name is YPF Sociedad Anónimaand we conduct our business under the commercial name “YPF.”We are Argentina’s leading energy company, operating a fully integrated oil and gas chain with leading market positions across the domestic upstreamand downstream segments. Our upstream operations consist of the exploration, development and production of crude oil, natural gas and LPG. Ourdownstream operations include the refining, marketing, transportation and distribution of oil and a wide range of petroleum products, petroleum derivatives,petrochemicals, LPG and bio-fuels. Additionally, we are active in the gas separation and natural gas distribution sectors both directly and through ourinvestments in several affiliated companies. In 2014, we had consolidated revenues of Ps. 141,942 million and consolidated net income of Ps. 8,849 million.Due to decreased export volumes, the portion of our revenues derived from exports has decreased steadily in recent years. Exports accounted for 17.1%,13.3% and 11.5% of our consolidated net sales revenues in 2014, 2013 and 2012, respectively.Until November 1992, most of our predecessors were state-owned companies with operations dating back to the 1920s. In November 1992, theArgentine government enacted the Privatization Law (Law No. 24,145), which established the procedures for our 26Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsprivatization. In accordance with the Privatization Law, in July 1993, we completed a worldwide offering of 160 million Class D shares that had previouslybeen owned by the Argentine government. As a result of that offering and other transactions, the Argentine government’s ownership interest in our capitalstock was reduced from 100% to approximately 20% by the end of 1993.In 1999, Repsol acquired control of YPF and remained in control until the passage of the Expropriation Law. Repsol is an integrated oil and gascompany headquartered in Spain with global operations. Repsol YPF owned approximately 99% of our capital stock from 2000 until 2008, when thePetersen Group purchased, in different stages, shares representing 15.46% of our capital stock (the “Petersen Transaction”). In addition, Repsol grantedcertain affiliates of Petersen Energía S.A. (“Petersen Energía”) an option to purchase up to an additional 10% of our outstanding capital stock, which wasexercised in May 2011.On May 3, 2012, the Argentine Congress passed the Expropriation Law. Among other matters, the Expropriation Law provided for the expropriation of51% of the share capital of YPF represented by an identical stake of Class D shares owned, directly or indirectly, by Repsol YPF and its controlled orcontrolling entities. The shares subject to expropriation, which have been declared of public interest, will be assigned as follows: 51% to the federalgovernment and 49% to the governments of the provinces that compose the National Organization of Hydrocarbon Producing States. To ensure compliancewith its objectives, the Expropriation Law provides that the National Executive Office, by itself or through an appointed public entity, shall exercise all thepolitical rights associated with the shares subject to expropriation until the transfer of political and economic rights to the provinces that compose theNational Organization of Hydrocarbon Producing States is completed. See “Item 3. Key Information—Risk Factors—Risks Relating to Argentina—TheArgentine federal government will control the Company according to domestic energy policies in accordance with Law No. 26,741 (the “ExpropriationLaw”),” “Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—We face risk relating to certain legal proceedings,” “—Regulatory Framework and Relationship with the Argentine Government—The Expropriation Law” and “Item 7. Major Shareholders and Related PartyTransactions.”In addition, on February 25, 2014, the Republic of Argentina and Repsol reached an agreement (the “Repsol Agreement”) in relation to compensationfor the expropriation of 200,589,525 of YPF’s Class “D” shares pursuant to the Expropriation Law under the Repsol Agreement. Repsol accepted U.S.$5.0billion in sovereign bonds from the Republic of Argentina and withdrew judicial and arbitral claims it had filed, including claims against YPF, and waivedadditional claims. YPF and Repsol also executed a separate agreement (“the Repsol Arrangement”) on February 27, 2014, pursuant to which YPF and Repsoleach withdrew, subject to certain exclusions, all present and future actions and/or claims based on causes occurring prior to the date of execution of RepsolArrangement arising from the expropriation of the YPF shares owned by Repsol pursuant to the Expropriation Law, including the intervention and temporarypossession for public purposes of YPF’s shares. YPF and Repsol agreed to withdraw reciprocal actions and claims with respect to third parties and/or pursuedby them and to grant a series of mutual indemnities, which at the time were subject to certain conditions precedent. The Repsol Arrangement entered intoforce the day after Repsol notified YPF that the Repsol Agreement had entered into force. The Repsol Agreement was ratified on March 28, 2014 at a Repsolgeneral shareholders’ meeting and approved by the Argentine Congress by Law No. 26,932 enacted by Decree No. 600/2014. On May 8, 2014, YPF wasnotified of the entry into force of the Repsol Agreement. As of that date, the expropriation pursuant to the Expropriation Law was concluded, and as a resultthe Republic of Argentina is definitively the owner of 51% of the capital stock of each of YPF S.A. and YPF GAS S.A.The financial data contained in this annual report as of and for the years ended December 31, 2014, 2013, 2012 and 2011 has been derived from ourAudited Consolidated Financial Statements included in this annual report. See Note 15 to the Audited Consolidated Financial Statements.Upstream Operations • As of December 31, 2014, we held interests in more than 110 oil and gas fields in Argentina. According to the Argentine Secretariat of Energy, in2014 these assets accounted for approximately 46.9% of the country’s total production of crude oil, excluding NGLs, and approximately 44.1%of its total natural gas production, including NGLs, in 2014, according to information provided by the Argentine Secretariat of Energy. • We had proved reserves, as estimated as of December 31, 2014, of approximately 674 mmbbl of oil, including condensates and NGLs, andapproximately 3,016 bcf of gas, representing aggregate reserves of approximately 1,212 mmboe as of such date, compared to approximately 628mmbbl of oil, including condensates and NGLs, and approximately 2,558 bcf of gas, representing aggregate reserves of approximately 1,083mmboe as of December 31, 2013. • In 2014, we produced approximately 89 mmbbl of oil (approximately 245 mbbl/d), including condensates, approximately 18 mmbbl of NGLs(approximately 49 mbbl/d), and approximately 547 bcf of gas (approximately 1,498 mmcf/d), representing a total production of approximately204 mmboe (approximately 560 mboe/d), compared to approximately 85 mmbbl of oil (232 mbbl/d), including condensates, approximately 18mmbbl of NGLs (approximately 48 mbbl/d), and approximately 437 bcf of gas (1,197 mmcf/d) in 2013. 27Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDownstream Operations • We are Argentina’s leading refiner with operations conducted at three wholly-owned refineries with combined annual refining capacity ofapproximately 116 mmbbl (319.5 mbbl/d). See “—Downstream—Refining division.” We also own a 50% equity interest in Refinería del Norte,S.A. (“Refinor”), an entity jointly controlled with and operated by Petrobras Energía S.A., which has a refining capacity of 26.1 mbbl/d. • Our retail distribution network for automotive petroleum products as of December 31, 2014 consisted of 1,534 YPF-branded service stations, ofwhich we own 111 directly and through our 100% subsidiary Operadora de Estaciones de Servicios S.A. (“OPESSA”), and we estimate we heldapproximately 34.8% of all gasoline service stations in Argentina. • We are one of the leading petrochemical producers in Argentina and in the Southern Cone of Latin America, with operations conducted throughour Ensenada industrial complex (“CIE”) and Plaza Huincul site. In addition, Profertil S.A. (“Profertil”), a company that we jointly control withAgrium Holdco Spain S.L. (“Agrium”), is one of the leading producers of urea in the Southern Cone.The following chart illustrates our organizational structure, including our principal subsidiaries, as of the date of this annual report. (1)Includes the directly and indirectly controlled companies acquired on March 12, 2014 of the Apache Group.See Note 11.c “—Investment Project Agreements” to the Audited Consolidated Financial Statements for a description of the transaction we enteredinto with Chevron and Apache Group. 28Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe map below illustrates the location of our productive basins, refineries, storage facilities and crude oil and multi-product pipeline networks as ofDecember 31, 2014. For a description of our principal capital expenditures and divestitures, see “Item 5. Operating and Financial Review and Prospects—Liquidity andCapital Resources—Capital investments, expenditures and divestitures.”The Argentine MarketArgentina is the second largest producer of natural gas and the fourth largest producer of crude oil in Central and South America, based on 2013production, according to the 2014 edition of the BP Statistical Review of World Energy, published in June 2014.In response to the economic crisis of 2001 and 2002, the Argentine government, pursuant to the Public Emergency Law (Law No. 25,561), establishedexport taxes on certain hydrocarbon products. In subsequent years, in order to satisfy growing domestic demand and abate inflationary pressures, this policywas supplemented by constraints on domestic prices, temporary export restrictions and subsidies on imports of natural gas and diesel fuel. As a result, until2008, local prices for oil and natural gas products had remained significantly below those prevalent in neighboring countries and international commodityexchanges. 29Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAfter declining during the economic crisis of 2001 and 2002, Argentina’s GDP grew at an average annual real rate of approximately 8.5% from 2003 to2008, although the growth rate decelerated to 0.9% in 2009 as a result of the global financial crisis. In 2010 and 2011, Argentina’s GDP grew at an annualreal rate of approximately 9.0%. In 2012, Argentina’s GDP experienced a slowdown, with GDP increasing 1.9% on an annualized basis compared to thepreceding year according to the methodology of calculation prevailing until March 2014. On March 27, 2014, the Argentine government announced a newmethod of calculating GDP by reference to 2004 as the base year (as opposed to 1993, which was the base reference year under the prior method ofcalculating GDP). As a result of the application of this new method, the estimated GDP for 2013 was revised from 4.9% to 2.9%. As of the date of this annualreport, the provisional figures of the Argentina’s estimated GDP for 2014 published by the National Statistics Institute (Instituto Nacional de Estadística yCensos) (“INDEC”) is 0.5%. Driven by this economic expansion and stable domestic prices, energy demand has increased significantly during the sameperiod, outpacing energy supply (which in the case of oil declined). Argentine natural gas consumption grew at average annual rate of approximately 5.0%during the period 2003-2011, according to the BP Statistical Review and the Argentine Secretariat of Energy. As a result of this increasing demand andactions taken by the Argentine regulatory authorities to support domestic supply, exported volumes of hydrocarbon products, especially natural gas, dieselfuel and gasoline, declined steadily over this period. At the same time, Argentina has increased hydrocarbon imports, becoming a net importer of certainproducts, such as diesel fuel, and increased imports of gas (including NGL). In 2003, Argentina’s net exports of diesel fuel amounted to approximately 1,349mcm, while in 2013 its net imports of diesel fuel amounted to approximately 2,427 mcm, according to preliminary information provided by the ArgentineSecretariat of Energy. Significant investments in the energy sector are being carried out, and additional investments are expected to be required in order tosupport continued economic growth, as the industry is currently operating near capacity.Demand for diesel fuel in Argentina exceeds domestic production. In addition, prior to the recent decline in international oil prices, the import prices ofrefined products have been in general substantially higher than the average domestic sales prices of such products, rendering the import and resale of suchproducts less profitable. As a result, from time to time, service stations experience temporary shortages and are required to suspend or curtail diesel fuel sales.On May 3, 2012, the Expropriation Law was passed by Argentinean congress. The Expropriation Law declared achieving self-sufficiency in the supply ofhydrocarbons, as well as in the exploitation, industrialization, transportation and sale of hydrocarbons, a national public interest and a priority for Argentina.In addition, its stated goal is to guarantee socially equitable economic development, the creation of jobs, the increase of the competitiveness of variouseconomic sectors and the equitable and sustainable growth of the Argentine provinces and regions. See “—Regulatory Framework and Relationship with theArgentine Government—The Expropriation Law.”History of YPFBeginning in the 1920s and until 1990, both the upstream and downstream segments of the Argentine oil and gas industry were effectively monopoliesof the Argentine government. During this period, we and our predecessors were owned by the state, which controlled the exploration and production of oiland natural gas, as well as the refining of crude oil and marketing of refined petroleum products. In August 1989, Argentina enacted laws aimed at thederegulation of the economy and the privatization of Argentina’s state-owned companies, including us. Following the enactment of these laws, a series ofpresidential decrees were promulgated, which required, among other things, us to sell majority interests in our production rights to certain major producingareas and to undertake an internal management and operational restructuring program.In November 1992, Law No. 24,145 (referred to as the Privatization Law), which established the procedures by which we were to be privatized, wasenacted. In accordance with the Privatization Law, in July 1993, we completed a worldwide offering of 160 million Class D shares that had previously beenowned by the Argentine government.As a result of that offering and other transactions, the Argentine government’s ownership percentage in our capital stock was reduced from 100% toapproximately 20% by the end of 1993.In January 1999, Repsol YPF acquired 52,914,700 Class A shares in block (14.99% of our shares) which were converted to Class D shares.Additionally, on April 30, 1999, Repsol YPF announced a tender offer to purchase all outstanding Class A, B, C and D shares (the “Offer”). Pursuant to theOffer, in June 1999, Repsol YPF acquired an additional 82.47% of our outstanding capital stock. Repsol YPF acquired additional stakes in us from minorityshareholders and other transactions in 1999 and 2000.On February 21, 2008, Petersen Energía (“PEISA”) purchased 58,603,606 of our ADSs, representing 14.9% of our capital stock, from Repsol YPF forU.S.$2,235 million. In addition, Repsol YPF granted certain affiliates of Petersen Energía options to purchase up to an additional 10.1% of our outstandingcapital stock within four years. On May 20, 2008, PEISA exercised an option to purchase 30Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsshares representing 0.1% of our capital stock. Additionally, PEISA launched a tender offer to purchase all of the shares of YPF that were not already owned bythem at a price of U.S.$49.45 per share or ADS. Repsol YPF, pursuant to its first option agreement with Petersen Energía, had stated that it would not tenderYPF shares to PEISA. A total of 1,816,879 shares (including Class D shares and ADSs), representing approximately 0.462% of our total shares outstanding,were tendered. On May 3, 2011, PEISA exercised an option to acquire from Repsol YPF shares or ADSs representing 10.0% of our capital stock and on May 4,2011, Repsol YPF acknowledged and accepted such exercise. See “—Regulatory Framework and Relationship with the Argentine Government—TheExpropriation Law” and “Item 7. Major Shareholders and Related Party Transactions,” for a detail of our current major shareholders.On May 3, 2012, the Argentine Congress passed the Expropriation Law. Among other matters, the Expropriation Law provided for the expropriation of51% of the share capital of YPF represented by an identical stake of Class D shares owned, directly or indirectly, by Repsol YPF and its controlled orcontrolling entities. The shares subject to expropriation, which have been declared of public interest, will be assigned as follows: 51% to the federalgovernment and 49% to the governments of the provinces that compose the National Organization of Hydrocarbon Producing States. See “Item 3. KeyInformation—Risk Factors—Risks Relating to Argentina—The Argentine federal government will control the Company according to domestic energypolicies in accordance with the Expropriation Law. As of the date of this annual report, the transfer of the shares subject expropriation between NationalExecutive Office and the provinces that compose the National Organization of Hydrocarbon Producing States was still pending. According to Article 8 of theExpropriation Law, the distribution of the shares among the provinces that accept their transfer must be conducted in an equitable manner, considering theirrespective levels of hydrocarbon production and proved reserves. To ensure compliance with its objectives, the Expropriation Law provides that the NationalExecutive Office, by itself or through an appointed public entity, shall exercise all the political rights associated with the shares subject to expropriationuntil the transfer of political and economic rights to the provinces that compose the National Organization of Hydrocarbon Producing States is completed. Inaddition, in accordance with Article 9 of the Expropriation Law, each of the Argentine provinces to which shares subject to expropriation are allocated mustenter into a shareholder’s agreement with the federal government that will provide for the unified exercise of its rights as a shareholder. See “—RegulatoryFramework and Relationship with the Argentine Government—The Expropriation Law,” “Item 7. Major Shareholders and Related Party Transactions.” See“Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—We face risk relating to certain legalproceedings” for a description of the Agreement between Repsol and the Argentine Republic relating to compensation for the expropriation of 51% of theshare capital of YPF owned, directly or indirectly, by Repsol.Furthermore, on April 16, 2012, the Company was notified, through a notarial certification, of Decree No. 530/12 of the National Executive Office,which provides for the Intervention of YPF for a period of thirty days (which was then extended to our next Shareholders meeting to be held on June 4, 2012at which the composition of our Board of Directors was determined), with the aim of securing the continuity of its business and the preservation of its assetsand capital, securing the provision of fuel and the satisfaction of the country’s needs, and guaranteeing that the goals of the Expropriation Law are met. See“—Regulatory Framework and Relationship with the Argentine Government—The Expropriation Law.” In accordance with Article 3 of DecreeNo. 530/2012, the powers conferred by YPF’s by-laws on the Board and/or the President of the Company have been temporarily granted to the Intervenor. OnMay 7, 2012, through Decree No. 676/2012 of the National Executive Office, Mr. Miguel Matías Galuccio was appointed General Manager of the Companyduring the Intervention. At our general shareholders’ meeting, on June 4, 2012, our shareholders appointed the new members of our Board of Directors. See“Item 6. Directors, Senior Management and Employees—Management of the Company.”For a discussion of the Repsol Agreement which concluded the expropriation of 51% of the capital stock of YPF S.A. and YPF GAS S.A. pursuant to theExpropriate Law and the related Repsol Arrangement, see “—History and Development of YPF—Overview”.Our strategy intends to reaffirm our commitment to creating a new model of the Company in Argentina which aligns our objectives, seeking profitableand sustainable growth that generates shareholder value, with those of the country, thereby positioning YPF as an industry-leading company aiming at thereversal of the national energy imbalance and the achievement of hydrocarbon self-sufficiency in the long term.To achieve the goals set forth above, we intend to focus on (i) the development of unconventional resources, which we see as a unique opportunitybecause a) the expectation related to the existence of large volumes of unconventional resources in Argentina according to estimations of leading reports onglobal energy resources, b) we currently possess a relevant participation in terms of exploration and exploitation rights on the acreage in which suchresources could be located, and c) we believe we can integrate a portfolio of projects with high production potential; (ii) the re-launch of conventional andunconventional exploration initiatives in existing wells and expansion to new wells, including offshore; (iii) an increase in capital and operatingexpenditures in mature areas with expected higher return and efficiency potential (through investment in improvements, increased use of new perforationmachinery and well intervention); (iv) a return to active production of natural gas to accompany our oil production and (v) an increase 31Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsin production of refined products through an enhancement of the refining capacity (including improving and increasing our installed capacity and upgradingand converting our refineries). The previously mentioned initiatives have required and will continue to require organized and planned management ofmining, logistic, human and financing resources within the existing regulatory framework, with a long-term perspective.The investment plan related to our growth needs to be accompanied by an appropriate financial plan, whereby we intend to reinvest earnings, searchfor strategic partners and raise debt financing at levels we consider prudent for companies in our industry. Consequently, the financial viability of theseinvestments and hydrocarbon recovery efforts will generally depend, among other factors, on the prevailing economic and regulatory conditions in Argentina(including those related to the recent incentives to production as set by Resolution 14/2015 of the Commission for Planning and Strategic Coordination ofthe National Plan of Hydrocarbons Investments, considering the current international market prices of oil and refined products), the ability to obtainfinancing in satisfactory amounts at competitive costs, as well as the market prices of hydrocarbon products.Business OrganizationWe currently conduct our business according to the following organization: • Upstream, which consists of our “Exploration and Production” segment; • Downstream, which consists of our “Refining and Marketing”, “Natural Gas Distribution and Electricity Generation” and “Chemicals” segments;and • Corporate and other, which consists of our “Corporate and Other” segment.The Exploration and Production segment’s sales to third parties in Argentina and abroad include sales of natural gas and services fees (primarily for thetransportation, storage and treatment of hydrocarbons and products). In addition, crude oil produced by us in Argentina, or received from third parties inArgentina pursuant to service contracts, is mainly transferred from Exploration and Production to Refining and Marketing at transfer prices established by us,which generally seek to approximate Argentine market prices.In 2013, we reorganized our reporting structure by grouping the “Chemical” and “Refining and Marketing” segments into a new “Downstream”segment. We made this change primarily because of the common strategy shared by the former “Chemical” and “Refining and Marketing” segments, in lightof the synergies involved in their activities to maximize the volume and quality of fuel offered to the market. Accordingly, the Company has adjustedcomparative information for 2012 to reflect this reorganization.The Downstream segment purchases crude oil from the Exploration and Production segment and from third parties. Downstream activities includecrude oil refining and transportation, as well as the marketing and transportation of refined fuels, lubricants, LPG, natural gas, petrochemical products andother refined petroleum products in the domestic wholesale and retail markets and the export markets.In addition, our activities related to power generation, which are not material for us, which we have developed through our controlled company YPFEnergía Electrica S.A., and our natural gas distribution activities, which we have developed through Metrogas S.A., are also included in Downstreamactivities.Additionally, we record certain assets, liabilities and costs under the Corporate and Other segment, including corporate administration costs and assets,environmental matters related to YPF Holdings, Inc. (“YPF Holdings”) and certain construction activities, mainly related to the oil and gas industry, throughour subsidiary A-Evangelista S.A. and its subsidiaries. See Note 3 to our Audited Consolidated Financial Statements.Substantially all of our operations, properties and customers are located in Argentina. However, we carry out exploration activities in the United States,among other foreign jurisdictions, and hold an interest in a producing field in the United States and in two exploratory areas in Chile. See “—Explorationand Production Overview—Main Properties”. Additionally, we market lubricants and specialties in Brazil and Chile and carry out some constructionactivities related to the oil and gas industry in Uruguay, Bolivia, Brazil and Peru, through our 100% owned company A-Evangelista S.A. and its subsidiaries. 32Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe following table sets forth revenues and operating income for each of our lines of business for the years ended December 31, 2014, 2013 and 2012: For the year ended December 31, 2014 2013 2012 (in millions of pesos) Revenues (1) Exploration and production Revenues 8,853 3,851 1,135 Revenue from intersegment sales (3) 61,844 38,846 30,179 Total exploration and production 70,697 42,697 31,314 DownstreamRevenues 132,254 85,624 65,047 Revenue from intersegment sales 1,489 1,147 1,069 Total refining and marketing 133,743 86,771 66,116 Corporate and otherRevenues 835 638 992 Revenue from intersegment sales 5,212 2,285 1,243 Total corporate and other 6,047 2,923 2,235 Less inter-segment sales and fees (68,545) (42,278) (32,491) Total revenues 141,942 90,113 67,174 Operating income (Loss) (2)Exploration and production 12,353 6,324 5,730 Downstream 10,978 6,721 4,095 Corporate and other (3,343) (1,522) (2,492) Consolidation adjustments (246) (363) 570 Total operating income 19,742 11,160 7,903 (1)Revenues are net of payment of a fuel transfer tax and turnover tax. Customs duties on hydrocarbon exports are disclosed in “Taxes, charges andcontributions,” as indicated in Note 2.k) to the Audited Consolidated Financial Statements. Royalties with respect to our production are accounted foras a cost of production and are not deducted in determining revenues. See Note 1.b.16) to the Audited Consolidated Financial Statements.(2)Includes exploration costs in Argentina and the United States and production operations in Argentina and the United States.(3)Intersegment revenues of crude oil to Downstream are recorded at transfer prices that reflect our estimate of Argentine market prices.Exploration and Production OverviewOur portfolio includes more than 1,400 projects to develop proved, probable and possible reserves, in addition to contingent and prospective resourcesrelated to future developments and exploration activity. Our business growth objectives, whereby we seek to maximize the productivity and profitability ofour portfolio, are based on the following key concepts: the rejuvenation of mature fields, an ongoing focus on gas development and the intensivedevelopment of unconventional reservoirs. See “Item 3. Key Information—Risk Factors.”The projects selected to be pursued and their schedules for completion are periodically determined by a portfolio optimization process, in accordancewith our strategic guidelines.Increased investments in Argentina have enabled us to maintain a high level of activity in projects that have contributed to significant increases in theproduction and value of our fields. In 2014, our oil production in Argentina increased by 5.40% and our gas production in Argentina increased by 25.26%,compared to our production in 2013. Moreover, our average oil and gas production in Argentina for the month of December 2014 from areas we operated(without considering production related to assets incorporated through the acquisition of the Apache Group in March 2014, for purposes of comparison)increased by 4.72% and 12.07%, respectively, compared to the average production for the month of December 2013. This increase reflects the intensive workwe performed in the conventional and unconventional fields we operate. 33Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsMeeting the challenge of the mature oil and gas fieldsMost of our oil and gas producing fields in Argentina are mature, requiring strong commitments to overcome their decline.We have significantly increased our activity and resources in mature areas that present profitable opportunities for increases in the recovery factor byemploying techniques including infill wells, and extension of secondary recovery and tertiary recovery testing. We are focused on identifying newopportunities in both infill potential and improved sweep efficiency in our mature fields. These efforts are guided by subsurface modeling conducted by in-house multidisciplinary teams. Furthermore, we place a strong emphasis on surveillance and conformance activities to improve current mature water injectionprojects. Tertiary recovery is being pursued with polymer and surfactant waterflooding in mature reservoirs in both the Golfo de San Jorge and NeuquénBasins.Continuous technical reviews of our oil and gas fields allow us to identify opportunities to rejuvenate mature fields and optimize new fielddevelopments in Argentine basins in order to achieve similar recovery factors that mature fields have already reached in other regions of the world, with theapplication of new technologies.We have managed, through the extension of most of our concessions with relatively favorable terms and conditions, to continue with the developmentof strategic waterflooding and improved oil recovery projects, improving our perspectives of production and reserves.Nevertheless, the financial viability of these investments and reserve recovery efforts will generally depend on prevailing economic and regulatoryconditions in Argentina, as well as the market prices of hydrocarbon products. See “Item 3. Key Information—Risk Factors.”Staying the Path of Unconventional ResourcesDuring 2014, we extended our leadership in this area. We reaffirmed our commitment to the objective of growing our production and reserves throughthe development of unconventional resource, which started in 2013. More than 185 wells were drilled with Vaca Muerta shale as the target, mostly in theLoma Campana field, continuing the massive development we started in 2013. The remaining wells were targeted to continue the pilot project in El Orejanoblock, in association with Dow Chemical, and to delineate the potential of Vaca Muerta shale gas formation.In Loma Campana we drilled horizontal wells with good levels of productivity. Therefore, field development will gradually migrate to a higherpercentage of horizontal wells.Also during 2014, we finalized the agreement with Petronas to jointly start a new 3-year pilot project in the La Amarga Chica concession, locatednortheast of Loma Campana. See “—Main properties.”Like the previous agreements with Chevron and Dow Chemical, this new agreement with Petronas constitutes a significant step towards thedevelopment of our vast unconventional resources, although this still represents only a fraction of our unconventional acreage. See “–Main properties.”The development of unconventional resources in the Vaca Muerta formation will demand a significant capital investment. As we rapidly progress onour learning curve, we expect to continue yielding substantial savings due to economies of scale and increasing well productivity through a betterunderstanding of the subsurface.Nevertheless, the financial viability of these investments and reserve recovery efforts will depend on the prevailing economic and regulatoryconditions, as well as the market prices of hydrocarbons in Argentina. See “Item 3. Key Information—Risk Factors.”Tight sands also contributed to the increase of production and reserves in 2014, as was the case in the Mulichinco formation in the Rincón delMangrullo concession. More than 25 wells were drilled in these marine tight sands, increasing gas production to 1.4 mmcm through a new gas pipeline thattransports the gas produced to the Loma La Lata facilities. This new gas pipeline could even permit other operators to develop their fields. 34Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsVaca Muerta Formation • “Loma Campana” Area: On July 16, 2013, YPF and Chevron signed an investment project agreement with the objective of the joint exploitation ofunconventional hydrocarbons in the province of Neuquén. The agreement contemplated an outlay of U.S.$ 1,240 million by Chevron for a first phaseof work to develop about 20 km2 (“Pilot Project”) (4,942 acres) of the 395 km2 (97,607 acres) corresponding to the area dedicated to the Pilot Project.This first Pilot Project included the drilling of more than 100 wells. Together with what has already been invested by YPF in the area, this newinvestment would result in a total investment of U.S.$ 1,500 million in the Pilot Project. In the second phase, which started during 2014 aftercompletion of the Pilot Project, both companies will continue with the development of the area, sharing investments 50% each. For additionalinformation see “Note 11.c –Investment Project Agreements” to the Audited Consolidated Financial Statements. • “El Orejano” Area: On September 23, 2013, YPF and Dow Europe Holding B.V. and PBB Polisur SA signed an agreement that includes a disbursementby both parties up to U.S.$ 188 million that will be directed towards the joint development of an unconventional gas pilot project in the province ofNeuquén. Of the U.S.$ 188 million to be disbursed, Dow will provide up to U.S.$ 120 million through a convertible financing in their participation inthe project. The agreement contemplates a first phase of work during which 16 wells will be drilled. In 2014, 8 wells were completed with aninvestment of U.S.$ 123 million (including wells and facilities). As of December 31, 2014 the Company has received the first payment of theaforementioned transaction, amounting to U.S.$ 90 million, which has been recorded in the “Loans” account in the Company’s Balance Sheet. • “La Amarga Chica” Area: On December 10, 2014, YPF and PETRONAS E&P ARGENTINA S.A. (“PEPASA”), an affiliate of PETRONAS E&P OverseasVentures Sdn. Bhd (“PEPOV”) of Malaysia executed a Project Investment Agreement (the “Investment Agreement”) aiming to perform jointexploitation of unconventional hydrocarbons in the La Amarga Chica area in 35Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents the province of Neuquén. The Investment Agreement provides for the joint development of a shale oil pilot project (the “Pilot Plan”) in three annualphases with a total investment of U.S.$550 million plus VAT, of which PEPASA will provide U.S.$475 million and YPF will provide U.S.$75 million.YPF will assign 50% of the La Amarga Chica concession to PEPASA and be the operator of the area. The concession rights will, in turn, be collaterallyassigned by PEPASA in favor of YPF as security for, and until PEPASA has complied with all its obligations under the Investment Agreement.Additionally, PEPOV has executed a payment guaranty of certain of PEPASA’s financial obligations under the Investment Agreement. The Pilot Planwill begin once conditions precedent to the effectiveness of the Investment Agreement and the related supplemental agreements are fulfilled, which arerequired to be met before March 31, 2015 and which relate primarily to the granting of the exploitation concession for the project area with a 35-yearterm by the province of Neuquén and certain provisions with respect to the project’s tax structure, including promotional, tax and royalty commitmentsin accordance with Law No. 27,007 and the agreement executed with the province of Neuquén on December 5, 2014. See “Main properties.” • “Chihuido de la Sierra Negra Sudeste—Narambuena” Area: During April 2014, YPF and subsidiaries of Chevron Corporation executed a newagreement with the objective of the joint exploration of unconventional hydrocarbons in the province of Neuquén, within the area Chihuido de laSierra Negra Sudeste—Narambuena. The investment will be undertaken exclusively by, and at the sole risk of, Chevron. See “—Main properties.”Main propertiesOur production is concentrated in Argentina and our domestic operations are subject to the risks. See “Item 3. Key Information—Risk Factors.”In 2014, we finalized agreements related to the acquisition and development of properties that are part of our core business: • On January 31, 2014, we acquired Petrobras Argentina S.A.’s 38.45% participation in the concession contract UTE Puesto Hernández executed betweenboth companies for the exploitation of the Puesto Hernández area. The Puesto Hernández area is an exploitation concession located in the Provinces ofNeuquén and Mendoza. YPF is the holder of the concession until 2027, now owning 100% of the participation in the Puesto Hernández area andbecoming the operator of the concession. Puesto Hernández currently produces over 10,000 barrels a day of light crude oil (Medanito quality). Thetransaction was completed for the amount of U.S.$ 40.7 million. By becoming the operator of the Puesto Hernández area, we expect we will be able toaccelerate our investment plans to optimize the area’s production potential until 2027. • On February 7, 2014, we acquired Potasio Rio Colorado S.A.’s 50% interest in the joint operation contract “Segment 5 Loma La Lata—Sierra Barrosa”(known as the “Lajas” formation) signed by YPF and Potasio Rio Colorado S.A. for the exploitation of the Lajas formation concession area. The Lajasformation area is an exploitation concession, located in the province of Neuquén. YPF is the holder of the concession, which expires in 2027.Exploitation of the Lajas formation area was conducted under the aforementioned joint operation contract. The terms of the joint operation contractprovided that it would expire upon the earlier of the expiration of the concession or the early termination of any agreement or contract that granted theright to continue exploiting the area. As a result of the termination of the joint operation contract, YPF owns 100% of the interest in the Lajas formationarea. The consideration for the transaction was U.S.$ 25 million. • On March 12, 2014, we acquired 100% of the interests of Apache Overseas lnc. and Apache International Finance II S.a.r.l. (together with theiraffiliates, “Apache”) in certain foreign companies that control Argentine companies that are the owners of assets located in Argentina, including 28concessions (23 operated and 5 non-operated) in Neuquina Basin (in the provinces of Neuquén and Rio Negro), 7 concessions in Tierra del Fuego, anda significant conventional resource base. Pursuant to this transaction, YPF acquired control of all of the assets of the Apache Corporation in Argentina.The price paid for the transaction includes U.S.$786 million in cash plus the assumption of approximately U.S$31 million of bank debt relating to thecompanies acquired. The primary assets included in this transaction, located in the provinces of Neuquén, Tierra del Fuego and Río Negro, have animportant infrastructure of pipelines and facilities. In addition, certain assets have potential for exploration and development in the Vaca Muertaformation. • On March 12, 2014, YPF completed a transfer of assets transaction under an agreement with Pluspetrol S.A. (“Pluspetrol”) whereby Pluspetroltransferred, in exchange for U.S.$217 million, an interest in certain assets related to those acquired from Apache located in the province of Neuquén,with the objective of jointly exploring and developing the Vaca Muerta formation. • During April 2014, YPF and subsidiaries of Chevron Corporation executed a new agreement with the objective of the joint exploration ofunconventional hydrocarbons in the province of Neuquén, within the area Chihuido de la Sierra Negra Sudeste—Narambuena. The investment will beundertaken exclusively by, and at the sole risk of, Chevron. For more information, see Note 11 c) to the Audited Consolidated Financial Statements. 36Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents• On December 5, 2014, YPF S.A., YSUR and the Province of Neuquén and Gas y Petroleo del Neuquen S.A. signed a Memorandum of InvestmentAgreement (the “Memorandum Agreement”) pursuant to which the parties have agreed to convert the joint ventures and respective joint operatingagreements relating to La Amarga Chica and Bajada de Añelo areas into unconventional hydrocarbon extraction concession agreements under Articles27 and 35(b) of the Hydrocarbons Law (Law No. 17,319) (as amended by Law No. 27,007). The Memorandum Agreement was also approved by theExecutive Branch and the Legislature of the Province of Neuquén. • As part of the conversion of these agreements to unconventional hydrocarbon extraction concession agreements, the Company agreed to make a cashpayment and assign all of its interests in the following areas: i) Puesto Cortadera, ii) Loma Negra NI, iii) Cutral Co Sur, iv) Neuquén del Medio, v)Collon Cura Bloque I and vi) Bajo Baguales. These areas represent approximately 0.7% of YPF’s total production as of September 30, 2014. • Under the Memorandum Agreement, the conditions for carrying out the pilot projects on the new La Amarga Chica and Bajada de Añelo concessionsare set forth, with a term of 36 and 42 months, respectively, as required by Article 35(b) of the Hydrocarbons Law as amended by Law No. 27,007. OnDecember 19, 2014, the Company reported that the Executive Branch and the Legislature of the Province of Neuquén approved the InvestmentAgreement contemplated by the Memorandum Agreement. • On December 10, 2014, YPF and PEPASA, an affiliate of PEPOV executed a Project Investment Agreement (the “Investment Agreement”) aiming toperform joint exploitation of unconventional hydrocarbons in the La Amarga Chica area in the province of Neuquén. The parties have signed thefollowing supplementary agreements to the Investment Agreement (the “Supplemental Agreements”): a) the Assignment Agreement for 50% of theconcession for the La Amarga Chica area; b) a Joint Venture Agreement (JV); c) the Joint Operating Agreement (“Joint Operating Agreement”); d) theGuaranty Assignment Agreement; e) the Right of First Offer Agreement for the sale of crude oil and f) an Assignment Agreement for hydrocarbonsexport rights. The Investment Agreement provides for the joint development of a shale oil pilot project (the “Pilot Plan”) in three annual phases with atotal investment of U.S.$550 million plus VAT, of which PEPASA will provide U.S.$475 million and YPF will provide U.S.$75 million. YPF willassign 50% of the La Amarga Chica concession to PEPASA and will be the operator of the area. The concession rights will, in turn, be collaterallyassigned by PEPASA in favor of YPF as security for, and until PEPASA has complied with all its obligations under the Investment Agreement.Additionally, PEPOV has executed a payment guaranty of certain of PEPASA’s financial obligations under the Investment Agreement. The Pilot Planwill begin once conditions precedent to the effectiveness of the Investment Agreement and the Supplemental Agreements are fulfilled, which arerequired to be met before March 31, 2015 and which relate primarily to the granting of the exploitation concession for the project area with a 35-yearterm by the province of Neuquén and certain provisions with respect to the project’s tax structure, including promotional, tax and royalty commitmentsin accordance with Law No. 27,007 and the agreement executed with the province of Neuquén on December 5, 2014. When the full contributions toeach of the annual phases of the Pilot Plan have been made, PEPASA will have the option to withdraw from the plan by transferring its participation inthe concession and paying liabilities accrued prior to its withdrawal (without the right to 50% of the value of net production from wells drilled prior tothe exercise of its right to withdraw). After the parties’ total commitments have been met during the Pilot Plan, each party will be responsible for andcontribute 50% of the work program and budget to develop the area as provided for by the Joint Operating Agreement. The Investment Agreementprovides that over the three phases of the Pilot Plan, the parties will be required to perform a 3D seismic acquisition and processing program coveringthe entire concession area, drill 35 wells targeting the Vaca Muerta formation (including vertical and horizontal wells) and install facilities to transportthe hydrocarbon production from this area.The following table sets forth information with regard to our developed and undeveloped acreage by geographic area as of December 31, 2014: As of December 31, 2014 Developed(1) Undeveloped(2) Gross(3) Net(4) Gross(3) Net(4) (thousands of acres) South America 1,620 1,161 47,618 27,330 Argentina 1,620 1,161 45,588 26,437 Rest of South America(5) — — 2,030 893 North America(6) 172 25.8 — — Total 1,792 1,186.8 47,618 27,330 37Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents(1)Developed acreage is spaced or assignable to productive wells.(2)Undeveloped acreage encompasses those leased acres on which wells have not been drilled or completed to a point that would permit the production ofeconomic quantities of oil or gas regardless of whether such acreage contains proved reserves.(3)A “gross acre” is an acre in which we own a working interest.(4)“Net” acreage equals gross acreage after deducting third party interests.(5)Relates to Uruguay, Colombia, and Chile. In the case of Uruguay, YPF’s undeveloped acreage includes an area of 1,359 thousand acres. The blockexpired on October 6, 2014 and an extension of the permit for 120 days was requested from and approved by the application authority. As of the dateof this annual report, we are evaluating next steps to take. In Colombia, YPF has requested approval from the application authority (“ANH”), for thefarm-out of its total working interest in COR 12 and COR 33 blocks. YPF and its partners informed ANH of the decision to relinquish COR 14 block. InChile, YPF’s undeveloped surface acreage totaled of 288 thousand acres.(6)Relates only to the United States’ Gulf of Mexico.As of December 31, 2014, none of our exploratory undeveloped acreage was subject to exploration permits that will expire in 2015 in accordance withthe Hyrocarbons Law and complementary provincial laws. In addition, according to Law No. 27,007 that amended the Hydrocarbons Law, all nationaloffshore permits and offshore hydrocarbon production concessions for which association agreements with ENARSA have not been signed as of the date of thenew law will revert to and be transferred to the Argentine Secretariat of Energy. Permits and concessions granted prior to Law No. 25,943 will be exempt fromthis provision. The National Executive Office may negotiate the conversion of association agreements signed with ENARSA to permits or productionconcessions for 180 days following the enactment of the new law. YPF currently participates in three offshore blocks in association with ENARSA, whichrepresent approximately 31% of the undeveloped acreage. Within the 180 day period, we plan to initiate negotiation of the new terms and conditions. Wecannot guarantee that as a result of such negotiations we would not decide to relinquish to the Argentine Secretariat of Energy part or all of the acreageincluded in our current association with ENARSA. With the exception of the above, none of our exploration permits are regulated by Law No. 27,007. See“—Regulatory Framework and Relationship with the Argentine Government—Law No. 27,007, amending the Hydrocarbons Law—Exploration andProduction.”However, as a result of the expiration in 2015 of the first, second or third exploration terms of certain of our exploration permits (according to theoriginal terms of the Hydrocarbons Law, which applied to our existing exploration permits), we would be required to relinquish a fixed portion of the acreagerelated to each such expiring permit, as set forth in the Hydrocarbons Law, as long as exploitable quantities of oil or gas are not discovered in such areas (inwhich case we may seek to obtain a declaration of their commercial viability from the relevant authorities, and the related areas would then be subject toexploitation concessions). Additionally, and depending on the circumstances that could arise in each case (for instance, the state of exploratory activity in acertain area), we could request an extension of the expiration of the exploration permit, which would be subject to the approval of the respective governingauthority. As a result, if no discoveries are made in 2015, we would be required to relinquish approximately 15,800 km2 of exploratory undeveloped acreage(approximately 21% of our 75,000 km2 of net exploratory undeveloped acreage as of December 31, 2014) during 2015.Additionally, based on information available as of the date of this annual report, if we fail to make any discoveries or to engage in new activity thatcould extend the expirations of the exploration permits, we could be required or could decide to relinquish a maximum of approximately 1,600 km2 ofexploratory undeveloped acreage (approximately 2% of our 75,000 km2 of net exploratory undeveloped acreage as of December 31, 2014) during 2016 and2017.According to the Hydrocarbons Law, we are entitled to decide, according to our best interest, which acreage related to each exploration permit to keepif we remain within the required relinquishment percentage. Therefore, the areas to be relinquished consist usually of acreage where drilling has not beensuccessful and are considered non-core lease acreage.Except as described above, we do not have any material undeveloped acreage related to our production concessions expiring in the near term.See “—Regulatory Framework and Relationship with the Argentine Government—Law No. 27,007, amending the Hydrocarbons Law” for a descriptionof new terms that apply to new production concessions or exploration permits. 38Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsArgentine Exploration Permits and Exploitation ConcessionsArgentina is the second largest gas and fourth largest oil-producing nation in Central and South America according to the 2014 edition of the BPStatistical Review of World Energy, published in June 2014. Oil has historically accounted for the majority of the country’s hydrocarbon production andconsumption, although the relative share of natural gas has increased rapidly in recent years. As of the date of this annual report, a total of 24 sedimentarybasins were re-evaluated in the country, in the line with (Plan Exploratorio Argentina). The total surface area of the continent represents approximately408 million acres and the total offshore surface area includes 194 million acres on the South Atlantic shelf within the 200 meter line. Of the total 602 millionacres of the sedimentary basins, a significant part still needs to be evaluated through exploratory and study drilling.The following table shows our gross and net interests in productive oil and gas wells in Argentina by basin, as of December 31, 2014: Wells(1)(2) Oil Gas Basin Gross Net Gross Net Onshore 13,163 11,823 1,435 1,104 Neuquina 4,498 4,116 1,221 975 Golfo San Jorge 7,573 6,826 52 52 Cuyana 820 745 — — Noroeste 19 7 47 17 Austral 253 129 115 60 Offshore — — 17 9 Total 13,163 11,823 1,452 1,113 (1)In addition to productive oil and gas wells located in Argentina, we have interests in oil wells located in the United States (seven gross wells andapproximately one net well, as of December 31, 2014).(2)A “gross well” is a well in which we own a working interest. A “net well” is deemed to exist when the sum of fractional ownership working interests ingross wells equals one. The number of net wells is the sum of the fractional working interests owned in gross wells expressed as whole numbers andfractions of whole numbers. Gross and net wells include one oil well and three gas wells with multiple completions.As of December 31, 2014, we held 167 exploration permits and production concessions in Argentina. We directly operate 129 of them, including 47exploration permits and 82 production concessions. • Exploration permits. As of December 31, 2014, we held 52 exploration permits in Argentina, 48 of which were onshore exploration permits and four ofwhich were offshore exploration permits. We had 100% ownership of four onshore permits, and our participating interests in the remainder variedbetween 30% and 90%. We had 100% ownership of one offshore permit, and our participating interests in the remainder varied between 30% and 35%. • Production concessions. As of December 31, 2014, we had 115 production concessions in Argentina. We had a 100% ownership interest in 69production concessions, and our participating interests in the remaining 46 production concessions varied between 7% and 98%.In addition, we have 31 crude oil treatment plants and seven pumping plants where oil is processed and stored. The purpose of these plants is to receiveand treat oil from different fields prior to shipment to our refineries and/or commercialization to third parties, as applicable. See “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—Our business depends to a significant extent on our production andrefining facilities and logistics network.” 39Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe table below provides certain information with respect to our net working interests in our principal oil and gas fields in Argentina at December 31,2014, most of which are mature: Production 2014 Proved Reserves asof December 31,2014 Areas (1) Interest (%) Oil (2)(mmbbl) Gas(mmcf) Oil (2)(mmbbl) Gas(mmcf) BOE(mmboe) Basin / Location DevelopmentStage of the areaLoma La Lata Central 100 9,009 122,876 35,165 635,238 148,297 Neuquina Mature FieldLos Perales 100 5,455 13,207 64,028 72,339 76,911 Golfo San Jorge Mature FieldAguada Toledo - Sierra Barrosa 100 2,448 69,244 12,108 320,750 69,232 Neuquina Mature FieldEstación Fernández Oro 94 687 18,091 10,812 246,735 54,754 Neuquina Mature FieldSeco León 100 4,260 4,347 43,454 21,547 47,292 Golfo San Jorge Mature FieldBarranca Baya 100 5,460 1,033 36,077 6,360 37,210 Golfo San Jorge Mature FieldLoma La Lata Norte (3) 67 4,072 15,903 19,941 83,812 34,868 Neuquina Mature/New FieldChihuido Sierra Negra 100 4,598 1,262 32,980 8,969 34,577 Neuquina Mature FieldManantiales Behr 100 7,397 5,844 29,151 26,903 33,942 Golfo San Jorge Mature FieldRincón del Mangrullo 100 313 5,485 7,966 141,880 33,234 Neuquina New FieldEl Portón 100 3,185 26,328 12,872 113,355 33,060 Neuquina Mature FieldMagallanes (4) 50 880 14,391 4,925 155,690 32,653 Austral Mature FieldPuesto Hernández 100 3,610 678 26,419 6,040 27,494 Neuquina Mature FieldTierra del Fuego - Fracción B (YSUR) 100 155 5,946 3,716 133,029 27,408 Austral Mature FieldSan Roque (4) 34 1,852 24,930 7,404 108,713 26,766 Neuquina Mature FieldEl Trébol 100 2,337 539 22,489 3,632 23,136 Golfo San Jorge Mature FieldLomas del Cuy 100 2,594 1,218 19,785 8,343 21,271 Golfo San Jorge Mature FieldVizcacheras 100 2,919 304 20,120 1,938 20,465 Cuyana Mature FieldAcambuco (4) 23 234 9,984 2,437 96,174 19,565 Noroeste Mature FieldChihuido La Salina 100 3,863 29,123 8,922 53,794 18,503 Neuquina Mature FieldCNQ 7A (4) 50 4,587 1,281 17,349 682 17,470 Neuquina Mature FieldDesfiladero Bayo 100 2,422 277 16,794 1,467 17,055 Neuquina Mature FieldAl Norte de la Dorsal 100 530 8,504 3,946 69,279 16,284 Neuquina Mature FieldSeñal Picada 100 2,097 210 15,752 1,540 16,026 Neuquina Mature FieldAguada Pichana (4) 27 1,473 25,703 3,593 66,239 15,390 Neuquina Mature Field (1)Exploitation areas.(2)Includes condensate and NGL.(3)Working interest is 100% in the Sierras Blancas formation (mature field) and 50% in the Vaca Muerta and Quintuco Formations (new field).(4)Non-operated fields.Approximately 84% of our proved oil reserves in Argentina are concentrated in the Neuquina (44%) and Golfo San Jorge (40%) Basins, andapproximately 92% of our proved gas reserves in Argentina are concentrated in the Neuquina (66.5%), Austral (14.7%) and Noroeste (11%) Basins.Joint ventures and contractual arrangements in ArgentinaAs of December 31, 2014, we participated in 42 exploration and 34 production joint ventures and contractual arrangements (24 of which were notoperated by us) in Argentina. Our interests in these joint ventures and contractual arrangements ranged from 7% to 98%, and our obligations to shareexploration and development costs varied under these agreements. In addition, under the terms of some of these joint ventures, we have agreed to indemnifyour joint venture partners in the event that our rights with respect to such areas are restricted or affected in such a way that the purpose of the joint venturecannot be achieved. For a list of the main exploration and production joint ventures in which we participated as of December 31, 2014, see Annex II to theAudited Consolidated Financial Statements. We are also a party to a number of other contractual arrangements that arose through the renegotiation of servicecontracts and risk contracts and their conversion in exploitation concessions and exploration permits, respectively.Oil and Gas ReservesProved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonablecertainty to be economically producible (from a given date forward, from known reservoirs, and under existing economic conditions, operating methods andgovernment regulations) prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonablycertain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must havecommenced or the operator must be reasonably certain that it will commence the project within reasonable time. In some cases, substantial investments innew wells and related facilities may be required to recover proved reserves.Information on net proved reserves as of December 31, 2014, 2013 and 2012 was calculated in accordance with the SEC rules and FinancialAccounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 932, as amended. Accordingly, crude oil prices used to determinereserves were calculated at the beginning of each month, for crude oils of different quality produced by the Company. The Company considered the realizedprices for crude oil in the domestic market taking into account the effect of 40Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsexports taxes as in effect as of each of the corresponding years (until 2016, in accordance with Law No. 26,732). For the years beyond the mentioned periods,the Company considered the unweighted average price of the first-day-of-the-month for each month within the twelve-month period ended December 31,2014, 2013 and 2012, respectively, which refers to the WTI prices adjusted by each different quality produced by the Company. Additionally, since there areno benchmark market natural gas prices available in Argentina, the Company used average realized gas prices during the year to determine its gas reserves.Notwithstanding the foregoing, commodity prices declined significantly in the fourth quarter of 2014. See “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—Our oil and natural gas reserves are estimates,”Net reserves are defined as that portion of the gross reserves attributable to the interest of YPF after deducting interests owned by third parties. Indetermining net reserves, the Company excludes from its reported reserves royalties due to others, whether payable in cash or in kind, where the royaltyowner has a direct interest in the underlying production and is able to make lifting and sales arrangements independently. By contrast, to the extent thatroyalty payments required to be made to a third party, whether payable in cash or in kind, are a financial obligation, or are substantially equivalent to aproduction or severance tax, the related reserves are not excluded from the reported reserves despite the fact that such payments are referred to as “royalties”under local rules. The same methodology is followed in reporting our production amounts.Gas reserves exclude the gaseous equivalent of liquids expected to be removed from the gas on concessions and leases, at field facilities and at gasprocessing plants. These liquids are included in net proved reserves of NGLs.Technology used in establishing proved reserves additionsYPF’s estimated proved reserves as of December 31, 2014 are based on estimates generated through the integration of available and appropriate data,utilizing well-established technologies that have been demonstrated in the field to yield repeatable and consistent results. Data used in these integratedassessments include information obtained directly from the subsurface via wellbore, such as well logs, reservoir core samples, fluid samples, static anddynamic pressure information, production test data, and surveillance and performance information. The data utilized also include subsurface informationobtained through indirect measurements, including high quality 2-D and 3-D seismic data, calibrated with available well control. Where applicable,geological outcrop information was also utilized. The tools used to interpret and integrate all this data included both proprietary and commercial software forreservoir modeling, simulation and data analysis. In some circumstances, where appropriate analog reservoir models are available, reservoir parameters fromthese analog models were used to increase the reliability of our reserves estimates.For further information on the estimation process of our proved reserves, see “—Internal controls on reserves and reserves audits.”Net Proved Developed and Undeveloped Reserves as of December 31, 2014The following table sets forth our estimated net proved developed and undeveloped reserves of crude oil, NGLs and natural gas at December 31, 2014. Proved Developed Reserves Oil(1) (mmbbl) NGL (mmbl) NaturalGas(bcf) Total(2)(mmboe) Consolidated Entities South America Argentina 446 53 2,262 903 North America United States 1 — 5 2 Total Consolidated Entities 447 53 2,267 905 Equity-Accounted Entities South America Argentina — — — — North America United States — — — — Total Equity-Accounted Entities — — — — Total Proved Developed Reserves 447 53 2,267 905 41Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsProved Undeveloped Reserves Oil(1) (mmbbl) NGL (mmbbl) NaturalGas(bcf) Total(2)(mmboe) Consolidated Entities South America Argentina 154 20 749 307 North America United States — — — — Total Consolidated Entities 154 20 749 307 Equity-Accounted Entities South America Argentina — — — — North America United States — — — — Total Equity-Accounted Entities — — — — Total Proved Undeveloped Reserves 154 20 749 307 Total Proved Reserves(2)(3) Oil(1) (mmbbl) NGL (mmbbl) NaturalGas(bcf) Total(2)(mmboe) Consolidated Entities Developed Reserves 447 53 2,267 905 Undeveloped Reserves 154 20 749 307 Total Consolidated Entities 601 73 3,016 1,212 Equity-accounted entities Developed Reserves — — — — Undeveloped Reserves — — — — Total Equity-Accounted Entities — — — — Total Proved Reserves 601 73 3,016 1,212 (1)Includes crude oil (oil and condensate).(2)Volumes of natural gas in the table above and elsewhere in this annual report have been converted to barrels of oil-equivalent at 5,615 cubic feet perbarrel.(3)Proved crude oil and NGLs reserves of consolidated entities include an estimated approximately 91 mmbbl of crude oil and 11 mmbl of NGLs inrespect of royalty payments which, as described above, are a financial obligation or are substantially equivalent to a production or similar tax. Provednatural gas reserves of consolidated entities include an estimated approximately 324 bcf in respect of such payments. Equity-accounted entitiesreserves in respect of royalty payments that are a financial obligation or are substantially equivalent to a production or similar tax are not material.For information regarding changes in our estimated proved reserves during 2014, 2013 and 2012, see Note 15 to the Audited Consolidated FinancialStatements.The paragraphs below explain in further detail the most significant changes in our proved undeveloped reserves during 2014, 2013 and 2012.Changes in our proved undeveloped reserves during 2014YPF had estimated a volume of net proved undeveloped reserves of 307 mmboe at December 31, 2014, which represented approximately 25% of the1,212 mmboe total reported proved reserves as of such date. This compares to estimated net proved undeveloped reserves of 261 mmboe as of December 31,2013 (approximately 24% of the 1,083 mmboe total reported proved reserves as of such date).The 18% total net increase in net proved undeveloped reserves in 2014 is mainly attributable to: – Ongoing successful development activities related to proved undeveloped reserves projects, which allowed a transfer of approximately88.1 mmboe (26.3 mmbbl of crude oil, 8.3 mmbbl of NGL and 300.6 bcf of natural gas) to proved developed reserves. Main contributionsare related to development wells (58 mmboe), gas compression projects (14 mmboe) and improved recovery projects (10 mmboe). 42Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents – Extensions and discoveries, which added 79.3 mmboe (19.6 mmbbl of crude oil, 9.6 mmbbl of NGL and 291.3 bcf of natural gas) ofproved reserves mainly from the Rincón del Mangrullo, Aguada Toledo-Sierra Barrosa, Loma La Lata Norte, Manantiales Behr andChachahuen fields. – Negotiation of the extension of exploitation concessions in the provinces of Tierra del Fuego and Río Negro which added 15.5 mmboe(4.7 mmbbl of crude oil, 0.8 mmbbl of NGL and 56.3 bcf of natural gas) of proved undeveloped reserves. See “Item 4. Information on theCompany-Regulatory Framework and Relationship with the Argentine Government Exploration and Production. – New project studies and revision of gas and oil development projects, which added approximately 28 mmboe (17.7 mmbbl of crude oil, adecrease of 1.3 mmbbl of NGL, and 64.8 bcf of natural gas) of proved undeveloped reserves. The main contributions came from theVolcán Auca Mahuida, Aguada Toledo-Sierra Barrosa, Seco León and Los Perales fields. – New improved recovery projects, which added approximately 10 mmbbl of proved undeveloped secondary recovery reserves. The mostimportant additions are related to the Manantiales Behr, El Trébol, Escalante, Barranca Baya and Los Perales fields.YPF’s total capital expenditure to advance the development of reserves was approximately U.S.$ 4,260 million during 2014, of which U.S.$758 million was allocated to projects related to proved undeveloped reserves.As of December 31, 2014, we estimate our proved undeveloped reserves related to gas wells and to primary and secondary oil recovery projects, whichaccount for approximately 96% of our proved undeveloped reserves, will be developed within five years from their initial booking date.Low pressure gas compression projects in Loma La Lata Central and Loma La Lata Norte Fields, which account for the remaining approximately 4% ofour proved undeveloped reserves as of December 31, 2014, continue their scheduled development. We estimate that the last compression stage (representingapproximately 1% of our proved reserves as of such date) will be developed within approximately seven years from its booking date according to expectedcompression needs based on current (and consequently expected) reservoir behavior.Changes in our proved undeveloped reserves during 2013YPF had estimated a volume of net proved undeveloped reserves of 261 mmboe at December 31, 2013, which represented approximately 24% of the1083 mmboe total reported proved reserves as of such date. This compares to estimated net proved undeveloped reserves of 203 mmboe as of December 31,2012 (approximately 21% of the 979 mmboe total reported proved reserves as of such date).The 28% total net increase in net proved undeveloped reserves in 2013 is mainly attributable to: – New project studies and extensions of natural gas and oil development projects, which added approximately 83 mmboe of provedundeveloped reserves, mainly from the Aguada Toledo—Sierra Barrosa (Lajas Tight Gas and Lotena formations), Rincón del Mangrullo,Loma La Lata Central (Sierras Blancas formation), and Piedras Negras fields. – Successful development activities related to proved undeveloped reserves projects, which allowed a transfer of approximately 41 mmboeto proved developed reserves. – Negotiation of the extension of exploitation concessions in the province of Chubut (See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government Exploration and Production) which added 8 mmboe of provedundeveloped reserves, mainly due to scheduled proved undeveloped projects and which will not require additional investment. 43Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents – New improved recovery projects, which added approximately 8 mmboe of proved undeveloped secondary recovery reserves.YPF’s total capital expenditure to advance the development of reserves was approximately U.S.$3,631 million during 2013, of which U.S.$628 millionwas allocated to projects related to proved undeveloped reserves.As of December 31, 2013, we estimate our proved undeveloped reserves related to gas wells and to primary and secondary oil recovery projects, whichaccount for approximately 84% of our proved undeveloped reserves, will be developed within five years from their initial booking date.Low pressure gas compression projects in Loma La Lata, which account for the remaining approximately 16% of our proved undeveloped reserves as ofDecember 31, 2013, continue their scheduled development. We estimate that the first stage of these projects will be developed within five years from theirinitial booking. We estimate that the last compression stage, which accounts for approximately 6% of our proved undeveloped reserves as of December 31,2013 (representing approximately 2% of our proved reserves as of such date), will be developed within approximately seven years from its booking dateaccording to expected compression needs based on current (and consequently expected) reservoir behavior.Changes in our proved undeveloped reserves during 2012YPF had estimated a volume of net proved undeveloped reserves of 203 mmboe at December 31, 2012, which represented approximately 21% of the979 mmboe total reported proved reserves as of such date. This compares to estimated net proved undeveloped reserves of 254 mmboe at December 31, 2011(approximately 25% of the 1,005 mmboe total reported proved reserves as of such date).The 20% total reduction in net proved undeveloped reserves in 2012 is mainly attributable to: – Successful development activities related to proved undeveloped reserves projects, which allowed a transfer of approximately 43 mmboeto proved developed reserves. – Negotiation of the extention of exploitation concessions in the provinces of Santa Cruz, Salta and Tierra del Fuego (See “Item 4.Information on the Company—Regulatory Framework and Relationship with the Argentine Government Exploration and Production)which added 30 mmboe of proved undeveloped reserves, mainly due to scheduled proved undeveloped projects. – Downward revision of approximately 24 mmboe of unconventional reserves.YPF’s total capital expenditure to advance the development of reserves was approximately U.S.$1,738 million during 2012, of which U.S.$391 millionwas allocated to projects related to proved undeveloped reserves.As of December 31, 2012, we estimate our proved undeveloped reserves related to gas wells and to primary and secondary oil recovery projects, whichaccount for approximately 81% of our proved undeveloped reserves, will be developed within five years from their initial booking date.Low pressure gas compression projects in Loma La Lata, which account for the remaining approximately 19% of our proved undeveloped reserves as ofDecember 31, 2012, continue their scheduled development. We estimate that the first stage of these projects will be developed within five years from theirinitial booking. We estimate that the last compression stage, which accounts for approximately 9% of our proved undeveloped reserves as of December 31,2012 (representing approximately 2% of our proved reserves as of such date), will be developed within approximately seven years from its booking dateaccording to expected compression needs based on current (and consequently expected) reservoir behavior.Internal controls on reserves and reserves auditsAll of our oil and gas reserves held in consolidated companies have been estimated by our petroleum engineers. In order to meet the high standard of“reasonable certainty,” reserves estimates are stated taking into consideration additional guidance as to reservoir economic producibility requirements,acceptable proved area extensions, drive mechanisms and improved recovery methods, marketability under existing economic and operating conditions andproject maturity. 44Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsWhere applicable, the volumetric method is used to determine the original quantities of petroleum in place. Estimates are made by using various typesof logs, core analysis and other available data. Formation tops, gross thickness and representative values for net pay thickness, porosity and interstitial fluidsaturations are used to prepare structural maps to delineate each reservoir and isopachous maps to determine reservoir volume. Where adequate data isavailable and where circumstances are justified, material-balance and other engineering methods are used to estimate the original hydrocarbon in place.Estimates of ultimate recovery are obtained by applying recovery factors to the original quantities of petroleum in place. These factors are based on thedrive mechanisms inherent in the reservoir, analysis of the fluid and rock properties, the structural position of the reservoir and its production history. In someinstances, comparisons are made with similar production reservoirs in the areas where more complete data is available.Where adequate data is available and where circumstances are justified, material-balance and other engineering methods are used to estimate ultimaterecovery. In these instances, reservoir performance parameters such as cumulative production, production rate, reservoir pressure, gas to oil ratio behavior andwater production are considered in estimating ultimate recovery.In certain cases where the above methods could not be used, proved reserves are estimated by analogy to similar reservoirs where more complete dataare available.To control the quality of reserves booking, a process has been established that is integrated into the internal control system of YPF. This process tomanage reserves booking is centrally controlled and has the following components: (a)The Reserves Control Direction (“RCD”) is separate and independent from the Exploration and Production segment. RCD’s activity is overseen byYPF’s Audit Committee, which is also responsible for supervising the procedures and systems used in the recording of and internal control over theCompany’s hydrocarbon reserves. The primary objectives of the RCD are to ensure that YPF’s proved reserves estimates and disclosure are incompliance with the rules of the SEC, the FASB, and the Sarbanes-Oxley Act, and to review annual changes in reserves estimates and the reporting ofYPF’s proved reserves. The RCD is responsible for preparing the information to be publicly disclosed concerning YPF’s reported proved reserves ofcrude oil, NGLs, and natural gas. In addition, the RCD is also responsible for providing training to personnel involved in the reserves estimation andreporting process within YPF. The RCD is managed by and staffed with individuals that have an average of more than 20 years of technical experiencein the petroleum industry, including in the classification and categorization of reserves under the SEC guidelines. The RCD staff includes severalindividuals who hold advanced degrees in either engineering or geology, as well as individuals who hold bachelor’s degrees in various technicalstudies. Several members of the RCD are registered with or affiliated to the relevant professional bodies in their fields of expertise. (b)The Reserves Control Director, who has headed the RCD since January 2013, is responsible for overseeing the preparation of the reserves estimates andreserves audits conducted by third party engineers. The current director has over 18 years of experience in geology and geophysics, reserves estimates,project development, finance and general accounting regulation. In the six years prior to becoming the Reserves Audit Director, he was RegionalDirector responsible for the operation and development of YPF’s operated fields at the Cuyana and North of Neuquina Basins, in western Argentina. Heholds a degree in geology from the National University of Tucumán, and postgraduate courses at IAE Austral University. Consistent with our internalcontrol system requirements, the Reserves Control Director’s compensation is not affected by changes in reported reserves. (c)A quarterly internal review by the RCD of changes in proved reserves submitted by the Exploration and Production business units and associated withproperties where technical, operational or commercial issues have arisen. (d)A Quality Reserve Coordinator (“QRC”) is assigned to each Exploration and Production business unit of YPF to ensure that there are effective controlsin the proved reserves estimation and approval process of the estimates of YPF and the timely reporting of the related financial impact of provedreserves changes. Our QRCs are responsible for reviewing proved reserves estimates. The qualification of each QRC is made on a case-by-case basiswith reference to the recognition and respect of such QRC’s peers. YPF would normally consider a QRC to be qualified if such person (i) has aminimum of 10 years of practical experience in petroleum engineering or petroleum production geology, with at least five years of such experience incharge of the estimate and evaluation of reserves information, and (ii) has either (A) obtained, from a college or university of recognized stature, abachelor’s or advanced degree in petroleum engineering, geology or other related discipline of engineering or physical science, or (B) received, and ismaintaining in good standing, a registered or certified professional engineer’s license or a registered or certified professional geologist’s license, or theequivalent thereof, from an appropriate governmental authority or professional organization. 45Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents(e)A formal review through technical review committees to ensure that both technical and commercial criteria are met prior to the commitment of capitalto projects. (f)Our internal audit team examines the effectiveness of YPF’s financial controls, which are designed to ensure the reliability of reporting andsafeguarding of all the assets and examines YPF’s compliance with the law, regulations and internal standards. (g)All volumes booked are submitted to a third party reserves audit on a periodic basis. The properties selected for a third party reserves audit in any givenyear are selected on the following basis: i.all properties on a three year cycle; and ii.recently acquired properties not submitted to a third party reserves audit in the previous cycle and properties with respect to which there is newinformation which could materially affect prior reserves estimates.For those areas submitted to a third party reserves audit, YPF’s proved reserves figures have to be within 7% or 10 mmboe of the third party reservesaudit figures for YPF to declare that the volumes have been ratified by a third party reserves audit. In the event that the difference is greater than the tolerance,YPF will re-estimate its proved reserves to achieve this tolerance level or should disclose the third party figures.YPF has adopted the above-mentioned procedure by approving the corresponding internal policy (the “Policy”). The Policy establishes an annualclose of reserves in the third quarter (that is, September 30 of each year) for an auditing process. As a result, YPF is able to have the information prepared bythe time the Company must report to the markets. YPF only audits reserves in the fourth quarter in exceptional cases that could materially modify YPF’sreserve volumes. Examples of these cases include changes as a result of projects, changes in planned activities, well performance and ongoing negotiations.In 2014, DeGolyer and MacNaughton audited certain YPF operated and non-operated areas in the Austral, Neuquina, Golfo San Jorge, Noroeste,Cuyana, Anadarko and Gulf of Mexico Basins. These audits were performed as of September 30, 2014, with the exception of areas corresponding to YSURgroup, Maxus group, and Lindero Atravesado, Señal Picada, Magallanes and Cañadón Yatel areas, all of which were audited as of December 31, 2014, as aresult of term of concession extension and joint ventures negotiations, and changes in planned activities, which occurred after September 30, 2014, and dueto the volumes of reserves involved. See “—Exploration and Production Overview—Main Properties.”Audited fields as of September 30, 2014 contain in aggregate, according to our estimates, 330 mmboe proved reserves (35 mmboe of which wereproved undeveloped reserves) as of such date, which represented approximately 28% of our proved reserves and 13.4% of our proved undeveloped reservesas of September 30, 2014. There were no changes in reserves associated with any subsequent events relating to well performance or the results of wells drilledwhich resulted in a material change in the reserves not otherwise audited as of September 30, 2014 but subsequently disclosed as of December 31, 2014. Acopy of the related reserves audit report is filed as an exhibit to this annual report.In addition, fields that were subject to audits or evaluations, as the case may be, as of December 31, 2014, contain an estimated aggregate 221.6 mmboeof proved reserves (58.6 mmboe of which were proved undeveloped reserves), which represented approximately 18.3% of our proved reserves and 19.1% ofour proved undeveloped reserves as of December 31, 2014. Copies of the related reserves audit reports and reserves estimate report are filed as an exhibit tothis annual report.We are required, in accordance with Resolution S.E. No. 324/06 of the Argentine Secretariat of Energy, to annually file by March 31 details of ourestimates of our oil and gas reserves and resources with the Argentine Secretariat of Energy, as defined in that resolution and certified by an external auditor.The aforementioned certification and external audit only have the meaning established by Resolution S.E. No. 324/06, and are not to be interpreted as acertification or external audit of oil and gas reserves under SEC rules. We last filed such a report for the year ended December 31, 2013. Estimates of our oiland gas reserves filed with the Argentine Secretariat of Energy are materially higher than the estimates of our proved oil and gas reserves contained in thisannual report mainly because: (i) information filed with the Argentine Secretariat of Energy includes all properties of which we are operators, irrespective ofthe level of our ownership interests in such properties; (ii) information filed with the Argentine Secretariat of Energy includes other categories of reserves andresources that are not included in this annual report, which are different from estimates of proved reserves consistent with the SEC’s guidance contained inthis annual report; and (iii) the definition of proved reserves under Resolution S.E. No. 324/06 is different from the definition of “proved oil and gas reserves”established in Rule 4-10(a) of Regulation S-X. Accordingly, all proved oil and gas reserve estimates included in this annual report reflect only proved oil andgas reserves consistent with the rules and disclosure requirements of the SEC. 46Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOil and gas production, production prices and production costsThe following table shows our crude oil (including oil and condensate), NGL, and gas production on an as sold and annual basis for the yearsindicated. In determining net production, we exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interestin such production and is able to make lifting and sales arrangements independently. By contrast, to the extent that royalty payments required to be made toa third party, whether payable in cash or in kind, are a financial obligation or are substantially equivalent to a production or severance tax, they are notexcluded from our net production amounts despite the fact that such payments are referred to as “royalties” under local rules. This is the case for ourproduction in Argentina, where royalty expense is accounted for as a production cost. Oil and Condensate Production(1) 2014 2013 2012 (mmbbl) Consolidated Entities South America Argentina 89 84 82 North America United States * * 1 Total Consolidated Entities 89 84 83 Equity-Accounted EntitiesSouth AmericaArgentina — — — North AmericaUnited States — — — Total Equity-Accounted Entities — — — Total Oil Production(2) 89 84 83 NGL Production(1) 2014 2013 2012 (mmbbl) Consolidated Entities South America Argentina 18 18 17 North America United States — — — Total Consolidated Entities 18 18 17 Equity-Accounted EntitiesSouth AmericaArgentina — * * North AmericaUnited States — — — Total Equity-Accounted Entities — * * Total NGL Production(3) 18 18 17 Natural Gas Production(1) 2014 2013 2012 (bcf) Consolidated Entities South America Argentina 470 372 366 North America United States 1 1 1 Total Consolidated Entities 471 373 367 47Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsEquity-Accounted EntitiesSouth AmericaArgentina — 5 10 North AmericaUnited States — — — Total Equity-Accounted Entities — 5 10 Total Natural Gas Production(4)(5) 471 378 377 Oil Equivalent Production(1)(6) 2014 2013 2012 (mmboe) Consolidated Entities Oil and Condensate 89 84 83 NGL 18 18 17 Natural Gas 84 66 65 Equity-Accounted Entities Oil and Condensate — — — NGL — * * Natural Gas — 1 2 Total Oil Equivalent Production 191 169 167 *Not material (less than 1).(1)Loma La Lata Central and Loma La Lata Norte (southern and northern parts of the Loma La Lata field) in Argentina contain approximately 15% of ourtotal proved reserves expressed on an oil equivalent barrel basis. Oil and condensate production in these fields was approximately 5, 5, and 5 mmbblfor the years ended December 31, 2014, 2013 and 2012, respectively. NGL production in these fields was approximately 8, 9 and 10 mmbbl for theyears ended December 31, 2014, 2013 and 2012, respectively. Natural gas production in the Loma La Lata field was 138, 110 and 159 bcf for the yearsended December 31, 2014, 2013 and 2012, respectively.(2)Crude oil production for the years ended in December 31, 2014, 2013 and 2012 includes an estimated approximately 13, 12 and 11 mmbbl,respectively, in respect of royalty payments which are a financial obligation or are substantially equivalent to a production or similar tax. Equity-accounted entities production of crude oil in respect of royalty payments which are a financial obligation, or are substantially equivalent to aproduction or similar tax is not material.(3)NGL production for the years ended in December 31, 2014, 2013 and 2012 includes an estimated approximately 2, 3 and 2 mmbbl, respectively, inrespect of royalty payments which are a financial obligation or are substantially equivalent to a production or similar tax. Equity-accounted entitiesproduction of NGL in respect of royalty payments which are a financial obligation or are substantially equivalent to a production or similar tax is notmaterial.(4)Natural gas production for the years December 31, 2014, 2013 and 2012 includes an estimated approximately 60, 47 and 48 bcf, respectively, inrespect of royalty payments which are a financial obligation or are substantially equivalent to a production or similar tax. Equity-accounted entitiesproduction of natural gas in respect of royalty payments which are a financial obligation or are substantially equivalent to a production or similar tax isnot material.(5)Does not include volumes consumed or flared in operations (whereas sale volumes shown in the reserves table included in Note 15 to the AuditedConsolidated Financial Statements “Supplemental information on oil and gas exploration and production activities (unaudited)—Oil and GasReserves” include volumes consumed in operations).(6)Volumes of natural gas have been converted to barrels of oil equivalent at 5,615 cubic feet per barrel.The composition of the crude oil produced by us in Argentina varies by geographic area. Almost all crude oil produced by us in Argentina has very lowor no sulfur content. We sell substantially all the crude oil we produce in Argentina to our Refining and Marketing business segment. Most of the natural gasproduced by us is of pipeline quality. All of our gas fields produce commercial quantities of condensate, and substantially all of our oil fields produceassociated gas. 48Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe following table sets forth the average production costs and average sales price by geographic area for 2014, 2013, and 2012: Production costs and sales price Total Argentina United States (Ps./boe) Year ended December 31, 2014 Lifting costs 122.44 122.26 235.99 Local taxes and similar payments(1) 11.43 11.44 — Transportation and other costs 15.06 15.03 31 Average production costs 148.93 148.74 266.99 Average oil sales price 594.02 593.34 724.77 Average NGL sales price 188.87 187.70 364.23 Average natural gas sales price 111.08 111.03 192.58 Year ended December 31, 2013Lifting costs 88.02 88.02 88.52 Local taxes and similar payments(1) 5.55 5.58 — Transportation and other costs 19.89 19.88 21.96 Average production costs 113.46 113.48 110.48 Average oil sales price 393.62 392.77 541.74 Average NGL sales price 114.05 112.90 252.27 Average natural gas sales price 72.39 72.37 108.12 Year ended December 31, 2012Lifting costs 66.22 65.89 65.09 Local taxes and similar payments(1) 3.24 3.26 — Transportation and other costs 19.50 19.51 17.54 Average production costs 88.97 88.66 82.63 Average oil sales price 288.71 317.11 466.75 Average NGL sales price 110.29 108.12 379.60 Average natural gas sales price 54.78 60.33 92.12 (1)Does not include ad valorem and severance taxes, including the effect of royalty payments which are a financial obligation or are substantiallyequivalent to such taxes, in an amount of approximately Ps. 45.51 per mmboe, Ps.32.77 per boe and Ps. 25.10 per boe for the years ended December 31,2014, 2013 and 2012, respectively.Drilling activity in ArgentinaThe following table shows the number of wells drilled by us or consortiums in which we had a working interest in Argentina during the periodsindicated. Wells Drilled in Argentina For the Year Ended December 31, 2014 2013 2012 Gross wells drilled(1) Exploratory Productive 35 38 33 Oil 20 30 27 Gas 15 8 6 Dry 8 3 5 Total 43 41 38 Development Productive 861 728 468 Oil 725 664 455 Gas 136 64 13 Dry 4 2 2 Total 865 730 470 Net wells drilled(2)Exploratory Productive 30 29 24 Oil 17 25 21 Gas 13 4 3 49Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDry 5 3 4 Total 44 32 28 Development Productive 708 679 441 Oil 592 624 430 Gas 116 55 11 Dry 4 2 1 Total 712 681 442 (1)“Gross” wells include all wells in which we have an interest. In addition to wells drilled in Argentina, we participated in the drilling of the following“gross” wells in North America: one development oil well in 2014 with positive result, which belongs to the Neptune off shore project GOM (first oilJanuary 2015). In 2012, we completed a side-track of an off-shore development well not in production for technical reasons and a successful workoverof an off-shore development well.(2)“Net” wells equals gross wells after deducting third-party interests. In addition to wells drilled in Argentina, “net” wells were not drilled in NorthAmerica.Exploration & Production Activity in ArgentinaDuring 2014, our main exploratory and development activities in Argentina have had the following principal focus: 1.Operated Areas - Exploratory ActivitiesDuring 2014, our main exploratory activities in Argentina were principally focused on:1.1 Onshore: • Unconventional activities:We continued with the regional exploration of the Vaca Muerta formation, oriented towards the characterization of productivity of the shale oil,wet gas and dry gas in different areas of the basin.Having completed the exploration phase, we obtained 35-year exploitation permits for the La Amarga Chica and Bajada de Añelo blocks. See“Exploration and Production—Main Properties”. • Shale oil:Neuquina Basin. Exploration continued along the shale oil strip, in an attempt to define intermediate control points of productivity, all whilecomplying with the contractual commitments of the exploratory Joint Operation Agreements (“JOAs”) of the second and third bidding rounds in theprovince of Neuquén.We obtained positive results in wells drilled in the Cerro Avispa, Bajada de Añelo and El Manzano Oeste blocks. These wells confirmed theproductivity of the Vaca Muerta formation at various points of the basin.Continuing the exploration of different source rocks, the Filo Morado xp-40 well was completed. It is the first YPF well in the Agrio formation,as a shale oil reservoir.Golfo San Jorge Basin. During 2014, the El Trebol xp-914 well was completed with positive results as an unconventional resource play in the D-129 formation. • Shale gas:Neuquina Basin. During 2014, we focused on the regional definition of the shale gas strip area obtaining positive results in the Cerro Partido(operated by YPF SA) block. Data integration is in progress to define sweet spot distribution. 50Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Conventional activities: • Neuquina Basin:Tight gas: Exploration of the Basin Center Gas System started with the Lajas Este.x-1 well in the Loma La Lata—Sierra Barrosa block, with positiveexploratory results. We also completed well RDMS x-1 in the Rincón de Mangrullo block in the Mulichinco formation.Positive results were obtained in eleven exploration wells targeting conventional reservoirs in the following blocks: ¡ Los Caldenes (oil) ¡ Paso de las Bardas Norte (oil) ¡ Bajo del Piche (gas / oil) ¡ Llancanelo R (oil) ¡ Cañadon Amarillo (oil) ¡ Loma la Lata - Sierra Barrosa (gas) ¡ Señal Cerro Bayo (gas) ¡ Chachahuen Sur (oil) • Golfo San Jorge Basin:We continued exploration activity targeting conventional oil and gas reservoirs in the Golfo San Jorge Basin. Positive results were obtained in sevenexploration wells in the following blocks: ¡ Restinga Alí (gas) ¡ Cerro Piedra - Cerro Guadal Norte (oil) ¡ Los Perales-Las Mesetas (oil) ¡ Manantiales Behr (gas) • Cuyana Basin:We restarted the exploration activity in Cuyana Basin with positive results in the Vizcacheras block. • Bordering areas:Los Tordillos Oeste block (located in the province of Mendoza): Starting with the analysis of the 3D seismic data obtained during the last quarter of2010, we established the location of two exploratory wells, in association with Sinopec Argentina (formerly Occidental Exploration and ProductionInc.), with YPF and Sinopec Argentina each holding a 50% working interest in the project. During 2014, the Los Retoños x-1 well was drilled, andcompletion is scheduled for first quarter of 2015. Drilling of the second well, Chañar Brea x-1, began in January 2015.Gan Gan (CCA-1) block: In early 2013, Wintershall Energía (holder of a 25% working interest in the project) informed us (as holder of a 75% workinginterest in, and operator of, the project) that Wintershall Energia intended to withdraw from the joint venture. We decided not to continue with thesecond exploratory period and, as a result, the block was relinquished to the province of Chubut.CGSJ V/A block: We (as holder of a 75% working interest in the project) and Wintershall Energía (as holder of a 25% working interest in the project)informed the Chubut province authorities of our decision to relinquish the block due the lack of exploration potential. During 2014, the block wasrelinquished to the province.1.2 Offshore: • According to the amendments to the Hydrocarbons Law adopted by Law No. 27,007, all exploration permits owned by ENARSA will betransferred to the Secretariat of Energy. YPF currently participates in three offshore blocks in association with ENARSA (E1 block: YPF35%, E2 block: YPF 33% and E3 block: YPF 30%) with a total acreage of 23,700 km2. Within six months after the Law No. 27,007 waspublished, we plan to initiate negotiation of the new terms and conditions. As of December 31, 2014, we do not have registered assets inthese blocks. See “—Regulatory Framework and Relationship with the Argentine Government—Law No. 27,007, amending theHydrocarbons Law” for a description of new terms which applied to new production concessions or exploitation permits. 51Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2.Operated Areas - Development activitiesDuring 2014, our development activities in Argentina were mainly focused on the following regions: 2.1Neuquén—Río Negro • Neuquén YPF Concession:Aguada Toledo—Sierra Barrosa area: As part of our strategy to maximize oil production, we continued working on secondary recovery effortsdrilling 36 production wells, eight water injectors and 21 injector conversion wells. We built and refurbished facilities to increase the injection andproduction evacuation capacity of the field. These efforts were reflected in the fourth quarter of 2014, when the average water injection reached 9,600cm/d, (compared to 7,920 cm/d in the first quarter of 2014). Water injection is expected to reach 16,000 cm/d in 2015. Also, for the next year certainstudies based on increased waterflooding of the reservoir area, considering a water injection volume of 2,200 cm/d, would potentially allow therecovery of an additional 3.2 mmboe of oil.In 2014, petroleum tests yielded positive results in a calcareous horizon along the entire Aguada Toledo-Sierra Barrosa field. YPF plans tocontinue the delineation of this play through six horizontal and vertical delineation wells in 2015.Regarding tight gas, development of Segment 5 in the Lajas formation continued in the Aguada Toledo field. In this area, 44 drilled wells allowed anincrease of gas production from 2.4 mmcm/d to 4.1 mmcm/d. We expect to begin an additional stage of development through infill and horizontalwells, which would allow us to substantially increase the reservoir area.To confirm the potential of the Lajas formation in the Aguada Toledo-Sierra Barrosa field, we drilled tight gas appraisal wells in Segment 2 overthe North Barrosa structure confirming gas along all drilled Lajas sections.Octógono block: nine development wells were completed. The average production in this area was approximately 2,312 bbl/d as of December31, 2014.El Cordón field: regarding conventional gas formations we continued drilling through five delineation and development wells. As ofDecember 2014, the gas production rate was 250,000 cm/d, an increase of 150% compared to December 2013.To confirm the potential of the Lajas formation in this field we drilled tight gas appraisal wells in Segment 3 confirming gas along all drilled Lajassections.Bardita Zapala area: three development wells were drilled targeting the Tordillo formation, two of which were completed during 2014 withaverage oil production of 270 bbl/d by the end of 2014. The third well was completed during January 2015. Besides drilling activities, during 2014 wedrilled a workover at the BZ-18 well, which opened a new faulted area and allowed us to test oil in the Tordillo formation. As a result, we drilled a stepout well in 2014.Barda Gonzales area: during the second half of 2014 five wells were drilled (BG-1077, BG-1080, BG-1083, BG-1065 and BG-1078). The targetfor the first three wells were the Quintuco/Mulichinco formations and as a secondary objective the lower member of the Centenario formation. Thewells were completed during 2014 with an average oil production 37.5 bbl/d by December 2014 per well. The BG-1065 and BG-1078 wells weredrilled targeting the Mulichinco and upper and lower Centenario formations, and were completed in January 2015. The development in 2015 willcontinue studying the extension of this area.Guanaco area: three wells were drilled during 2014, up to 3,350 meters in the Guanaco Deep area, targeting the Precuyano and Basamentoformations as primary objectives, and the Lotena and Lajas formations as secondary objectives. Two of them, GU-1185 and GU-1196, were completedin 2014 with an average oil production of 9 bbl/d by the end of December 2014. The Guanaco Deep area has 26 wells drilled up to date. Due to theresults of the current drilling campaign, several actions are being taken in order to improve the production in this zone. During 2015, we expect to drillone more development well in Guanaco Deep and one step out well in the North zone of Guanaco Centro. 52Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAnticlinal Campamento area: one well was drilled to the Precuyo formation and because of its structural position, we will not continue drillingin this zone. The results were not as expected, and the average gas production was 5,500 mcm/d.Ranquil Co area: two wells were drilled targeting the Precuyo formation. In the RCO-1054 well we obtained an average gas production of80,000 mcm/d and in the RCO-1053 well we obtained an average gas production of 5,500 mcm/d. In the east part of the area, we are planning todevelop new drilling opportunities in 2015.Neuquen YPF Concession 1 Aguada de Castro; 2 Aguada Pichana; 3 Aguada Villanueva; 4 Al Norte de La Dorsal; 5 Al Sur de La Dorsal I; 6 Al Sur de La Dorsal Ii; 7 Al Sur de LaDorsal Iii; 8 Al Sur de La Dorsal Iv; 9 Al Sur De La Dorsal V; 10 Al Sur De La Dorsal Vi; 11 Al Sur de La Dorsal Vii; 12 Anticlinal Campamento; 13 Apon; 14Bajada de Añelo; 15 Bajo Del Toro; 16 Bandurria; 17 Buta Ranquil I; 18 Buta Ranquil Ii; 19 Cerro Arena; 20 Cerro Avispa; 21 Cerro Bandera; 22 CerroHamaca; 23 Cerro Las Minas; 24 Cerro Partido; 25 Chapua Este; 26 Chasquivil; 27 Chihuido de La Salina Sur; 28 Chihuido de La Sierra Negra; 29Corralera; 30 Cortadera; 31 Dadín—Lote I; 32 Dadín—Lote Ii; 33 Dadín—Lote Iii; 34 Don Ruíz; 35 Dos Hermanas; 36 El Orejano; 37 El Portón; 38 ElSantiagueño; 39 Filo Morado; 40 Huacalera; 41 La Amarga Chica; 42 La Banda; 43 La Calera; 44 La Ribera I; 45 La Ribera Ii; 46 Las Manadas (CalandriaMora); 47 Las Tacanas; 48 Lindero Atravesado; 49 Loma Amarilla; 50 Loma Campana; 51 Loma del Mojón; 52 Loma Del Molle; 53 Loma La Lata—SierraBarrosa; 54 Los Candeleros; 55 Mata Mora; 56 Meseta Buena Esperanza; 57 Octogono; 58 Ojo De Agua; 59 Pampa de Las Yeguas I; 60 Pampa de LasYeguas Ii; 61 Paso de Las Bardas Norte; 62 Puesto Hernandez; 63 Rincón Del Mangrullo; 64 Río Barrancas; 65 Salinas del Huitrin; 66 San Roque; 67 SantoDomingo I; 68 Santo Domingo Ii; 69 Señal Cerro Bayo; 70 Señal Picada—Punta Barda; 71 Volcán Auca Mahuida 53Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsLoma de la Lata area: our main gas producing field. We continued with four infill wells, plunger lift and wellhead compressions aiming atdeclines below 10% per year (compared to an average of 13% per year in the 2011/12 period). During 2014 and 2013, the average production rate was11.4 million cm/d and 12.0 million cm/d respectively, showing decline rates of 8.8% and 4.0% respectively.To confirm the potential of the Lajas formation in this field we drilled one tight gas appraisal well in Segment 7 that confirmed gas in this formationwith a low rate, which is currently under evaluation.Puesto Hernandez block: During January 2014 YPF acquired the remaining 38.45% interest in the Puesto Hernandez block from Petrobras, andbecame the sole owner of the block. Previously YPF had a 61.55% interest. Since April 1, 2014 YPF has been the operator of the block. PuestoHernandez is located in the provinces of Neuquén and Mendoza, and covers an area of 147 km2, its operations began in 1967 and as of December 31,2014, it produces 9,700 bbl/d of Medanito crude.On January 1, 2015, as a result of a transaction with Gas y Petróleo del Neuquén (“G&PN”) (see “—Exploration and Production Overview—Mainproperties”) the following hydrocarbon concessions were transferred to G&PN: Bajo Baguales, Neuquen del Medio, Cutral Co Sur, Loma Negra NI,Collon Cura Block I and Puesto Cortadera. In return, YPF received a 100% working interest participation, in the Bajada de Añelo block. The combinedproduction of the concessions transferred by YSUR was 254 bbl/d and 534 mcm/d. For more information, see “—Main properties”.Additionally, as aresult of the transaction between YPF and Pluspetrol S.A. executed on March 12, 2014, the following hydrocarbon concessions were transferred toPluspetrol: La Calera (100% working interest), Aguada Villanueva (100% working interest) and the Meseta Buena Esperanza (75% working interest).In addition, the following participations in exploration blocks were also transferred to Pluspetrol S.A.: Chasquivil Sur (45% working interest), LasTacanas Sur (45% working interest), Salinas del Huitrin (45% working interest) and Cerro Arena (20% working interest). For more information, see “—Main properties”. • Rio Negro YPF Concession:In December 2014 YPF and Río Negro province signed an agreement to extend some of the Company’s concessions in such province for tenadditional years. See “Item 4. Information on the Company—Exploration and Production.” The agreement includes the following eight blocks: SeñalPicada-Punta Barda, Barranca de los Loros, El Medanito, Bajo del Piche, Los Caldenes, Estación Fernández Oro and El Santiagueño. They producenearly 12.5 mbbl/d of oil and 1.83 mmcm/d of gas as of December 31, 2014.Chihuido de la Sierra Negra block: during 2014 the activities related to enhanced oil recovery projects continued. An integrated reservoir studyand laboratory tests were completed during 2013 and a single well chemical tracer test is scheduled to be performed during first quarter of 2015. If thetest is positive, a pilot well will be drilled in 2016.Volcán Auca Mahuida and Las Manadas blocks: we continued with the appraisal and development of the Centenario and Mulichincoformations. Six new wells were completed during 2014. We had one dry gas well and five oil wells, with an average oil production of 135 bbl/d perwell as of December 2014. Further appraisal and development wells are scheduled to be drilled in 2015.Los Caldenes block: we drilled and completed in March 2014 one exploration well with an initial oil production of 191 bbl/d (32° API) from theSierras Blancas formation. It was the first well drilled in the block since 1999. The block covers an area of 115.3 km2 and its last production date wasFebruary 2011. Considering this highly successful well, we initiated an appraisal campaign in the block with two appraisal wells drilled and completedbetween August and November 2014. The block oil production average was 151 bbl/d as of December 31, 2014. Further drilling activity is scheduledfor 2015.Cerro Hamaca Noroeste block: the northwest area was discovered in late 2012 and during 2014 we continued with the appraisal anddevelopment campaign of the Rayoso formation. Thirteen wells were drilled and ten of them completed in 2014. As of December 2014, the fieldaverage oil production was 390 bbl/d, approximately 50% higher than previous year (December 2013). Fifteen wells are scheduled for 2015. Waterinjection is also scheduled to begin in 2015.Estación Fernandez Oro block: four development gas wells were drilled targeting the Lajas formation, with an average gas production of 55mmcm/d and an average oil production of 100 bbl/d per well as of December 2014. The development of the gas field will continue during 2015,focusing on drilling activity. Four drilling rigs are planned for development during the second half of 2015. 54Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsLos Ramblones area: two oil wells were drilled at the last quarter of 2014, one of which had average oil production of 148 bbl/d as of December2014 while the other had no production.Señal Picada-Punta Barda block: during 2014 we continued with the optimization of existing waterflooding projects in the Señal Picada area.Twenty-three new wells were drilled and workovers in existing wells were also performed. In the Punta Barda area we started an appraisal campaign toextend the proved reserves area. Four wells were drilled in the Loma Montosa formation. As a result of these encouraging results , four new appraisalwells will be drilled in 2015.Rio Negro YPF Concession 2.2Mendoza • Mendoza Norte YPF Concession:During 2014 we continued drilling wells and workovers, focused on the development of new areas and performing primary and secondaryrecovery in mature oil fields. The most important activities are described below:Barrancas block: We performed optimizing waterflooding activities, including workovers of production and injector wells. Appraisal well B.a-508 located in northwest zone of the field delivered a positive result. This result creates new opportunities in this zone of the field notwithstandingpoorer petrophysical properties regarding Barrancas CRI main field.Ugarteche area: After 13 years, drilling activity has been revitalized with appraisal well drilling U.a-140. This well is producing from the RioBlanco formation.Estructura Cruz de Piedra area: We continued the field development plan, including five workovers and three new development wells. Thegood results obtained support the proposed activity for 2015.La Ventana block: We renegotiated the La Ventana consortium with Sinopec, extending the concession through 2027 and changing theownership percentages. As of November 1, 2014 YPF´s participation in this area increased from 60% to 70% and Sinopec now holds a 30% workinginterest. After reaching this new Joint Operating Agreement (JOA), we re-started the drilling of infill and replacement wells and the appraisal anddevelopment of the Punta de las Bardas Sur field. These two projects combined resulted in six new wells drilled and five workovers during 2014. 55Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsVizcacheras Oeste field—Papagayos formation: We continued the optimization and infill drilling projects during 2014. Under these twoprojects we drilled 13 new wells and performed 13 workovers, almost completing the primary production development of Vizcacheras Oeste field.Llancanelo block: Four horizontal wells were drilled involving two production formation targets. This successful activity should allow us todrill six new wells during 2015.Valle del Río Grande block: We performed appraisal and development activities in fractured reservoirs during 2014. Appraisal well LVo.-9 (LosVolcanes) from the Pre Cuyo formation demonstrated positive results.Cerro Fortunoso block: A water treatment plant was installed to treat a maximum rate of 4,500 m3/d of injection water. We continued thewaterflooding development plan including seven conversions of producers to injectors and one new injector well.Mendoza Norte YPF Concession • Mendoza Sur YPF Concession:During 2014 we remained focused on the development of new areas and on the secondary recovery in mature oil fields. We have described themost important activities below:Desfiladero Bayo area: We drilled twelve development wells and two appraisal wells in the Rayoso, Troncoso and Agrio formations in line withthe development plan. We began a polymer injection pilot, drilled one producer and two injector wells, in addition to completing six workovers.Furthermore, pilot facilities are under construction with the objective of beginning polymer injection in June 2015. 56Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsChachahuen Sur block: We drilled 15 development wells and six appraisal wells in the Rayoso formation. Additionally, we obtained positiveresults from appraisal wells drilled in the northeast and southwest zones of the block.Cañadón Amarillo block: We drilled four development wells and three appraisal wells in certain deep formations (Grupo Cuyo, Barda Negra andTordillo) to continue the development of the north area in the Cañadón Amarillo block. We received positive results from appraisal wells drilled in thesouthwest zones of the north area.El Portón block: We drilled two development wells in the Troncoso formation and an appraisal well in the Quintuco, Vaca Muerta andMulichinco formations. Additionally, we received positive results from an appraisal well drilled in the north area of the block.Mendoza Sur YPF Concession 2.3ChubutThe oil production of the blocks operated by YPF in the Chubut province surpassed historic levels, achieving a 7% increase in total oil production in2014 compared to 2013. In addition, wellhead gas production increased 15% in 2014 compared to 2013. 57Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsManantiales Behr block: we drilled 41 wells in 2014 among three main oil fields, La Carolina, El Alba and Grimbeek, with mainly positiveresults. Additionally, we completed 54 workovers for primary oil also with positive results.The polymer injection pilot project at the Grimbeek field started in 2013 with a standard water flooding approach and is currently at anadvanced stage, with good production results. We expect to initiate polymer injection when secondary oil recovery is stabilized, during the firstquarter of 2015.The medium-term focus on the Manantiales Behr block is to extend water flooding projects along the field in order to sustain production growth,starting with facilities developments during 2015.As a result of the activities described oil production from the Manantiales Behr concession increased by nearly 7% compared to 2013.Chubut YPF Concession El Trébol—Escalante block: oil production increased by approximately 11% during 2014 compared to 2013 based on 48 new wells drilled and57 workovers, within waterflooding optimization projects and delineation of deeper structures.Zona Central—Cañadón Perdido block: located around the urban area of Comodoro Rivadavia, maintained the 2013 oil production level, dueto the Bella Vista Sur project, one of the most productive structures in the basin.Restinga Alí block, located on the coast between the urban area and the sea, was reactivated, producing more than 625 bbl/d oil production inDecember 2014, with very promising development prospects in shallow water off-shore projects. 58Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2.4Santa CruzDuring 2014, we implemented 21 integral development projects across five major development areas in the province of Santa Cruz (Las Heras, ElGuadal, Los Perales, Pico Truncado and Cañadon Seco), comprising a total portfolio of thirty-one projects. The main projects include the followingreserve areas: Cañadón Escondida, Cerro Grande, Seco León, Los Perales, Cañadon Yatel and El Guadal, with 269 wells drilled (221 oil wells, 46injectors and two advanced wells), 430 workovers and associated facilities.The main objectives of these integral projects are: ¡ Comprehensively developing the areas through the drilling of new wells. ¡ Acquiring the necessary information with electrical logs, rotated plugs and well testing. ¡ Increasing the recovery factor with new enhanced oil recovery projects. ¡ Increasing water injection to improve the sweep efficiency. ¡ Extending horizontal and vertical limits with new appraisal and exploration wells. ¡ Providing development support through the appropriate surface facilities.Santa Cruz YPF Concession 2.5Tierra del FuegoOn October 10, 2014, the extension of concessions of the CA7, Los Chorrillos, Lago Fuego and Tierra del Fuego areas was finally approvedpursuant to Provincial Law No. 997 and 998.The Tierra del Fuego block (100% working interest) was extended until November 14, 2027, Los Chorrillos block (100% working interest) untilApril 18, 2026 and Lago Fuego block (100% working interest) until November 6, 2027. 59Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDuring 2014, no drilling activity was performed in the Tierra del Fuego province. Base production was maintained through workover activity.Additionally , we improved our facilities to reduce the gas back pressure at the gathering system and improved wells productivity mainly through theinstallation of plunger lift system at San Sebastian field.In the Tierra del Fuego province, 22 recompletions were executed during 2014, 12 of which were executed at the San Sebastian field, focusedmainly on gas production. The rest of the activity was focused on oil production at the north and south. In both cases, the Springhill formation was thetarget area.Tierra del Fuego YPF Concession 3.Non-operated areas • Exploration activities:We obtained positive results in unconventional exploration wells drilled in San Roque and Aguada Pichana (operated by Total S.A.) blocks,confirming the productivity of Vaca Muerta formation in these areas.Also positive results were obtained in exploration wells targeting conventional oil reservoirs in the CNQ7/A and CNQ7 blocks, both operated byPluspetrol. 60Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Development activities:El Tordillo and La Tapera-Puesto Quiroga blocks: Beginning in January 2014, under an agreement that YPF signed with Chubut as part of thenegotiation of the extension of YPF concessions in that province, YPF transferred 41% of its working interest in the JV’s ET/LT-PQ to PetromineraChubut S.E. As a result, the new participation of YPF in the JV is 7.196%.Magallanes block: On November 17, 2014, we agreed to extend the joint venture contract with ENAP Sipetrol Argentina S.A. in the Magallanesblock. The objective of this agreement was to extend the rights and obligations of ENAP in the original joint venture agreement and confirm its role asoperator, maintaining its 50% share until the end of concession. This agreement was subject to ENAP’s decision to continue with the incrementalproject and make additional investments to increase production in September 2015.Aguada Pichana block: operated by Total S.A. and in which YPF holds a 27.23% working interest.Tight gas projects: during 2014, we continued tight gas development in different areas of the block and ten wells were drilled. Six of them are inproduction or waiting to put into production, two are completed and two of them were abandoned.Production improvements: we continued to maintain or improve field daily production and continuing the campaign initiated during the first half of2013, under which seven velocity strings and twelve capillary strings were stated, five wells were refractured and three workovers were conducted.Likewise, production in the northern area of Aguada Pichana was changed to low pressure operation mode with the objective to increase productionand ultimate recovery.Unconventional: we completed drilling the pilot of unconventional development in which the consisted of six horizontal wells. In the second half, thecompletion stage began, which consists of ten fractures by well and treatment facilities. During the last quarter of 2014, we began the second stage ofthe unconventional development pilot drilling.San Roque block: operated by Total S.A. and in which YPF holds a 34.1% working interest:Conventional: the BdT.e-1 well was drilled with positive results.Production improvements: three workovers, one capillary string, one acidification and three other wells were repaired. In addition, 2.6 kilometers ofuptake natural gas pipelines were tended.Unconventional: the SR.e-1005 horizontal well began production during 2014.Lindero Atravesado block: operated by Pan American Energy LLC and in which YPF holds a 37.5% working interest. Drilling of eighteen wellswere completed and all are in production. This is a tight gas reservoir project targeting the Lajas formation and includes 104 wells. The project alsoincludes building the corresponding field facilities.Acambuco block—Macueta field: the Mac.e-1004 (d) well was drilled with positive results. This project began in September 2013 and wasfinished in November 2014. This is a multi-horizontal well with two targets: one deeper in the Icla formation, (5,499 meters total depth) and the secondin the Huamampampa formation (5,173 meters total depth). The well was tested in both levels, and produced gas and condensate with some water inHuamampampa. This well was the first in Argentina equipped with intelligent well control (“IWC”), which is composed of four control lines, one fiberoptic line and bottom sensors.Properties and E&P activities in rest of the world 1.United StatesDuring 2014, Maxus relinquished a total of seven blocks in the Green Canyon area, including three to the U.S. federal government and four to MurphyOil.As of December 31, 2014, we had mineral rights in 20 blocks in the United States territorial waters in the Gulf of Mexico, comprised of 17 exploratoryblocks, with a gross surface area of 396 km2 (222 net to Maxus), and three development blocks, with a gross surface area of 69.93 km2 (10.48 net to Maxus ).Our U.S. subsidiaries’ net proved reserves in these areas as of December 31, 2014 was 2.253 mmboe. Our U.S. subsidiaries’ net hydrocarbon production inthese areas for 2014 was 0.559 mmboe. 61Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe Neptune field is located approximately 120 miles off the Louisiana coast in the deepwater region of the Central Gulf of Mexico. The field area ismade up of the Atwater Valley 574, 575 and 618 blocks. Our indirect subsidiary Maxus U.S. Exploration Company has a 15% working interest in the field.The other joint venture participants are BHP Billiton (35%), Marathon Oil Corp. (30%) and W&T Offshore (20%). BHP Billiton is the operator of the Neptunefield and the associated production facilities. The Neptune reserves are being produced using a standalone, tension leg platform (“TLP”) located in the GreenCanyon 613 block within 4,230 feet of water. Production began on July 8, 2008. The platform supports seven sub-sea development wells that are tied back tothe TLP via a subsea gathering system.In addition, YPF Holdings has entered into various operating agreements and capital commitments associated with the exploration and development ofits oil and gas properties. These contractual, financial and/or performance commitments are not material. Our operations in the United States, through YPFHoldings, are subject to certain environmental claims. See “—Environmental Matters—YPF Holdings–Operations in the United States.” 2.ChileWe were selected to operate in two exploratory blocks of the Magallanes Basin: (i) San Sebastián, which we will operate and in which we will hold a40% working interest along with Wintershall (which will hold a 10% working interest) and ENAP (which will hold a 50% working interest); and(ii) Marazzi/Lago Mercedes, which we will operate and in which we will hold a 50% working interest along with ENAP (which will hold a 50% workinginterest).Total commitments with respect to the awarded exploration blocks during the first exploratory period include the acquisition of 672 km2 of 3D seismicdata and the drilling of 8 exploratory wells. Between 2013 and 2014, 679 km2 of 3D seismic data were registered. Exploratory wells are expected to bedrilled in 2015. 3.ColombiaBlocks COR12, COR14 and COR33 are located in the Cordillera Oriental Basin, which we operate pursuant to authorization by the Colombian NationalHydrocarbons Agency (Agencia Nacional de Hidrocarburos, or “ANH”). Our working interest in these blocks ranges from 55% to 60%. The net acreagerelating to our working interest in the blocks is 890 km2. As of the date of this annual report, we have requested approval from the ANH to farm out ourworking interest in the COR 12 and COR 33 blocks. YPF and its partners informed the ANH of their decision to relinquish the COR 14 block. 4.ParaguayIn September 2011, we were awarded 100% of the Manduvira exploration permit. The area covers a surface of 15,475 km2 and is located in the easternarea of Paraguay, within the scope of the Chacoparaná Basin. Our main goal in this project is to explore unconventional resources. In September 2012, theone-year exploration period established by the Manduvira exploration permit expired. We requested a one-year extension of the exploration period from theMinistry of Public Works and Communications in order to finalize our initial exploration. In January 2015, the extension period expired and YPF informedthe Ministry of its decision to relinquish the block. 5.Uruguay4.1 Deep Water Offshore—Punta del Este Basin: • Area 3: We own a 40% working interest in this area and act as operator, in partnership with Shell, which has a 40% workinginterest and took over Petrobras Uruguay’s participation and GALP, which has a 20% working interest. The permit expired onOctober 6, 2014 and an extension of the permit for 120 days was submitted to the application authority. As of the date of thisannual report, the consortium is analyzing the option to access a second exploration period. • Area 4: YPF and Petrobras Uruguay as the operator, and GALP completely relinquished this area in April 2014.4.2 Onshore:In March 2012, we were awarded the entire Arapey exploration permit. The block has a surface area of 9,700 km2. Our main goal in this project is toexplore unconventional resources. In March 2014, the permit expired and the block was relinquished. 62Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 6.EcuadorIn October 2014, we signed a service contract with Petroamazonas, the national oil company of Ecuador, to optimize production in Yuralpa field. The15-year agreement involves the drilling of at least ten wells, application of technologies for enhanced oil recovery (EOR) and performing activities toincrease oil production in this field, located in Block 21 in the Amazonian province of Napo.Additional information on our present activitiesThe following table shows the number of wells in the process of being drilled as of December 31, 2014. As of December 31, 2014 Number of wells in the process of being drilled Gross Net Argentina 67 56.4 Rest of South America — — North America 0 0 Total 67 56.4 Delivery commitmentsWe are committed to providing fixed and determinable quantities of crude oil and natural gas in the near future under a variety of contractualarrangements.With respect to crude oil, we sell substantially all of our Argentine production to our Refining and Marketing business segment to satisfy our refiningrequirements. As of December 31, 2014, we were not contractually committed to deliver material quantities of crude oil to third parties in the future.As of December 31, 2014, we were contractually committed to deliver 15,037 mmcm (or 531 bcf) of natural gas in the future, without consideringexport interruptible supply contracts, of which approximately 9,017 mmcm (or 318 bcf) will have to be delivered in the period from 2015 through 2017.According to our estimates as of December 31, 2014, our contractual delivery commitments for the next three years could be met with our own productionand, if necessary, with purchases from third parties.However, since 2004 the Argentine government has established regulations for both the export and domestic natural gas markets which have affectedArgentine producers’ ability to export natural gas. Consequently, since 2004 we have been forced in many instances to partially or fully suspend natural gasexport deliveries that are contemplated by our contracts with export customers. Charges to income totaling Ps. 52 million, Ps. 174 million and Ps. 212 millionhave been recorded in 2014, 2013 and 2012, respectively, in connection with our contractual commitments in the natural gas export market.Among the regulations adopted by the Argentine government, on June 14, 2007, the Argentine Secretariat of Energy passed Resolution No. 599/07,pursuant to which we were compelled to enter into an agreement with the Argentine government regarding the supply of natural gas to the domestic marketduring the period 2007 through 2011 (the “Agreement 2007-2011”). On January 5, 2012, the Official Gazette published Resolution S.E. No. 172, whichtemporarily extends the rules and criteria established by Resolution No. 599/07 until new legislation is passed replacing such rules and criteria. OnFebruary 17, 2012, we filed a motion for reconsideration of Resolution S.E. No. 172 with the Argentine Secretariat of Energy.As a consequence of such agreement, YPF has not entered into any contractual commitment to supply natural gas to distribution companies. Thepurpose of the Agreement 2007-2011 is to guarantee the supply of natural gas to the domestic market at the demand levels registered in 2006, plus thegrowth in demand by residential and small commercial customers. See “—Regulatory Framework and Relationship with the Argentine Government—MarketRegulation” and “Item 3. Key Information—Risk Factors—Risks Relating to Argentina—We are subject to direct and indirect export restrictions, which haveaffected our results of operations and caused us to declare force majeure under certain of our export contracts.” According to our estimates as of December 31,2014, supply requirements under the Agreement 2007-2011 (which we were compelled to enter into and which was approved by a resolution that has beenchallenged by us) could be met with our own production and, if necessary, with purchases from third parties. Additionally, on October 4, 2010, the NationalGas Regulatory Authority (“ENARGAS”) issued Resolution No. 1410/2010, which approved the “Procedure for Applications, Confirmations and Control ofGas” setting new rules for natural gas dispatch applicable to all participants in the gas industry and imposing new and more severe priority demand gasrestrictions on producers. See “—Regulatory Framework and Relationship with the Argentine Government—Market Regulation.” 63Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsWe have appealed the validity of the aforementioned regulations and have invoked the occurrence of a force majeure event (government action) underour export natural gas purchase and sale agreements, although certain counterparties to such agreements have rejected our position. See “Item 8. FinancialInformation—Legal Proceedings—Argentina—Accrued, probable contingencies—Alleged defaults under natural gas supply contracts.”In addition, on May 3, 2012, the Expropriation Law was passed by the Argentine Congress. The Expropriation Law declared achieving self-sufficiencyin the supply of hydrocarbons, as well as in the exploitation, industrialization, transportation and sale of hydrocarbons, a national public interest and apriority for Argentina. In addition, its stated goal is to guarantee socially equitable economic development, the creation of jobs, the increase of thecompetitiveness of various economic sectors and the equitable and sustainable growth of the Argentine provinces and regions. After the takeover of theCompany by the new shareholders in accordance with the Expropriation Law. Our strategy intends to reaffirm our commitment to creating a new model of theCompany in Argentina that aligns our objectives, seeking profitable and sustainable growth that generates shareholder value, with those of the country,thereby positioning YPF as an industry-leading company aiming at the reversal of the national energy imbalance and the achievement of hydrocarbon self-sufficiency in the long term.To achieve the goals set forth above, we focus on: (i) the development of unconventional resources, which we see as a unique opportunity because a)the potential related to the existence of large volumes of unconventional resources in Argentina according to estimates of leading reports on global energyresources, b) we currently possess a relevant participation in terms of exploration and exploitation rights on the acreage in which such resources could belocated, and c) we believe we can integrate a portfolio of projects with high production potential; (ii) the re-launch of conventional and unconventionalexploration initiatives in existing wells and expansion to new wells, including offshore; (iii) an increase in capital and operating expenditures in mature areaswith expected higher return and efficiency potential (through investment in improvements, increased use of new perforation machinery and wellintervention); (iv) a return to active production of natural gas to accompany our oil production; and (v) an increase in production of refined products throughan enhancement of the refining capacity (including improving and increasing our installed capacity and upgrading and converting our refineries). Theseinitiatives have required and will continue to require organized and planned management of mining, logistic, human and financing resources within theexisting regulatory framework, with a long-term perspective.The investment plan related to our growth needs to be accompanied by an appropriate financial plan, whereby we intend to reinvest earnings, searchfor strategic partners and acquire debt financing at levels we consider prudent for companies in our industry. Consequently, the financial viability of theseinvestments and hydrocarbon recovery efforts will generally depend, among other factors, on the prevailing economic and regulatory conditions inArgentina, the ability to obtain financing in satisfactory amounts at competitive costs, as well as the market prices of hydrocarbon products. See “Item 3. KeyInformation—Risk Factors—Risks Relating to Argentina.”Natural gas supply contractsThe Argentine government has established regulations for both the export and internal natural gas markets which have affected Argentine producers’ability to export natural gas under their contracts. YPF’s principal supply contracts are briefly described below.We were committed to supply a daily quantity of 125 mmcf/d (or 4 mmcm/d) to the Methanex plant in Cabo Negro, Punta Arenas, in Chile (under threeagreements which expire between 2017 and 2025). Pursuant to instructions from the Argentine government, deliveries were interrupted from 2007. Inconnection with these contracts, the Company has renegotiated them through 2018 and has agreed to make investments, export gas and temporarily importcertain final products, subject to approval by the relevant government authorities, which have been obtained. As of the date of this annual report, theCompany is fulfilling the agreed commitments mentioned above. To the extent that the Company does not comply with such agreements, we could besubject to significant claims, subject to the defenses that the Company might have.We currently have several supply contracts with Chilean electricity producers (through the Gas Andes pipeline linking Mendoza, Argentina toSantiago, Chile, which has a transportation capacity of 353 mmcf/d (or 10 mmcm/d) (designed capacity with compression plants)), including: • a 15-year contract signed in 1999 to supply 20% of the natural gas requirements of Colbun, an electricity company (approximately 11 mmcf/d or0.3 mmcm/d); and • a 15-year contract signed in 2003 to supply 35 mmcf/d (or 1 mmcm/d) to Gas Valpo, a distributor of natural gas in Chile. 64Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe contracts with Colbun and Gas Valpo were modified to become interruptible supply contracts.We also have a 21-year contract (entered into in 1999) to deliver 93 mmcf/d (or 2.63 mmcm/d) of natural gas to a Chilean distribution company (Innergy) thatdistributes natural gas to residential and industrial clients through a natural gas pipeline (with a capacity of 318 mmcf/d or 9 mmcm/d) connecting Loma LaLata in Neuquén, Argentina with Chile. The contract was modified reducing its deliver or pay obligation to 7.1 mmcf/d (or 0.2 mmcm/d).We also have natural gas supply contracts with certain thermal power plants in northern Chile (Edelnor, Electroandina, Nopel and Endesa) utilizingtwo natural gas pipelines (with a carrying capacity of 300 mmcf/d or 8.5 mmcm/d each) connecting Salta, Argentina to Northern Chile (Región II). Thecontracts with Edelnor and Electroandina were modified to become interruptible supply contracts.With respect to Brazil, we entered into a 20-year supply contract in 2000 to provide 99 mmcf/d (or 2.8 mmcm/d) of natural gas to the thermal powerplant of AES Uruguaiana Empreendimentos S.A. (AESU) through a pipeline linking Aldea Brasilera, Argentina, to Uruguaiana, Brazil (with a capacity of 560mmcf/d or 15.8 mmcm/d). In May 2009, AESU notified us of the termination of the contract. We are currently in arbitration with AESU. See “Item 8. FinancialInformation—Legal Proceedings—Argentina—Accrued, probable contingencies—Alleged defaults under natural gas supply contracts.”Because of certain regulations implemented by the Argentine government, we could not meet our export commitments and were forced to declare forcemajeure under our natural gas export sales agreements, although certain counterparties have rejected our position. See “—The Argentine natural gas market”and “Item 8. Financial Information—Legal Proceedings.” As a result of actions taken by the Argentine authorities, through measures described in greaterdetail under “—Regulatory Framework and Relationship with the Argentine Government—Market Regulation—Natural gas,” during recent years we havebeen forced to reduce the export volumes authorized to be provided under the relevant agreements and permits.The Argentine natural gas marketWe estimate (based on preliminary reports of amounts delivered by gas transportation companies) that natural gas consumption in Argentina totaledapproximately 1,744 bcf (or 48.601 bcm) in 2014. We estimate that the number of users connected to distribution systems throughout Argentina amounted toapproximately 8.0 million as of October 31, 2014.In 2014, we sold approximately 41% of our natural gas to local residential distribution companies, approximately 9% to Compressed Natural Gas endusers, approximately 43% to industrial users (including our affiliates, Mega and Profertil) and power plants, less than 1% in exports to foreign markets (Chile)and 8% was consumed in YPF downstream operations. Sales are affected by increased consumption by residential consumers during winter months (June toAugust). During 2014, approximately 83% of our natural gas sales were produced in the Neuquina Basin. In 2014, our domestic natural gas sales volumeswere 4% lower than those in 2013.The Argentine government has taken a number of steps aimed at satisfying domestic natural gas demand, including pricing and export regulations andhigher export taxes and domestic market injection requirements. These regulations were applied to all Argentine producers, affecting natural gas productionand exports from every producing basin. See “—Delivery commitments—Natural gas supply contracts.” Argentine producers, such as us, complied with theArgentine government’s directions to curtail exports in order to supply gas to the domestic market, whether such directions are issued pursuant to resolutionsor otherwise. Resolutions adopted by the Argentine government provide penalties for non-compliance. Rule SSC No. 27/2004 issued by the Undersecretaryof Fuels (“Rule 27”), for example, punishes the violation of any order issued thereunder by suspending or revoking the production concession. ResolutionsNo. 659 and No. 752 also provide that producers not complying with injection orders will have their concessions and export permits suspended or revokedand state that pipeline operators are prohibited from shipping any natural gas injected by a non-complying exporting producer.The Argentine government began suspending natural gas export permits pursuant to Rule 27 in April 2004, and in June 2004 the Argentinegovernment began issuing injection orders to us under Resolution No. 659. Thereafter, the volumes of natural gas required to be provided to the domesticmarket under the different mechanisms described above have continued to increase substantially. The regulations pursuant to which the Argentinegovernment has restricted natural gas export volumes in most cases do not have an expiration date. We are unable to predict how long these measures will bein place, or whether such measures or any further measures adopted will affect additional volumes of natural gas.See “—Regulatory Framework and Relationship with the Argentine Government” for additional information on these and other related regulations. 65Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsArgentine natural gas suppliesMost of our proved natural gas reserves in Argentina (approximately 66.5% as of December 31, 2014) are situated in the Neuquina Basin, which isstrategically located in relation to the principal market of Buenos Aires and is supported by sufficient pipeline capacity during most of the year. Accordingly,we believe that natural gas from this region has a competitive advantage compared to natural gas from other regions. The capacity of the natural gas pipelinesin Argentina has proven in the past to be inadequate at times to meet peak-day winter demand, and there is no meaningful storage capacity in Argentina.Since privatization, local pipeline companies have added capacity, improving their ability to satisfy peak-day winter demand, but no assurances can be giventhat this additional capacity will be sufficient to meet demand.In order to bridge the gap between supply and demand, especially with respect to peak-day winter demand, the Argentine government has entered intogas import agreements. The Framework Agreement between the Bolivian and the Argentine governments executed on June 29, 2006 provides for natural gasimports from Bolivia to Argentina to be managed by ENARSA. In May 2010, we accepted the offer made by ENARSA for the sale to us of a minimum amountof 2.5 mmcm/d (or 88.28 mmcf/d) of natural gas obtained by ENARSA from the Republic of Bolivia through initially May 1, 2011 and then extendedthrough May 1, 2013.In April 2013, quantity and price conditions were renegotiated with ENARSA. According to the new conditions, which expired on May 1, 2014,ENARSA undertook to sell us a minimum amount of 1.5 mmcm/d (or 52.97 mmcf/d) of natural gas during the winter of 2013 and 1.0 mmcm/d (or 35.31mmcf/d) of natural gas during the summer of 2013 and 2014, at fixed seasonal prices. The offer also establishes an additional quantity of up to 2.5 mmcm/d(or 88.3 mmcf/d). The contract expired in May 2014 and was not renewed. ENARSA now sells such gas directly to the domestic market in the winter.YPF has provided regasification services to ENARSA since May 2008. In 2011, YPF executed an extension to the Charter Party Agreement and aRegasification Services Agreement with Excelerate Energy to provide and operate a 151,000 cm (or 533,25 cf) regasification vessel moored at the BahíaBlanca port facilities, which allowed for the supply of up to 17 mmcm/d of natural gas (or 600.34 mmcf/d). In December 2013, as a result of the first automaticextension of 36 additional months already included in this Charter Party Agreement, the expiration date of such Agreement was extended to October 2018.Since beginning its operations, the regasification vessel has converted liquefied natural gas (LNG) into its gaseous state (natural gas) in an approximateamount of 14.4 bcm (or 508.1 bcf), which has been injected into a pipeline which feeds the Argentine national network. Most of this volume was suppliedduring the peak demand period (i.e., winter). In 2014, natural gas injected into the network amounted to approximately 3.3 bcm (or 115.3 bcf).YPF is the operator of UTE Escobar (a joint venture formed by YPF and ENARSA), which operates an LNG Regasification Terminal (“LNG Escobar”)located in the km 74.5 of the Paraná River. The LNG Escobar terminal has a floating, storage and regasification unit permanently moored at the new portfacilities, for which UTE Escobar has executed agreements with Excelerate Energy to provide and operate a 151,000 cm (or 533,252 cf) regasification vesselmoored at the LNG Escobar terminal with the capacity to supply up to 17 mmcm/d (or 600 mmcf/d) of natural gas. Since beginning its operations the totalvolume injected into the network by this vessel was 9.21 bcm (or 325.3 bcf). In 2014 natural gas injected into the network amounted to approximately 2.7bcm (or 93.8 bcf).Natural gas transportation and storage capacityNatural gas is delivered by us through our own gathering systems to the five trunk lines operated by Transportadora de Gas del Norte S.A andTransportadora de Gas del Sur S.A. from each of the major basins. The capacity of the natural gas transportation pipelines in Argentina is mainly used bydistribution companies. A major portion of the available capacity of the transportation pipelines is booked by firm customers, mainly during the winter,leaving capacity available for interruptible customers to varying extents throughout the rest of the year.We have utilized natural underground structures located close to consuming markets as underground natural gas storage facilities, with the objective ofstoring limited volumes of natural gas during periods of low demand and selling such natural gas during periods of high demand. Our principal gas storagefacility, “Diadema,” is located in the Patagonia region, near Comodoro Rivadavia city. The injection of natural gas into the reservoir started in January 2001. 66Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDownstreamDuring 2014, our Downstream activities included crude oil refining and transportation, and the marketing and transportation of refined fuels,lubricants, LPG, compressed natural gas, and other refined petroleum products in the domestic wholesale and retail markets and certain export markets andalso power generation and natural gas distribution.The Downstream segment is organized into the following divisions: • Refining and Logistic Division; • Refining Division • Logistic Division • Trading Division • Marketing Division; • LPG General Division; and • Chemicals;We market a wide range of refined petroleum products throughout Argentina through an extensive network of sales personnel, YPF-owned andindependent distributors, and a broad retail distribution system. In addition, we export refined products, mainly from the port at La Plata. The refinedpetroleum products marketed by us include gasoline, diesel fuel, jet fuel, kerosene, heavy fuel oil and other crude oil products, such as motor oils, industriallubricants, LPG and asphalts.Refining divisionWe wholly own and operate three refineries in Argentina: • La Plata refinery, located in the province of Buenos Aires; • Luján de Cuyo refinery, located in the province of Mendoza; and • Plaza Huincul refinery, located in the province of Neuquén.Our three wholly-owned refineries have an aggregate refining capacity of approximately 319,500 bbl/d. The refineries are strategically located alongour crude oil pipeline and product pipeline distribution systems. In 2014, our crude oil production, substantially all of which was destined to our refineries,represented approximately 84.5% of the total crude oil processed by our refineries, while in 2013 it was 80.4%. Through our stake in Refinor, we also own a50% interest in a 26,100 boe/d refinery located in the province of Salta, known as Campo Durán.The following table sets forth the throughputs and production yields for our three wholly-owned refineries for each of the three years endedDecember 31, 2014, 2013 and 2012: For the Year Ended December 31, 2014 2013 2012 (mmboe) Throughput crude 106.0 101.4 105.5 Throughput Feedstock 4.2 4.1 3.0 Throughput crude and Feedstock 110.2 105.5 108.5 Production Diesel fuel 40.3 38.8 41.5 Motor gasoline 22.4 23.1 23.1 Petrochemical naphtha 6.5 5.7 6.9 Jet fuel 6.1 6.1 6.6 Base oils 1.4 1.0 1.3 67Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents For the Year Ended December 31, 2014 2013 2012 (thousands of tons) Fuel oil 1715 1338 1295 Coke 746 803 916 LPG 638 607 589 Asphalt 185 198 195 During 2014, our global refinery utilization reached 90.9%, compared to 86.9% in 2013, both calculated over a nominal capacity of 319.5 mboe/d. Seebelow for a description of certain considerations related to the incident that affected our La Plata refinery during 2013 which limited our processing capacityutilization during that year.The La Plata refinery is the largest refinery in Argentina, with a nominal capacity of 189,000 bbl/d. The refinery includes three distillation units, twovacuum distillation units, two fluid catalytic cracking units, a coking unit, a coker naphtha hydrotreater unit, a platforming unit, two diesel fuelhydrofinishing units, a gasoline hydrotreater, an isomerization unit, an FCC (fluid cracking catalysts) naphtha splitter and desulfuration unit and a lubricantscomplex, in addition to a petrochemical complex that generates MTBE, TAME and aromatics compounds used for blending gasoline, and other chemicalproducts for sale. The refinery is located at the port in the city of La Plata, in the province of Buenos Aires, approximately 60 kilometers from the City ofBuenos Aires. During 2014, the refinery processed approximately 163.3 mbbl/d. The capacity utilization rate at the La Plata refinery for 2014 was 86.4%. Asdiscussed below, in 2013 capacity utilization was affected by the shut down of the Coke A unit and the average volume processed was approximately 147mbbl/d, leading to a capacity utilization rate of 77.6%. The crude oil processed at the La Plata refinery, 87.6% of which was YPF-produced in 2014, comesmainly from the Neuquina and San Jorge Basins. Its crude oil supplies come from the Neuquina Basin by pipeline and from the San Jorge Basin by vessel, ineach case to Puerto Rosales, and then by pipeline from Puerto Rosales to the refinery.On April 2, 2013 our facilities in the La Plata refinery were hit by a severe and unprecedented storm, recording over 400 mm of rainfall, which was themaximum recorded in the area. The heavy rainfall disrupted refinery systems and caused a fire that affected the Coke A and Topping C units in the refinery.This incident temporarily affected the crude processing capacity of the refinery, which had to be stopped entirely. Seven days after the event, the processingcapacity was restored to about 100 mbbl/d through the commissioning of two distillation units (Topping IV and Topping D). By the end of May 2013, theTopping C unit resumed operations at full nominal capacity. The Coke A unit has been shut down permanently since the storm, affecting the volume of crudeprocessed in the refinery, due to a reduction in conversion capacity. YPF has an insurance policy that provides coverage for the loss of income and propertydamage due to incidents like the storm that affected the La Plata refinery. See note 11.b to the Audited Consolidated Financial Statements for informationregarding the amount recognized in our results of operations in connection with our insurance coverage in 2014 and 2013.In order to increase the conversion capacity, a new Coke A facility is under construction and is expected to be commissioned by 2016. The capacity ofthe new unit will be 1,160 bbl/h of fresh feed pumped from the bottoms of the Topping and Vacuum Units, providing the refinery with an increase in crudeprocessing capacity utilization of 23.800 bbl/d, representing an increase of almost 12% in the capacity utilization rate. The production of the new facilitywill be a component for the blend to be used in the generation of diesel fuel, motor gasoline; and coke.The Luján de Cuyo refinery has a nominal capacity of 105,500 bbl/d, the third largest capacity among Argentine refineries. The refinery includes twodistillation units, a vacuum distillation unit, two coking units, one fluid catalytic cracking unit (FCCU), a platforming unit, a MTBE unit, an isomerizationunit, an alkylation unit, a naphtha splitter, a hydrocracking unit, a naphtha hydrotreater unit and two gasoil hydrotreating units. During 2014, the refineryprocessed approximately 103.2 mbbl/d, with a capacity utilization rate of 97.8%. In 2013, the refinery processed 106.4 mbbl/d with a capacity utilization rateof more than 100%. The lower capacity utilization during 2014 was due to several planned maintenance shut-downs of units: Topping IV from March toApril, vacuum distillation from March to April, Coke II from March to April and fluid catalytic cracking (October to November), all of which were executedsuccessfully on time.Due to its location in the western province of Mendoza and its proximity to significant distribution terminals owned by us, the Luján de Cuyo refineryhas become the primary facility responsible for providing to the central and northwest provinces of Argentina with petroleum products for domesticconsumption. The Luján de Cuyo refinery receives crude supplies from the Neuquina and 68Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCuyana Basins by pipeline directly into the facility. Approximately 77.9% of the crude oil processed at the Luján de Cuyo refinery in 2014 (and 79.1% ofthe crude oil processed in this refinery in 2013) was produced by us. Most of the crude oil purchased from third parties comes from oil fields located in theprovinces of Neuquén or Mendoza.In order to comply with government regulations on sulfur specifications for fuels, in June 2013, the Luján de Cuyo refinery started up a new naphthaHydrotreater Unit (HTN II) and in July 2013, started up a new gasoil Hydrotreater Unit (HDS III).The Plaza Huincul refinery, located in the province of Neuquén, has an installed capacity of 25,000 bbl/d. During 2014, the refinery processedapproximately 24.0 mbbl/d, with a capacity utilization rate of 95.9%, slightly below the 24.6 mbbl/d processed in 2013 at a higher capacity utilization rateof 98.3%. The only products currently produced at the refinery are gasoline, diesel fuel and jet fuel, which are sold primarily in nearby areas and in thesouthern regions of Argentina. Heavier products, to the extent production exceeds local demand, are blended with crude oil and transported by pipeline fromthe refinery to our facilities in La Plata for further processing. The Plaza Huincul refinery receives its crude supplies from the Neuquina Basin by pipeline.The crude supplies are mostly produced by us. In 2014, 0.3% of the refinery’s crude supplies were purchased from other companies, while in 2013, suchpurchases were 22.6% of the refinery’s crude supplies.Our refineries are operated with the goal of maximizing profits in compliance with local laws. In 2014, the Argentine Secretariat of Energy decided toincrease the required content level of bioethanol in gasoline and FAME in diesel fuel, setting them at 10%.With the objective of replacing imported products with those produced locally led us to buy Bonny Light crude oil, a high performance crude thatallowed us to fully supply the La Plata refinery and achieve higher production of diesel fuel and gasoline instead of buying expensive imported finishedfuels.Since 1997 and 1998, each of our refineries (La Plata, Luján de Cuyo, and Plaza Huincul) have been certified under the ISO (International Organizationfor Standardization) 9001 (quality performance) and ISO 14001 (environmental performance). All of them are also certified under the OHSAS 18001(occupational health and safety performance) standard. The refineries maintain their systems under continuous improvement and revision by authorizedorganizations.Logistics DivisionCrude oil and products transportation and storageWe have available for our use a network of five major pipelines, two of which are wholly-owned by us. The crude oil transportation network includesnearly 2,700 kilometers of crude oil pipelines with approximately 640,000 barrels of aggregate daily transportation capacity of refined products. We havetotal crude oil tankage of approximately 7 mmbbl and maintain terminal facilities at five Argentine ports.Information with respect to YPF’s interests in its network of crude oil pipelines is set forth in the table below: From To YPFInterest Length (km) DailyCapacity(boe/d) Puesto Hernández Luján de Cuyo refinery 100% 528 85,200 Puerto Rosales La Plata refinery 100% 585 316,000 La Plata refinery Dock Sud 100% 52 106,000 Brandsen Campana 30% 168 120,700 Puesto Hernández/P. Huincul/Allen Puerto Rosales 37% 888(1) 232,000 Puesto Hernández Concepción (Chile) (2) 428(3) 114,000 (1)Includes two parallel pipelines of 513 kilometers each from Allen to Puerto Rosales, with a combined daily throughput of 232,000 barrels.(2)We hold a 36% interest in Oleoducto Transandino Argentina S.A., which operates the Argentine portion of the pipeline, and a 18% interest inOleoducto Transandino Chile S.A., which operates the Chilean portion of the pipeline.(3)This pipeline ceased operating on December 29, 2005. 69Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsWe own two crude oil pipelines in Argentina. One connects Puesto Hernández to the Luján de Cuyo refinery (528 kilometers), and the other connectsPuerto Rosales to the La Plata refinery (585 kilometers) and extends to Shell’s refinery in Dock Sud at the Buenos Aires port (another 52 kilometers). We alsoown a plant for the storage and distribution of crude oil in the northern province of Formosa with an operating capacity of 19,000 cubic meters, and two tanksin the city of Berisso, in the province of Buenos Aires, with 60,000 cubic meters of capacity. We own 37% of Oleoductos del Valle S.A., operator of an 888-kilometer pipeline network, its main pipeline being a double 513 kilometer pipeline that connects the Neuquina Basin and Puerto Rosales.We hold, through Oleoducto Transandino Argentina S.A. and Oleoducto Transandino Chile S.A., an interest in the 428-kilometer transandean pipeline,which transported crude oil from Argentina to Concepción in Chile. This pipeline ceased operating on December 29, 2005, as a consequence of theinterruption of oil exports resulting from decreased production in the north of the province of Neuquén. The book value of the assets related to this pipelinewas reduced to their recovery value.We also own 33.15% of Terminales Marítimas Patagónicas S.A., operator of two storage and port facilities: Caleta Córdova (province of Chubut),which has a capacity of 314,000 cubic meters, and Caleta Olivia (province of Santa Cruz), which has a capacity of 246,000 cubic meters. We also have a 30%interest in Oiltanking Ebytem S.A., operator of the maritime terminal of Puerto Rosales, which has a capacity of 480,000 cubic meters, and of the crude oilpipeline that connects Brandsen (60,000 cubic meters of storage capacity) to the Axion Energy Argentina S.R.L. (“Axion,” previously ESSO, a formersubsidiary of ExxonMobil which was recently acquired by Bridas Corporation) refinery in Campana (168 km), in the province of Buenos Aires.In Argentina, we also operate a network of multiple pipelines for the transportation of refined products with a total length of 1,801 kilometers. We alsoown seventeen plants for the storage and distribution of refined products and seven LPG plants with an approximate aggregate capacity of 1,620,000 cubicmeters. Three of our storage and distribution plants are annexed to the refineries of Luján de Cuyo, La Plata and Plaza Huincul. Ten of our storage anddistribution plants have maritime or river connections. We operate 53 airplane refueling facilities (40 of them are wholly-owned) with a capacity of 22,500mcm, and we also own 28 trucks, 123 manual fuel dispensers and 17 automatic fuel dispensers. These facilities provide a flexible countrywide distributionsystem and allow us to facilitate exports to foreign markets, to the extent allowed pursuant to government regulations. Products are shipped mainly by truck,ship or river barge.Between 2010 and 2013, we completed the construction of tanks and facilities for the reception and blending of ethanol in the storage plants of Lujánde Cuyo, Monte Cristo, La Matanza, San Lorenzo and Barranqueras, in order to facilitate compliance with the new specifications for gasoline set forth byLaw 26,093. YPF is currently blending ethanol in the Luján de Cuyo, Monte Cristo, San Lorenzo, La Plata, Junín, Plaza Huincul, Barranqueras and LaMatanza storage plants.In 1998, our logistics activities were certified under ISO (International Organization for Standardization) 9001 (quality performance) and ISO 14001(environmental performance), and recertified in 2012 under ISO 9001:2008 and ISO 14001:2004. In 2010, logistics activities were also certified underOHSAS 18001 (security performance) and recertified in 2013. In 2014, our trucking activities were certified under ISO 39001 (road traffic safety managementsystem).Trading DivisionOur Trading Division sells refined products and crude oil to international customers and crude oil to domestic oil companies. Exports may includecrude oil, unleaded gasoline, diesel fuel, fuel oil, LPG, light naphtha and virgin naphtha.This division’s export sales are made to different countries, principally in South America, as well as Africa. Sales to international customers for 2014and 2013 totaled Ps. 4,081 million and Ps.3,792 million, respectively, 8% and 10% of which, respectively, represented sales of refined products and 77% and57% of which, respectively, represented sales of marine fuels. On a volume basis, in 2014 and 2013 sales to international customers consisted of 0.89 mmbbland 0.9 mmbbl of refined products, respectively, and 4.29 mmbbl and 4.11 mmbbl of marine fuels, respectively. Domestic sales of crude oil totaled Ps.914 million and Ps. 1,020 million or 1.4 mmbbl and 2.5 mmbbl in 2014 and 2013, respectively. Domestic sales of marine fuels totaled Ps. 1,352 million andPs. 771 million or 1.4 mmbbl and 1.2 mmbbl in 2014 and 2013, respectively. In addition, imports of high and low sulfur diesel in 2014 remained at the samelevel as in 2013, at 7.8 mmbbl.Marketing DivisionOur Marketing Division, markets gasoline, diesel fuel, LPG and other petroleum products throughout the country and countries in the region. Wesupply all of the fuel market segments: retail, agriculture and industry, including transport. During 2014, we continued to hold a leading position in the saleof the highest quality naphtha (grade 3) “N-Premium” and in the sale of our standard quality naphtha “Super”, reaching a market share, according to ourestimates, of 61.3% and 56.9% as of December 31, 2014 (compared with 58.7% and 54.3% in 2013), respectively. Our sales volume for N-Premium was 1,160mcm in 2014 (1.2% higher than in 2013) and 3,506 mcm for Super in 2014 (6.0% higher than in 2013). 70Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn November 2014, YPF launched Infinia, a new premium gasoline with a new formulation. The release plan included an ambitious campaign in massmedia and at points of sale and a strong internal training to our salesforce. Infinia’s new attributes allowed us to achieve preliminary positive results inDecember 2014 compared to December 2013. We increased, according to our estimates, 7.4 percentage points market share (to 63.7% from 56.3%,respectively), and increased 3.0 percentage points of sales of Infinia compared to total gasoline sales (to 29.6% from 26.6%, respectively).In March 2014, YPF relaunched the Serviclub Program. The new version of the loyalty program, among other things, actively promotes tourism in thecountry. The number of active members reached approximately one million active members (measured in the last quarter of 2014). Also, it actively promotescross-selling in convenience stores and lubricants.With respect to diesel fuel, according to our own estimates, as of December 2014 our market share was 60.1% (57.7% in 2013), with an increase in ourshare of low sulfur content products. Along with D-Euro (10 ppm), for which sales volume was 1,015 mcm in 2014, our product D-500 (500 ppm) reached avolume of 1,974 mcm compared to approximately 1,887 mcm in 2013, both fuels representing 39.5% of the total diesel fuel sales of the division.With respect to lubricants, we market our products through the three segments of the domestic market: retail, agriculture and industry. Our threemanufacturing plants located in the CIE produce YPF’s lubricant, asphalt and paraffin lines of products. Our line of automotive lubricants, including mono-grade, multi-grade and oil, has received approvals and recommendations from leading global automotive manufacturers (Ford, Volkswagen, Audi, MANTruck, GM, Porsche and Scania).With respect to LPG, we are engaged in the wholesale business, which encompasses LPG storage, logistics and commercialization to the domestic andforeign markets. We obtain LPG from our fractioning plants and refineries, as well as from third parties. In addition to butane and propane, we also sellpropellants that are used in the manufacturing of aerosols.With regard to the international market, we market lubricants in Brazil and Chile, where we have subsidiaries. During 2014 we exported a volume of6.3 mcm to Brazil, a decline of 12% compared to 2013, which corresponds to the increased local production, and 8.2 mcm to Chile, an increase of 2.2%compared to 2013. Additionally, through exclusive distributors we sell lubricants in four countries outside Argentina (Uruguay, Paraguay, Bolivia andEcuador).Retail DivisionAs of December 31, 2014, the Retail Division’s sales network in Argentina included 1,534 retail service stations (compared to 1,542 at December 31,2013), of which 111 are directly owned by us, and the remaining 1,423 are affiliated service stations. OPESSA, our wholly-owned subsidiary, operatesactively 173 of our retail service stations, (89 are directly owned by us, 26 are leased to ACA (Automóvil Club Argentino), and 58 are leased to independentowners). Additionally, we own 50% of Refinor, a company dedicated to refining, gas processing and operating 58 service stations.According to our latest internal estimates, as of December 31, 2014, we were the main retailer in Argentina, with 34.8% of the country’s gasolineservice stations, followed by Shell, Axion, Petrobras and Oil with shares of 14.6%, 11.2%, 6.3% and 6.0%, respectively. During 2014, our market share indiesel fuel and gasoline, marketed in all segments, increased slightly from 56.5% to 59.2%, from December 31, 2013 to December 31, 2014, according to ouranalysis of data provided by the Argentine Secretariat of Energy.The “Red XXI” program, released in October 1997, has significantly improved operational efficiency in service stations. This program providesperformance data for each active and on-line station, which connects most of our network of service stations. As of December 31, 2014, 1,283 service stationswere linked to the Red XXI network system, three service stations more than 2013.Our convenience stores, “YPF Full” and “YPF Full Express”, included 387 and 104 points of sale as of December 31, 2014, respectively. Additionally,fuel sales are complemented by a modern oil change service, provided by our “YPF Boxes,” with 254 points of sale.During 2014, the Service Station Operation Manual was implemented in 460 service stations. The main purpose of this model is to promote self-management of our service stations. 71Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsA total of 15 modular systems called Social Supply Modules (MAS) have been installed in remote locations. These MAS have minimal environmentalimpact and an innovative and technological appearance, using alternative energy and requiring a minimum investment with low operating costs.In 2014, we reinforced our market leadership with the launch of Infinia product; which is an “intelligent” gasoline designed with the latest technology.Its improvements focus on performance, efficiencies and engine care.During 2014, we conducted meetings throughout Argentina called “Experiencias en Red” during which over 80 operators shared their experienceswith YPF to be useful to others.Agriculture DivisionThrough the Agriculture Division we sell diesel fuel, fertilizers, lubricants, agrochemicals, and ensiling bags (“silobolsa”), among other products,directly or through a network of 100 wholesaler bases (nine owned by YPF), offering an extensive portfolio to the agriculture producer that includesdelivering products to the consumption site. As an option for the customer, we accept as payment different types of grains, mainly soybean, some of which areprocessed by third party companies to obtain meal and oil that we then sell mainly to the external market. In 2014, revenue from such exports amounted toU.S.$373 million. Although we faced irregular market conditions in 2014, with a fall of international commodities prices and climatic changes in the mainproduction areas of Argentina affecting demand for fertilizers and agrochemicals, we received approximately 1,218,000 tons of grains (oilseed and cereal),primarily soy, a 30% increase compared to 2013. In addition, part of the oil produced from processing soybeans is used for the production of fatty acidmethyl esters (“FAME”), a product which is used internally for the production of commercial grade diesel fuel. Oil produced from processing soybeans, whichwe receive as payment, provides approximately 10% of YPF’s FAME needs, in accordance with local regulations.Industry DivisionThis division supplies the entire national industry and transportation (ground and air) sectors, which requires a broad portfolio of products and servicesthat meet to the needs of customers. The division develops tailor-made solutions for the mining, oil & gas, aviation, transport, and infrastructure andconstruction sectors. We supply products such as fuels (diesel, gasoline, fuel oil, Jet A-1), lubricants, coal, asphalts, paraffin and derivatives (sulfur, CO2,decanted oil, aromatic extract), either directly from our refineries to the point of consumption (more than 5,000 direct customers) through an own ground andwaterway network, or through a network of 37 industrial distributors with national coverage. In this respect, we opened two of our own bases in 2014,completing the mining supply network with strategic positions.Our mission is to promote efficiency in the value chains of the industries we serve with energy solutions through supplies and services. In line withthis, our strategy is based on the closeness and relationship with the client and the development of innovative solutions focused on creating value for YPFand the region’s industry.Lubricants and Specialties DivisionDuring 2014, our lubricants sales were almost the same as 2013. Sales to domestic markets increased by 3%, while sales to export markets decreased by17% from 24.2 mcm in 2013 to 20.0 mcm in 2014. Sales of asphalts and paraffins increased by 1% and 7%, respectively, compared to 2013.We export to two main groups. First, to our wholly owned companies in Brazil and Chile, where sales volume decreased by 12% in Brazil andincreased by 2% in Chile, compared to the previous year. However, in both countries the local production of YPF brand lubricants increased. On the otherhand, we export to our distributor network located in Bolivia, Uruguay, Paraguay and Ecuador, in which sales volume decreased by 38% compared to 2013.This decrease was primarily due to import restrictions imposed in Ecuador and the beginning of local production in that country.Our lubricants and specialties unit has followed a strategy of differentiation, allowing it to achieve and maintain the leading position in theArgentinean market. Our market share as of December 31, 2014 was approximately 41.3%, compared to 39.2% as of December 31, 2013, according to ouranalysis of data provided by the Argentine Secretariat of Energy. As indicated above, our line of automotive lubricants has received approvals andrecommendations from leading global automotive manufacturers (Ford, Volkswagen, GM, Porsche and Scania). 72Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsWith respect to lubricants, the sales of the high-end light and heavy products, represented by “Elaion” and “Extravida” respectively, were 43.1 mcm in2014, which represents an increase of 5% compared 40.8 mcm in 2013.Our Elaion brand reached sales volumes of 14.0 mcm in 2014, which represents an increase of 8% compared to 12.9 mcm in 2013. And the Extravidabrand achieved sales volumes of 29.1 mcm, which represents an increase of 5% compared to 27.8 mcm in 2013.Sales of the Elaion Moto (used for motorcycles) products increased by 12% (2.0 mcm) compared to 2013 and sales of our complementary productsincreased 8.3% in 2014 (4.0 mcm).The Lubricants and Specialties Division has had an integrated management system since 1995. This division currently holds the followingcertifications: ISO 9001:2008, ISO 14001;2004, OSHAS 18001:2007 ISO/TS 16949-Third edition.LPG DivisionThrough our LPG Division we sell LPG to the foreign market, the domestic wholesale market and to distributors that supply the domestic retail market.The LPG Division does not directly supply the retail market and such market is supplied by YPF Gas S.A. (during 2014, we sold approximately 43% of ourLPG production to YPF Gas S.A. for the domestic market), which is not a YPF company.We are the largest LPG producer in Argentina with sales in 2014 reaching approximately 572 mtn (compared with 593 mtn in 2013), of whichapproximately 414 mtn were sold in the domestic market (compared to 432 mtn in 2013). Our principal clients in the domestic market are companies that sellLPG in bottled or in bulk packing to end-consumers and the networks that distribute LPG to households in some regions. Additionally, exports in 2014reached approximately 159 mtn, compared to 161 mtn in 2013, the main destinations being Chile, Paraguay and Bolivia. The transport of LPG to overseascustomers is carried out by truck, pipeline and barges.Total sales of LPG (excluding LPG used as petrochemical feedstock) were Ps. 1,678 million and Ps. 1,298 million in 2014 and 2013, respectively.The LPG Division obtains LPG from natural gas processing plants and from our refineries and petrochemical plants. We produced 519 mtn of LPG in2014 (not including LPG destined for petrochemical usage), and also purchased LPG from third parties, as detailed in the following table: Purchase (tons)2014 LPG from Natural Gas Processing Plants:(1) General Cerri 26,723 El Portón 118,985 San Sebastián 197 Total Upstream 145,905 LPG from Refineries and Petrochemical Plants:La Plata Refinery 264,372 Luján de Cuyo Refinery 79,125 CIE 30,065 Total Refineries & Petrochemical Plants(2) 373,562 LPG purchased from joint ventures:(3) 17,668 LPG purchased from unrelated parties 53,433 Total 590,568 (1)The San Sebastian plant is a joint venture in which we own a 30% interest; El Portón is 100% owned by us; General Cerri belongs to a third party withwhich we have a processing agreement.(2)This production does not include LPG used as petrochemical feedstock (olefins derivatives, polybutenes and maleic).(3)Purchased from Refinor. We also have a 50% interest in Refinor, which produced 308 mtn of LPG in 2014. 73Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsChemicals DivisionPetrochemicals are produced at our petrochemical complexes in Ensenada and Plaza Huincul. Additionally, we also own a 50% interest in Profertil acompany that has a petrochemical complex in Bahía Blanca as mentioned below.Our petrochemical production operations in the CIE are closely integrated with our refining activities at the La Plata refinery. This close integrationallows for a flexible supply of feedstock, the efficient use of by-products (such as hydrogen) and the supply of aromatics to increase gasoline octane levels.The main petrochemical products and production capacity per year are as follows: Capacity (tons per year) CIE: Aromatics BTX (Benzene, Toluene, Mixed Xylenes) 386,500 Paraxylene 38,000 Orthoxylene 25,000 Cyclohexane 95,000 Solvents 66,100 Olefins Derivatives MTBE 60,000 Butene I 25,000 Oxoalcohols 35,000 TAME 105,000 LAB/LAS LAB 52,000 LAS 25,000 Polybutenes PIB 26,000 Maleic Maleic Anhydride 17,500 Plaza Huincul: Methanol 411,000 Natural gas, the raw material for methanol, is supplied by our Exploration and Production business segment. The use of natural gas as a raw materialallows us to monetize reserves, demonstrating the integration between the Chemical and the Upstream units.We also use high carbon dioxide-content natural gas in our methanol production, allowing us to keep our methanol plant working at 50% of itsproduction capacity during the winter period.The raw materials for petrochemical production in the CIE, including virgin naphtha, propane, butane and kerosene, are supplied mainly by the LaPlata refinery.In 2014 and 2013, 73.0 % and 71.1%, respectively, of our petrochemicals sales (including propylene) were made in the domestic market. Petrochemicalexports are destined for Mercosur countries, the rest of Latin America, Europe and the United States.We also participate in the fertilizer business, directly and through Profertil, our 50%-owned subsidiary. Profertil is a joint venture with Agrium (aworldwide leader in fertilizers) that started operations in 2001. Profertil has a production facility in Bahía Blanca which produces 1.1 million tons of urea and750 thousand tons of ammonia per year. In addition, Profertil commercializes other nutrients and special blends prepared land to optimize land performance.The CIE was certified under ISO 9001 in 1996 and recertified in 2013 (version 2008). The La Plata petrochemical plant was certified under ISO 14001in 2001 and last recertified (version 2004), in 2013.The plant was also certified under OHSAS 18001 in 2005 and last recertified in 2013 (version 2007).Since 2008, the plant verified the inventory of CO2 emissions under ISO 14064: 1 and, in 2011, inventories of CH4 and N2O emissions were verified as well.The laboratory of our Ensenada petrochemical plant was certified under ISO 17025 (version 2005), in 2005 and recertified in 2013. 74Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe certification of our petrochemical business covers the following processes: • Refining process of crude oil and production of gas and liquid fuels, lubricant base stocks and paraffin, petroleum coke (green coke) andpetrochemical products in the units of refining, conversion, lubricants, aromatics, olefins PIB / Maleic and LAB / LAS. • Methanol production and storage. • Management and development of the petrochemical business of the Company, planning and economical/commercial control, commercializationand post-sale service of petrochemical products.Our methanol plant was certified under ISO 9001 (version 2000) in December 2001, and last recertified in August 2012 (version 2008). The methanolplant was also certified under ISO 14001 in July 1998 with the Plaza Huincul refinery, and last recertified in August 2012 (version 2004), and it was alsocertified under OHSAS 18001 in December 2008, and last recertified in August 2012 (version 2007).Other investments and activitiesNGLsWe participated in the development of our affiliate Mega to increase its ability to separate liquid petroleum products from natural gas. Mega allowedYPF, through the fractionation of gas liquids, to increase production at the Loma La Lata gas field by approximately 5.0 mmcm/d (or 176.5 mmcf/d) in 2001.We own 38% of Mega, while Petrobras and Dow Chemical have stakes of 34% and 28%, respectively.Mega operates: • A separation plant, which is located in the Loma La Lata, in the province of Neuquén. • A NGL fractionation plant, which produces ethane, propane, butane and natural gasoline and is located in the city of Bahía Blanca in theprovince of Buenos Aires. • A pipeline that links both plants and that transports NGLs. • Transportation, storage and port facilities in the proximity of the fractionation plant.Mega’s maximum annual production capacity is 1.35 million tons of natural gasoline, LPG and ethane. YPF is Mega’s main supplier of natural gas.The production of the fractionation plant is used mainly in the petrochemical operations of PBBPolisur S.A. (“PBB”), owned by Dow Chemical Company,and is also exported by tanker to Petrobras’ facilities in Brazil.Pursuant to Decree No. 2067/08 and Resolutions No. 1982/2011 and 1991/2011 of ENARGAS, since December 1, 2011, Mega is required to pay, on amonthly basis, a fee of Ps.0.405 per cubic meter of natural gas it purchases. This requirement has a significant impact on the operations of Mega and has beenchallenged in the Argentine federal courts by Mega. On August 14, 2012, the Argentine Judicial Court issued a first instance ruling in favor of Mega,declaring the unconstitutionality of Decree No. 2067/08 and ENARGAS’ resolutions No. 1982/11 and 1991/11. Such ruling was appealed by both theENARGAS and the Ministry of Planning. On June 18, 2013, the Federal Administrative Court of Appeals ruled in favor of Mega. Such ruling was appealed byboth the ENARGAS and the Ministry of Planning before the Supreme Court, which, as of the date of this report, has not ruled on the matter. On February 25,2013 Mega filed another action requesting that the federal courts declare the unconstitutionality of Articles 53 and 54 of the General State Budget Law of2013 that included in the provisions of Law 26,095 the fee created by Decree No. 2067/08 and ENARGAS resolutions No. 1982/2011 and 1991/2011. If suchactions are not resolved in favor of Mega, this fee could significantly and adversely affect Mega’s ability to continue operating. The Audited ConsolidatedFinancial Statements included elsewhere in this annual report do not include any impairment of assets to be accrued if Mega were to cease its activity. OnDecember 11, 2014, the Argentine Supreme Court issued a judgment, ruling that the fee created pursuant to Decree No. 2067/08 is a tariff, not a tax, and forthat reason is not subject to the principles of tax law. Nonetheless, the Argentine Supreme Court left open the possibility of making arguments or defensesthat differ from those stated in a judgment. 75Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsElectricity market—generationThe Argentine Electricity MarketArgentina´s overall power generation was 1.53% higher in 2014 than 2013 according to Compañía Administradora del Mercado Mayorísta EléctricoS.A. (CAMMESA). In 2014, 63.5% of Argentina’s power generation came from thermal power plants, 31% from hydroelectric power plants, 4% from nuclearpower plants, 1.1% from spot imports from Uruguay and Paraguay and the balance from unconventional sources such as wind and solar power.Thermal power plants consumed 1,789,622 cm of diesel oil (a 30.9% decrease compared to 2013), 2,732,658 tons of fuel oil (a 22.4% increasecompared to 2013) and 14.3 billion cm of natural gas (a 3% increase compared to 2013).The average electricity production cost was 386.77 Ps./MWh, a 34.4% increase compared to 2013, while the annual average marginal cost ofproduction was 1,373.62 Ps./MWh, a 69.6% increase compared to 2013.In 2013, Resolution No. 95/2013 of the Secretariat of Energy changed the procedures and increased rates of remuneration that power generation plantsreceive, giving incentives to increase power plant reliability. In 2014, this rule was updated with the Resolution No. 529/14 of the Secretariat of Energy,increasing the remuneration to be received by 75%.YPF in Power GenerationWe participate in three power generation plants with an aggregate installed capacity of 1,622 MW: • a 100% interest in Central Térmica Tucumán (410 MW combined cycle) through YPF Energía Eléctrica S.A (“YPF EE”); • a 100% interest in Central Térmica San Miguel de Tucumán (370 MW combined cycle) through YPF EE in which we have 100% interest; and • a 40% interest in Central Dock Sud (775 MW combined cycle and 67 MW gas turbines), directly and through Inversora Dock Sud S.A.On August 1, 2013, as a result of the spinoff of the assets of PlusPetrol Energy S.A., YPF EE was created to continue the power generation operationsand businesses of Central Térmica Tucumán and Central Térmica San Miguel de Tucumán.In 2014, YPF EE generated 5,203 GWh with its two combined cycles. Central Térmica Tucuman’s production was 2,777.5 GWh, and Central TermicaSan Miguel de Tucumán’s production was 2,425.5 Gwh. Additionally, Central Dock Sud generated 4,764 GWh. The energy produced by YPF EE and CentralDock Sud (9,967 GWh in total) represented 7.6% of Argentina´s electricity generation in 2014.Energy produced by Central Térmica Tucumán was 30.2% higher in 2014 compared to 2013 despite a hot gas path inspection in unit TG-02 inNovember and December 2014. A serious failure inside the TG-01 unit occurred in 2013. Maintenance to restore the plant’s availability was extended for sixmonths.Energy produced by Central Térmica San Miguel de Tucumán in 2014 increased by 2.4% compared to 2013.In August 2013, after taking over the power plants, YPF EE accepted Resolution No. 95/2013 issued by the Secretariat of Energy, which allowed thecompany to increase rates of remuneration it received for spot electricity sales.Energy produced by Central Dock Sud in 2014 decreased by 2.8% compared to 2013.Additionally, we own assets that are part of Filo Morado Partnership, which has an installed capacity of 63 MW. However the relevant facilities havenot been in operation since November 2008.In addition to YPF EE, we also own and operate power plants supplied with natural gas produced by YPF, which produce power to supply our upstreamand downstream activities: • Los Perales power plant (74 MW), which is located in the Los Perales natural gas field; • Chihuido de la Sierra Negra power plant (40 MW); and • the power plant located at the Plaza Huincul refinery (40 MW). 76Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsNatural gas distributionWe currently hold through our subsidiary YPF Inversora Energética S.A. (“YPF Inversora Energética”) a 100% stake in Gas Argentino S.A. (“GASA”),which in turn holds a 70% stake in Metrogas S.A. (“Metrogas”), a natural gas distribution company in the capital region and southern suburbs of BuenosAires, and one of the main distributors in Argentina. During 2014, Metrogas distributed approximately 19.2 mmcm (or 678 mmcf) of natural gas per day to2.3 million customers in comparison to approximately 21.0 mmcm (742 mmcf) of natural gas per day to 2.3 million customers in 2013. During May 2013, theCompany, through its subsidiary YPF Inversora Energética gained 100% ownership of GASA (the controlling company of Metrogas), by acquiring sharesrepresenting the remaining 54.67% interest in GASA. Prior to this acquisition, the Company through its interest in YPF Inversora Energética S.A. owned45.33% of the capital of GASA (See Note 13 to the Audited Consolidated Financial Statements).GASA’s debt restructuring. On May 11, 2009, GASA was notified of a bankruptcy petition brought by an alleged GASA creditor, and on May 19, 2009,GASA filed a voluntary reorganization petition (“concurso preventivo”), which was approved on June 8, 2009. On February 10, 2012, GASA presented a draftdebt restructuring proposal addressed to verified unsecured creditors who have been declared admissible. On August 6, 2012, GASA filed with the court anamended debt restructuring proposal. The final proposal includes a debt haircut of 61.4% of the claims admitted by the court and the issuance of new debtsecurities, with a maturity date of December 31, 2015, an option to extend to December 31, 2016 in case all accrued interest is paid on December 31, 2015,and an interest rate of 8.875%.Under the terms of the debt restructuring proposal, GASA will deliver new notes in exchange for outstanding claims. The proposal consists of theissuance of two new classes of notes: Class A (for the equivalent of 38.6% of existing notes), and Class B (contingent notes, for the equivalent of 61.4% ofexisting notes). The new Class B Notes will become due and payable only if the New Class A Notes are accelerated as a result of the occurrence of an event ofdefault on or before December 2015. If an event of default does not occur prior to December 2015, the New Class B Notes will be automatically cancelled.In compliance with the reorganization proceeding, on March 15, 2013, GASA issued new notes which were delivered in exchange for outstandingclaims to financial creditors and non-financial creditors who were admitted and declared acceptable.On June 13, 2013, GASA’s Board of Directors approved the capitalization of 100% of accrued interest to be paid on June 15, 2013 in respect of the newnotes issued on March 15, 2013, and the issuance of additional bonds to effect the capitalization. GASA has received the relevant regulatory authorizationsand on July 15, 2013 it issued Additional Negotiable Obligations Class A-L for U.S.$1,167,480 and Class A-U for U.S.$29,632 for the capitalization of suchaccrued interest.On July 12, 2013, the relevant court ordered the termination of the reorganization proceedings of GASA.On October 9, 2013, GASA’s Board of Directors approved the capitalization of 100% of accrued interest to be paid on December 15, 2013 in respect ofthe new notes issued on March 15, 2013, and the issuance of additional bonds to effect the capitalization. GASA has received the relevant regulatoryauthorizations and on January 14, 2014 it issued Additional Negotiable Obligations Class A-L for U.S.$2,336,009 and Class A-U for U.S.$59,296 for thecapitalization of such accrued interest.On March 27, 2014, GASA’s Board of Directors approved the capitalization of 100% of accrued interest to be paid on June 15, 2014 in respect of thenew notes issued on March 15, 2013, and the issuance of additional bonds to effect the capitalization. GASA has received the relevant regulatoryauthorizations and on July 11, 2014 it issued Additional Negotiable Obligations Class A-L for U.S.$ 2,439,668 and Class A-U for U.S.$61,929 for thecapitalization of such accrued interest.On September 24, 2014, GASA’s Board of Directors approved the capitalization of 100% of accrued interest to be paid on December 15, 2014 inrespect of the new notes issued on March 15, 2013, and the issuance of additional bonds to effect the capitalization. GASA has received the relevantregulatory authorizations and on January 8, 2015 it issued Additional Negotiable Obligations Class A-L for U.S.$ 2,547,928 and Class A-U for U.S.$ 64,675for the capitalization of such accrued interestMetrogas debt reorganization. Given the adverse business conditions, Metrogas decided to file a voluntary reorganization petition (“concursopreventivo”) in June 2010. On the same date, Metrogas was notified of the Resolution No. I-1260 dictated by ENARGAS, which provided for the judicialintervention of the company. The resolution based the intervention decision on the filing of a voluntary reorganization petition by Metrogas, and stated thatthe intervention would control administration and disposition of Metrogas´ activities that may in any manner affect its normal gas distribution. On July 15,2010, the judge approved the commencement of Metrogas’s voluntary reorganization proceedings. On July 2011, Metrogas filed with the court a debtrestructuring proposal, which was subsequently amended. The final proposal included a debt haircut of 46.8% of the claims admitted by the court and theissuance of new debt securities, with a maturity date of December 31, 2018 and an interest rate of 8.875%. In June 2012, a noteholders’ meeting was heldwithin the framework of the Article 45 bis of the Bankruptcy Law, where the company’s proposal was unanimously approved. On July 13, 2012, Metrogasinformed the Judge that it considered that had obtained the legal majorities established in the Article 45 of the Bankruptcy Law to approve the proposal. 77Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn September 6, 2012, the intervening court ratified the Metrogas’s debt reorganization agreement. It also stipulated the creation of the final creditors’committee, which will act as controlling agent to determine compliance with the agreement under the terms of Articles 59 and 260 of the Bankruptcy Law.Under the terms of the debt restructuring proposal, Metrogas would deliver new notes in exchange for outstanding claims. The proposal consists of theissuance of two new classes of notes: Class A (for the equivalent of 38.6% of existing notes), and Class B (contingent notes, for the equivalent of 61.4% ofexisting notes). The new Class B Notes will become due and payable only if the New Class A Notes are accelerated as a result of the occurrence of an event ofdefault on or before December 2015. If an event of default does not occur prior to December 2015, the New Class B Notes will be automatically cancelled.In compliance with the reorganization proceeding, on January 11, 2013, Metrogas issued new notes which were delivered in exchange for outstandingclaims to financial creditors and non-financial creditors who were admitted and declared acceptable. • In exchange for existing notes, classified as Reorganization liabilities originated on financial debt: • Series A-L for an amount of U$S 163,003,452 • Series B-L for an amount of U$S 122,000,000, • In exchange for non-financial debt: • Series A-U for an amount of U$S 16,518,450 • Series B-U for an amount of U$S 13,031,550.On February 1 and February 13, 2013, Metrogas submitted to the intervening Court the documentation evidencing compliance with the debt exchangeand the issuance of the new notes in order to obtain the removal of all general inhibitions and the formal declaration of completion of the reorganizationproceedings, in accordance with the terms and conditions of Section 59 of the Argentine Bankruptcy Law.On March 26, 2013, the Metrogas Board of Directors decided by a majority of votes to capitalize 100% of the portion subject to capitalization ofaccrued interest payable on June 30, 2013 and to issue additional negotiable obligations to effect the capitalization. Furthermore, the Board also decided toissue new negotiable obligations for the new unsecured creditors, as long as their claims have been verified in the relevant court in the reorganizationproceedings.On July 25, 2013, Metrogas issued: • Negotiable Obligations of Late Verification:Series A-U: U.S.$5,087,459Series B-U: U.S.$4,013,541 • Negotiable Obligations of Capitalization:Additional Series A-L: U.S.$6,756,665Additional Series A-U: U.S.$704,581On May 31, 2013, ENARGAS published Resolution ENRG I-2,587/13 providing for the termination of the ENARGAS intervention in Metrogas.On September 9, 2013, Metrogas made a formal presentation in connection with the reorganization proceedings requesting that the court formallydeclare the completion of the proceedings.On October 9, 2013, the Metrogas Board of Directors decided by a majority of votes to capitalize 50% of the portion subject to capitalization ofaccrued interest payable on December 31, 2013 and to issue Additional Negotiable Obligations to effect the capitalization.On November 18, 2013 Metrogas received a notice from the National Commercial Court of First Instance No. 26, Clerk’s Office No. 51, on the fileentitled Metrogas S.A. about Reorganization Proceedings (filed on 10/17/2010 Court “D”). This notice, dated November 8, 2013, sets forth the Court’sdecision to terminate the reorganization proceedings following Metrogas’s compliance with the terms of Section 59 of the Argentine Bankruptcy Law. 78Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn January 29, 2014, Metrogas issued: • Negotiable Obligations of Capitalization: • Additional Series A-L: U.S.$3,516,500 • Additional Series A-U: U.S.$371,456On April 28, 2014, the Board of Directors of Metrogas decided by a majority of votes to pay in cash interest for up to U$S 4,750,000, capitalize theremaining amount of the portion subject to capitalization of interest due on June 30, 2014 and issue Additional Negotiable Obligations for saidcapitalization.On July 17, 2014, Metrogas issued: • Negotiable Obligations of Capitalization • Additional Series A-L June 2014: U.S.$3,516,500 • Additional Series A-U June 2014: U.S.$371,044Given the fact that no event of default has occurred prior to June 30, 2014, the Class B Notes were cancelled without any further obligation.Metrogas tariff issues: In January 2002, pursuant to the Public Emergency Law, the tariffs that Metrogas charges to its customers were converted fromtheir original dollar values to pesos at a rate of Ps.1.00 to U.S.$1.00. Thus the company’s tariffs were frozen since indexation of any kind is not permittedunder the Public Emergency Law.The Public Emergency Law also provides that the Argentine government should renegotiate public utility services agreements affected by the changeto Argentine peso prices. In February 2002, the Argentine government issued Executive Order No. 293, which entrusted the Ministry of Economy with therenegotiation of public utility licenses and created a Committee for the Renegotiation of Contracts for Public Works and Services (“CRC”).On July 3, 2003, by means of Executive Order No. 311/03, the “Unit for the Renegotiation and Analysis of Utility Contracts” (“UNIREN”) was created,aiming at giving advice during the renegotiation process of public works and services contracts and developing a regulatory framework common to all publicservices. The UNIREN continues the renegotiation process developed by the CRC.The Public Emergency Law, which was originally scheduled to be terminated in December 2003, has been extended until December 31, 2015. As aconsequence, the renegotiation terms for licenses and concessions of utility services were also extended.Metrogas and the UNIREN signed a temporary agreement in September 2008. In November 2012, ENARGAS published Resolution No. 2,407/12 thatauthorizes Metrogas, following the terms of the temporary agreement discussed above, to apply a fixed amount in each customer’s bill, differentiating bytype of customer according to the terms of the Resolution and following the application of the methodology to be determined by the regulating agency. TheResolution also states that the revenue charged by the company is to be deposited in a trust, and the funds collected are to be used for infrastructureinvestments, connection works, repowering, expansion and technology upgrades of the gas distribution system as well as any other cost associated withsupply of gas distribution to customers. Metrogas must submit for approval of the Execution Committee (a regulatory committee created by ResolutionNo. 2407/12), a Consolidation and Expansion Investment Plan that expresses both physically and financially the details of such plan, which is to be alignedwith the goals set in the trust’s contract between Metrogas and Nación Fideicomisos S.A. (“NAFISA”).Metrogas has been invoicing this new tariff charge since December 3, 2012.On March 27, 2013, Metrogas received, from the Execution Committee, notice of approval of the Consolidation and Expansion Investment Plansubmitted on February 1, 2013.On January 6, 2014, the Company submitted to ENARGAS the Work Plan 2014, including information on works completed under Work Plan 2013. Onsuch same date, Metrogas sent to Nación Fideicomiso S.A. a rendering of accounts in relation to the disbursements derived from the alternative method forthe advancement of funds, all of which was approved in March 2014. On November 14, 2014, the 2015 Works Plan corresponding to Reliability,Maintenance and Expansion was introduced.On March 26, 2014, within the process of renegotiation of utilities contracts pursuant to Law No. 25561 and supplementary rules, the Company signed aProvisional Agreement with UNIREN whereby a provisional tariff regime was agreed in order to obtain additional funds to those resulting from theenforcement of ENARGAS Resolution No. I/2407. The amounts the Company collects pursuant to the mentioned Resolution have been considered paymentson account in relation with the adjustments as set forth by Provisional Agreement approved by Decree No. 234 dated March 26, 2009. 79Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe Provisional Agreement, ratified by Decree No. 445/2014 dated April 1, 2014 and published in the Official Gazette on April 7, 2014, establishes aprovisional tariff regime as from April 1, 2014, consisting of readjusted prices and tariffs considering the guidelines necessary to maintain the continuity ofservice and also sets forth common criteria applicable to all distribution licensees, in accordance with tariff regulations in force, and including changes in thegas price at the transmission system entry point.The Provisional Agreement also contemplates the inclusion of pass through to tariffs resulting from changes in tax rules, except for the income tax, inaccordance with a currently pending resolution. It also includes clauses related to costs oversight tariff revision based on operation and investment coststructure, and price indexes representative of such costs, which under certain premises triggers a revision procedure through which ENARGAS would assessthe actual scale of variations in the licensee’s operating and investment costs, and thereby determine whether a distribution tariff adjustment is applicable.The Provisional Agreement also provides that, from the execution date to December 21, 2015 (the date on which Law No. 25561 expires), UNIREN onbehalf of the Grantor and the licensee shall reach a consensus with respect to the methodology, terms and timeline for the signing of the ComprehensiveContract Renegotiation Memorandum of Understanding (“Acta Acuerdo de Renegociación Contractual Integral”).On March 27, 2014, the National Government announced the reallocation of subsidies and on March 31, 2014 the Energy Secretariat issued ESResolution No. 226/14 pursuant to which new natural gas prices and a plan to encourage responsible use of the natural gas were established.Resolution ENRG 2851/2014 issued by ENARGAS on April 7, 2014 approved new applicable tariffs effective April 1, 2014, June 1, 2014 andAugust 1, 2014 under a price scheme whereby customers that register a decrease in consumption of over 20% will continue with the same tariff level as thatwhich was in effect until March 31, 2014, while customers that achieve a reduction of between 5% and 20% will be charged a tariff approximately 50% lowerin relation with the actual price variation, which will be applied to customers unable to reduce their consumption or whose reduction is below 5%.On October 9, 2014, notice was served on Metrogas of an injunction ordered by the Judge of First Instance of Avellaneda, which provided for theimmediate suspension within the jurisdiction of Avellaneda of the aforementioned tariff increases and further instructed that future invoices should considertariffs effective as at March 31, 2014. Metrogas duly and timely appealed said injunction, first before the intervening judge and then before theAdministrative Court of Appeals of the City of La Plata. On October 24, 2014, the Ombudsman of Avellaneda (plaintiff) submitted a document to the Court ofFirst Instance No. 9 requesting the dismissal of the injunctive relief ordered on October 8, 2014. On November 5, 2014, notice was served upon Metrogas ofthe final termination of the injunction. The Company is aware of three other injunction requests filed with the Courts of Lomas de Zamora, Quilmes and Cityof Buenos Aires, which, at the time of the closing of the financial statements included in this annual report, have not yet been admitted.Funds corresponding to the Letter of Understanding executed on November 21, 2012 with the ENARGAS and the Provisional Agreement executed onMarch 26, 2014 with the UNIREN have not permitted, up to this date, the Company to restore the financial condition of the Company.SeasonalityFor a description of the seasonality of our business, see “Item 5. Operating and Financial Review and Prospects—Factors Affecting Our Operations—Seasonality.”Research and DevelopmentOur R&D projects and activities are related to the entire hydrocarbons value chain, including exploration of new sources of oil or gas, extraction andconditioning for transportation, transformation and manufacturing of products at industrial facilities and their distribution to the end customer. In 2014,approximately U.S.$28.7 million was allocated to R&D activities, 28% of which corresponded to cooperation with external technology centers. In order tosupport these R&D activities, we invested U.S.$25.4 million in new laboratory building and equipment. 80Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsFifteen important research and development projects are being partially subsidized by a technology funding organization of the Argentine governmentknown as ANPCYC. In addition, a sea energy resource study in Patagonia Austral, which includes the participation of YPF Tecnología S.A and the NationalScientific and Technology Council, has received funds through Ministerial Order No. 666/14 of Ministry of Science, Technology and Productive Innovation.Uncertainty about what the main technologies in the future will be, prospective R&D results and business cycles led us to develop a technology plan thatsupports YPF’s business strategy. The focus of the plan includes hydrocarbons, the natural gas value chain, oil refining and oil derivatives andpetrochemicals, the future diversification of energy uses, biofuels production and electricity generation.R&D efforts were focused on the exploration and exploitation of unconventional resources, where our most important challenges required thedevelopment and application of very specific technologies, including design and development of simulation modeling, specific software, measuringequipment, fluid and materials design for optimizing perforation, hydraulic stimulation and production in our oilfields.To optimize production of mature fields, we focused on the development of enhanced oil recovery technologies in order to increase recovery of oilfrom mature fields, and the development of new processes and materials to reduce the operational costs of our facilities.Regarding refining and marketing of petroleum products, we applied our technological knowledge to optimize refinery operations and improveproduct quality, with a strong focus on achieving energy efficiency and environmental improvements.In the petrochemical business, R&D activities were mainly focused on the development of new products with higher added value, such as specialsolvents, fertilizers and several agricultural products.As of December 2014, our R&D projects portfolio consisted of 131 projects, 57 of which are under execution, 38 have been under technical-economicfeasibility evaluation and 36 of which are short-term high impact projects (Quick Wins).At the end of 2013, YPF created YPF Tecnología S.A. YPF holds an equity stake of 51% and CONICET, a state-owned research and developmentorganization, holds an equity stake of 49%. The Board of Directors of YPF Tecnología consists of three directors appointed by YPF and 2 directors appointedby CONICET; additionally, the Chairman and the General Manager of YPF Tecnología are appointed by YPF. All lines of research and development carriedout in YPF Tecnología will be in line with the needs of YPF.For operation of YPF Tecnología, five hectares on the farm belonging to the National University of La Plata were acquired and a 12,000 m2 building isplanned for construction, with an estimated investment of U.S.$48 million (approximately U.S.$25 million relates to YPF’s working interest). Completion ofthe work is expected in September 2015.We expect that about 250 professionals will work in the new building, and their main goals are to acquire knowledge and work in research anddevelopment for unconventional fields and secondary and tertiary oil recovery from mature fields. Additionally, development of alternative energies such asmarine, geothermal, wind and solar energy, among others, will be part of their objectives. All of these activities will be supported by a staff of over 6,000researchers and doctors from different areas of science, available to the CONICET through agreements with different universities and institutes of research anddevelopment.CompetitionIn our Exploration and Production business, we encounter competition from major international oil companies and other domestic oil companies inacquiring exploration permits and production concessions. Our Exploration and Production business may also encounter competition from oil and gascompanies created and owned by certain Argentine provinces, including La Pampa, Neuquén, Santa Cruz and Chubut. See “—Regulatory Framework andRelationship with the Argentine Government—Overview” and “—Regulatory Framework and Relationship with the Argentine Government—LawNo. 26,197.” However, recent changes introduced in the Hydrocarbons Law through Law No. 27,007 limit the ability of provincial companies to possessfuture exclusive rights over permits and concessions, which supports competition in the Argentine oil and gas industry. See “Regulatory Framework andRelationship with the Argentine Government—Law No. 27,007, amending the Hydrocarbons Law.”Over the past few years, several measures to promote the development of the industry occurred. The Argentine government established a program toencourage additional production of natural gas which provides participating companies with a natural gas price of U.S.$7.50/mmBtu for such additionalproduction. Initially, larger producers with diversified portfolios joined the program. Later on, the program was adapted to include mid and small sized oiland gas companies with less diversified portfolios, so as to further promote the development of indigenous natural gas resources. Currently, more than 85% ofnatural gas production in Argentina is included into this program. Still another measure to promote the oil and gas industry was the creation of the“Investment 81Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsPromotion Scheme for the Exploitation of Hydrocarbons “ in Argentina set forth in in Decree 929/13. The Decree creates an allowance to export, free ofexport taxes, up to 20% of hydrocarbons produced from projects requiring an investment in excess of U.S.$1 billion. Companies accessing the allowance canalso retain dollars from their exports abroad. Both the natural gas pricing program and the investment promotion scheme were recently incorporated into theHydrocarbons Law, as amended by Law No. 27,007, reinforcing their position as an instrumental part of the energy policy in Argentina. Furthermore, theinvestment threshold for investments funded with dollars brought to Argentina’s financial market has been reduced to U.S.$250 million. YPF believes thatthe new measures further help attract strategic partners for the development of its unconventional resource base. Following Chevron and Dow Chemical, YPFwas able to create development projects with Pampa Energía and more recently Petronas. At the same time, other companies were able to advance theirexploration projects, in some instances with new partners. We believe that increasing the number of participants in the market causes the industry to becomemore dynamic in the long term and that with additional critical mass it will become more efficient as well.In our Refining and Marketing and Chemicals businesses, we face competition from several major international oil companies, such as Axion(previously ESSO, a former subsidiary of ExxonMobil acquired by Bridas Corporation), Shell and Petrobras, as well as several domestic oil companies. In ourexport markets, we compete with numerous oil companies and trading companies in global markets.We operate in a dynamic market in the Argentine downstream industry and the crude oil and natural gas production industry. Crude oil and mostrefined products prices are subject to international supply and demand and, in certain cases, to Argentine regulations; Although the Argentine market has itsown dynamics and fundamentals, changes in the domestic and international prices of crude oil and refined products have some direct effect on our results ofoperations and on our levels of capital expenditures. See “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business andOur Business—oil and gas prices could affect our level of capital expenditures.”On May 3, 2012, the Expropriation Law was passed by the Argentine Congress. The Expropriation Law declared achieving self-sufficiency in thesupply of hydrocarbons, as well as in the exploitation, industrialization, transportation and sale of hydrocarbons, a national public interest and a priority forArgentina. In addition, its stated goal is to guarantee socially equitable economic development, the creation of jobs, the increase of the competitiveness ofvarious economic sectors and the equitable and sustainable growth of the Argentine provinces and regions. See “—Regulatory Framework and Relationshipwith the Argentine Government—The Expropriation Law.”During 2014 the Argentine government continued promoting the industry which, along with the competitive responses of different market participantsthroughout the year, has further strengthened the competitive nature of our industry and fostered a positive business environment. In October 2014, theArgentine Congress passed Law No. 27,007 which amended the Hydrocarbons Law and introduced very important changes in order to have a more modernframework that recognizes specific considerations for new petroleum companies, such as those working in unconventional resources, offshore and inenhanced oil recovery. The changes further strengthen synergies, promote investments and seek uniformity. Besides recognizing the benefits of the gaspricing scheme and the promotional regime for investments, Law No. 27,007 reflects new terms and conditions for permits and concessions according to thetypes of exploration projects. The 35-year concession term for unconventional exploitation is a distinctive, key feature for the development of theunconventional resources in Argentina. See “—Regulatory Framework and Relationship with the Argentine Government—Law No. 27,007, amending theHydrocarbons Law.”Finally, on a daily basis our business manages competitive factors that are in turn influenced by international and local variables, such as internationalcrude oil and refining products pricing, inflation, foreign exchange rates and employment rates. YPF continually adjusts its product offerings and the costs ofits operations in order to adjust to these variables. One such change relates to the agreement among industry participants and the Argentine government toaddress the recent decline in international crude oil prices. As of December 30, 2014, the National Executive Office decided to reduce taxes on the sale offuels, thus partially compensating for the decrease in the price of domestic fuels. Subsequently, the National Executive Office also reduced export taxes to theminimum allowed by law, so that exporting producers of crude oil with no use in local refining could also partially compensate for the decrease in the priceof international hydrocarbon products. These two measures are part of a comprehensive plan agreed to by the Argentine government, producers and therefiners. The principal Argentine producers and refiners privately negotiated a series of discounts on the prevailing local crude oil prices as a function of thedecline in international prices in order to continue developing of local production as well as to secure certain refining margins. In addition, on February 4,2015 the Commission issued Resolution 14/2015 creating the Crude Oil Production Stimulus Program (Programa de Estímulo a la Producción de PetróleoCrudo) which will be valid from January 1, 2015 through December 31, 2015 and through which the Argentine federal government, subject to certainrequirements, will pay an export stimulus and/or a production stimulus for companies registered under that program. The plan aims to significantly offset thepotential impact international crude oil prices have on the local industry which might, in turn, create a comparatively more attractive oil and gas market forArgentina during 2015. Producers and refiners continue to work closely to 82Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsencourage contractors and unions to contribute by reducing costs and increasing productivity, thus making 2015 an opportunity to further improve thecompetitiveness of the industry as a whole. See “Item 3. Key Inforamtion—Risk Factors” for a description main risks and uncertainties we face.Environmental MattersYPF-Argentine operationsOur operations are subject to a wide range of laws and regulations relating to the general impact of industrial operations on the environment, includingair emissions and waste water, the disposal or remediation of soil or water contaminated with hazardous or toxic waste, fuel specifications to address airemissions and the effect of the environment on health and safety. We have made and will continue to make expenditures to comply with these laws andregulations. In Argentina, local, provincial and national authorities are moving towards more stringent enforcement of applicable laws. In addition, since1997, Argentina has been implementing regulations that require our operations to meet stricter environmental standards that are comparable in many respectsto those in effect in the United States and in countries within the European Community. These regulations establish the general framework for environmentalprotection requirements, including the establishment of fines and criminal penalties for their violation. We have undertaken measures to achieve compliancewith these standards and are undertaking various abatement and remediation projects, the more significant of which are discussed below. We cannot predictwhat environmental legislation or regulation will be enacted in the future or how existing or future laws will be administered or enforced. Compliance withmore stringent laws or regulations, as well as more vigorous enforcement policies of regulatory agencies, could require additional expenditures in the futureby us, including the installation and operation of systems and equipment for remedial measures, and could affect our operations generally. In addition,violations of these laws and regulations may result in the imposition of administrative or criminal fines or penalties and may lead to personal injury claims orother liabilities.We continued making investments in order to comply with new Argentine fuel specifications, pursuant to Resolution No. 1283/06 (amended byResolution No. 478/2009) of the Argentine Secretariat of Energy (which replaces Resolution No. 398/03) relating to, among other things, the purity of dieselfuels. In the La Plata refinery, a new ultra-low sulfur diesel fuel desulfurization plant (HTGB) was started up during 2012. In Luján de Cuyo refinery, new HDSIII (diesel desulfurization) and HTN II (gasoline desulfurization) plants were started up in 2013. Additionally, we are increasing the tankage capacity ofseveral of our terminals in order to optimize fuel distribution logistics. During 2013, new diesel tanks were implemented in Luján de Cuyo refinery andMontecristo terminal. In 2014, a diesel tank was completed at Terminal Villa Mercedes (“TVM”), and engineering projects advanced at the Luján de Cuyoand La Plata refineries.First stage projects related to biofuels, such as the addition of bioethanol to gasoline and FAME to diesel fuel, were accomplished by the end of 2009and were operational by the beginning of 2010. During 2010 and 2011, additional bioethanol facilities at several terminals were installed and became readyto operate. Also, during this period, further investments were made in several terminals in order to allow the increased addition of FAME to diesel fuel and toimprove the related biofuel logistics. A new facility for FAME blending was started up in 2013 in the Montecristo terminal. In 2014, a 3,000 cm FAME tankat Terminal Dock Sud (“TDS”) and a 3,000 cm FAME tank at TVM were built. Also, two 200 cm ethanol tanks at Concepción del Uruguay were built. Theseprojects are expected to enable YPF to comply with governmental requirements and to enter into the renewable energy sources market.At each of our refineries during 2014, we continued with the initiatives relating to remedial investigations, feasibility studies and pollution abatementprojects, which are designed to address potentially contaminated sites and air emissions. In addition, we have implemented an environmental managementsystem to assist our efforts to collect and analyze environmental data in our upstream and downstream operations.Also, as part of our commitment to satisfying domestic demand for fuels and meeting high environmental standards, during 2013 we started up a newCCR unit which involved an investment of U.S.$ 453 million. The plant uses the latest worldwide technology to perform chemical processes andimprovements in productivity, safety and environmental standards. Additionally, the plant produces aromatics that can be used as octane enhancers forgasoline and automotive applications, as well as increases hydrogen production to feed the fuel hydrogenation processes to increase fuel quality and reducesulfur content, further reducing the environmental impact of internal combustion enginesWe also continue construction of a new coke unit at La Plata refinery, which will involve an aggregate investment of approximately U.S.$790 million(the total amount disbursed as of December 31, 2014 was U.S.$646 million), replacing the one that was severely damaged in the incident that occurred onApril 2, 2013. The new unit design is expected to optimize energy efficiency and minimize particulate matter emissions. We expect that this project will becompleted by 2016. 83Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition to the projects mentioned above, we have begun to implement a broad range of environmental projects in the domestic Exploration andProduction and Refining and Marketing and Chemicals segments, such as a new flare in the Luján de Cuyo refinery, wastewater treatment and fire protectionfacilities, new flare in CIPH, improvement of fireproofing in existing facilities and implementation of bottom loading systems in terminals.We and several other industrial companies operating in the La Plata area have entered into a community emergency response agreement with threemunicipalities and local hospitals, firefighters and other health and safety service providers to implement an emergency response program. This program isintended to prevent damages and losses resulting from accidents and emergencies, including environmental emergencies. Similar projects and agreementswere developed at other refineries and harbor terminals as well.In 1991, we entered into an agreement with certain other oil and gas companies to implement a plan to reduce and assess environmental damageresulting from oil spills in Argentine surface waters to reduce the environmental impact of potential oil spills offshore. This agreement involves consultationon technological matters and mutual assistance in the event of any oil spills in rivers or at sea due to accidents involving tankers or offshore exploration andproduction facilities.With respect to climate change, YPF has: • committed to active promotion of identification and pursuit of opportunities to reduce greenhouse gas emissions in our operations; • intensified the execution of internal projects to obtain credits under the relevant clean development mechanisms through the efficient use ofresources, contributing to the transfer of technology and to the sustainable development of Argentina; • obtained in December 2010 the approval of United Nations for an industrial project developed by YPF in Argentina defined as a CleanDevelopment Mechanism (“CDM”) project, the first of its kind in the world. The project in the La Plata refinery reduces the emissions ofgreenhouse waste gases from fossil fuels used for process heating by replacing these fuels with recovered waste gases that were previously burnedin flares. The project increases energy efficiency by reducing the demand for fuel oil and natural gas, allowing an annual emission reduction ofapproximately 200,000 tons of carbon dioxide. During 2014 the La Plata project reduced carbon dioxide emissions by 125,165 tons; • obtained in December 2011 the approval of United Nations for an industrial project developed by YPF in Argentina defined as a CDM at theLuján de Cuyo refinery. During 2014 the project reduced carbon dioxide emissions by 13,897 tons; • secured the approval of the CDM project: YPF developed a new methodology, which was approved by United Nations in 2007 under the name ofAM0055 “Baseline and Monitoring Methodology for the recovery and utilization of waste gas in refinery facilities.” At the moment, five CDMprojects in the world (Argentine, China, and Egypt) are being developed applying this methodology designed by YPF; • undertook and verified third-party greenhouse gas emission inventories for refining and chemical operations in accordance with the ISO 14064standard. The inventory at CIE has been verified since 2008. In May 2014, the verification process inventory of greenhouse gases in the La Platacomplex and the Luján de Cuyo refinery was completed. A 2014 inventory check, ending in the first half of 2015, is planned; • estimated the contribution that its forestry projects located in the province of Neuquén had with respect to climate change. These projectsconstitute approximately 6,500 hectares of trees forested under a long-term work program. Using the afforestation methodologies and toolsavailable at the United Nations Framework Convention on Climate Change (UNFCCC)—Clean Development Mechanism (CDM) web site, it waspossible to arrive to a conservative estimated amount of approximately 760,000 tons of carbon dioxide equivalents that were captured by theafforestation project activities since 1984 (when the first afforestation activity occurred) until 2013; and • strengthened the relationship established with the Argentinean Environmental Authority (Secretaria de Ambiente y Desarrollo Sustentable de laNación), in particular with its Climate Change Unit (Dirección de Cambio Climático) in order to collaborate with the development of the ThirdNational Communication on Climate Change to the United Nations Framework Convention on Climate Change (UNFCCC). 84Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOur estimated capital expenditures are based on currently available information and on current laws. Any future information or future changes in lawsor technology could cause a revision of such estimates. Moreover, while we do not expect environmental expenditures to have a significant impact on ourfuture results of operations, changes in management’s business plans or in Argentine laws and regulations may cause expenditures to become material to ourfinancial position, and may affect results of operations in any given year.Unconventional oil and gas efforts led by YPFOrganically rich shale gas and oil accumulations are drawing increasing attention worldwide as sources of significant natural gas and oil reserves.Since 2008, YPF has led various exploration and development projects related to unconventional resources in Argentina, the most important being inthe Vaca Muerta formation within Neuquina Basin.The Vaca Muerta formation is found between 2,500 and 4,000 meters of depth, more than 2,000 meters below the water table, which is usually locatedat depths of 300-500 meters. See “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—Ourdomestic operations are subject to extensive regulation” and “—Oil and gas activities are subject to significant economic, environmental and operationalrisks.”Hydraulic stimulation, a long time proven technology, allows these resources to be extracted in an efficient and environmentally-friendly way.Hydraulic stimulation consists of injecting high pressure fluids and sand into the wellbore to crack the rock and enable the trapped hydrocarbons in theformation to flow to the surface like in any conventional well.Generally, this technique uses water and sand (99.5% of the water can be recycled) and additives (0.5%). These additives are the same as those used inproducts for household and commercial applications, such as sodium chloride (used in table salt), borate salts (used in cosmetics), potassium carbonate (usedin detergents), guar gum (used in ice cream) and isopropyl alcohol (used in deodorants).The water used for the development of these reservoirs is acquired from bodies of running water and it represents only a small percentage of the totalflow, which involves much lower volumes than those used for agricultural and human consumption in the province of Neuquén.From the beginning of unconventional operations, YPF has considered the environmental protection as one of the values of its quality, health, safetyand environment policy.In accordance with the law (Disposición 112/2011 Subsecretaría de Medio Ambiente Neuquén), the project has an Environmental Baseline Study(“EBS”). The EBS includes the current description and environmental characterization of the concession areas and specifically environmental componentsthat may be affected significantly by the projects and activities.YPF is currently developing a Water Management Framework, which focus on three key areas of water use: water resources (sustainability factors,measures that consider the needs of other local water users, and the net environmental effect); water use and efficiency (controls of replacing water use,reducing water consumption, and the reuse and recycling to consider the net environmental effect); and wastewater management (consider similarsustainability factors and the net environmental effect as outlined for water resources) .In addition, YPF commissioned the following studies: (i) a hydrogeological study of confined and semi-confined aquifers of Neuquén and RayosoGroups and hydrogeological study of the unconfined aquifer of the alluvial plain of the Neuquén River in the Loma Campana area (beginning in December2014), (ii) an air quality and noise study in the Loma Campana area (beginning 2015) and (iii) aquatic and terrestrial environmental studies in the LomaCampana, El Mangrullo and El Orejano areas (beginning 2015).YPF Holdings-Operations in the United StatesLaws and regulations relating to health and environmental quality in the United States affect the operations of YPF Holdings, a 100% ownedsubsidiary of YPF. See “—Regulatory Framework and Relationship with the Argentine Government—U.S. Environmental Regulations.” 85Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn 1995 YPF acquired Maxus Energy Corporation (“Maxus”), a U.S. corporation headquartered in Dallas, Texas. In connection with the sale by Maxusof Diamond Shamrock Chemicals Company (“Chemicals Company”) to a subsidiary of Occidental Petroleum Corporation (“Occidental”) in 1986, Maxushad agreed to indemnify Chemicals Company and Occidental from and against certain liabilities relating to the business and activities of ChemicalsCompany prior to the September 4, 1986 closing date (the “Closing Date”), including certain environmental liabilities relating to certain chemical plants andwaste disposal sites used by Chemicals Company prior to the Closing Date.In addition, under the agreement pursuant to which Maxus sold Chemicals Company to Occidental (the “1986 Stock Purchase Agreement”), Maxus isobligated to indemnify Chemicals Company and Occidental for certain environmental costs incurred on projects involving remedial activities relating tochemical plant sites or other property used to conduct Chemicals Company’s business as of the Closing Date and for any period of time following theClosing Date which relate to, result from or arise out of conditions, events or circumstances discovered by Chemicals Company and as to which ChemicalsCompany provided written notice prior to September 4, 1996, irrespective of when Chemicals Company incurs and gives notice of such costs.Tierra Solutions Inc. (“Tierra”), a subsidiary of YPF Holdings, was formed to deal with the results of the alleged obligations of Maxus, as describedabove, resulting from actions or facts that occurred primarily between the 1940s and 1970s while Chemicals Company was controlled by other companies.See “Item 8. Financial Information—Legal Proceedings—YPF Holdings” for a description of environmental matters in connection with YPF Holdings.Offshore OperationsAll of the offshore blocks in which we have a working interest have in place a Health, Safety, Environmental and Community (“HSEC”) managementplan to address risks associated with the project. In addition, all drilling projects that we operate or in which we have a working interest have in place anEmergency Response Plan (“ERP”), including response plans for oil spills.The HSEC management plans in place include ERPs for an oil spill or leak, and these ERPs are regularly assessed for adequacy in light of availableinformation and technical developments. We review our HSEC management plans for our drilling projects on a regular basis to seek to ensure thatappropriate measures are in place for every phase of the project.NeptuneUnder the Neptune Joint Operating Agreement, the operator of the field is required to maintain an HSEC management plan based on health and safetyrules agreed upon between the operator and the non-operators. As a non-operator, we are entitled to review the operator’s safety and environmentalmanagement systems for compliance with the HSEC management plan, but we do not have direct control over the measures taken by the field operator toremedy any particular spill or leak. The operator of the field is required to notify all non-operators, including us, in writing of any spill greater than 50 barrels,among other incidents.The HSEC management plan for Neptune, which is maintained by the operator of the field, includes the following critical elements and procedures: • Emergency Shutdown (ESD) System • Fire Detection System • Combustible Gas Detection System • Ventilation Systems (Mechanical) • Spill/Leak Containment Systems • Vent/Flare System • Subsea Well Control System • Temporary Refuge 86Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Escape Water Craft • Critical Power Systems (including electric, pneumatic, hydraulic) • Emergency Communication Systems • Hull Ballast Systems • Hull Tendons • Riser Hang-off Components • Design HSE Case Critical Procedures • Emergency Shutdown (ESD) Procedures • Evacuation Procedures • Dire Fighting Procedures • Helideck Operations Procedures • Emergency Response ProceduresAdditionally, the operator’s Emergency, Preparedness and Response procedures include teams that generally are on call 24 hours a day, 7 days a weekand are summoned based on the severity level of the emergency (1-low up to 7-extreme) through a third party London based emergency dispatcher. Theoperator’s teams include the following: • Fire and Safety Team (FAST) Site Response (Level 1 to 2 severity): Provides initial on-scene response and incident containment in the operator’stower building including evacuation, first aid, CPR, search and rescue. • Incident Management Team (IMT)—Asset/Local Response (Level 2 to 5 severity): Provides tactical, operational, HSEC, planning, logistical andregulatory notification support and other technical expertise. An Incident Management Center is established for the IMT in one room of theoperator building in Houston. The IMT is also supported by a drilling-specific team from the World Wide Drilling group for any incidents duringdrilling and completions activities. • Emergency Management Team (EMT)—Petroleum/Asset Response (Level 3 to 5 severity): Provides support to the IMT with emphasis onstrategic issues affecting the Asset and Petroleum including internal and external stakeholder management, financial, legal, and communicationsupport. An Emergency Management Room for the EMT is established in one room of the operator’s building in Houston. • Crisis Management Team (CMT)—Operator Response (Levels 5 to 7 severity): Provides support to the EMT with emphasis on strategic issuesaffecting the operator including communications with stakeholders at senior levels. • External Response Organizations: Summoned for any severity level based on needs assessed by the IMT, EMT or CMT. Includes governmentresponse groups and external oil spill response organizations and emergency management consultants.The HSEC management plan is administered by a leading oil field services company contracted by the operator and includes a plan of action in theevent of a spill or leak.Property, Plant and EquipmentMost of our property, which comprises investments in assets which allow us to explore and/or exploit crude oil and natural gas reserves, as well asrefineries, storage, manufacturing and transportation facilities and service stations, is located in Argentina. As of December 31, 2014, more than 99% of ourproved reserves were located in Argentina. We also own property outside Argentina, mainly in the United States. See “—Exploration and ProductionOverview—Main Properites.” 87Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOur petroleum exploration and production rights are in general based on sovereign grants of concession. Upon the expiration of the concession, ourexploration and production assets associated with the particular property subject to the relevant concession revert to the government. In addition, as ofDecember 31, 2014, we leased 84 service stations to third parties and also had activities with service stations that are owned by third parties and operated bythem under a supply contract with us for the distribution of our products.InsuranceThe scope and coverage of the insurance policies and indemnification obligations discussed below are subject to change, and such policies are subjectto cancellation in certain circumstances. In addition, the indemnification provisions of certain of our drilling, maintenance and other service contracts may besubject to differing interpretations, and enforcement of those provisions may be limited by public policy and other considerations. We may also be subject topotential liabilities for which we are not insured or in excess of our insurance coverage, including liabilities discussed in “Item 3. Key Information—RiskFactors—Risks Relating to the Argentine Oil and Gas Business and Our Business—We may not have sufficient insurance to cover all the operating hazardsthat we are subject to,” “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—The oil and gasindustry is subject to particular economic and operational risks” and “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and GasBusiness and Our Business—We may incur significant costs and liabilities related to environmental, health and safety matters.”Argentine operationsWe insure our operations against risks inherent in the oil and gas industry, including loss of or damage to property and our equipment, control-of-wellincidents, loss of production or profits incidents, removal of debris, sudden and accidental pollution, damage and clean up and third-party claims, includingpersonal injury and loss of life, among other business risks. Our insurance policies are typically renewable annually and generally contain policy limits,exclusions and deductibles.Our insurance policy covering our Argentine operations provides third party liability coverage up to U.S.$400 million per incident, with a deductibleof U.S.$2 million, in each and every loss. Certain types of incidents, such as intentional pollution and gradual and progressive pollution are excluded fromthe policy’s coverage. The policy’s coverage extends to control-of-well incidents, defined as an unintended flow of drilling fluid, oil, gas or water from thewell that cannot be contained by equipment on site, by increasing the weight of drilling fluid or by diverting the fluids safely into production. Our policyprovides coverage for third-party liability claims relating to pollution from a control-of-well event ranging from U.S.$75 million for certain onshore lossesand a maximum combined single limit of U.S.$250 million for offshore losses.Our insurance policy also covers physical loss or damage in respect of, but not limited to, onshore and offshore property of any kind and description(whether upstream or downstream), up to U.S.$1,500 million per incident combined for downstream and upstream operations, with varying deductibles ofbetween U.S.$1 million and U.S.$10 million, including loss of production or profits with deductibles of 90 days for downstream operations and 60 days witha minimum deductible of U.S.$20 million for upstream operations.Argentine regulations require us to purchase from specialized insurance companies (Aseguradoras de Riesgos de Trabajo) insurance covering the riskof personal injury and loss of life of our employees. Our insurance policies cover medical expenses, lost wages and loss of life, in the amounts set forth in theapplicable regulations. These regulatory requirements also apply to all of our contractors.We have adopted a position in agreements entered into with contractors that provide drilling services, well services or other services to our explorationand production operations (“E&P Services Agreements”), whereby contractors are generally responsible for indemnifying us to varying degrees for certaindamages caused by their personnel and property above the drilling surface. Similarly, we are generally responsible under our drilling contracts to indemnifyour contractors for any damages caused by our personnel and property above the drilling surface.In connection with losses or liabilities resulting from damages caused below the surface, we have agreed with some contractors that YPF assumesresponsibility for indemnifying our contractors provided that such damages below the surface have not been caused by the negligence of the contractor inwhich case the contractor shall be liable up to a limited amount agreed by the parties in the E&P Services Agreements. However, we have also agreed with anumber of contractors that YPF shall be responsible and shall indemnify contractors for damages or liabilities caused below the surface, unless such damagesor liabilities result from the gross negligence or willful misconduct of contractors, in which case contractor shall be liable in full or, in certain cases, up to alimited amount. 88Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsE&P Services Agreements usually establish that contractors are responsible for pollution or contamination including clean-up costs and third partydamages caused above the surface by the spill of substances under their control, provided that the damage has been caused by the negligence or willfulmisconduct of the contractor. In the event of pollution or contamination produced below the surface, contractors shall also typically be liable for damagescaused due to the contractor’s negligence or willful misconduct. However, in this last case the damages are also usually limited to an amount agreed upon bythe parties in the E&P Services Agreement.We are also partners in several joint ventures and projects that are not operated by us. Contractual provisions, as well as our obligations arising fromeach agreement, can vary. In certain cases, insurance coverage is provided by the insurance policy entered into by the operator, while in others, our risks arecovered by our insurance policy covering our Argentine operations. In addition, in certain cases we may contract insurance covering specific incidents ordamages that are not provided for in the operator’s insurance policy. We also retain the risk for liability not indemnified by the field or rig operator in excessof our insurance coverage.With respect to downstream servicing contracts, contractors are usually responsible for damages to their own personnel and caused by them to thirdparties and they typically indemnify us for damages to equipment. A mutual hold-harmless provision for indirect damages such as those resulting from loss ofuse or loss of profits is normally included.Gulf of Mexico operationsOur operations in the Gulf of Mexico currently include only our 15% working interest, through Maxus U.S. Exploration Company (a YPF Holdingssubsidiary), in the Neptune field, which is operated by BHP Billiton.Our Gulf of Mexico operations insurance policy provides coverage for property damage, operator’s extra expenses, loss of production and third partyliability, subject to certain customary exclusions such as property damage resulting from wear and tear and gradual deterioration. The following limits anddeductibles are applicable to our insurance coverage: • Physical loss or damage to owned property and equipment is limited to U.S.$772 million (100%), with deductibles ranging from U.S.$0.75million (100%) to U.S.$1.25 million (100%). • Coverage for operator’s extra expenses is subject to a limit of U.S.$250 million (100%) per incident, with a U.S.$1 million deductible (100%),except for (i) the drilling of well SB03, which was drilled in 2014 and is subject to a U.S.$5 million deductible and (ii) incidents related towindstorms, which are subject to a U.S.$10 million (100%) deductible. Our control-of-well insurance mainly covers expenses incurred onaccount of bringing or attempting to bring under control a well that is out of control or extinguishing a well fire, including but not limited to thevalue of materials and supplies consumed in the operation, rental of equipment, fees of individuals, firms or corporations specializing infirefighting and/or the control of wells, deliberate well firing, and cost of drilling direction relief well(s) necessary to bring the well(s) undercontrol or to extinguish the fire and excludes bodily injury, damage to property of others and loss of hole (except in respect of certain costsincurred in re-drilling and/or recompletion as a result of an occurrence). For the purpose of this insurance, a well shall be deemed to be out ofcontrol only when there is an unintended flow from the well of drilling fluid, oil, gas or water (1) which flow cannot promptly be (a) stopped byuse of the equipment on site and/or the blowout preventer, storm chokes or other equipment; or (b) stopped by increasing the weight by volumeof drilling fluid or by use of the other conditioning materials in the well; or (c) safely diverted into production; or (2) which flow is deemed to beout of control by the appropriate regulatory authority. • Loss of production following damage to insured property or extra expenses paid by the operator arising from an incident is covered up to a limitof U.S.$32.0 million (15%) with a waiting time of 60 days • Gulf of Mexico windstorm coverage is subject to a limit of U.S.$20 million (for the insured’s interest) with respect to each and every occurrenceand in the aggregate in respect of Named Gulf of Mexico Windstorm (this limit applies across Property, OEE and Loss of Production); which isexcess of a retention of U.S.$10 million (100%) each and every occurrence plus 90 days waiting time in respect of loss of production. • Coverage for third party liability arising from personal injury or loss of life, which extends to our employees, contractors and unaffiliated thirdparty individuals, is subject to a limit of U.S.$333.33 million (100 %) per incident, with a U.S.$5,000 deductible (100%). 89Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAccording to the procedures applicable to the Neptune field consortium, its operator shall use its best efforts to require contractors to carry insurancecoverage for worker compensation, employers liability, commercial general liability and automobile liability. To our knowledge, based solely on inquiriesmade to the operator, this policy is applicable to all contracts and a majority of contractors carry such insurance. Contractors providing aircraft and watercraftare required to provide further insurance cover relevant to this activity. In addition, our own insurance policy covers risks of physical loss or damage incurredas a result of negligence by any contractor to supplies and equipment of every kind and description incidental to our operations, including, among others,materials, equipment, machinery, outfit and consumables, in each case as defined in our insurance contract and with the deductibles and exclusions specifiedtherein. The consortium or operator, as applicable, is responsible for indemnifying a contractor for damages caused by its personnel and property. Theoperator or consortium, as applicable, is also responsible for indemnifying contractors for certain losses and liabilities resulting from pollution orcontamination.Regulatory Framework and Relationship with the Argentine GovernmentOverviewThe Argentine oil and gas industry has been and continues to be subject to certain policies and regulations that have resulted in domestic prices thathave been, until recently, given the decline in international prices of crude oil beginning in late 2014, lower than prevailing international market prices,export regulations, domestic supply requirements that oblige us from time to time to divert supplies from the export or industrial markets in order to meetdomestic consumer demand, and incremental export duties on the volumes of hydrocarbons allowed to be exported. These governmental pricing and exportregulations and tax policies have been implemented in an effort to satisfy increasing domestic market demand.The Argentine oil and gas industry is regulated by Law No. 17,319, referred to as the “Hydrocarbons Law,” which was enacted in 1967 and amended byLaw No. 26,197 enacted in 2007 and by Law No. 27,007 enacted in 2014, which established the general legal framework for the exploration and productionof oil and gas, and Law No. 24,076, referred to as the “Natural Gas Law,” enacted in 1992, which established the basis for deregulation of natural gastransportation and distribution industries. See “—Law No. 27,2007, amending the Hydrocarbons Law.”The National Executive Office issues the regulations to complement these laws. The regulatory framework of the Hydrocarbons Law was established onthe assumption that the reservoirs of hydrocarbons would be national properties and Yacimientos Petrolíferos Fiscales Sociedad del Estado, our predecessor,would lead the oil and gas industry and operate under a different framework than private companies. In 1992, Law No. 24,145, referred to as the“Privatization Law,” privatized YPF and provided for transfer of hydrocarbon reservoirs from the Argentine government to the provinces, subject to theexisting rights of the holders of exploration permits and production concessions.The Privatization Law granted us 24 exploration permits covering approximately 132,735 km2 and 50 production concessions coveringapproximately 32,560 km2. Limits under the Hydrocarbons Law on the number of concessions for transportation that may be held by any one entity, and thetotal area of exploration permits that may be granted to a single entity, were eliminated by Law No. 27,007. As a consequence of the transfer of ownership ofcertain hydrocarbons areas to the provinces, we participate in competitive bidding rounds organized since the year 2000 by several provincial governmentsfor the award of contracts for the exploration of hydrocarbons.In October 2004, the Argentine Congress enacted Law No. 25,943 creating a new state-owned energy company, ENARSA. The corporate purpose ofENARSA is the exploration and exploitation of solid, liquid and gaseous hydrocarbons, the transport, storage, distribution, commercialization andindustrialization of these products, as well as the transportation and distribution of natural gas, and the generation, transportation, distribution and sale ofelectricity. Moreover, Law No. 25,943 granted to ENARSA all exploration concessions in respect to offshore areas located beyond 12 nautical miles from thecoast line up to the outer boundary of the continental shelf that were vacant at the time of the effectiveness of this law (i.e., November 3, 2004). LawNo. 25,943 has been modified by Law No. 27,007, as described below, eliminating all permits and hydrocarbon production concessions where associationagreements with ENARSA have not been signed and reverting them to the Argentine Secretariat of Energy (except for permits and concessions granted priorto Law No. 25,943). Additionally, Law No. 27,007 provides for a six month negotiating period to convert association agreements with ENARSA into permitsor concessions.In addition, in October 2006, Law No. 26,154 created a regime of tax incentives aimed at encouraging hydrocarbon exploration and which apply tonew exploration permits awarded in respect of the offshore areas granted to ENARSA and those over which no rights have been granted to third parties underthe Hydrocarbons Law, provided the provinces in which the hydrocarbon reservoirs are located adhere to this regime. Association with ENARSA is aprecondition to qualifying for the benefits provided by the regime created by Law No. 26,154. The benefits include: early reimbursement of the value addedtax for investments made and expenses 90Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsincurred during the exploration period and for investments made within the production period; accelerated amortization of investments made in theexploration period and the accelerated recognition of expenses in connection with production over a period of three years rather than over the duration ofproduction; and exemptions to the payment of import duties for capital assets not manufactured within Argentina. As of the date of this annual report, wehave not used the tax incentives previously mentioned.Ownership of hydrocarbons reserves was transferred to the provinces through the enactment of the following legal provisions that effectively amendedthe Hydrocarbons Law: • In 1992, the Privatization Law approved the transfer of the ownership of hydrocarbons reserves to the provinces where they are located. However,this law provided that the transfer was conditioned on the enactment of a law amending the Hydrocarbons Law to contemplate the privatizationof Yacimientos Petrolíferos Fiscales Sociedad del Estado. • In October 1994, the Argentine National Constitution was amended and pursuant to Article 124 thereof, provinces were granted the primarycontrol of natural resources within their territories. • In August 2003, Executive Decree No. 546/03 transferred to the provinces the right to grant exploration permits, hydrocarbons exploitation andtransportation concessions in certain locations designated as “transfer areas,” as well as in other areas designated by the competent provincialauthorities. • In January 2007, Law No. 26,197 acknowledged the provinces’ ownership of the hydrocarbon reservoirs in accordance with Article 124 of theNational Constitution (including reservoirs to which concessions were granted prior to 1994) and granted provinces the right to administer suchreservoirs.The Expropriation LawOn May 3, 2012, the Expropriation Law (Law No. 26,741) was passed by the Argentine Congress and, on May 7, 2012, it was published in the OfficialGazette of the Republic of Argentina. The Expropriation Law declared achieving self-sufficiency in the supply of hydrocarbons, as well as in theexploitation, industrialization, transportation and sale of hydrocarbons, a national public interest and a priority for Argentina. In addition, its stated goal is toguarantee socially equitable economic development, the creation of jobs, the increase of the competitiveness of various economic sectors and the equitableand sustainable growth of the Argentine provinces and regions.Article 3 of the Expropriation Law provides that the principles of the hydrocarbon policy of the Republic of Argentina are the following: (a)Promote the use of hydrocarbons and their derivatives to promote development, and as a mechanism to increase the competitiveness of thevarious economic sectors and that of the provinces and regions of Argentina; (b)Convert hydrocarbon resources to proved reserves and their exploitation and the restoration of reserves; (c)Integrate public and private capital, both national and international, into strategic alliances dedicated to the exploration and exploitation ofconventional and unconventional hydrocarbons; (d)Maximize the investments and the resources employed for the achievement of self-sufficiency in hydrocarbons in the short, medium and longterm; (e)Incorporate new technologies and categories of management that contribute to the improvement of hydrocarbon exploration and exploitationactivities and the advancement of technological development in the Republic of Argentina in this regard; (f)Promote the industrialization and sale of hydrocarbons with a high added-value; (g)Protect the interests of consumers with respect to the price, quality and availability of hydrocarbon derivatives; and (h)Export hydrocarbons produced in excess of local demand, in order to improve the trade balance, ensuring a rational exploitation of the resourcesand the sustainability of its exploitation for use by future generations. 91Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAccording to Article 2 of the Expropriation Law, the National Executive Office will be responsible for setting forth this policy and shall introduce themeasures necessary to accomplish the purpose of the Expropriation Law with the participation of the Argentine provinces and public and private capital,both national and international.Creation of Federal Council of HydrocarbonsArticle 4 of the Expropriation Law provides for the creation of a Federal Council of Hydrocarbons which shall include the participation of (a) theMinistry of Economy, the Ministry of Federal Planning, the Ministry of Labor and the Ministry of Industry, through their respective representatives; and(b) the provinces of Argentina and the City of Buenos Aires, through the representatives that each may appoint. According to Article 5 of the ExpropriationLaw, the responsibilities of the Federal Council of Hydrocarbons will be the following: (a) promote the coordinated action of the national and provincialgovernments, with the purpose of ensuring the fulfillment of the objectives of the Expropriation Law; and (b) adopt decisions regarding all questions relatedto the accomplishment of the objectives of the Expropriation Law and the establishment of the hydrocarbons policy of the Republic of Argentina that theNational Executive Office may submit for consideration.Expropriation of shares held by Repsol YPFFor purposes of ensuring the fulfillment of its objectives, the Expropriation Law provided for the expropriation of 51% of the share capital of YPFrepresented by an identical stake of Class D shares owned, directly or indirectly, by Repsol YPF S.A. and its controlled or controlling entities. According tothe Expropriation Law, the shares subject to expropriation, which have been declared of public interest and were transferred to the Republic of Argentina,will be assigned as follows: 51% to the federal government and 49% to the governments of the provinces that compose the National Organization ofHydrocarbon Producing States. In addition, the Expropriation Law provided for the expropriation of 51% of the share capital of the company Repsol YPFGAS S.A. represented by 60% of the Class A shares of such company owned, directly or indirectly, by Repsol Butano S.A. and its controlled or controllingentities.As of the date of this annual report, the transfer of the shares subject to expropriation between National Executive Office and the provinces thatcompose the National Organization of Hydrocarbon Producing States was still pending. According to Article 8 of the Expropriation Law, the distribution ofthe shares among the provinces that accept their transfer must be conducted in an equitable manner, considering their respective levels of hydrocarbonproduction and proved reserves.To ensure compliance with its objectives, the Expropriation Law provides that the National Executive Office, by itself or through an appointed publicentity, shall exercise all the political rights associated with the shares subject to expropriation until the transfer of political and economic rights to theprovinces that compose the National Organization of Hydrocarbon Producing States is completed. In addition, in accordance with Article 9 of theExpropriation Law, each of the Argentine provinces to which shares subject to expropriation are allocated must enter into a shareholder’s agreement with thefederal government that will provide for the unified exercise of its rights as a shareholder.Any future transfer of the shares subject to expropriation is prohibited without the permission of the Argentine Congress by a vote of two-thirds of itsmembers.In accordance with Article 9 of the Expropriation Law, the appointment of YPF S.A. Directors representing the expropriated shares shall be madeproportionately considering the holdings of the Argentine federal government and provincial governments, and one Director shall represent the employees ofthe Company.In accordance with Article 16 of the Expropriation Law, the federal government and the provinces must exercise their rights pursuant to the followingprinciples: (a) the strategic contribution of YPF to the achievement of the objectives set forth in the Expropriation Law; (b) the administration of YPFpursuant to the industry’s best practices and corporate governance, safeguarding shareholders’ interests and generating value on their behalf; and (c) theprofessional management of YPF.See “—Law No. 26,932” for descriptions of the agreement between Repsol and the Argentine Republic relating to compensation for the expropriationof 51% of the share capital of YPF owned, directly or indirectly, by Repsol, and the arrangement between Repsol and YPF for the withdrawal of certain claimsand actions relating to such expropriation. 92Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsLegal nature of the CompanyYPF will continue to operate as a publicly traded corporation pursuant to Chapter II, Section V of Law No. 19,550 and its corresponding regulations,and will not be subject to any legislation or regulation applicable to the management or control of companies or entities owned by the federal government orprovincial governments.In accordance with Article 17 of the Expropriation Law, YPF will resort to internal and external sources of funding, strategic alliances, joint ventures,transitory business unions, and cooperation partnerships whether public, private or mixed companies, domestic and foreign.You can find a copy of an English translation of the Expropriation Law in the report on Form 6-K furnished by the Company to the SEC on May 9,2012 (Item 1).Law No. 26,932On February 25, 2014, the Republic of Argentina and Repsol reached an agreement (the “Repsol Agreement”) in relation to compensation for theexpropriation of 200,589,525 of YPF’s Class “D” shares pursuant to the Expropriation Law under the Repsol Agreement. Repsol accepted U.S.$5.0 billion insovereign bonds from the Republic of Argentina and withdrew judicial and arbitral claims it had filed, including claims against YPF, and waived additionalclaims. YPF and Repsol executed a separate agreement (“the Repsol Arrangement”) on February 27, 2014, pursuant to which YPF and Repsol each withdrew,subject to certain exclusions, all present and future actions and/or claims based on causes occurring prior to the date of execution of Repsol Arrangementarising from the expropriation of the YPF shares owned by Repsol pursuant to the Expropriation Law, including the intervention and temporary possessionfor public purposes of YPF’s shares. YPF and Repsol agreed to withdraw reciprocal actions and claims with respect to third parties and/or pursued by themand to grant a series of mutual indemnities, which at the time were subject to certain conditions precedent. The Repsol Arrangement entered into force theday after Repsol notified YPF that the Repsol Agreement had entered into force. The Repsol Agreement was ratified on March 28, 2014 at a Repsol generalshareholders meeting and approved by the Argentine Congress by Law No. 26,932 enacted Decree No. 600/2014. On May 8, 2014, YPF was notified of theentrance into force of the Repsol Agreement. As of that date, the expropriation pursuant to the Expropriation Law has been concluded, and as a result theRepublic of Argentina is definitively the owner of 51% of capital stock of each of YPF S.A. and YPF GAS S.A.Law No. 26,197Law No. 26,197, which amended the Hydrocarbons Law, transferred to the provinces and the City of Buenos Aires the ownership over all hydrocarbonreservoirs located within their territories and in the adjacent seas up to 12 nautical miles from the coast. Law No. 26,197 also provides that the hydrocarbonreservoirs located beyond 12 nautical miles from the coast to the outer limit of the continental shelf shall remain within the ownership of the federalgovernment.Pursuant to Law No. 26,197, the Argentine Congress shall continue to enact laws and regulations to develop oil and gas resources existing within all ofthe Argentine territory (including its sea), but the governments of the provinces where the hydrocarbon reservoirs are located shall be responsible for theenforcement of these laws and regulations, the administration of the hydrocarbon fields and shall act as granting authorities for the exploration permits andproduction concessions. However, the administrative powers granted to the provinces shall be exercised within the framework of the Hydrocarbons Law andthe regulations that complement this law.Consequently, even though Law No. 26,197 established that the provinces shall be responsible for administering the hydrocarbon fields, the ArgentineCongress retained its power to issue rules and regulations regarding the oil and gas legal framework. Additionally, the Argentine federal government retainedthe power to determine the national energy policy.It is expressly stated that the transfer will not affect the rights and obligations of exploration permit and production concession holders, or the basis forthe calculation of royalties, which shall be calculated in accordance with the concession title and paid to the province where the reservoirs are located.Law No. 26,197 provides that the Argentine federal government shall retain the authority to grant transportation concessions for: (i) transportationconcessions located within two or more provinces territory and (ii) transportation concessions directly connected to export pipelines for export purposes.Consequently, transportation concessions which are located within the territory of only one province and which are not connected to export facilities shall betransferred to the provinces.Finally, Law No. 26,197 grants the following powers to the provinces: (i) the exercise in a complete and independent manner of all activities related tothe supervision and control of the exploration permits and production concessions transferred by Law No. 26,197; (ii) the enforcement of all applicable legaland/or contractual obligations regarding investments, rational production and information and surface fee and royalties payment; (iii) the extension of legaland/or contractual terms; (iv) the application of sanctions provided in the Hydrocarbons Law; and (v) all the other faculties related to the granting power ofthe Hydrocarbons Law. 93Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDecree No. 1277/2012Decree No. 1277/12 derogated main previsions about free availability of hydrocarbons which were specifically contained in section 5 subsection d)and section 13, 14 and 15 of Decree No. 1055/89, sections 1, 6 and 9 of Decree No. 1212/89 and sections 3 and 5 of Decree No. 1589/89. Decree No. 1277/12enacted the “Hydrocarbons Sovereignty Regime Rules”, regulating the Expropriation Law.This regulation creates a commission, the Commission for Planning and Strategic Coordination of the National Plan of Hydrocarbons Investments (the“Commission”), which consists of representatives of Secretariat of Economic Policy and Development Planning, Secretariat of Energy and ArgentineSecretariat of Domestic Commerce. This Commission is entrusted with annually making the National Plan for Hydrocarbons Investments. According tosection 6 of Annex I, the aforementioned plan will take into consideration a complete and integral evaluation of the hydrocarbons sector of Argentina andwill establish the criteria and the desirable goals on matter of investments in exploration, exploitation, refining, transport and commercialization ofhydrocarbons.Decree No. 1277/12 requires every company that performs activities of exploration, exploitation, refining, transport and commercialization ofhydrocarbons to supply the Commission with all technical information required. The Commission is also responsible for a National HydrocarbonsInvestments Registry for all companies performing the activities of exploration, exploitation, refining, transport and commercialization. All these companieswill also need to file an annual plan of investments before the Commission.With respect to the refining industry, Decree No. 1277/12 gives the Commission the power to regulate the minimum utilization rates for primary orsecondary refining. It also has the ability to enact measures of promotion and coordination, aimed to guarantee the development of the local processingcapacity according with the goals established by the National Plan of Hydrocarbons Investments.With respect to commercialization, the Commission is entitled to publish reference prices of every component of the costs and sales prices ofhydrocarbons and fuels, which should enable the recovery of production costs plus a reasonable profit margin. The Commission also has to periodically auditthe reasonability of the informed costs and the respective sales prices, being entitled to adopt necessary measures to prevent or correct distortive practicesthat might affect the interests of consumers.Law No. 27,007, amending the Hydrocarbons LawOn October 31, 2014, Law No. 27,007 amending the Hydrocarbons Law was published in the Official Gazette of the Republic of Argentina. TheHydrocarbons Law would apply in certain aspects of some of the Company’s existing concessions as well as future concessions. The most relevantmodifications in that law are detailed below. • With respect to exploration permits, it distinguishes between those with conventional and unconventional objectives, and those in whichexploration is undertaken in the territorial sea and continental shelf. Law No. 27,007 modifies the basic time periods governing such activities,from three to two periods and limiting the two basic periods to (i) three years each for exploration with conventional objectives and (ii) four yearseach for exploration with unconventional objectives and (iii) four years each for exploration in the territorial sea or on the continental shelf. Ineach of these cases, the extension period of up to five years (already established in the Hydrocarbons Law) is maintained, although it is subject tothe permit holder having complied with its investment and other obligations. At the end of the first basic period and so long as the permit holderhas complied with its obligations under the permit, the permit holder may continue to hold the entire area. After the second basic period ends, thepermit holder may surrender the entire area or, if the holder decides to trigger the extension period, 50% of the remaining area. • In relation to concessions, Law No. 27,007 provides for three types of concessions: conventional production, unconventional production andproduction in the territorial sea or on the continental shelf. Each of these concessions will last 25, 35, and 30 years, respectively. In addition,permit holders or production concessionaires may request unconventional production concessions on the basis of the development of a pilotplan. So long as the concessionaires (i) have complied with their obligations, (ii) are producing hydrocarbons in the areas under considerationand (iii) present an investment plan for the development of such areas as requested by the competent authorities up to a year prior to thetermination of each term of the concession, they may request extension periods of ten years each. 94Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • The amounts to be paid with respect to annual surface fee pursuant to Sections 57 and 58 of the Hydrocarbons Law for the periods of explorationand production have been increased with the goal of incentivizing exploration and development of these areas. Additionally, beginning with thesecond basic exploration period, these may be reduced partially in light of investments actually carried out in the relevant areas. Restrictions onthe number of exploration permits and/or production concessions that an individual or legal entity may hold were eliminated. • The Hydrocarbons Law established a 35-year term for those concessions granted for the transportation of oil, gas and petroleum products thatholders of production concessions are entitled to receive. Law No. 27,007 modified the awarded term for hydrocarbon transportationconcessions, to be synchronized with the production concession periods. • In connection with exploration and production offerings, tenders may be made by Argentine and foreign companies, with the goal of obtainingthe highest number of tenders possible. In addition, the bidding documents must be prepared by the competent authorities on the basis of the“Model Bidding Document” which will be drafted jointly by the competent authorities of the Provinces and the Argentine Secretariat of Energy.This Model Bidding Document must be prepared within 180 days of the entry into force of Law No. 27,007. Tenders will be awarded to offerorswho present the most relevant offer, in particular, the one proposing the highest amount of investments or exploratory activity. • Royalties have been set at a maximum of 12% on the results of liquid hydrocarbons or natural gas production. Royalties may be reducedconsidering productivity of the area and the type of production. In cases of extension periods, an additional royalty of 3% will be added for eachextension, up to a maximum of 18%. In addition, in case of such extensions, the competent authority may include the payment of an extensionbond which maximum amount shall be equal to the result of multiplying the remaining proved reserves at the end of the concession period to beextended by 2% of the average basin price, for the two years period prior the moment when the extension is granted, applicable to thehydrocarbons at issue. • Law No. 27,007 also provides that the Argentine federal government and the provinces may not establish, in the future, new areas reserved infavor of state-owned entities or companies with state participation. Further, with respect to existing reserved areas that do not have associationagreements with third parties as of the date of this new law, associative schemes may be carried out so long as, during the development phase, theparticipation of state-owned entities or companies with state participation is proportional to the effective investments promised and carried outby them. • Law No. 27,007 additionally incorporates into the Investment Promotion Regime for the Exploration of Hydrocarbons (Decree 929/2013)projects, as authorized by the Commission, that imply direct investments in foreign currency greater than U.S.$250 million to be invested duringthe first three years of the project. Also, it modifies the percentages of hydrocarbons that, beginning with the third year, will be subject to thebenefits of the regime. For conventional and unconventional production concessions, as well as offshore concessions at depths less than or equalto 90 meters, the percentage shall be 20%; for offshore concessions at depths greater than 90 meters, the percentage shall be 60%. • Within the framework of the Investment Promotion Regime for the Exploration of Hydrocarbons, Law No. 27,007 provides for contributions bycompanies to the provinces where the projects take place, which amount to 2.5% of the initial investment amount of the project, to be directed to“Corporate Social Responsibility” contributions. In addition, an amount to be determined by the Commission in light of the extent of theproject, to finance infrastructure, have to be contributed by the Argentine federal government. • Law No. 27,007 establishes that capital goods and inputs that are essential to the execution of the investment plans of companies registered inthe National Registry of Hydrocarbon Investments shall pay import duties as indicated in Decree 927/13 (reduced rates). This list may beextended to other strategic products. • According to Law No. 27,007, the federal government and the provinces shall attempt to establish uniform environmental legislation and theadoption of uniform fiscal treatment in this sector. The competent authorities, including the Argentine Secretariat of Energy and theCommission, will promote unification of procedures and registries. • All national off shore permits and off shore hydrocarbon production concessions in which association agreements with ENARSA that have notbeen signed as of the date of the new law will revert to and be transferred to the Argentine Secretariat of Energy. Permits and concessions grantedprior to Law No. 25,943 shall be exempted from this provision. The National Executive Office may negotiate, for 180 days following theenactment of the new law, the conversion of association agreements signed with ENARSA to permits or production concessions. 95Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsResolution 14/2015On February 4, 2015, the Commission issued Resolution 14/2015 that created the Crude Oil Production Stimulus Program (Programa de Estímulo a laProducción de Petróleo Crudo) (the “Program”), which will be valid from January 1, 2015 through December 31, 2015 and may be extended for twelvemonths. This Program provides for a payment in Argentine pesos to beneficiary companies, in an amount of up to U.S. $3.00 per barrel when such company’squarterly production of crude oil is equal to or greater than the base production level under the Program, in addition to the compliance with certain otherrequirements related to the level of activity of the Company as set by Resolution 33/2015. The base production level under the Program is the totalproduction of crude oil of the beneficiary company for the fourth quarter of 2014. Those beneficiary companies that have satisfied the demand of all of thedomestic refineries operating within Argentina may direct a portion of their production to the international market and receive an additional payment of U.S.$2.00 or U.S. $3.00 per barrel of crude oil exported, depending on the volume exported.Companies that are registered under the National Hydrocarbons Investments Registry may request that the Commission include them in the Program upto April 30, 2015, providing certain information as regards to production and exports for 2014. If the Commission accepts these companies as a beneficiarycompany, they may receive the export and/or production stimulus described above. The payments will be made in Argentine pesos using the ReferenceExchange Rate of BCRA Communication “A” 3500 of the last business day prior to the presentation of the information of the corresponding quarter to theCommission.Public EmergencyOn January 6, 2002, the Argentine Congress enacted Law No. 25,561, the Public Emergency and Foreign Exchange System Reform Law (“PublicEmergency Law”), which represented a profound change of the economic model effective as of that date, and rescinded the Convertibility Law No. 23,928,which had been in effect since 1991 and had pegged the peso to the dollar on a one-to-one basis. In addition, the Public Emergency Law granted to NationalExecutive Office the authority to enact all necessary regulations in order to overcome the economic crisis that Argentina was then facing. The situation ofemergency declared by Law No. 25,561 has been extended until December 31, 2015 by Law No. 26,896. The National Executive Office is authorized toexecute the powers delegated by Law No.25,561 until such date.After the enactment of the Public Emergency Law, several other laws and regulations have been enacted to overcome the economic crisis, including(1) the conversion into pesos of deposit, obligations and tariffs of public services, among others, (2) the imposition of customs duties on the export ofhydrocarbons with instructions to the National Executive Office to set the applicable rate thereof. The application of these duties and the instruction to theNational Executive Office have been extended until January 2017 by Law No. 26,732. See “—Taxation.”Exploration and ProductionThe Hydrocarbons Law establishes the basic legal framework for the regulation of oil and gas exploration and production in Argentina. TheHydrocarbons Law empowers the National Executive Office to establish a national policy for development of Argentina’s hydrocarbon reserves, with theprincipal purpose of satisfying domestic demand.Pursuant to the Hydrocarbons Law, exploration and production of oil and gas is carried out through exploration permits, production concessions,exploitation contracts or partnership agreements. The Hydrocarbons Law also permits surface reconnaissance of territory not covered by exploration permitsor production concessions upon authorization of the Argentine Secretariat of Energy and/or competent provincial authorities, as established by LawNo. 26,197, and with permission of the private property owner. Information obtained as a result of surface reconnaissance must be provided to the ArgentineSecretariat of Energy and/or competent provincial authorities, which may not disclose this information for two years without permission of the party whoconducted the reconnaissance, except in connection with the grant of exploration permits or production concessions.Under the Hydrocarbons Law, the federal and/or competent provincial authorities may grant exploration permits after submission of competitive bids.Permits were granted to third parties in connection with the deregulation and demonopolization process and permits covering areas in which our predecessorcompany, Yacimientos Petrolíferos Fiscales Sociedad del Estado, was operating at the date of the Privatization Law were granted to us by such law. In 1991,the National Executive Office established a program under the Hydrocarbons Law (known as Plan Argentina) pursuant to which exploration permits wereauctioned. The holder of an exploration permit has the exclusive right to perform the operations necessary or appropriate for the exploration of oil and gaswithin the area specified by the permit. Under the Hydrocarbons Law, each exploration permit may cover only unproved areas not to exceed 10,000 km2(15,000 km2 offshore), and may have a term of up to 14 years (17 years for offshore exploration). The 14-year term is divided into three basic terms and oneextension term. The first basic term is up to four years, the second basic term is up to three years, the 96Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsthird basic term is up to two years and the extension term is up to five years. At the expiration of each of the first two basic terms, the acreage covered by thepermit is reduced, at a minimum, to 50% of the remaining acreage covered by the permit, with the permit holder deciding which portion of the acreage tokeep. At the expiration of the three basic terms, the permit holder is required to surrender all of the remaining acreage to the Argentine government, unless theholder requests an extension term, in which case such grant is limited to 50% of the remaining acreage. Under Law No. 27,007, which will apply to futureexploration permits, each exploration permit may have a term of up to 11 years for conventional objectives and 13 years for unconventional objectives andoffshore exploration. The terms are divided into two basic terms and one extension term. The first and second basic terms are up to three years, forconventional objectives and up to four years for unconventional objectives and offshore exploration, and the extension term is up to five years, so long as thepermit holder has complied with its investments and other obligations. At the expiration of the first basic term, the permit holder will have the right tocontinue exploring the entire area for the second basic term so long as it has complied with all its obligations under the permit. At the expiration of thesecond basic term, the permit holder is required to surrender all of the remaining acreage, unless the holder requests an extension term, in which case suchgrant is limited to 50% of the remaining acreage.If the holder of an exploration permit discovers commercially exploitable quantities of oil or gas, the holder has the right to obtain an exclusiveconcession for the production and development of this oil and gas. The Hydrocarbons Law, as modified by Law No. 27,007, provides that new conventionaloil and gas production concessions shall remain in effect for 25 years from the date of the award of the production concession, new unconventional oil andgas production concessions shall remain in effect for 35 years from that date, and new offshore oil and gas production concessions shall remain in effect for30 years from that date, in addition to any remaining exploration term at the date of such award. The Hydrocarbons Law, as modified by Law No. 27,007,further provides for the concession term to be extended for periods of up to 10 additional years each, subject to terms and conditions approved by the grantorat the time of the extension. Such conditions may include the payment of an extension bond with a maximum amount equal to the result of multiplying theremaining proved reserves at the end of the concession period by 2% of the average basin price, for the period two years prior to the date the extension isgranted, applicable to the hydrocarbons at issue. Under Law No. 26,197, the authority to extend the terms of current and new permits and concessions hasbeen vested in the governments of the provinces in which the relevant block is located (and the Argentine government in respect of offshore blocks beyond12 nautical miles). In order to be entitled to the extension, a concessionaire, such as us, must have complied with all of its obligations under theHydrocarbons Law, including, without limitation, evidence of payment of taxes and royalties and compliance with environmental, investment anddevelopment obligations, must be producing hydrocarbons in the area at issue and must present an investment plan to develop the concession. A productionconcession also confers on the holder the right to conduct all activities necessary or appropriate for the production of oil and gas, provided that suchactivities do not interfere with the activities of other holders of exploration permits and production concessions. A production concession entitles the holderto obtain a transportation concession for the oil and gas produced. See “—Transportation of Liquid Hydrocarbons.”Exploration permits and production concessions require holders to carry out all necessary work to find or extract hydrocarbons, using appropriatetechniques, and to make specified investments. In addition, holders are required to: • avoid damage to oil fields and waste of hydrocarbons; • adopt adequate measures to avoid accidents and damage to agricultural activities, fishing industry, communications networks and the watertable; and • comply with all applicable federal, provincial and municipal laws and regulations.According to the Hydrocarbons Law, holders of production concessions, including us, are also required to pay royalties to the province whereproduction occurs. As modified by Law No. 27,007, royalty rates are set at a maximum of 12% (though 3% will be added for each extension up to a maximumof 18%). They are payable on the value at the wellhead (equal to the price upon delivery of the product, less transportation, treatment costs and otherdeductions) of crude oil production and natural gas volumes sold. These royalty rates may be reduced considering productivity and the type of production atissue. Notwithstanding the foregoing, in concessions extended prior to the entry into force of Law No. 27,007, the previous conditions adopted remain inforce. In some cases, an additional 3% royalty has been added. (See “—Extension of Exploitation Concessions in the province of Neuquén, —Mendoza, —Salta, —Santa Cruz, —Chubut and —Tierra del Fuego.” In the extension of our concessions in Santa Cruz, we agreed to a 10% royalty (instead of 12%) forunconventional hydrocarbons. The value is calculated based upon the volume and the sale price of the crude oil and gas produced, less the costs oftransportation and storage. In addition, pursuant to Resolution S.E. 435/04 issued by the Argentine Secretariat of Energy, if a concession holder allots crudeoil production for further industrialization processes at its plants, the concession holder is required to agree with the provincial authorities or the ArgentineSecretariat of Energy, as applicable, on the reference price to be used for purposes of calculating royalties. 97Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAs a result of Resolution 394/07 of the Ministry of Economy, among other things, which increased duties on exports of certain hydrocarbons,Argentine companies began to negotiate the price for crude oil in the domestic market, which would in turn be used as the basis for calculation of royalties. InJanuary 2013, the Ministry of Economy issued Resolution 1/13, modifying exhibit I of Resolution 394/07 of the Ministry of Economy, thus setting a newreference price for crude oil (U.S.$70 per barrel) and certain products. In October 2014, the Ministry of Economy issued Resolution 803/2014 incorporatingexhibit III to Resolution 394/07 of the Ministry of Economy, thus modifying the applicable percentages of duties of exports for certain products belowcertain prices.However, on December 29, 2014 Resolution 1077/2014 repealed Resolution 394/07, as amended, and set forth a new withholding program based onthe international price of crude oil (the “International Price”). The International Price is calculated based on the Brent value for the applicable month lessU.S.$8 per barrel. The new program establishes a 1% general nominal withholding applicable to all products covered by the resolution, including crude oil,diesel, gasoline and lubricants as well as other petroleum products, to the extent that the International Price is below U.S.$71 per barrel. The resolution furtherprovides an increasing variable withholding rate for crude exports oil exports to the extent the International Price exceeds U.S.$71 per barrel. As a result, themaximum a producer may charge is approximately U.S.$70 per barrel exported, depending on the quality of crude sold. The resolution also sets forthincreasing withholding rates for exports of diesel, gasoline, lubricants and other petroleum when the International Price exceeds U.S.$71 per barrel at ratesthat allow the producer to receive a portion of the elevated price.In addition to the above, the Public Emergency Law, which created the export withholdings, established that export withholdings were not to bededucted from the export price for purposes of calculating the 12% royalties. The royalty expense incurred in Argentina is accounted for as a production cost(as explained in “—Exploration and Production—Oil and gas production, production prices and production costs”). According to the Hydrocarbons Law,any oil and gas produced by the holder of an exploration permit prior to the grant of a production concession is subject to the payment of a 15% royalty.Furthermore, pursuant to Sections 57 and 58 of the Hydrocarbons Law, holders of exploration permits and production concessions must pay an annualsurface fee that is based on acreage of each block and that varies depending on the phase of the operation, such as exploration or production, and in the caseof the former, depending on the relevant period of the exploration permit. These amounts were updated by Law No. 27,007 and may be partially adjusted asfrom the second basic exploration period in light of investments actually carried out. Exploration permits and production or transportation concessions maybe terminated upon any of the following events: • failure to pay annual surface taxes within three months of the due date; • failure to pay royalties within three months of the due date; • substantial and unjustifiable failure to comply with specified production, conservation, investment, work or other obligations; • repeated failure to provide information to, or facilitate inspection by, authorities or to utilize adequate technology in operations; • in the case of exploration permits, failure to apply for a production concession within 30 days of determining the existence of commerciallyexploitable quantities of hydrocarbons; • bankruptcy of the permit or concession holder; • death or end of legal existence of the permit or concession holder; or • failure to transport hydrocarbons for third parties on a non-discriminatory basis or repeated violation of the authorized tariffs for suchtransportation.The Hydrocarbons Law further provides that a cure period, of a duration to be determined by the Argentine Secretariat of Energy and/or the competentprovincial authorities, must be provided to the defaulting concessionaire prior to the termination.When a production concession expires or terminates, all oil and gas wells, operating and maintenance equipment and facilities automatically revert tothe province where the reservoir is located or to the Argentine federal government in the case of reservoirs under federal jurisdiction (for instance, located onthe continental shelf or beyond 12 nautical miles offshore), without compensation to the holder of the concession. 98Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCertain of our production concessions expire in 2017. See “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and GasBusiness and Our Business — Argentine oil and gas production concessions and exploration permits are subject to certain conditions and may be cancelledor not renewed.” The granting of an extension is an unregulated process and normally involves lengthy negotiations between the applicant and the relevantgovernment. Although the Hydrocarbons Law, as modified, provides that applications must be submitted at least one year prior to the concession expirationdate, it is industry practice to commence the process far earlier, typically as soon as the technical and economic feasibility of new investment projects beyondthe concession term become apparent.On March 16, 2006, the Argentine Secretariat of Energy issued Resolution S.E. No. 324/06 requiring that holders of exploration permits andhydrocarbon concessions must file with such agency details of their proved reserves existing in each of their areas, certified by an external reserves auditor,each year. Holders of hydrocarbon concessions that export hydrocarbons are obliged to certify their oil and gas proved reserves. The aforementionedcertification only has the meaning established by Resolution S.E. No. 324/06, according to which it is not to be interpreted as a certification of oil and gasreserves under the SEC rules. See “—Exploration and Production Overview—Oil and Gas Reserves.”In March 2007, the Argentine Secretariat of Energy issued Resolution No 407/07 that approved new regulations concerning the Oil and GasExploration and Production Companies Registry. According to Resolution No. 407/07, YPF, as a holder of production concessions and exploration permits,is banned from hiring or in any way benefiting from any company or entity which is developing or has developed oil and gas exploration activities withinthe Argentine continental platform without an authorization from the relevant Argentine authorities.In addition, by Resolution 130/2013 of the Ministry of Economy published on April 19, 2013 in the Official Gazette, the Argentine Oil Fund wascreated. This fund will manage up to U.S.$2,000 million, to provide loans or capital contributions or to acquire financial instruments in order to implementhydrocarbons exploration, exploitation, processing and marketing projects for oil and gas companies in which the Argentine government has interest orexercises economic and political rights.Extension of Exploitation Concessions in the province of NeuquénIn addition to the extension in 2002 of the expiration date of the exploitation concession of the Loma La Lata field until 2027, during the years 2008and 2009, YPF entered into a number of agreements with the province of Neuquén, pursuant to which the exploitation concession terms of several areaslocated within the province were extended for a 10-year term, which now expire between 2026 and 2027. As a condition to the extension of the concessionterms, YPF has undertaken to do the following under the relevant agreements: (i) to make initial payments to the province of Neuquén in an aggregateamount of approximately U.S.$204 million; (ii) to pay the province of Neuquén an “Extraordinary Production Royalty” of 3% of the production of the areasaffected by this extension (in addition, the parties agreed to make additional adjustments of up to an additional 3% in the event of extraordinary income, asdefined in each agreement); (iii) to carry out exploration activities in the remaining exploration areas and make certain investments and expenditures untilthe expiration of the concessions in an aggregate amount of approximately U.S.$3,512 million; and (iv) to make “Corporate Social Responsibility”contributions to the province of Neuquén in an aggregate amount of approximately U.S.$23 million.Decree No. 1208/2013 of the province of Neuquén approves an agreement entered into between the province of Neuquén and YPF dated July 24, 2013,that (i) separates from the Loma La Lata—Sierra Barrosa concession a surface area of 327.5 km2; (ii) incorporates the separated surface area into the LomaCampana concession and (iii) extends the Loma Campana concession to November 11, 2048, according to Decree 929/13.Extension of Exploitation Concessions in the province of MendozaIn April 2011, YPF entered into an agreement with the province of Mendoza to extend the term of the exploitation concessions identified below, andthe transportation concessions located within the province, which was ratified by a decree published in July 2011.The agreement between YPF and the province of Mendoza provides, inter alia, the following: • Concessions involved: El Portón, Barrancas, Cerro Fortunoso, El Manzano, La Brea, Llancanelo, Llancanelo R, Puntilla de Huincán, RíoTunuyan, Valle del Río Grande, Vizcacheras, Cañadón Amarillo, Altiplanicie del Payún, Chihuido de la Sierra Negra, Puesto Hernández and LaVentana; 99Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Exploitation concession terms, which were originally set to expire in 2017, were extended for a 10-year term to 2027; and • YPF agreed:(i) to make initial payments to the province of Mendoza in an aggregate amount of approximately U.S.$135 million; (ii) to pay the province ofMendoza an “Extraordinary Production Royalty” of 3% of the production of the areas included in the agreement; (iii) a fee for extraordinaryincome based on 10%, 15% or 20% of the difference between the price actually received by YPF and certain benchmarks set out in theagreement; (iii) to carry out exploration activities in the remaining exploration areas and make certain investments and expenditures in a totalamount of U.S.$4,113 million until the expiration of the extended term; (iv) to contribute U.S.$16.2 million to a “Social InfrastructureInvestment Fund” to satisfy community needs in the province of Mendoza; and (v) to make payments equal to 0.3% of the annual amount paidas “Extraordinary Production Royalty” in order to fund the purchase of equipment and finance training activities in certain government agenciesof the province of Mendoza.Extension of Exploitation Concessions in the province of Santa CruzIn November 2012, YPF entered into an agreement with the province of Santa Cruz to extend the term of the exploitation concessions identified below,which was ratified by a provincial law published on November 2012.The agreement between YPF and the province of Santa Cruz provides, inter alia, the following: • Concessions involved: Cerro Piedra-Cerro Guadal Norte; Cañadón de la Escondida-Las Heras; Cañadón León-Meseta Espinosa; Los Monos;Pico Truncado-El Cordón; Los Perales-Las Mesetas; El Guadal-Lomas del Cuy; Cañadón Vasco; Cañadón Yatel, Magallanes (portion located inSanta Cruz) and Barranca Yankowsky; • Exploitation concession terms, which were originally set to expire in 2017, were extended for a 25-year term to 2042; and • YPF has undertaken: (i)to make initial payments to the province of Santa Cruz in an aggregate amount of approximately of U.S.$200 million; (ii)to pay the province of Santa Cruz a Production Royalty of 12% plus an additional of 3% on the production of conventionalhydrocarbons, and 10% on the production of unconventional hydrocarbons; (iii)to carry out exploration activities in the remaining exploration areas and make certain investments and expenditures on theexploitation concessions; (iv)to contribute with infrastructure investments within the province of Santa Cruz in an amount equivalent to 20% of the initialpayment, and; (v)to contribute to an “Institutional Strengthening Fund” and to carry out a program for technical formation (YPF y los Trabajadores)and a program for development of contractors (Sustenta) within the province of Santa Cruz.Negotiation of Extension of Concessions in the province of Tierra del FuegoThe Company has negotiated with the Executive office of the province of Tierra del Fuego the terms in order to extend the Tierra del Fuego andChorrillos exploitation concessions which are jointly held by YPF (30%), Petrolera LF Company S.R.L. (35%), and Petrolera TDF Company S.R.L. (35%).Petrolera LF Company S.R.L. and Petrolera TDF Company S.R.L. were subsidiaries of Apache which we acquired in 2013. The final agreement was executedby the province of Tierra del Fuego, YPF, Petrolera LF Company S.R.L. and Petrolera TDF Company S.R.L. on December 18, 2013. The agreement wasratified by the Parliament of the province of Tierra del Fuego on October 10, 2014 through the enactment of Provincial Law No. 997 and 998. The agreementgrants an extension of the Tierra del Fuego concession until November 2027 and an extension of the Chorrillos concession until April 2026. 100Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExtension of Concessions in the province of ChubutThe Company has obtained the extension of the following concessions in the Province of Chubut: • El Tordillo – La Tapera and Puesto Quiroga Exploitation Concessions: On October 2, 2013 the province of Chubut published the Provincial lawapproving the agreement for the extension of the El Tordillo, La Tapera and Puesto Quiroga concessions located in the province of Chubut. YPFholds a 12.196% interest in these concessions while Petrobras Argentina S.A. holds a 35.67% interest and Tecpetrol S.A. holds the remaining52.133%. The concessions were extended for a period of 30 years from the original 2017 expiration. The following are the main terms andconditions of the extension agreement entered into by and between the province of Chubut and the parties that hold interests in the concessions: (i)To make initial payments to the province of Chubut in an aggregate amount of U.S.$18 million. (ii)To pay an “Extraordinary Production Royalty” of 4% of the production of the areas included in the extension. (iii)To make disbursements and investments aimed at the conservation and protection of the environment. (iv)To maintain operational a minimum number of drilling and work-over rigs. (v)Upon expiration of the first ten years of the extension period, the Parties shall transfer and assign to Petrominera S.E., theprovincial oil company, a 10% interest in the areas covered by the extension agreement. • Restinga Alí, Sarmiento, Campamento Central – Cañadón Perdido, Manantiales Behr and El Trébol—Escalante – Escalante ExploitationConcessions: On December 26, 2013 YPF executed an agreement with the province of Chubut for the extension of the original term of durationof these concessions. YPF holds a 100% interest in all the concessions except for the Campamento Central – Cañadón Perdido Concession whereENAP Sipetrol S.A. and YPF each hold a 50% interest.The concessions were extended for a period of 30 years following the expiration of the original concession terms, which would have expired in2017 (Campamento Central – Cañadón Perdido and El Trébol – Escalante), 2015 (Restinga Alí) and 2016 (Manantiales Behr).The following are the main terms and conditions agreed by and between YPF and the province of Chubut. (i)To make initial payments to the province of Chubut in an aggregate amount of U.S.$30 million. (ii)To pay an “Extraordinary Production Royalty” of 3% of the production of the areas included in the extension agreement. (iii)To comply with a minimum investment program. (iv)To maintain a minimum number of drilling and work-over rigs operational. (v)To assign to Petrominera S.E., 41% of YPF’s interest in the El Tordillo, La Tapera and Puesto Quiroga exploitation concessions(equal to 5% of the total interest in the concessions).ENAP Sipetrol S.A. has agreed to fulfill the obligations set forth in the extension agreement on a pro-rata basis relative to its participation interest inthe Campamento Central – Cañadon Perdido concession agreement.Extension of Exploitation Concessions in the province of SaltaIn October 2012, YPF entered into an agreement with the province of Salta to extend the original terms of the exploitation concessions identifiedbelow, subject to the approval of the National Executive Office by decree.The agreement was approved by Resolution No. 35/12 of Salta’s Secretariat of Energy on October 26, 2012 and Decree 3694/12 on December 6, 2012.The agreement was signed between YPF, Tecpetrol S.A., Petrobras Argentina S.A., Compañía General de Combustibles S.A. and Ledesma S.A.A.I. and theprovince of Salta, and provides for the following: • Concessions involved: Sierras de Aguaragüe, Campo Durán-Madrejones, La Bolsa and Río Pescado. 101Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Exploitation concession terms are extended for a 10-year term following the expiration of the original 25 year term, until November 14, 2027. • YPF has agreed: (i)to conduct in Aguaragüe, the following investments: a minimum level of activity in development plans, involving the drilling ofdevelopment wells (at least 3) and expansion of production facilities and treatment of hydrocarbons of U.S.$36 million, (ii)to pay the province a special extraordinary contribution equal to 25% of the amount corresponding to royalties of 12% referred toin Article 59 and 62 of the Hydrocarbons Law, (iii)to pay the province an additional payment, when extraordinary income the sale of crude oil and natural gas from the concessions,under conditions where prices exceed U.S.$90/bbl in the case of crude oil and the equivalent of 70% of import prices in the case ofnatural gas, (iv)to pay the province, in aggregate, a one-time amount of U.S.$5 million as an extension bonus, (v)to make investments for a minimum amount of U.S.$30 million in aggregate in additional exploration work to be implemented inthe concessions, subject to certain conditions and (vi)to invest U.S.$1 million in aggregate in the implementation of social infrastructure projects in the province.Extension of Exploitation Concessions in the province of Rio NegroIn December 2014, YPF entered into an agreement with the province of Rio Negro to extend the original terms of the exploitation concessionsidentified below. Effectiveness of the agreement was subject to the ratification of its terms by the Parliament of the province of Rio Negro that was granted onDecember 30, 2014 through the enactment of Provincial Law No.5027.The agreement was signed between YPF, YSUR Energia Argentina S.R.L. (formerly named Apache Energia Argentina S.R.L.), YSUR PetroleraArgentina S.A. (formerly named Apache Petrolera Argentina S.A.) and the province of Rio Negro and provides the following: • Concessions involved: (i) El Medanito, Barranca De Los Loros, Señal Picada-Punta Barda, Bajo Del Piche and Los Caldenes, where YPF holds a100% undivided interest; (ii) Estacion Fernandez Oro, where YSUR Energia Argentina S.R.L. holds a 100% undivided interest; and (iii) ElSantiagueño, where YSUR Petrolera Argentina S.A. holds a 100% undivided interest. • Exploitation concession terms are extended for a 10-year term following the expiration of the original 25 year term, until November 14, 2027,except for the exploitation concessions in (i) Los Caldenes which was extended until September 18, 2036, (ii) Estacion Fernández Oro which wasextended until August 16, 2026 and (iii) El Santiagueño which was extended until September 6, 2025. • YPF has agreed: (i)to make an initial payment to the Province of Rio Negro in an aggregate amount of U.S.$46 million; (ii)to make contributions to social development and institutional strengthening within the province of Rio Negro in an amountequivalent to 20% of the initial payment; (iii)to pay an “Extraordinary Production Royalty” of 3% of the monthly production; (iv)to contribute annually to training, research and development, the amount depends on the volume of production; (v)to comply with a minimum investment program; and (vi)to make disbursements and investments aimed at the conservation and protection of the environment. 102Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsSecurity Zones LegislationArgentine law restricts the ability of non-Argentine companies to own real estate, oil concessions or mineral rights located within, or with respect toareas defined as, security zones (principally border areas).Additionally, prior approval of the Argentine government is required: • for non-Argentine shareholders to acquire control of us; or • if and when the majority of our shares belong to non-Argentine shareholders, as was the case when we were controlled by Repsol for anyadditional acquisition of real estate, mineral rights, oil or other Argentine government concessions located within, or with respect to, securityzones.Natural Gas Transportation and DistributionThe gas transmission system is currently divided into two systems principally on a geographical basis (the northern and the southern trunk pipelinesystems), designed to give both systems access to gas sources and to the main centers of demand in and around Buenos Aires. These systems are operated bytwo transportation companies. In addition, the distribution system is divided into nine regional distribution companies, including two distributioncompanies serving the greater Buenos Aires area.The regulatory structure for the natural gas industry creates an open-access system, under which gas producers, such as us, will have open access tofuture available capacity on transmission and distribution systems on a non-discriminatory basis.Cross-border gas pipelines were built to interconnect Argentina, Chile, Brazil and Uruguay, and producers such as us had been exporting natural gas tothe Chilean and Brazilian markets, to the extent permitted by the Argentine government. During the last several years the Argentine authorities have adopteda number of measures restricting exports of natural gas from Argentina, including issuing domestic supply instruction pursuant to Regulation No. 27/04 andResolutions Nos. 265/04, 659/04 and 752/05 (which require exporters to supply natural gas to the Argentine domestic market), issuing express instructions tosuspend exports, suspending processing of natural gas and adopting restrictions on natural gas exports imposed through transportation companies and/oremergency committees created to address crisis situations. See “—Market Regulation— Natural gas export administration and domestic supply priorities.”Transportation of Liquid HydrocarbonsThe Hydrocarbons Law No. 17,319 permits the National Executive Office to award 35-year concessions for the transportation of oil, gas and petroleumproducts following submission of competitive bids. Pursuant to Law No. 26,197, the relevant provincial governments have the same powers. Holders ofproduction concessions are entitled to receive a transportation concession for the oil, gas and petroleum products that they produce. The term of atransportation concession may be extended for an additional ten-year term upon application to the National Executive Office.The Hydrocarbons Law No. 27,007, which will apply to future concessions for the transportation of liquid hydrocarbons, permits the NationalExecutive Office to award concessions for the transportation of oil, gas and petroleum products for terms equivalent to those granted for productionconcessions linked to those transport concessions, following submission of competitive bids. The term of a transportation concession may be extended foradditional terms equivalent to those of the associated production concession. The holder of a transportation concession has the right to: • transport oil, gas and petroleum products; and • construct and operate oil, gas and products pipelines, storage facilities, pump stations, compressor plants, roads, railways and other facilities andequipment necessary for the efficient operation of a pipeline system.The holder of a transportation concession is obligated to transport hydrocarbons for third parties on a non-discriminatory basis for a fee. Thisobligation, however, applies to producers of oil or gas only to the extent that the concession holder has surplus capacity available and is expresslysubordinated to the transportation requirements of the holder of the concession. Transportation tariffs are subject to approval by the Argentine Secretariat ofEnergy for oil and petroleum pipelines and by the ENARGAS for gas pipelines. Upon expiration of a transportation concession, the pipelines and relatedfacilities automatically revert to the Argentine government without payment to the holder. The Privatization Law granted us a 35-year transportationconcession with respect to the pipelines operated by Yacimientos Petrolíferos Fiscales Sociedad del Estado at the time. Gas pipelines and distributionsystems sold in connection with the privatization of Gas del Estado are subject to a different regime as described above. 103Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAdditionally, pursuant to Law No. 26,197, all transportation concessions located entirely within a province’s jurisdiction and not directly connected toany export pipeline are to be transferred to such province. The National Executive Office retains the power to regulate and enforce all transportationconcessions located within two or more provinces and all transportation concessions directly connected to export pipelines.RefiningCrude oil refining activities conducted by oil producers or others are subject to prior registration of oil companies in the registry maintained by theArgentine Secretariat of Energy and compliance with safety and environmental regulations, as well as to provincial environmental legislation and municipalhealth and safety inspections.In January 2008, the Argentine Secretariat of Domestic Commerce issued Resolution No. 14/2008, whereby the refining companies were instructed tooptimize their production in order to obtain maximum volumes according to their capacity.Executive Decree No. 2014/08 of November 25, 2008, created the “Refining Plus” program to encourage the production of diesel fuel and gasoline.The Argentine Secretariat of Energy, by Resolution S.E. No. 1312/08 of December 1, 2008, approved the regulations of the program. Pursuant to thisprogram, refining companies that undertook the construction of a new refinery or the expansion of their refining and/or conversion capacity, and whose planswere approved by the Argentine Secretariat of Energy, were entitled to receive export duty credits to be applied to exports of products within the scope ofResolution No. 394/07 and Resolution No. 127/08 (Annex) issued by the Ministry of Economy. In February 2012, by Notes Nos. 707/12 and 800/12 (the“Notes”) of the Argentine Secretariat of Energy, YPF was notified that the benefits granted under the “Refining Plus” program had been temporarilysuspended. The effects of the suspension extend to benefits accrued and not yet redeemed by YPF at the time of the issuance of the Notes. The reasons allegedfor such suspension were that the “Refining Plus” program had been created in a context where domestic prices were lower than prevailing prices and that theobjectives sought by the program had already been achieved. On March 16, 2012, YPF challenged this temporary suspension.Market RegulationOverviewUnder the Hydrocarbons Law and the Oil Deregulation Decrees, holders of production concessions, such as us, have the right to produce and own theoil and gas they extract and are allowed to sell such production in the domestic or export markets, in each case subject to the conditions described below.The Hydrocarbons Law authorizes the National Executive Office to regulate the Argentine oil and gas markets and prohibits the export of crude oilduring any period in which the National Executive Office finds domestic production to be insufficient to satisfy domestic demand. If the National ExecutiveOffice restricts the export of crude oil and petroleum products or the sale of natural gas, the Oil Deregulation Decrees provide that producers, refiners andexporters shall receive a price: • in the case of crude oil and petroleum products, not lower than that of imported crude oil and petroleum products of similar quality.Furthermore, the Oil Deregulation Decrees required the National Executive Office to give twelve months’ notice of any future export restrictions.Notwithstanding the above provisions, certain subsequently-enacted resolutions (Resolution S.E. 1679/04, Resolution S.E. 532/04 and Resolution of theMinistry of Economy 394/07) have modified the aforementioned price mechanism, resulting, in certain cases, in prices to producers that are below the levelsdescribed above.In addition, in May 2012, the Expropriation Law was passed by the Argentine Congress and became effective. The Expropriation Law declaredachieving self-sufficiency in the supply of hydrocarbons, as well as in the exploitation, industrialization, transportation and sale of hydrocarbons, a nationalpublic interest and a priority for Argentina. In addition, its stated goal is to guarantee socially equitable economic development, the creation of jobs, theincrease of the competitiveness of various economic sectors and the equitable and sustainable growth of the Argentine provinces and regions. Furthermore,Decree No. 1277/12 derogated main previsions about free availability of hydrocarbons which were specifically contained in section 5 subsection d) andsection 13, 14 and 15 of Decree No. 1055/89, sections 1, 6 and 9 of Decree No. 1212/89 and sections 3 and 5 of Decree No. 1589/89. Decree No. 1277/12 104Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsenacted the “Hydrocarbons Sovereignty Regime Rules,” regulating Law No. 26,741. This regulation creates the Commission, which among other matters isentitled to publish reference prices of every component of the costs and sales prices of hydrocarbons and fuels, which should permit recovery of productioncosts and obtaining a reasonable profit margin. See “—The Expropriation Law” and “—Decree No. 1277/2012.”On July 15, 2013, Decree No. 929/2013 was published in the Official Gazette and provides for the creation of an Investment Promotion Regime for theExploitation of Hydrocarbons (the “Promotion Regime”), both for conventional and unconventional hydrocarbons to be applied across the Argentineterritory. Applications to be included in this Promotion Regime may be filed by subjects duly registered with the National Registry of HydrocarbonInvestments who are holders of exploration permits and/or exploitation concessions and/or third parties associated with those holders and who submit anInvestment Project for Hydrocarbon Exploitation (the “Investment Project”) to the Commission of Strategic Planning and Coordination of the NationalHydrocarbons Investment Plan created by Decree No. 1,277/12, entailing a direct investment in foreign currency of at least U.S.$1 billion, calculated at thetime of submission of the Investment Project, and to be invested in the first five years of the Investment Project. Beneficiaries of this Promotion Regime shallenjoy the following benefits, among others: i) they shall be entitled, under the terms of the Hydrocarbons Law, from the fifth anniversary of the start-up oftheir respective Investment Project, to freely export 20% of the production of liquid and gaseous hydrocarbons produced under such Investment Projects, at a0% export tax rate, if applicable; ii) they shall freely dispose of 100% of the proceeds derived from the export of the hydrocarbons mentioned in i) above,provided the approved Investment Project would have generated an inflow of foreign currency into Argentina’s financial market equal to at least U.S.$1billion, following the requirements mentioned above; iii) if hydrocarbon production in Argentina is not enough to cover domestic supply needs inaccordance with section 6 of the Hydrocarbons Law, beneficiaries of the Promotion Regime, from the fifth anniversary of the start-up of their respectiveInvestment the Projects, shall be entitled to obtain, in relation to the aforementioned exportable rate of liquid and gaseous hydrocarbons produced in theInvestment Projects, a price not lower than the reference export price calculated without deducting any export duties that would have been applicable. LawNo. 27,007, as described above, has incorporated into this regime projects submitted to the Commission of Strategic Planning and Coordination of theNational Hydrocarbons Investment Plan entailing a direct investment in foreign currency of at least U.S.$250 million, calculated at the time of submission ofthe Investment Project, and to be invested in the first three years of the Investment Project. Further, Law 27,007 modifies the percentages of hydrocarbons tobe benefitted under this regime to 20% of the production of conventional, unconventional and offshore concessions at depths less than or equal to 90 metersand 60% of the production of offshore concessions at depths greater than 90 meters. See “—Law 27,007, amending the Hydrocarbons Law.”Additionally, the Decree created a new type of concession for the “Exploitation of Unconventional Hydrocarbons,” which has been incorporated in theHydrocarbons Law by Law No. 27,007, consisting of the extraction of liquid and/or gaseous hydrocarbons through unconventional stimulation techniquesapplied to reservoirs located in geological formations of schist and slates (shale gas or shale oil), tight sands (tight oil and tight gas), coal layers (coal bedmethane) and, in general, from any reservoir that presents low-permeability rock as its main feature. The Decree provides that holders of exploration permitsand/or exploitation concessions that are beneficiaries of the Promotion Regime shall be entitled to apply for a “Concession for UnconventionalHydrocarbons Exploitation.” Likewise, holders of a Concession for Unconventional Hydrocarbons Exploitation who are also holders of an adjacent and pre-existing concession may request the unification of both areas into a single unconventional exploitation concession, provided the geological continuity ofsuch areas is duly proven.As noted above, Law No. 27,007 provides for contributions by companies to the provinces where the projects take place, which amount to 2.5% of theinitial investment amount of the project, to be directed to “Corporate Social Responsibility” contributions. In addition, an amount to be determined by theCommission in light of the extent of the project, to finance infrastructure, have to be contributed by the Argentine federal government. Finally, LawNo. 27,007 establishes that capital goods and inputs that are essential to the execution of the investment plans of companies registered in the NationalRegistry of Hydrocarbon Investments shall pay import duties indicated in Decree 927/13 (reduced rates). This list may be extended to other strategicproducts.Production of crude oil and reservesExecutive Decree No. 2014/08 of November 25, 2008, created the “Petroleum Plus” program to encourage the production of crude oil and the increaseof reserves through new investments in exploration and development. The Argentine Secretariat of Energy, by Resolution S.E. No. 1312/08 of December 1,2008, approved the regulations of the program. The program entitled production companies which increased their production and reserves within the scopeof the program, and whose plans were approved by the Argentine Secretariat of Energy, to receive export duty credits to be applied to exports of productswithin the scope of Resolution No. 394/07 and Resolution No. 127/08 (Annex) issued by the Ministry of Economy. In February 2012, YPF was notified bythe Argentine Secretariat of Energy that the benefits granted under the “Petroleum Plus” program had been temporarily suspended. The effects of thesuspension extend to benefits accrued and not yet redeemed by YPF at the time of the issuance of the notice. The reasons alleged for such suspension werethat the “Petroleum Plus” program had been created in a context where domestic prices were lower than prevailing prices and that the objectives sought bythe program had already been achieved. On March 16, 2012, YPF challenged this temporary suspension. 105Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsRefined productsIn April 2002, the Argentine government and the main oil companies in Argentina, including us, reached an agreement on a subsidy provided by theArgentine government to public bus transportation companies. The Agreement on Stability of Supply of Diesel was approved by Executive DecreeNo. 652/02 and assured the transportation companies their necessary supply of diesel at a fixed price of Ps.0.75 per liter from April 22, 2002 to July 31, 2002.Additionally, it established that the oil companies are to be compensated for the difference between this fixed price and the market price through export dutycredits. Subsequent agreements entered into between the Argentine government and the main oil companies in Argentina extended the subsidy scheme untilDecember 2009, while the aforementioned fixed price was revised from time to time.In March 2009, Executive Decree No. 1390/09 empowered the Chief of Staff to sign annual agreements extending the diesel subsidy to transportationcompanies for the fiscal year 2009 and until the end of the public emergency declared by the Public Emergency Law and its amendments, and instructed suchofficial to incorporate the necessary modifications in order to extend the possibility to compensate with export duty credits on all hydrocarbon productscurrently exported, or with cash. As of the date of this annual report, execution of the annual agreements for the fiscal years 2010 and 2011 is pending.Nevertheless, the subsidy scheme has continued to be in place on the basis of the monthly communications issued by the Argentine Secretariat of Transportnotifying oil companies of the volumes to be delivered to each beneficiary of the scheme at the fixed price, and the Argentine government has continued tocompensate oil companies for deliveries of diesel made under the scheme.In addition, on January 11, 2012, the Argentine Secretary of Transport filed with the National Antitrust Commission (“CNDC”) a complaint againstfive oil companies (including YPF) for alleged abuse of a dominant position regarding bulk sales of diesel to public bus transportation companies. Thealleged conduct consists of selling bulk diesel to public bus transportation companies at prices higher than the retail price charged in service stations. OnJanuary 26, 2012, the Argentine Secretariat of Domestic Commerce issued Resolution No. 6/2012 whereby, effective from the date of the resolution, (i) eachof these five oil companies was ordered to sell diesel to public bus transportation companies at a price no higher than the retail price charged by its nearestservice station, while maintaining both historic volumes and delivery conditions; and (ii) created a price monitoring scheme for both the retail and the bulkmarkets to be implemented by the CNDC. YPF challenged Resolution No. 6/2012 and requested a preliminary injunction against its implementation. YPF’spreliminary injunction has been granted and the effects of Resolution No. 6/2012 have been temporarily suspended. On December 9, 2014, the Federal Civiland Commercial Appeals Court issued a ruling stating that the case had become moot and that there are no actual consequences for YPF arising from thechallenged Resolution, since prices of the diesel fuel to public bus transportation companies have suffered several variations since the date such Resolutionentered into effect. See “Item 8. Financial Information—Legal proceedings—Argentina—Non-accrued, possible contingencies—CNDC claims.”On March 13, 2012, YPF was notified of Resolution No. 17/2012, issued by the Argentine Secretariat of Domestic Commerce, pursuant to which YPF,Shell and Axion (previously Esso) were ordered to supply jet fuel for domestic and international air transport at a price, net of taxes, not to exceed by 2.7%the price, net of taxes, of medium octane gasoline (not premium) offered at its closest service station to the relevant airport, while maintaining its existingsupply logistics and its usual supply quantities. The resolution benefits companies that operate in the field of commercial passenger and/or cargo aviationwhich are registered under the Argentine National Aircraft Registry. According to a later clarification from the Argentine Secretariat of Domestic Commerce,the beneficiaries of the measure adopted by this resolution are the following companies: Aerolíneas Argentinas, S.A., Andes Líneas Aéreas S.A., Austral –Cielos del Sur, LAN Argentina, S.A. and Sol S.A. Líneas Aéreas. In addition, in said resolution, the Argentine Secretariat of Domestic Commerce suggestedthe implementation of a price surveillance system by the CNDC. YPF appealed Resolution No. 17/2012 and on May 15, 2012 it was notified that the FederalCivil and Commercial Court of Appeals accepted YPF’s presentation and suspended the effectiveness of Resolution No. 17/2012 until the final judgmentregarding its legality. On August 31, 2012, the Court of Appeals declared Resolution No. 17/2012 to be null, on the basis of lack of authority of theArgentine Secretariat of Domestic Commerce. This decision was appealed by the Secretariat and a final judgment is pending.The Argentine Secretariat of Energy has issued a series of resolutions in order to provide the market with information about liquid fuel prices andvolumes. For example, Resolution S.E. No. 1,102/04 created the Registry of Liquid Fuels Supply Points, Self-Consumption, Storage, Distributors and BulkSellers of Fuels and Hydrocarbons, and of Compressed Natural Gas; Resolution S.E. No. 1,104/04 created a bulk sales price information module as an integralpart of the federal fuel information system, as well as a mechanism for communication of volumes sold. Resolution S.E. No. 1,834/05 compels service stationsand/or supply point operators and/or self-consumption of liquid fuels and hydrocarbons who have requested supply, and have not been supplied, tocommunicate such situation to the Argentine Secretariat of Energy. Resolution S.E. No. 1,879/05 established that refining companies registered by theArgentine Secretariat of Energy, who are parties to contracts that create any degree of exclusivity between the refining company and the fuel seller, shallassure continuous, reliable, regular and non-discriminatory supply to its counterparties, giving the right to the seller to obtain the product from a differentsource, and thereupon, charging any applicable cost overruns to the refining company. 106Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDisposition S.S.C. No. 157/06 of the Undersecretariat of Fuels provides that fuel sellers who are parties to contracts that create any degree ofexclusivity between the refining company and the fuel seller, and which for any reason are seeking to terminate such contract, shall report the termination inadvance with the Undersecretariat of Fuels in order to inform the Argentine Secretariat of Domestic Commerce of the situation. In that case, the ArgentineSecretariat of Domestic Commerce is to: (i) issue a statement regarding the validity of the termination of the contract and (ii) use all necessary means to allowthe fuel seller terminating the contract to execute another agreement with a refining company and/or fuel broker in order to guarantee its fuel supply. TheDisposition has not been imposed by the authorities in cases involving YPF.Resolution S.E. No. 1679/04 reinstalled the registry of diesel and crude oil export transactions created by Executive Decree No. 645/02, and mandatedthat producers, sellers, refining companies and any other market agent that wishes to export diesel or crude oil to register such transaction and to demonstratethat domestic demand has been satisfied and that they have offered the product to be exported to the domestic market. In addition, Resolution S.E.No. 1338/06 added other petroleum products to the registration regime created by Executive Decree No. 645/02, including gasoline, fuel oil and itsderivatives, aviation fuel, coke coal, asphalts, certain petrochemicals and certain lubricants. Resolution No. 715/07 of the Argentine Secretariat of Energyempowered the National Refining and Marketing Direction to determine the amounts of diesel to be imported by each company, in specific periods of theyear, to compensate exports of products included under the regime of Resolution No. 1679/04; the fulfillment of this obligation to import diesel is necessaryto obtain authorization to export the products included under Decree No. 645/02 (crude, fuel oil, diesel, coke coal and gasoline, among others). In addition,Resolution No. 25/06 of the Argentine Secretariat of Domestic Commerce, issued within the framework of Law No. 20,680, imposes on each Argentinerefining company the obligation to supply all reasonable diesel demand, by supplying certain minimum volumes (established pursuant to the resolution) totheir usual customers, mainly service station operators and distributors. YPF has duly fulfilled its obligation under this Resolution and has not received anytype of sanction from the authorities in this regard.On August 17, 2010, the Argentine Secretariat of Domestic Commerce issued Resolution No. 295/10, imposing that the trade price of liquid fuelsshould be rolled back to those prices prevailing on July 31, 2010. This resolution has been successfully challenged by another company and a preliminaryinjunction was granted suspending the effectiveness of such Resolution. This Resolution was later on repealed by Resolution No. 543/10 of the ArgentineSecretariat of Domestic Commerce.On February 2, 2011, the Argentine Secretariat of Domestic Commerce issued Resolution No. 13/11 stating that the retail price of liquid fuels had to berolled back to those prices prevailing on January 28, 2011. This resolution also required refineries and oil companies to continue to supply amounts of fuel tothe domestic market consistent with amounts supplied the prior year, as adjusted for the positive correlation between the increase in the demand of fuel andgross domestic product. On March 29, 2011, however, the Argentine Secretariat of Domestic Commerce issued Resolution No. 46/11, which repealedResolution No. 13/11, alleging that market conditions had changed since its issuance.On April 10, 2013, Resolution 35/2013 of the Argentine Secretariat of Domestic Commerce, determined a price cap for fuel at all service stations forperiod of six months, which shall not exceed the highest outstanding price as of April 9, 2013 in each of the regions identified of the Annex of theResolution.The above resolutions affecting domestic prices expired on November 24, 2013 and are no longer in effect.In addition, in May 2012, the Expropriation Law was enacted by the Argentine Congress and became effective. See “—The Expropriation Law” and“—Decree No. 1277/2012.”On December 30, 2013, the Commission approved, through Resolution No. 99/2013, the general rules for the grant of quotes of liquid fuels volumesallowed to be imported by locally registered companies, including, among others, oil companies registered in the relevant registries of the Secretariat ofEnergy. These rules regulate the requirements, grant of volumes to be imported and other conditions to be complied with by the companies that wish toimport liquid fuels free of the tax on liquid fuels (imposed by Law No. 23,966) and the tax on diesel (imposed by Law No. 26,098), jointly with other fuels upto a maximum aggregate amount of 7 million cubic meters.Natural gasIn January 2004, Executive Decree No. 180/04 (i) created the Electronic Gas Market (“MEG”) for the trade of daily spot sales of gas and a secondarymarket of transportation and distribution services and (ii) established information obligations for buyers and 107Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentssellers of natural gas in relation to their respective commercial operations, required as a condition to be authorized to inject into and transport through thetransportation system any volume of natural gas (further regulated by Resolution No. 1,146/04 issued on November 9, 2004 and Resolution No. 882/05issued by the Argentine Secretariat of Energy). According to Executive Decree No. 180/04, all daily spot sales of natural gas must be traded within the MEG.In January 2004, Executive Decree No. 181/04 authorized the Argentine Secretariat of Energy to negotiate with natural gas producers a pricingmechanism for natural gas supplied to industries and electric generation companies. Domestic market prices at the retail market level were excluded fromthese negotiations.On June 14, 2007, Resolution No. 599/07 of the Argentine Secretariat of Energy approved a proposed agreement with natural gas producers regardingthe supply of natural gas to the domestic market during the period 2007 through 2011 (the “Agreement 2007-2011”). We executed the Agreement 2007-2011taking into account that producers that did not enter into the Agreement 2007-2011 would be required to satisfy domestic demand before those who enteredinto the agreement 2007-2011. Producers are authorized to withdraw from the agreement 2007-2011 and will be treated as any producer that has not enteredinto the Agreement 2007-2011. On January 5, 2012, the Official Gazette published Resolution S.E. No. 172, which temporarily extends the assignation rulesand other criteria established by Resolution No. 599/07 until new legislation is passed replacing such rules and criteria. On February 17, 2012, we filed amotion for reconsideration of Resolution S.E. No. 172 with the Argentine Secretariat of Energy.The purpose of the Agreement 2007-2011 was to guarantee the supply of the domestic market demand at the levels registered in 2006, plus the growthin demand by residential and small commercial customers (the “Agreed Demand Levels”). Producers that have entered into the Agreement 2007-2011 wouldcommit to supply a part of the Agreed Demand Levels according to certain shares determined for each producer based upon its share of production for the 36months prior to April 2004. For this period, our share of production was approximately 36.5%, or 36.8 mmcm/d (or 1,300 mmcf/d). The Agreement 2007-2011 also provides guidelines for the terms of supply agreements for each market segment, and certain pricing limitations for each market segment of theAgreed Demand Levels. In order to guarantee any domestic market demand of natural gas in excess of the Agreed Demand Levels, Resolution S.E. No. 599/07maintains the effectiveness of the resolutions that implemented the curtailment of natural gas export commitments and the re-routing of such natural gasvolumes to certain sectors of the domestic market. See “—Natural gas export administration and domestic supply priorities.” Resolution S.E. No. 599/07 alsostates that the Agreement 2007-2011 does not prevent the possible suspension or termination of export permits.We were compelled to execute the Agreement 2007-2011, among other reasons, in order to mitigate our potential damages. Producers failing to signthe Agreement 2007-2011 could be penalized and subject to other unfavorable measures by regulatory authorities. However, we expressly stated that theexecution of the Agreement 2007-2011 did not entail any recognition by us of the validity of the terms and conditions of the various resolutions of theArgentine Secretariat of Energy establishing programs for the curtailment or re-routing of exports to satisfy domestic demand. We challenged ResolutionNo. 599/07 and stated that we signed the Agreement 2007-2011 taking into account the potential consequences of not doing so.The Argentine Secretariat of Energy created, by its Resolution No. 24/08 issued on March 13, 2008, a program named “Gas Plus” to encourage naturalgas production resulting from discoveries, new fields and tight gas, among other factors. The natural gas produced under the Gas Plus program is not subjectto the Agreement 2007-2011 and the price conditions established under such Agreement.The Argentine Secretariat of Energy, through Resolution No. 1031/08 issued on September 12, 2008, modified Resolution No. 24/08, establishing thespecific conditions petitioners must meet in order to qualify for the Gas Plus program. Certain of such conditions were modified by Resolution No. 695/09 ofthe Argentine Secretariat of Energy, which demands compliance with commitments already assumed.The Argentine Secretariat of Energy, through Resolution No. 1070/08 issued on October 1, 2008, ratified the complementary agreement entered intobetween Argentine natural gas producers and the Argentine Secretariat of Energy on September 19, 2008 (the “Complementary Agreement”), which(i) modified gas prices at the wellhead and segmented the residential sector in terms of natural gas demand, and (ii) established the requirement that naturalgas producers contribute to the fiduciary fund created by Law No. 26,020. The Complementary Agreement also contains certain requirements concerning theprovision of LPG to the domestic market. See “—Liquefied petroleum gas.” Through Resolution No. 1417/08, the Secretariat of Energy determined the basinprices for the residential segment applicable to the producers that signed the Complementary Agreement. On January 13, 2010, the natural gas producerssigned an addendum to the Complementary Agreement which extended the commitment to contribute to the fiduciary funds created by Law No. 26,020 untilDecember 31, 2010. On January 25, 2011, the natural gas producers signed a second addendum to the Complementary Agreement which extended suchcommitment until December 31, 2011. 108Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn March 19, 2012, the Official Gazette published Resolution SE No. 55/2012 of the Secretariat of Energy, which extended the ComplementaryAgreement for 2012 and established the following with respect to non-signing parties: (i) the natural gas price increase established by the ComplementaryAgreement will not be applicable to natural gas injected into the gas system by non-signing parties; (ii) natural gas injected by non-signing parties will beconsumed first in the order of priority by residential users, which has the lowest tariffs; and (iii) non-signing parties must fulfill all of the commitmentsundertaken by natural gas producers under the Agreement 2007-2011, which was extended by Resolution S.E. No. 172. On March 23, 2012, Resolution S.E.No. 55/2012 was supplemented by Resolution ENARGAS No. 2087/2012, which sets forth, among others, the procedure that distribution companies shouldfollow to secure amounts to be deposited with the fiduciary fund created by Law No. 26,020. Additionally, according to this resolution, producers whichhave not signed the 2012 extension of the Complementary Agreement are not allowed to charge the well-head price increases for gas set forth in ResolutionsS.E. No. 1070/2008 and 1417/2008 to consumers directly supplied by distribution companies. Thus, such non-signing producers have to invoice the lowerprices which were in effect prior to the adoption of these resolutions for the gas supplied to the distribution companies.Thereafter, on April 19, 2012, December 18, 2012 and, December 19, 2013, YPF signed the 2012, 2013 and 2014 extensions of the ComplementaryAgreement, respectively.Executive Decree No. 2067/08 of December 3, 2008, created a fiduciary fund to finance natural gas imports destined for injection into the nationalpipeline system, when required to satisfy the internal demand. The fiduciary fund is funded through the following mechanisms: (i) various tariff chargeswhich are paid by users of regular transport and distribution services, gas consumers that receive gas directly from producers and companies that processnatural gas; (ii) special credit programs that may be arranged with domestic or international organizations; and (iii) specific contributions assessed by theArgentine Secretariat of Energy on participants in the natural gas industry. This decree has been subject to different judicial claims and judges throughout thecountry have issued precautionary measures suspending its effects. On November 8, 2009, ENARGAS published Resolution No. 1982/11, which supplementsDecree No. 2067/08. This Resolution adjusts the tariff charges established by Executive Decree No. 2067/08 to be paid by users in the residential segmentand gas processing and electric power companies, among others, starting December 1, 2011. On November 24, 2011, ENARGAS issued ResolutionNo. 1991/11, which extends the type of users that will be required to pay tariff charges. YPF has challenged these Resolutions. On April 13, 2012, aprecautionary measure was granted regarding the processing plant El Porton, suspending the effects of these Resolutions with respect to such plant.On November 5, 2012 the Official Gazette published Law No. 26,784 which approves the National Administration Budget for 2013. Article 54 of theLaw established that the tariff charges and the fiduciary fund established by Executive Decree No. 2067/08 and all its supplementary acts shall be ruled byLaw No. 26,095.On July 17, 2009, the Ministry of Federal Planning and certain natural gas producers (including YPF) signed an agreement which sets forth: (i) naturalgas prices at the wellhead for the electric power generators segment from July to December 2009, and (ii) amounts to be received by natural gas producers forvolumes sold to the residential segment from August 2009 onwards. These amounts are adjusted on a monthly basis so that they represent 50% of the amountcollected by the fiduciary fund to finance natural gas imports.On October 4, 2010, the Official Gazette published ENARGAS Resolution No. 1410/10, which set forth new rules for natural gas dispatch applicable toall participants in the gas industry and imposing the following new and more severe priority demand gas restrictions on producers: • Distributors remain able to solicit all the gas necessary to cover the priority demand despite such gas volumes’ exceeding those that theArgentine Secretariat of Energy would have allocated by virtue of the Agreement 2007-2011 ratified by the Resolution No. 599/07. See “—Exploration and Production Overview—Delivery commitments.” • Producers are obligated to confirm all the natural gas requested by distributors in respect of the priority demand. The producers’ portion of suchvolumes follows the allocation criterion established by the Resolution No. 599/07. We cannot predict the amount of the estimated domesticdemand that a producer may be required to satisfy regardless of whether such producer signed the Agreement 2007-2011. • Once the priority demand has been satisfied, the remaining demands are fulfilled with exports last in order of priority. • In the event a producer is unable to meet the requested demand, transporters are responsible for redirecting gas until a distributor’s gas demand ismet. The gas deficiency is either (i) deducted from the producer suffering the deficiency if it is able to meet the demands of its other clients in thesame basin or (ii) recuperated from the remainder of the gas producers in the event the deficient producer is not able to serve any of its clients inthe same basin. 109Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAs a result, this regime imposes a jointly liable supply obligation on all producers in the event any producer experiences a gas supply deficiency. Wehave challenged the validity of the aforementioned regulation.On December 17, 2010 certain natural gas producers (including YPF) signed an agreement which set forth the percentage of regasified LNG assigned toeach natural gas producer for 2011. Amounts produced under this agreement were counted towards such producers’ commitments to supply natural gas todistributors under Resolution No. 599/07. As of the date of this annual report, similar agreements have not been entered into for years subsequent to 2011.On August 27, 2012 the Official Gazette published Resolution SE No. 1445/2012 of the Secretariat of Energy, according to considerations set byDecree No. 1,277/2012, which modified gas prices at the wellhead for compressed natural gas (CNG) which represents an increase of approximately 369% ofthe prices realized by the Company for such segment product.On December 2012, YPF and other gas producing companies of Argentina agreed with the Commission to establish an incentive scheme for theadditional injection (all gas injected by the companies above certain threshold) of natural gas. On February 14, 2013 Resolution 1/2013 of the Commissionwas published in the Official Gazette. This Resolution formally creates the “Natural Gas Additional Injection Stimulus Program.” Under this regulation, gasproducing companies are invited to file with the Commission before June 30th, 2013 projects to increase natural gas injection, in order to receive acompensation up to U.S.$7.50 per mmBtu for all additional natural gas injected. These projects shall comply with minimum requirements established inResolution 1/2013, and will be subject to consideration approval by the Commission, including a maximum term of five years, renewable at the request ofthe beneficiary, upon decision of the Commission. If the beneficiary company in a given month does not reach the committed production increase it willhave to make up for such volumes not produced. In addition, the Commission may withdraw a previously approved proposal to increase the total injection ofnatural gas if some of the following events occur: (i) any omission, inaccuracy or distortion of information provided by a company participating in a projector during its execution; (ii) breach of the obligations set forth in Decree No. 1,277/2012 and its regulations or supplementary acts; (iii) breach by a companyof its obligations under the program after notice of not less than 15 business days; (iv) if the import price is equal to or lower than the price of the additionalnatural gas injected for at least 180 days or (v) if the value of a company’s supply contracts or invoices used in the monthly calculation corresponding toeach month covered by the program had weighted average price decreases or unjustified amounts. On May 23, 2013, the Commission approved the projectsubmitted by YPF. A similar program was created under Resolution 60/2013 of the Hydrocarbon Commission, as regulated by Resolution 83/2013 of theHydrocarbon Commission, as amended, for gas producers that failed to file their natural gas additional injection program filings before the expiration dateestablished by Resolution 1/2013 of the Hydrocarbon Commission. The compensation to be received under this new program varies from U.S.$4 per mmBtuto U.S.$7.50 per mmBtu, depending on the production curve reached by the applicable company.On April 4, 2014, Resolution SE No. 226/2014 of the Argentine Secretariat of Energy was published in the Official Gazette. Under this resolution theSecretariat set new prices for residential, commercial consumers and compressed natural gas consumers. Residential and commercial consumers that achievecertain consumption savings compared to prior years will be: (i) excluded from the price increase or (ii) subject to a lower price increase. Industrial users andpower generation plants are excluded from the price increase. Consumers served by distributor Camuzzi Gas del Sur S.A., which is not an affiliate of YPF, orits sub-distributors are excluded.On November 17, 2014, Resolution No. 231/2014 of the Commission was published in the Official Gazette. Under this Resolution, the price ofcompressed natural gas in service stations will be raised by the same percentage as the weighted average price within Argentina, excluding taxes, of “super”quality gasoline over 93 octane or of any product that replaces it in the future as provided for under the resolution.Natural gas export administration and domestic supply prioritiesIn March 2004, the Argentine Secretariat of Energy issued Resolution S.E. No. 265/04 adopting measures intended to ensure the adequate supply ofnatural gas to the domestic market and regulate its consequences on electricity wholesale prices. Among the measures adopted were: • the suspension of all exports of surplus natural gas; • the suspension of automatic approvals of requests to export natural gas; • the suspension of all applications for new authorizations to export natural gas, filed or to be filed before the Argentine Secretariat of Energy; and • the authorization to the Undersecretariat of Fuels to create a rationalization plan of gas exports and transportation capacity. 110Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn March 2004, the Undersecretariat of Fuels, pursuant to the authority given to it under Resolution S.E. No. 265/04, issued Regulation S.S.C.No. 27/04 establishing a rationalization plan of gas exports and transportation capacity. Among other things, Regulation S.S.C. No. 27/04 established a limiton natural gas export authorizations, which, absent an express authorization by the Undersecretariat of Fuels, may not be executed for volumes exceedingexports registered during 2003.In June 2004, the Argentine Secretariat of Energy issued Resolution S.E. No. 659/04, which established a new program to assure natural gas supply tothe domestic market (which substitutes for the program created by Regulation No. S.S.C. 27/04). Under Resolution S.E. No. 659/04 (amended by ResolutionS.E. No. 1,681/04), natural gas exports may be restricted due to shortages of natural gas in the domestic market, because exporting producers may be requiredto supply additional volumes of natural gas to the domestic market beyond those that they are contractually committed to supply. The export of natural gasunder current export permits is conditioned on the fulfillment of additional supply requirements imposed on exporting producers by governmentalauthorities.This program was further amended and supplemented by Resolution S.E. No. 752/05 issued by the Argentine Secretariat of Energy in May 2005, whichfurther reduced the ability of producers to export natural gas, and created a mechanism under which the Argentine Secretariat of Energy may requireexporting producers to supply additional volumes to domestic consumers during a seasonal period (Permanent Additional Supply), which volumes of naturalgas are also not committed by the exporting producers. Based on the provisions of Rule No. 27/04, Resolution S.E. No. 659/04 and Resolution S.E.No. 752/05, the Argentine Secretariat of Energy and/or the Undersecretariat of Fuels have instructed us to re direct natural gas export volumes to the internalmarket, thereby affecting natural gas export commitments. We have challenged the validity of the aforementioned regulations and resolutions, and haveinvoked the occurrence of a force majeure event under the corresponding natural gas export purchase and sale agreements. The counterparties to suchagreements have rejected our position. See “Item 8. Financial Information—Legal Proceedings.”Resolution S.E. No. 752/05 also establishes (i) a special market, open and anonymous, for compressed natural gas stations to purchase natural gasunder regulated commercial conditions, with the demand being ensured by the Argentine Secretariat of Energy through Permanent Additional Supplyrequired of exporting producers, and (ii) a mechanism of standardized irrevocable offers for electric power generators and industrial and commercialconsumers to obtain supply of natural gas, with the demand being ensured by the Argentine Secretariat of Energy through the issuance of the PermanentAdditional Supply mentioned above.Pursuant to the standardized irrevocable offers procedure mentioned above, which operates at the MEG, any direct consumer may bid for a term gaspurchase at the export average gas price net of withholdings by basin. The volume necessary to satisfy the standardized irrevocable offers which have notbeen satisfied will be required as a Permanent Additional Supply only until the end of the seasonal period during which the unsatisfied requests should bemade (October–April or May–September). Such Permanent Additional Supply will be requested from the producers that export gas and that inject the naturalgas from the basins that are able to supply those unsatisfied irrevocable offers. Resolution of the Argentine Secretariat of Energy S.E. No. 1886/06, publishedon January 4, 2007, extended the term of effectiveness of this mechanism of standardized irrevocable offers until 2016, and empowered the Undersecretariatof Fuels to suspend its effectiveness subject to the satisfaction of internal demand of natural gas achieved by means of regulations, agreements or due to thediscovery of reserves.By means of Resolution S.E. No. 1329/06, later supplemented by Note SSC No. 1011/07, the Argentine Secretariat of Energy forced producers to givefirst priority in their injections of natural gas into the gas pipelines to certain preferential consumers and obligated transportation companies to guaranteethese priorities through the allocation of transportation capacity. In general, these regulations subordinate all exports of natural gas to the prior delivery ofnatural gas volumes that are sufficient to satisfy domestic market demand.Also, beginning during the severe Argentine winter in 2007 and continuing thereafter, we and most gas producers, as well as the transportationcompanies in Argentina, received instructions from the government to decrease exports, except for certain volumes addressed to satisfy Chilean residentialconsumptions and other specific consumptions.Liquefied petroleum gasLaw No. 26,020 enacted on March 9, 2005 sets forth the regulatory framework for the industry and commercialization of LPG. This law regulates theactivities of production, bottling, transportation, storage, distribution, and commercialization of LPG in Argentina and declares such activities to be of publicinterest. Among other things, the law: • creates the registry of LPG bottlers, obliging LPG bottlers to register the bottles of their property; • protects the trademarks of LPG bottlers; 111Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • creates a reference price system, pursuant to which, the Argentine Secretariat of Energy shall periodically publish reference prices for LPG sold inbottles of 45 kilograms or less; • required the Argentine Secretariat of Energy to comply with the following tasks: (i) create LPG transfer mechanisms, in order to guarantee accessto the product to all the agents of the supply chain; (ii) establish mechanisms for the stabilization of LPG prices charged to local LPG bottlers;and (iii) together with the CNDC, analyze the composition of the LPG market and its behavior, in order to establish limitations on marketconcentration in each phase, or limitations to the vertical integration throughout the chain of the LPG industry (such limitations apply toaffiliates, subsidiaries and controlled companies); • grants open access to LPG storage facilities; and • creates a fiduciary fund to finance bottled LPG consumption for low-income communities in Argentina and the extension of the natural gasdistribution network to new areas, where technically possible and economically feasible. The fiduciary fund is funded through the followingmechanisms: (i) penalties established by Law No. 26,020, (ii) assignments from the General State Budget, (iii) funds from special credit programsthat may be arranged with national or international institutions, and (iv) funds that may be assessed by the Argentine Secretariat of Energy onparticipants in the LPG industry.The Argentine Secretariat of Energy established, through several subsequent resolutions, reference prices applicable to sales of LPG bottles of less than45 kilograms, and to sales of bulk LPG exclusively to LPG bottlers. Also, the Argentine Secretariat of Energy approved the method for calculating the LPGexport parity to be updated monthly by the Undersecretariat of Fuels. In 2007, the Argentine Secretariat of Energy increased the LPG volumes to be sold tobottlers at the reference prices set forth in the unconventional-mentioned resolutions.Disposition 168/05 of the Undersecretariat of Fuels requires companies intending to export LPG to first obtain an authorization from the ArgentineSecretariat of Energy. Companies seeking to export LPG must first demonstrate that the local demand is satisfied or that an offer to sell LPG to local demandhas been made and rejected.On September 19, 2008, the Secretariat of Energy and Argentine LPG producers entered into the Complementary Agreement which, among otherobjectives, seeks to stabilize the price of LPG in the domestic market. The Complementary Agreement applies only to LPG sold to bottlers that declare theirintention to bottle such LPG in LPG bottles of 10, 12 or 15 kilograms. The Complementary Agreement requires LPG producers to supply LPG bottlers withthe same volume of LPG supplied the prior year and to accept the price per ton set forth in the Complementary Agreement. The Complementary Agreementwas extended until December 31, 2010, pursuant to an addendum entered into on October 23, 2009 by YPF and Repsol YPF Gas S.A., which required LPGproducers to supply LPG bottlers in 2010 with the same volume provided during 2009 plus an additional 5%.On December 29, 2010, LPG producers signed a second addendum to the Complementary Agreement which extended the Complementary Agreementuntil December 31, 2011 and required LPG producers to supply LPG bottlers in 2011 with the same volume provided during 2010.On March 16, 2012, the Official Gazette published Resolution No. 77 of the Argentine Secretariat of Energy, which ratified the execution of theextension of the Complementary Agreement for 2012 regarding the provision and price stability of LPG bottles of 10, 12 and 15 kilograms for residentialusers. This Resolution also provides that all LPG producers, whether they are parties or not to the Complementary Agreement, must provide the volumes ofLPG to be determined by the Argentine Secretariat of Energy at the reference prices established in the Complementary Agreement. The failure to comply withsuch obligations may result in the application of the penalties established in the Resolution, including the prohibition to export LPG and the limitation ofLPG sales in the domestic market. On April 19, 2012, YPF signed the 2012 extension of the Complementary Agreement. On December 21, 2012 YPF signedthe 2013 extension of the Complementary Agreement. On July 5, 2013, Resolution No. 429 of the Argentine Secretariat of Energy was published in theOfficial Gazette, approving the extension of the Complementary Agreement for the provision of LPG bottles of 10, 12 and 15 kilograms for residential usersfor year. Similar terms to those of the 2012 extension (Resolution No. 77 dated March 16, 2012) were included in the 2013 extension.Pursuant to Resolutions No. 37 and 532 of the Argentine Secretariat of Energy, published on February 21 and May 18, 2014, respectively, the terms ofthe Complementary Agreement for the provision of LPG bottles of 10, 12 and 15 kilograms were extended for 2014. Among other provisions, ResolutionNo. 532/2014 established that LPG producers must offer the volume sold for bottling companies during 2013, plus 25,000 tons in 2014. ResolutionNo. 380/2014 dated December 29, 2014 and published on January 8, 2015, raised the value of the compensations to be paid to LPG producers under theComplementary Agreement. On January 28, 2015 the sixth amendment to the agreement was signed by YPF. 112Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsArgentine Environmental RegulationsThe enactment of Articles 41 and 43 in the National Constitution, as amended in 1994, as well as new federal, provincial and municipal legislation, hasstrengthened the legal framework dealing with damage to the environment. Legislative and government agencies have become more vigilant in enforcing thelaws and regulations regarding the environment, increasing sanctions for environmental violations.Under the amended Articles 41 and 43 of the National Constitution, all Argentine inhabitants have both the right to an undamaged environment and aduty to protect it. The primary obligation of any person held liable for environmental damage is to rectify such damage according to and within the scope ofapplicable law. The federal government sets forth the minimum standards for the protection of the environment and the provinces and municipalitiesestablish specific standards and implementing regulations.Federal, provincial and municipal laws and regulations relating to environmental quality in Argentina affect our operations. These laws andregulations set standards for certain aspects of environmental quality, provide for penalties and other liabilities for the violation of such standards, andestablish remedial obligations in certain circumstances.In general, we are subject to the requirements of the following federal environmental regulations (including the regulations issued thereunder): • National Constitution (Articles 41 and 43); • Law No. 25,675 on National Environmental Policy; • Law No. 25,612 on Integrated Management of Industrial and Service Industry Waste; • Law No. 24,051 on Hazardous Waste; • Law No. 20,284 on Clean Air; • Law No. 25,688 on Environmental Management of Waters; • Law No. 25,670 on the Management and Elimination of Polychlorinated Biphenyls; • Criminal Code; and • Civil Code, which sets forth the general rules of tort law.These laws address environmental issues, including limits on the discharge of waste associated with oil and gas operations, investigation and cleanupof hazardous substances, workplace safety and health, natural resource damages claims and toxic tort liabilities. Furthermore, these laws typically requirecompliance with associated regulations and permits and provide for the imposition of penalties in case of non-compliance.In addition, we are subject to various other provincial and municipal regulations, including those relating to gas venting, oil spills and wellabandonment, among other matters.By Resolution No. 404/94, the Argentine Secretariat of Energy amended Resolution No. 419/93, and created the Registry of Independent Professionalsand Safety Auditing Companies (Registro de Profesionales Independientes y Empresas Auditoras de Seguridad), which may act with respect to areas ofhydrocarbons storage, oil refineries, gas stations, fuel commercialization plants and plants for fractionation of LPG in containers or cylinders. The Resolutionprovides that external audits of oil refineries, gas stations and all fuel storage plants must be carried out by professionals registered in the Registry. Domesticfuel manufacturing companies and companies that sell fuels are prohibited from supplying these products to any station failing to comply with itsobligations. Penalties for failure to perform the audits and remedial or safety tasks include the disqualification of plants or gas stations. In addition, a set ofobligations is established in relation to underground fuel storage systems, including a mechanism for instant notification in cases of loss or suspicion of lossfrom the storage facilities.On July 19, 2001, the Secretariat of Environmental Policy of the province of Buenos Aires issued Resolution No. 1037/01 ordering us to clean upcertain areas adjacent to the La Plata refinery. The Resolution was appealed through an administrative 113Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsprocedure which has not yet been resolved. Nevertheless, we have commenced certain actions in order to identify potential technical solutions for thetreatment of the historical contamination, while reserving that the remediation must be made by the parties responsible for the environmental damage. Undercurrent law, the Argentine government has the obligation to indemnify us against any liability and hold us harmless for events and claims arising prior toJanuary 1, 1991, according to the Privatization Law.During 2005, the Argentine Secretariat of Energy, by means of Resolution No. 785/05, created the National Program of Hydrocarbons WarehousingAerial Tank Loss Control, a measure aimed at reducing and correcting environmental pollution caused by hydrocarbons warehousing-aerial tanks. We havecommenced the development and implementation of a technical and environmental audit plan as required by this Resolution.The description of the material Argentine environmental regulations is only a summary and does not purport to be a comprehensive description of theArgentine environmental regulatory framework. The summary is based upon Argentine regulations related to environmental issues as in effect on the date ofthis annual report, and such regulations are subject to change.U.S. Environmental RegulationsFederal, state and local laws and regulations relating to health, safety and environmental quality in the United States, where YPF Holdings operates,affect the operations of this subsidiary. YPF Holdings’ U.S. operations, conducted primarily through Maxus Energy Corporation are subject to therequirements of the following U.S. environmental laws: • Safe Drinking Water Act; • Clean Water Act; • Oil Pollution Act; • Clean Air Act; • Resource Conservation and Recovery Act; • National Environmental Policy Act; • Occupational Safety and Health Act; • Comprehensive Environmental Response, Compensation and Liability Act; and • various other federal, state and local laws.These laws and regulations set various standards for many aspects of health, safety and environmental quality (including limits on dischargesassociated with oil and gas operations), provide for fines and criminal penalties and other consequences (including limits on operations and loss ofapplicable permits) for the violation of such standards, establish procedures affecting location of facilities and other operations, and in certain circumstancesimpose obligations concerning reporting, investigation and remediation, as well as liability for natural resource damages and toxic tort claims.TaxationHolders of exploration permits and production concessions are subject to federal, provincial and municipal taxes and regular customs duties onimports. The Hydrocarbons Law grants such holders a legal guarantee against new taxes and certain tax increases at the provincial and municipal levels,except in the case of a general increase in taxes.Pursuant to Sections 57 and 58 of the Hydrocarbons Law, holders of exploration permits and production concessions must pay an annual surface feethat is based on acreage of each block and which varies depending on the phase of the operation, i.e., exploration or production, and in the case of the former,depending on the relevant period of the exploration permit. On October 17, 2007, the Official Gazette published Executive Decree No. 1,454/07, whichsignificantly increased the amount of exploration and production surface fees expressed in Argentine pesos that are payable to the different jurisdictionswhere the hydrocarbon fields are located. Law No. 27,007 published in the Official Gazette on October 31, 2014 updated amounts that must be paid pursuantto Sections 57 and 58 of the Hydrocarbons Law. See “—Exploration and Production.” 114Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, “net profit” (as defined in the Hydrocarbons Law) of holders of permits or concessions accruing from activity as such holders might besubject to the application of a special 55% income tax. This tax has never been applied. Each permit or concession granted to an entity other than us hasprovided that the holder thereof is subject instead to the general Argentine tax regime, and a decree of the National Executive Office provides that we are alsosubject to the general Argentine tax regime.Following the introduction of market prices for downstream petroleum products in connection with the deregulation of the petroleum industry, LawNo. 23,966 established a volume-based tax on transfers of certain types of fuel, replacing the prior regime, which was based on the regulated price. LawNo. 25,745, modified, effective as of August 2003, the mechanism for calculating the tax, replacing the old fixed value per liter according to the type of fuelfor a percentage to apply to the sales price, maintaining the old fixed value as the minimum tax.Reduction in tax rates for fuelsOn December 30, 2014, Decree No. 2579/2014 set forth a reduction in fuel transport taxes per Law No. 23,966 with respect to diesel and unleadedgasoline products higher than 92 octane. The decree also set forth a reduction in the water infrastructure fund taxes created by Law No. 26,181, which appliesto the transfer of unleaded gasoline over 92 octane. The reductions took effect on January 1, 2015.Export taxesIn 2002, the Argentine government began to implement customs duties on the export of hydrocarbons. Export tax rates were increased on crude oil to20%, on butane, methane and LPG to 20% and gasoline and diesel oil to 5%. In May 2004, Resolution No. 337/04 of the Ministry of Economy increasedexport duties on crude oil to 25%. These export tax rates were increased again in 2004, when the Ministry of Economy issued Resolution No. 532/04,establishing a progressive scheme of export duties for crude oil, with rates ranging from 25% to 45%, depending on the quotation of the WTI reference priceat the time of the exportation. In addition, in May 2004, pursuant to Resolution No. 645/04 of the Ministry of Economy, an export duty on natural gas andNGLs was established at a rate of 20%. The export duty on natural gas was increased again in July 2006, when the Ministry of Economy increased the rate to45% and instructed the Customs General Administration to apply the price fixed by the Framework Agreement between Argentina and Bolivia as the baseprice to which to apply the new tax rate, irrespective of the actual sales price. In addition, on October 10, 2006, the Ministry of Economy imposed prevalentexport duties on exports from the Tierra del Fuego province, which were previously exempted from taxes. Moreover, in May 2007 the Ministry of Economyincreased to 25% the export duty on butane, propane and LPG.Resolution No. 394/07 of the Ministry of Economy, effective as of November 16, 2007, increased export duties on Argentine oil exports (as defined bythe regulator) on crude oil and other crude derivatives products. The new regime provides that when the WTI international price exceeds the reference price,which was fixed at U.S.$60.9/barrel, the producer should be allowed to collect at U.S.$42/barrel, with the remainder being withheld by the Argentinegovernment as an export tax. If the WTI international price is under the reference price but over U.S.$45/barrel, a 45% withholding rate would apply. If suchprice was under U.S.$45/barrel, the applicable export tax was to be determined by the Argentine government within a term of 90 business days. ByResolution No. 1/2013 of the Ministry of Economy and Public Finances, Resolution No. 394/07 was amended, increasing cutoff values from 42 U.S.$/barrelto U.S.$70/barrel, and reference price from U.S.$60.9 to U.S.$80 for crude oil. This means that when the international price of crude oil is over U.S.$80/barrel,the local producer shall be allowed to collect at U.S.$70/barrel, with the remainder being withheld by the Argentine government.However, on December 31, 2014 Resolution 1077/2014 was published in the Official Gazette and repealed Resolution 394/07, as amended, settingforth a new withholding program based on the international price of crude oil (the “International Price”). The International Price is calculated based on theBrent value for the applicable month less U.S.$8 per barrel. The new program establishes a 1% general nominal withholding applicable to all productscovered by the resolution, including crude oil, diesel, gasoline and lubricants as well as other petroleum products, to the extent that the International Price isbelow U.S.$71 per barrel. The resolution further provides an increasing variable withholding rate on crude oil exports to the extent the International Priceexceeds U.S.$71 per barrel. As a result, the maximum price a producer may charge is approximately U.S.$70 per barrel exported, depending on the quality ofcrude sold. The resolution also sets forth increasing withholding rates for exports of diesel, gasoline, lubricants and other petroleum derivatives when theInternational Price exceeds U.S.$71 per barrel at rates that allow the producer to receive a portion of the price increase.Resolution No. 127/08 of the Ministry of Economy increased export duties applicable to natural gas exports from 45% to 100%, mandating avaluation basis for the calculation of the duty as the highest price established in any contract of any Argentine importer for the import of gas (abandoning thepreviously applicable reference price set by the Framework Agreement between Argentina and 115Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsBolivia mentioned above). Resolution No. 127/08 provides with respect to LPG products (including butane, propane and blends thereof) that if theinternational price of the relevant LPG product, as notified daily by the Argentine Secretariat of Energy, is under the reference price established for suchproduct in the Resolution (U.S.$338/cm for propane, U.S.$393/cm for butane and U.S.$363/cm for blends of the two), the applicable export duty for suchproduct will be 45%. If the international price exceeds the reference price, the producer shall be allowed to collect the maximum amount established by theResolution for the relevant product (U.S.$233/cm for propane, U.S.$ 271/cm for butane and U.S.$250/cm for blends of the two), with the remainder beingwithheld by the Argentine government as an export tax.We cannot give any assurances as to future levels of export taxes.Repatriation of Foreign CurrencyExecutive Decree No. 1,589/89, relating to the deregulation of the upstream oil industry, allowed us and other companies engaged in oil and gasproduction activities in Argentina to freely sell and dispose of the hydrocarbons we produce. Additionally, under Decree No. 1,589/89, we and other oilproducers were entitled to keep outside of Argentina up to 70% of foreign currency proceeds we received from crude oil and gas export sales, but wererequired to repatriate the remaining 30% through the exchange markets of Argentina.Decree No. 1722/2011 of October 26, 2011 requires all oil and gas companies (including YPF), among other entities, to repatriate 100% of their foreigncurrency export receivables. ITEM 4A.Unresolved Staff Comments.YPF does not have any unresolved Staff comments. ITEM 5.Operating and Financial Review and ProspectsThe following discussion should be read in conjunction with our Audited Consolidated Financial Statements included in this annual report.OverviewWe are Argentina’s leading energy company, operating a fully integrated oil and gas chain with leading market positions across the domestic upstreamand downstream segments. Our upstream operations consist of the exploration, development and production of crude oil, natural gas and liquefied petroleumgas. Our downstream operations include the refining, marketing, transportation and distribution of oil and a wide range of petroleum products, petroleumderivatives, petrochemicals, LPG and bio-fuels. Additionally, we are active in the gas separation and natural gas distribution sectors both directly andthrough our investments in several affiliated companies. In 2014, we had consolidated revenues of Ps. 141,942 million and consolidated net income of Ps.8,849 million.Presentation of Financial InformationOur Audited Consolidated Financial Statements are prepared in accordance with IFRS as issued by the IASB. Our Audited Consolidated FinancialStatements are fully compliant with IFRS.We fully consolidate the results of subsidiaries in which we have a sufficient number of voting shares to control corporate decisions. Interest in jointoperations and other agreements which give the Company a percentage contractually established over the rights of the assets and obligations that emergefrom the contract (“joint operations”), have been consolidated line by line on the basis of the mentioned participation over the assets, liabilities, income andexpenses related to each contract.On March 20, 2009, the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) approved Technical Resolution No. 26 onthe “Adoption of the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB).” Such resolution wasapproved by the CNV through General Resolution No. 562/09 on December 29, 2009 (modified by General Resolution No. 576/10 on July 1, 2010), withrespect to certain publicly-traded entities subject to Law No. 17,811. Compliance with such rules was mandatory for YPF for the fiscal year which begun onJanuary 1, 2012, with transition date of January 1, 2011. 116Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe financial data contained in this annual report as of December 31, 2014, 2013 and 2012 and for the years then ended has been derived from ourAudited Consolidated Financial Statements included in this annual report.Finally, certain oil and gas disclosures are included in Note 15 to the Audited Consolidated Financial Statements included in this annual report underthe heading “Supplemental information on oil and gas producing activities (unaudited).”Segment ReportingWe report our business into the following segments: (i) exploration and production, which includes exploration and production activities, natural gasand crude oil purchases, sales of natural gas, and to a lesser extent crude oil, to third parties and intersegment sales of crude oil, natural gas and its byproducts(“Exploration and Production”); (ii) the refining, transport, purchase of crude oil and natural gas to third parties and intersegment sales, and marketing ofcrude oil, natural gas, refined products, petrochemicals, electric power generation and natural gas distribution (“Downstream”). Other activities not fallinginto the previously described categories are reported under a separate segment (“Corporate and Other”), principally including corporate administration costsand assets, environmental matters related to YPF Holdings and construction activities. See Note 3 to our Audited Consolidated Financial Statements and“Item 4. Information on the Company—Business Organization.”Sales between business segments are made at internal transfer prices established by us, which generally seek to approximate market prices.Summarized Statement of Comprehensive Income For the Year Ended December 31, 2014 2013 2012 (in millions of pesos) Revenues 141,942 90,113 67,174 Cost of sales (104,492) (68,094) (50,267) Gross profit 37,450 22,019 16,907 Administrative expenses (4,530) (2,686) (2,232) Selling expenses (10,114) (7,571) (5,662) Exploration expenses (2,034) (829) (582) Other income (expense), net (1,030) 227 (528) Operating income 19,742 11,160 7,903 Income on investments in companies 558 353 114 Financial income (expense) net 1,772 2,835 548 Net income before income tax 22,072 14,348 8,565 Income tax (7,323) (2,844) (2,720) Deferred tax (5,900) (6,425) (1,943) Net income 8,849 5,079 3,902 Total other comprehensive income 16,276 12,031 4,241 Total comprehensive income 25,125 17,110 8,143 Factors Affecting Our Operations • Our operations are affected by a number of factors, including: • the volume of crude oil, oil byproducts and natural gas we produce and sell; • regulation on domestic pricing; 117Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • export administration by the Argentine government and domestic supply requirements; • international prices of crude oil and oil products; • our capital expenditures and financing availability for the Company; • cost increases; • domestic market demand for hydrocarbon products; • operational risks, labor strikes and other forms of public protest in the country; • taxes, including export taxes; • regulations of capital flows; • the Argentine peso/U.S. dollar exchange rate; • the revocation of our concessions in case of noncompliance with certain provisions as set by laws and agreements with provinces in Argentina; • dependence on the infrastructure and logistics network used to deliver our products; • laws and regulations affecting our operations, such us import regulations; and • interest rates.Our business is inherently volatile due to the influence of exogenous factors such as internal demand, market prices, financial availability for ourbusiness plan and the corresponding cost, and government regulations. Consequently, our past financial condition, results of operations and the trendsindicated by such results and financial condition may not be indicative of future financial condition, results of operations or trends in future periods. See“Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—The Expropriation Law.”Our operating income in 2014 increased by approximately 77 % compared to 2013. This increase was attributable to, among other things, the increasein diesel oil and gasoline domestic prices and the increase in volumes sold of gasoline and fuel oil. The aforementioned effects were partially offset by anincrease in depreciation of fixed assets, increased prices of crude oil purchased from third parties, increased volumes of refined products (principally gasoline)purchased from third parties mainly as a consequence of the incident suffered by our La Plata refinery, increased royalties (driven mainly by higher prices ofcrude oil at the wellhead), higher costs of sales and general cost increases (mainly preservation, repair and maintenance costs, salaries and social securitycosts and costs of services rendered by third parties). This increase in costs is attributable mainly to our increased activity and price increases in Argentina.On April 2, 2013 our facilities in the La Plata refinery were hit by a severe and unprecedented storm, recording over 400 mm of rainfall (which was themaximum ever recorded in the area). The heavy rainfall disrupted refinery systems and caused a fire that affected the Coke A and Topping C units in therefinery. This incident temporarily affected the crude processing capacity of the refinery, which had to be stopped entirely. The Coke A unit has been shutdown permanently since the storm, and, after a significant restoration effort, the Topping C unit resumed operations up to its full nominal capacity in lateMay 2013. The industrial complex is insured for damage and loss of profits caused by the incident under our insurance policy. As of December 31, 2014 and2013 we have recognized in our result of operations Ps. 2,041 million (U.S.$ 256) million and Ps. 1,956 million (U.S.$ 300 million), respectively, relating tothe partial compensation of Coke A damages and operational losses for 2014 and 2013 from our insurance coverage. See “Item 4. Information on theCompany—Insurance—Argentine operations.”In addition, on March 21, 2014, a fire occurred at the Cerro Divisadero crude oil treatment plant, located 20 kilometers from the town of BardasBlancas in the province of Mendoza. The Cerro Divisadero plant, which has 6 tanks, 4 of which are for processing and 2 are for dispatch of treated crude oil,concentrates the production of 10 fields in the Malargue area, which constitutes a daily production of approximately 9,200 barrels of oil as of the date of theincident. As of the date of this annual report, the production of the affected fields have almost returned to their previous levels, and the engineering of thenew oil treating plant has advanced as planned. 118Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsMacroeconomic conditionsSubstantially all of our revenues are derived from our operations in Argentina and are therefore subject to prevailing macroeconomic conditions inArgentina. Changes in economic, political and regulatory conditions in Argentina and measures taken by the Argentine government have had and areexpected to continue to have a significant impact on us. You should make your own investigation about Argentina and prevailing conditions in that countrybefore making an investment in us.The Argentine economy has experienced significant volatility in past decades, characterized by periods of low or negative growth and high variablelevels of inflation. Inflation reached its peak in the late 1980s and early 1990s. Due to inflationary pressures prior to the 1990s, the Argentine currency wasdevalued repeatedly and macroeconomic instability led to broad fluctuations in the real exchange rate of the Argentine currency relative to the U.S. dollar.To address these pressures, past Argentine governments implemented various plans and utilized a number of exchange rate systems.In the fourth quarter of 1998, adverse international financial conditions caused the Argentine economy to enter into a recession and GDP to decreasebetween 1999 and 2001. By the end of 2001, Argentina suffered a profound deterioration in social and economic conditions, accompanied by high politicaland economic instability. The restrictions on the withdrawal of bank deposits, the imposition of exchange controls, the suspension of the payment ofArgentina’s public debt and the abrogation of the peso’s one-to-one peg to the dollar (with the consequent depreciation of the peso against the dollar) causeda decline in economic activity. Real GDP declined by 10.9% in 2002, annual inflation rose to 41%, the exchange rate continued to be highly volatile, andthe unemployment rate rose to more than 20%. The political and economic instability not only curtailed commercial and financial activities in Argentina butalso severely restricted the country’s access to international financing.Strong economic growth in the world’s developed economies, favorable raw material prices from 2003 through the first half of 2008 and theimplementation of new macroeconomic policies paved the way for Argentina’s economic recovery. Real GDP grew at an average cumulative rate of 8.5%between 2003 and 2008. As a result of the crisis in the global economy, Argentina’s real GDP growth rate decelerated in 2009 to 0.9%, but recovered in 2010and 2011 growing by approximately 9% each year.After vigorous growth in 2010 and 2011, several factors led to a decrease in growth of the Argentine economy in 2012 and 2013. The growth of theglobal economy was not as strong as expected following the easing of U.S. economic crisis that started in 2007, and financial volatility continued at highlevels. The recent decline in the price of Brent crude to below U.S.$55 per barrel, the negative trend in prices of major agricultural commodities and with thegeopolitical tensions between the United States, Russia and Ukraine as well as countries in the Middle East, presents a complicated new internationalscenario that creates uncertainty about the future performance including potential downside risks, of developed and emerging economies includingArgentina.According to the IMF’s estimates, global economic growth reached 3.5% in 2014, although the rate of growth or, in some cases, contraction, variedsignificantly from region to region. On March 27, 2014, the Argentine government announced a new method of calculating GDP by reference to 2004 as thebase year as opposed to 1993, which was the base reference year under the prior method of calculating Argentine GDP. As a result of the application of thisnew method, the estimated Argentine GDP for 2013 was revised from 4.9% to 2.9%. As of the date of this annual report, the provisional figures of theArgentina’s estimated GDP for 2014 published by the National Statistics Institute (Instituto Nacional de Estadística y Censos) (“INDEC”) is 0.5%.The official exchange rate of the Argentine peso against the U.S. dollar as of December 31, 2014, was Ps. 8.55 per U.S.$1.00, reflecting an approximate31.13% depreciation of the peso relative to the U.S. dollar compared to December 31, 2013 (Ps. 6.52 per U.S.$1.00).Argentina has confronted inflationary pressures. According to inflation data published by INDEC, from 2008 to 2013, the Argentine consumer priceindex (“CPI”) increased 7.2%, 7.7%, 10.9%, 9.5%, 10.8% and 10.9%, respectively and the wholesale price index increased 8.8%, 10.3%, 14.5%, 12.7%13.1% and 14.7% respectively. In 2014, the Argentine government established a new consumer price index (“IPCNU”) that more broadly reflects consumerprices by considering price information from the 24 provinces of the country, divided into six regions. According to INDEC, the IPCNU for 2014 was 23.9%and the wholesale price index was 28.3%. In addition, the IPCNU for January and February 2015 was 1.1% and 0.9%, respectively. Certain private sectoranalysts usually quoted by the government opposition, based on methodologies being questioned by the Argentine government on the basis of the lack oftechnical support, believe that actual inflation was significantly higher than that reflected by INDEC. See “Item 3. Key Information—Risk Factors—RisksRelating to Argentina—Our business is largely dependent upon economic conditions in Argentina.” 119Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDuring 2014, Argentina’s trade balance was a deficit of approximately U.S.$9,725 million according to preliminary estimates from INDEC, comparedto total exports of approximately U.S.$71,935 million during 2014, which represents a 12% decrease compared to 2013, and total imports wereapproximately U.S.$65,249, which represents an 11% decrease compared to 2013.In Argentina, domestic fuel prices have increased over the past five years, but have not kept pace with either increases or decreases in internationalmarket prices for petroleum products due to the market conditions and regulations affecting the Argentine market.The recent drop in the international price of Brent crude has affected and will likely continue to affect the oil industry’s expected activities worldwide,particularly with respect to expected investments in the industry. In this context, the significant decline previously discussed resulted in an approximatelyU.S.$ 7 reduction to the domestic price per barrel compared to the price in effect on December 31, 2014. This change stemmed from negotiations betweenproducers and refiners to reduce the domestic price of Medanito and Escalante crude during January 2015 to U.S.$ 77 and U.S.$ 63 per barrel, respectively,and during February 2015 to U.S.$ 76 and U.S.$ 62 per barrel, respectively, as well as reductions to the retail price of gasoline and diesel of approximately5% from January 1, 2015. See “Item 3. Key Information—Risk Factors—Risks Relating to the Argentine Oil and Gas Business and Our Business—Oil and gasprices, including the recent decline in global prices for oil and gas, could affect our business.”The Argentine government recently launched a series of measures designed to sustain the activity and production in the oil industry, including cuts tofuel transfer taxes, water infrastructure fund taxes and withholding taxes applicable to exports of certain petroleum products (for more information, see “Item4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—Reduction in tax rates for fuels”). This had apositive impact on net income for affected companies and was designed to partially offset the 5% drop in gasoline and diesel prices mentioned above. Inaddition, on February 4, 2015 the Commission issued Resolution 14/2015 creating the Crude Oil Production Stimulus Program (Programa de Estímulo a laProducción de Petróleo Crudo) which will be in effect from January 1, 2015 through December 31, 2015 and through which the federal government, subjectto certain requirements, will pay an export stimulus and/or a production stimulus for companies registered under that program, to partially offset the U.S.$7per barrel drop in crude oil prices in Argentina previously mentioned, in order to encourage a stable level of economic activity in the local oil industry.Energy consumption in Argentina has increased significantly since 2003. Continued growth in demand has led to fuel shortages and power outages,prompting the Argentine government to take additional measures to assure domestic supply. As a result of this increasing demand, declines in production ofcertain products and companies in our industry, and actions taken by the Argentine regulatory authorities to prioritize domestic supply, exported volumes ofhydrocarbon products, especially natural gas, declined steadily over this period. At the same time, in the recent years, Argentina has increased its natural gasand refined products imports. In 2005, Argentina successfully completed the restructuring of a substantial portion of its bond indebtedness and settled all ofits debt with the IMF. Additionally, in June 2010, Argentina completed the renegotiation of approximately 70% of defaulted bonds that were not swapped in2005. As a result of the 2005 and 2010 debt swaps, over 90% of the country’s bond indebtedness on which Argentina defaulted in 2002 has now beenrestructured.Certain bondholders did not participate in the restructuring and instead sued Argentina for payment (“Holdout Bondholders”). In late October 2012,the United States Court of Appeals for the Second Circuit rejected an appeal by Argentina concerning payments allegedly due on bonds that had not been thesubject of the swaps in 2005 and 2010. On November 21, 2012, the United States District Court for the Southern District of New York ordered Argentina tomake a deposit of U.S.$1,330 million for payment to the Holdout Bondholders. Argentina appealed the District Court’s November 21 order to the SecondCircuit Court of Appeals, which granted Argentina’s request for a stay of the order. On March 19, 2013, Argentina submitted to the Second Circuit a proposedpayment plan for Holdout Bondholders. That proposal was rejected by the plaintiff Holdout Bondholders on April 19, 2013. On August 30, 2013, the SecondCircuit Court of Appeals affirmed the District Court’s November 21, 2012 order, but stayed its decision pending an appeal to the Supreme Court of the UnitedStates.On September 3, 2013, the District Court granted plaintiff holdout bondholders’ requests for discovery from Argentina and certain financialinstitutions concerning, among other things, Argentina’s assets and the relationship between Argentina and YPF. In January 2014, the U.S. Supreme Courtagreed to hear the appeal filed by Argentina regarding the extent of discovery permitted concerning its assets, but eventually ruled on June 16, 2014 that theDistrict Court had the authority to allow creditors of Argentine debt to seek discovery about all of Argentina’s assets worldwide.Additionally, also on June 16, 2014, the U.S. Supreme Court denied Argentina’s appeal for certiorari of the Second Circuit Court of Appeals’ rulingaffirming the Southern District Court judgment, which held that Argentina had violated the pari passu clause with respect to the bondholders that had notparticipated in the sovereign debt swaps in 2005 and 2010, and as a consequence was required pursuant to the judge’s ruling to pay 100% of the amounts dueto the plaintiffs together with the payment of the amounts due on the 120Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsnext maturity date to bondholders who had participated in the debt swaps (ratable payment). With the appeals of Judge Griesa’s order exhausted, the UnitedStates Court of Appeals for the Second Circuit on June 18, 2014 lifted its stay of that order. On June 23, 2014, Argentina requested that Judge Griesa of theU.S. District Court for the Southern District of New York issue a new stay to allow for a reasonable period of negotiations to settle the dispute with theplaintiffs.On June 26, 2014, Argentina proceeded to deposit the amount applicable to the payment of service of capital and interest that matured on June 30,2014 due to holders of bonds under foreign law who had voluntarily agreed to the debt swaps during the period 2005-2010, which was equivalent toU.S.$832 million, of which U.S.$539 million were deposited in accounts of The Bank of New York Mellon (“BONY”), as indenture trustee, in the CentralBank of Argentina. On that same date, Judge Griesa rejected the request for a stay made by Argentina on June 23, 2014.On June 27, 2014, in a hearing in the U.S. District Court for the Southern District of New York, the judge presiding over the case ruled that theaforementioned funds should not be delivered to the holders of restructured debt in the absence of a prior agreement with the holdouts. As of the date of theissuance of these Notes, the parties have not arrived at an agreement and BONY has invoked the decision of the District Court judge to not deliver the fundsdeposited by Argentina to the holders of bonds under foreign law. Argentina has asserted that it has complied with its obligation to the holders of therestructured bonds by making said deposit, and that the indenture trustee has the obligation to deliver those funds to their beneficiaries.On September 11, 2014, Argentina promulgated Law No. 26,984 concerning sovereign payment, which provides for various mechanisms to pay 100%of the outstanding creditors under the terms of the 2005 and 2010 debt swaps, authorizing for that purpose, among other things, the Minister of Economy andPublic Finance to replace the indenture trustee and to provide for a voluntary exchange of the outstanding bonds for new bonds that would have identicalfinancial terms but be governed by Argentine law and subject to Argentine jurisdiction.On September 29, 2014 the District Court judge declared Argentina in contempt of court but did not impose sanctions on the country. On October 3,2014, the District Court judge ordered Argentina to repair its relations with BONY, remove Nación Fideicomisos as indenture trustee for the debt and resolvethe situation with the Holdout Bondholders.On October 22, 2014, the Second Circuit Court of Appeals dismissed for lack of jurisdiction Argentina’s appeal with respect to the freezing of the fundsdeposited with BONY.On October 28, 2014, the District Court judge rejected a motion to attach the funds deposited by Argentina and frozen at BONY.At Citibank’s request, the District Court judge has authorized the payment of U.S. dollar denominated bonds under Argentine law to the extent thatpayments have become due, deferring a definitive decision on this question. At the request of Citibank, as agent, the District Court judge has authorized onan extraordinary basis on three occasions the payment of interest on U.S. dollar-denominated bonds under Argentine Law to the extent that payments becamedue, deferring a definitive decision on this question. However, the District Court judge, on March 12, 2015, entered an order in which he finally determinedthat the Argentine Law Bonds constitute external indebtedness, rank equally (pari passu) with the bonds issued under the 1994 FAA, and, therefore, arecovered by the amended injunction dated November 21, 2012.The actions initiated by the Holdout Bondholders against Argentina could result in attachments or preliminary injunctions of assets belonging to, oralleged to belong to, Argentina.In connection with the Holdout Bondholder litigation in New York federal court against the Republic of Argentina (to which YPF is not a party), thebondholders had served subpoenas on various financial institutions in New York seeking the production of documents concerning the accounts and transfersof hundreds of entities allegedly owned or controlled, in whole or in part, by the Republic of Argentina, including YPF. At a hearing on September 3, 2013,the New York judge ruled that this discovery from those institutions can go forward as to, among others, the accounts of YPF, in order for the bondholders todetermine if those documents might support an argument that YPF is the alter ego of the Republic of Argentina. Notably, the New York courts previouslyheld that Banco de la Nación Argentina is not an alter ego of Argentina, and a California Magistrate Judge has recently ruled that bondholders’ factualallegations made in support of asset discovery were insufficient to find YPF to be an alter ego of Argentina. YPF is not a recipient of any such subpoenas and,as such, has no obligation to produce discovery or otherwise participate in discovery.After the pari passu injunction became effective, litigation continued regarding Argentina’s efforts to make payments to exchange bondholders. Thesepayments have been made, however the chain of payments has been interrupted as a consequence of judicial orders, and various exchange bondholders havesought release of such funds through litigation before the District Court and in various jurisdictions. Additionally Argentina’s congress has passed theSovereign Debt Payment Act, No 26,984 in which it was allowed to 121Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsremove the Bank of New York Mellon as trustee and appointed Nación Fideicomisos S.A. in its place and authorized to make payments of the sovereignbonds in two accounts in Argentina in order to guarantee that the bondholders receive the payment made. As of the date hereof, litigation initiated bybondholders seeking payments from Argentina continues in the U.S. and in courts in other jurisdictions. The consequences of potentially inconsistent rulingsfrom different courts are unclear. There can be no assurances that the outcome of this continued and potential future litigation, or the efforts of thebondholders to obtain payment from Argentina through other means, such as alter ego theories, will not have a material adverse effect on Argentina’seconomy, YPF’s assets, and/or YPF’s ability to access international financing to repay its obligations. Based on the above, we cannot predict the evolution offuture macroeconomic events, or the effect that they are likely to have on our business, financial condition and results of operations. See “Item 3. KeyInfomation—Risk Factors—Risks Relating to Argentina—Our business is largely dependent upon economic conditions in Argentina” and “Item 3. RiskFactors—Risks Relating to Argentina.”The table below shows Argentina’s total sales, production, exports and imports of crude oil, diesel fuel and gasoline products for the periods indicated. Year Ended December 31, 2014 2013 2012 Crude Oil in Argentina Production (mmbbl) 189.40 191.7 197.3 Exports (mmbbl) 13.41 13.7 21.8 Imports (mmbbl) 3.45 2.6 — Diesel oil in Argentina Sales (mcm)(1) 14,012.95 14,490.6 14,076.4 Production (mmbbl) 11,521.57 11,680.8 11,978.2 Exports (mcm) — — — Imports (mcm) 2,001.31 2,427.1 1,348.7 Gasoline in Argentina Sales (mcm)(1) 8,360.31 8,579.7 7,846.3 Production (mmbbl) 7,280.89 7,609.8 7,301.1 Exports (mcm) 0 14.0 — Imports (mcm) 449.16 378.7 53.0 (1)Includes domestic market sales.Sources: Argentine Secretariat of Energy.Policy and regulatory developments in Argentina, including the Expropriation LawThe Argentine oil and gas industry has been subject to certain governmental policies and regulations that have resulted in: (i) domestic prices that donot keep pace with those prevailing in international markets (which usually resulted in lower local prices compared to prevailing international market pricesbefore the recent decrease in international oil prices); (ii) export and import regulations; (iii) domestic supply requirements that oblige us from time to time todivert supplies from the export or industrial markets in order to meet domestic consumer demand; (iv) increasingly higher export duties on the volumes ofhydrocarbons allowed to be exported, before the recent decrease in international oil prices and the related measures recently taken by the Argentinegovernment to incentivize domestic investment and production through the temporary reduction of export duties; (v) increasingly higher investment andcosts expenditure requirements in order to satisfy domestic demand and (vi) increasingly higher taxes, although certain taxes have recently declined as aresult of the incentives set by the Argentine government in response to the decrease in international oil prices to promote domestic activity. See “Item 4.Information on the Company—Regulatory Framework and Relationship with the Argentine Government.” These governmental pricing and exportadministration and tax policies have been implemented in an effort to satisfy increasing domestic market demand and, recently, to incentivize domesticactivity as a result of recent decreases in international oil prices. As discussed in “Item 3. Key Information—Risk Factors” and elsewhere in this annual report,actions by the Argentine government have had and will continue to have a significant effect on Argentine companies, including us.Policy and regulatory developments relating to the oil and gas industry in Argentina include, among others: • Price administration. In order to support economic growth, the Argentine government has sought a number of policies and measures to limitincreases in hydrocarbon prices which could affect directly final consumers (See “—Macroeconomic conditions”). Notwithstanding theforegoing, and for certain products, the Argentine government has implemented from time to time certain price and investment incentives whichallowed companies to receive increased prices mainly in connection 122Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents with investments and certain sales. See “—Gas programs” and “—Refining Plus and Petroleum Plus programs.” In addition, as a result of therecent decline in international oil prices, the Argentine government has established incentives to domestic oil producer’s, aiming to promotedomestic activity. For more information, see “Item 4. Information on the Company—Regulatory Framework and Relationship with the ArgentineGovernment—Resolution 14/2015.” As a result, fluctuations in Argentina’s domestic hydrocarbon prices have not matched increases ordecreases at the pace of international and regional prices. • Export administration. Since 2004, the Argentine government has prioritized domestic demand and adopted policies and regulations partiallyrestricting the export of certain hydrocarbon products. These regulations have impacted our export sales as described in “—Declining exportvolumes.” • Export duties. Since the economic crisis in 2002, the Argentine government has imposed export taxes on certain hydrocarbon products. Thesetaxes have substantially increased over time as international prices have surged. In addition, the Argentine government recently launched aseries of measures designed to sustain the activity and production in the domestic oil industry, including reductions to withholding taxesapplicable to exports of certain petroleum products. For more information, see “Item 4. Information on the Company—Regulatory Frameworkand Relationship with the Argentine Government—Taxation. For a description of the most recent export duties on hydrocarbon exports, see “—International oil and gas prices and Argentine export taxes.” • Domestic supply requirements. The Argentine government has at times issued regulatory orders requiring producers to inject natural gas inexcess of contractual commitments and supply other hydrocarbon products to the domestic market. As a result, we have had to limit our exports.In addition, we have imported diesel fuel in order to satisfy domestic demand, which has increased our operating costs, as described in “—Cost ofsales.” • Gas programs. a) The Argentine Secretariat of Energy, by Resolution S.E. No. 24/2008 of March 13, 2008, created the “Gas Plus” program toencourage the production of natural gas from newly discovered reserves, new fields and tight gas, among other sources. Natural gas producedunder the Gas Plus program is not subject to the prices set forth in the Agreement 2007-2011. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—Market Regulation—Natural Gas;” b) On February 14, 2013Resolution 1/2013 of the Commission was published in the Official Gazette. This Resolution formally creates the “Natural Gas AdditionalInjection Stimulus Program.” Under this regulation, gas producing companies were invited to file with the Commission before June 30th, 2013projects to increase natural gas injection, in order to receive an increased price of 7.5 U.S.$/mmBtu for all additional natural gas injected. Theseprojects shall comply with minimum requirements established in Resolution 1/2013, and will be subject to approval by the Commission. Theprojects will have a maximum term of five years, renewable at the request of the company, upon decision of the Commission. If the company in agiven month does not reach the committed production increase it will be required to make up for such volumes not produced. On May 23, 2013the Commission approved the project submitted by YPF; c) On November 29, 2013, Resolution 60/2013 of the Commission was published in theOfficial Gazette. This Resolution formally creates the “Natural Gas Additional Injection Stimulus Program for Companies with ReducedInjection.” Under this regulation, gas-producing companies with a natural gas average injection lower than 3,500,000 cubic meters per dayduring the six months preceding the issuance of Resolution 60/2013 may apply, including those with no gas injection at all. Companies wereinvited to file with the Commission before March 31st, 2014 projects to increase natural gas injection. Companies that currently participate inthe “Natural Gas Additional Injection Stimulus Program” and are eligible for the new program, may withdraw from the original program andapply to the new program. Projects may have a maximum term of four years, and participants may petition the Commission for a one-yearextension, granted at the Commission’s discretion. The program sets a range of guaranteed prices (U.S.$7.50/mmBtu to U.S.$4.00/mmBtu)depending on the natural gas injection performance of each producer. • Refining Plus and Petroleum Plus programs. Decree No. 2014/2008 of the Department of Federal Planning, Public Investment and Services ofNovember 25, 2008, created the “Refining Plus” and the “Petroleum Plus” programs to encourage (a) the production of diesel fuel and gasolineand (b) the production of crude oil and the increase of reserves through new investments in exploration and operation. The Argentine Secretariatof Energy, by Resolution S.E. No. 1312/2008 of December 1, 2008, approved the regulation of these programs. The programs entitle refiningcompanies that undertake the construction of a new refinery or the expansion of their refining and/or conversion capacity and productioncompanies that increase their production and reserves within the scope of the program to receive export duty credits to be applied to exports ofproducts within the scope of Resolution No. 394/2007 and Resolution No. 127/2008 (Annex) issued by the Department of Economy andProduction. In February 2012, by Notes Nos. 707/12 and 800/12 of the Argentine Secretariat of Energy, YPF was notified that the benefitsgranted under the “Refining Plus” and the “Petroleum Plus” programs have been temporarily suspended. The reasons alleged for such suspensionare that the programs were created in a context where domestic prices were lower than currently prevailing prices and that the objectives soughtby the programs have already been achieved. 123Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Sworn declaration regarding imports. On January 5, 2012, the Federal Administration of Public Revenue (“AFIP”) issued Resolution No. 3252,which requires importers to submit a sworn declaration prior to the placing of a purchasing order for all imports to Argentina, with effect fromFebruary 1, 2012. Depending on the nature of the goods to be imported as well as other criteria, certain State agencies may have access to thisdeclaration and can raise objections. The criteria for the approval or rejection of the sworn declaration are not legally defined. • Cross-border services information reporting. On February 9, 2012, the AFIP issued Resolution No. 3276, which requires Argentine individualsand companies that employ the services of providers located outside of Argentina, where the fee for such services is equal to or greater thanU.S.$100,000, to submit a sworn declaration in respect of such services, with effect from April 1, 2012.During 2012, the Expropriation Law declared achieving self-sufficiency in the supply of hydrocarbons, as well as in the exploitation, industrialization,transportation and sale of hydrocarbons, a national public interest and a priority for Argentina. In addition, its stated goal is to guarantee socially equitableeconomic development, the creation of jobs, the increase of the competitiveness of various economic sectors and the equitable and sustainable growth of theArgentine provinces and regions. On July 25, 2012, the executive decree of Law No. 26,741, Decree No. 1,277/2012, was published, creating the “Regulationof the Hydrocarbons Sovereignty Regime in the Argentine Republic.” Among other matters, the mentioned decree establishes: the creation of the NationalPlan of Investment in Hydrocarbons; the creation of the Commission, which will elaborate on an annual basis, within the framework of the NationalHydrocarbon Policy, the National Plan of Investment in Hydrocarbons; the National Registry of Investments in Hydrocarbons in which the companiesundertaking activities of exploration, exploitation, refining, transport and commercialization of hydrocarbons and fuels will have to register; and theobligation for the registered companies to provide their Plan of Investments every year before September 30, including a detail of quantitative information inrelation to the activities of exploration, exploitation, refining, transport and commercialization of hydrocarbons and fuels according to each company.Additionally, the mentioned companies have to provide their plans in relation to the maintenance and increase of hydrocarbons reserves, including: a) aninvestment in exploration plan; b) an investment plan in primary hydrocarbons reserves recovery techniques; and c) an investment plan in secondaryhydrocarbons reserves recovery techniques, which will be analyzed by the Commission; the Commission will adopt the promotion and coordinationmeasures that it may consider necessary for the development of new refineries in the National Territory, that may allow the growth in the local processingcapacity in accordance with the aims and requirements of the National Plan of Investment in Hydrocarbons; in relation to prices, and according to the Decree,for the purpose of granting reasonable commercial prices, the Commission will determine the criteria that shall govern the operations in the domestic market.In addition, the Commission will publish reference prices of each of the components of the costs and the reference prices for the sale of hydrocarbons andfuels, which will allow to cover the production costs attributable to the activity and to reach a reasonable margin of profit. Not complying with thedispositions included in the Decree and supplementary rules may result in the following penalties: fine, admonition, suspension or deregistration from theregistry included in section 50 of Law No. 17.319, the nullity or expiration of the concessions or permits. Moreover, the mentioned Decree abrogates thedispositions of the Decrees No. 1,055/89, 1,012/89 and 1,589/89 (the “Deregulation Decrees”) which set, among other matters, the right to the freedisposition of hydrocarbon production. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—The Expropriation Law.” Upon the passage of the Expropriation Law, the Argentine government gained control over the Company. See “Item 3. KeyInformation—Risk Factors—Risks Relating to Argentina—The Argentine federal government will control the Company according to domestic energypolicies in accordance with the Expropriation Law.Declining export volumesThe exported volumes of many of our hydrocarbon products have declined significantly in recent years, driven mainly by increasing domestic demandand export administration, as well as by declines in production. This shift from exports to domestic sales has impacted our results of operations as the pricesfor hydrocarbons in the domestic market have, due to price administration, generally not kept pace with international and regional prices. Notwithstandingthe foregoing, and as a result of export taxes affecting hydrocarbon products (“Item 4. Information on the Company—Regulatory Framework andRelationship with the Argentine Government—Exploration and Production.”), net sale prices in the export market do not materially differ from thoseprevailing in the domestic market. 124Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe table below presents, for the periods indicated, the exported volumes of certain of our principal hydrocarbon products. Year Ended December 31, 2014 2013 2012 (units sold) Product Natural gas (mmcm) 9 27 45 Gasoline (mcm) 72 74 131 Fuel oil (mtn)(1) 607 567 544 Petrochemicals (mtn) 254 281 335 (1)Includes bunker oil sales of 607 mtn, 567 mtn and 544 mtn for 2014, 2013 and 2012, respectively.Due to the decreased export product volumes indicated above, the portion of our revenues accounted for by exports decreased steadily in recent years.Exports accounted for 17.1%, 13.3% and 11.5% of our consolidated revenues in 2014, 2013 and 2012, respectively. Export duties are accounted for as taxexpenses in our Audited Consolidated Financial Statements.The Argentine government currently requires companies intending to export crude oil, diesel fuel and LPG to obtain prior authorization from theArgentine Secretariat of Energy by demonstrating that local demand for those products has been satisfied. Since 2005, because domestic diesel oil productionhas generally not been sufficient to satisfy Argentine consumption needs, exports of diesel oil have been substantially restricted.International oil and gas prices and Argentine export taxesSince the economic crisis in 2002, the Argentine government has imposed export taxes on certain hydrocarbon products. These taxes havesubstantially increased over time as international prices have surged. Notwithstanding the foregoing, the Argentine government recently launched a series ofmeasures designed to sustain the activity and production in the domestic oil industry, including reductions to withholding taxes applicable to exports ofcertain petroleum products. For a description of these taxes, reference prices and prices allowed to producers, see “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—Market Regulation” and “Item 4. Information on the Company—RegulatoryFramework and Relationship with the Argentine Government—Taxation.”Export taxes have affected the profitability of hydrocarbon exportation. They have also contributed to a shift away from exports and towards domesticsales and reduced the export parity prices. For more information see “—Declining export volumes.”SeasonalityHistorically, our results have been subject to seasonal fluctuations during the year, particularly as a result of greater natural gas sales during the winter.After the 2002 devaluation and as a consequence of the natural gas price freeze imposed by the Argentine government, the use of this fuel has diversified,generating an increase in its long-term demand throughout the year. However, sales of natural gas are still typically much higher in the winter to theresidential sector of the Argentine domestic market, the prices for which are significantly lower than other sectors of the Argentine market. Notwithstandingthe foregoing, on February 14, 2013 Resolution 1/2013 of the Commission was published in the Official Gazette. This Resolution formally creates the“Natural Gas Additional Injection Stimulus Program.” Under this regulation, gas producing companies were invited to file with the Commission beforeJune 30th, 2013 projects to increase natural gas injection , in order to receive an increased price of U.S.$7.50/mmBtu for all additional natural gas injected.These projects shall comply with minimum requirements established in Resolution 1/2013, and will be subject to consideration approval by the Commission,including a maximum term of five years, renewable at the request of the beneficiary, upon decision of the Commission. If the beneficiary company in a givenmonth does not reach the committed production increase it will have to make up for such volumes not produced. The natural gas pricing program wasrecently incorporated into the Hydrocarbons Law, as modified by Law No. 27,007.Critical Accounting PoliciesOn March 20, 2009, the FACPCE approved the Technical Resolution No. 26 “Adoption of the International Financial Reporting Standards (IFRS) ofthe International Accounting Standards Board (IASB).” Such resolution was approved by the CNV through General Resolution No. 562/09 datedDecember 29, 2009 (modified by General Resolution No. 576/10 on July 1, 2010), with respect to certain publicly traded entities subject to Law No. 17,811.The application of such rules was mandatory for YPF for the fiscal year that began on January 1, 2012. 125Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOur accounting policies are described in Note 1 to the Audited Consolidated Financial Statements. IFRS requires us to make estimates and assumptionsthat affect the reported amounts of assets and liabilities, revenues and expenses and disclosures of contingent assets and liabilities in our financial statements.Actual results could differ from those estimates. We consider the following policies or matters to be most critical in understanding the judgments that areinvolved in preparing our Audited Consolidated Financial Statements and the uncertainties that could impact our results of operations, financial conditionand cash flows: • Functional and reporting currency. See Note 1.b.1) to the Audited Consolidated Financial Statements. • Impairment of long-lived assets. See Note 1.b.8) to the Audited Consolidated Financial Statements. • Depreciation of oil and gas producing properties. See Note 1.b.6) to the Audited Consolidated Financial Statements. • Asset retirement obligations. See Note 1.b.6) to the Audited Consolidated Financial Statements. • Environmental liabilities, litigation and other contingencies. See Note 3 and 11 to the Audited Consolidated Financial Statements. • Income tax and deferred tax. See Note 10 to the Audited Consolidated Financial Statements.In addition, for information regarding our estimation of oil and gas reserves, see “Item 4. Information on the Company—Exploration and Production—Oil and Gas reserves.”Principal Income Statement Line ItemsThe following is a brief description of the principal line items of our income statement.RevenuesRevenues include primarily our consolidated sales of crude oil and natural gas and refined fuel and chemical products net of the payment of applicablefuel transfer taxes and turnover taxes. Customs duties on exports are accounted as selling expenses in our consolidated results of operations. Royaltypayments required to be made to a third party, whether payable in cash or in kind, which are a financial obligation, or are substantially equivalent to aproduction or similar tax, are accounted for as a cost of production and are not deducted from revenues. See “Item 4. Information on the Company—Exploration and Production—Oil and gas production, production prices and production costs” and Note 1.b.16 to the Audited Consolidated FinancialStatements.Cost of salesThe following table presents, for each of the years indicated, a breakdown of our consolidated cost of sales by category: For the year ended December 31, 2014 2013 2012 (in millions of pesos) Inventories at beginning of year 9,881 6,922 6,006 Purchases for the year 35,951 25,846 17,974 Production costs (1) 68,840 42,980 32,374 Translation effect 2,821 2,227 835 Inventories at end of year (13,001) (9,881) (6,922) Cost of sales 104,492 68,094 50,267 (1)The table below presents, for each of the years indicated, a breakdown of our consolidated production costs by category: For the year ended December 31, 2014 2013 2012 (in millions of pesos) Salaries and social security costs 5,341 4,211 3,229 Fees and compensation for services 554 393 251 126Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOther personnel expenses 1,622 1,108 782 Taxes, charges and contributions 2,260 1,123 590 Royalties and easements 9,503 5,845 4,444 Insurance 705 520 208 Rental of real estate and equipment 2,630 1,747 1,315 Depreciation of fixed assets 19,201 10,766 7,832 Amortization of intangible assets 140 95 90 Industrial inputs, consumable material and supplies 3,415 1,992 1,447 Operation services and other service contracts 5,297 2,540 2,555 Preservation, repair and maintenance 11,322 7,673 5,690 Contractual commitments 52 167 212 Transportation, products and charges 3,874 2,582 2,002 Fuel, gas, energy and miscellaneous 2,924 2,218 1,727 Total 68,840 42,980 32,374 Our cost of sales accounted for 73.6%, 75.6% and 74.8% of our consolidated revenues in 2014, 2013 and 2012, respectively. Our cost of salesincreased by 53.5% from 2013 to 2014, mainly as a result of: increased purchases of crude oil from third parties, driven mainly by the increased oil price inthe domestic market; increased purchases of refined products (principally gasoline) from third parties, partially offset by insurance compensation of Ps.2,041 million recognized during 2014 (Ps. 477 million in 2013) which stemmed from YPF’s insurance coverage related to the April 2013 La Plata refineryfire; increased royalties, driven mainly by higher crude oil prices at the wellhead as a result of the foregoing; higher labor costs; higher costs related to therenegotiation of certain service contracts; and increased depreciation of fixed assets as a result of the higher investment in fixed assets and assetremeasurement in pesos, as a result of depreciation of the Argentine peso against the U.S. dollar, which is our functional currency.Other (expense) income, netOther (expense) income, net principally includes reserves for pending lawsuits and other claims, provisions for environmental remediation andprovisions for defined benefit pension plans and other post-retirement benefits. In addition, Other (expense) income, net also includes Ps. 1,479 in 2013, byway of damage to property compensation which stemmed from YPF’s insurance coverage related to the April 2013 La Plata refinery fire.Financial income (expense), netFinancial income (expense), net consists of the net of gains and losses on interest paid and interest earned and foreign currency exchange differences.TaxesThe effective income tax rates for the periods discussed in this annual report differ from the statutory tax rate (35%) mainly because: the registration ofthe deferred income tax as a result of the effect of applying the current tax rate (35%) on the difference generated between the tax basis of fixed andintangible assets (for which any reameasure from the original value in pesos is not acceptable under income tax law) and their book value under IFRS,measured in its functional currency and converted into pesos as described in Note 1.b.1) to our Audited Consolidated Financial Statements. See Note 10 tothe Audited Consolidated Financial Statements for a more detailed description of the difference between statutory income tax rate and effective income taxrate.Results of OperationsConsolidated results of operations for the years ended December 31, 2014, 2013 and 2012The following table sets forth certain financial information as a percentage of net revenues for the years indicated. Year Ended December 31, 2014 2013 2012 (percentage of revenues) Revenues 100.0 100.0 100.0 Cost of sales (73.6) (75.6) (74.8) Gross profit 26.4 24.4 25.2 127Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAdministrative expenses (3.2) (3.0) (3.3) Selling expenses (7.1) (8.4) (8.4) Other (expense) income, net (0.7) 0.3 (0.8) Exploration expenses (1.4) (0.9) (0.9) Operating Income 14.0 12.4 11.8 The tables below present, for the years indicated, volume and price data with respect to our sales of our principal products in the domestic and exportmarkets, respectively. Due to the decreased export product volumes, the portion of our revenues accounted for by exports decreased steadily in recent years.Exports accounted for 17.1%, 13.3% and 11.5% of our consolidated revenues in 2014, 2013 and 2012, respectively.Domestic Market Year Ended December 31, 2014 2013 2012 Product Units sold AveragePrice perunit(1) Units sold AveragePrice perunit(1) Units sold AveragePrice perunit(1) (in pesos) (in pesos) (in pesos) Natural gas 12,028 mmcm 1,315/mcm 11,092 mmcm 817/mcm 12,176 mmcm 375/mcm Diesel fuel 8,166 mcm 6,466/cm 8,098 mcm 4,277/cm 8,029 mcm 3,409/cm Gasoline 4,723 mcm 6,146/cm 4,545 mcm 3,895/cm 4,128 mcm 3,000/cm Fuel oil 1,129 mtn 4,505/ton 734 mtn 2,963/ton 736 mtn 2,467/ton Petrochemicals 643 mtn 6,109/ton 579 mtn 4,189/ton 609 mtn 3,210/ton (1)Average prices shown are net of applicable domestic fuel transfer taxes payable by consumers.Export Markets Year Ended December 31, 2014 2013 2012 Product Units sold AveragePrice per unit(1) Units sold AveragePrice per unit(1) Units sold AveragePrice per unit(1) (in pesos) (in pesos) (in pesos) Natural gas 9 mmcm 9,101/mcm 27 mmcm 4,540/mcm 45 mmcm 3,096/mcm Gasoline 72 mcm 7,289/cm 74 mcm 5,274/cm 131 mcm 4,398/cm Fuel oil 607 mtn 4,382/ton 567 mtn 3,157/ton 544 mtn 2,777/ton Petrochemicals(2) 254 mtn 7,751/ton 281 mtn 5,262/ton 335 mtn 4,521/ton (1)Average prices shown are gross of applicable export withholding taxes payable by us.(2)Includes exports of refined paraffinic.RevenuesRevenues in 2014 were Ps. 141,942 million, representing a 57.5% increase compared to Ps. 90,113 million in 2013. Among the main factorscontributing to the increase were: • Diesel fuel revenues increased by Ps. 18,165 million, or 52.4%, primarily as a result of an increase in the average price for diesel mix ofapproximately 51,2% and an increase in sales volumes of approximately 0.8%; • Gasoline revenues increased by Ps. 11,325 million, or 64.0%, primarily as a result of an increase in the average price for gasoline mix ofapproximately 57.8% and an increase in sales volumes of approximately 3.9%; • Fuel oil revenues increased by Ps. 3,777 million, or 95.3%, primarily as a result of an increase in the average price for fuel oil ofapproximately 46.4% and an increase in sales volumes of 33.4% during 2014, which were directed primarily to the domestic electricitygeneration market; and • Natural gas revenues in the domestic market increased by Ps. 8,317 million, or 91.5%, primarily as a result of an increase in sales volumesof approximately 21.7%, which was driven by (i) increased production, (ii) the YSUR acquisition, 128Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents accounting for an increase of revenues of approximately Ps. 1,476 million and (iii) increased sales of natural gas byYPF EnergíaEléctrica, accounting for an increase in revenues of approximately Ps. 84 million. The increase was further due to an increase of 57.4% inthe average sale price obtained by YPF in Argentine peso terms (or a 6% increase in U.S. dollar terms), which includes not only higherprices from third parties but also the Argentine federal government’s Plan to Incentivize Additional Natural Gas Injection (the “GasPlan”), which increased the average prices obtained by YPF as a result of increasing YPF’s natural gas production.Revenues in 2013 were Ps. 90,113 million, which represented a 34.1% increase compared to Ps. 67,174 million in 2012. Among the main causes thatcontributed to the increase in revenues, we highlight the following: • Diesel fuel revenues increased in 2013 by approximately Ps. 7,259 million compared to 2012, which represented an increase of 27%. Inaddition, the average price for diesel mix during 2013 increased by approximately 25.4% compared to 2012. This effect wasaccompanied by a slight increase in sales volumes of approximately 1%. The latter is expressed primarily in our Eurodiesel and Diesel500 products in the retail segment, partially offset by decreased sales volumes of Ultradiesel to the retail and transport segments; • With respect to the gasoline, during 2013, there was an increase in volumes sold compared to the same period in 2012 of approximately10.1% (12.7% if only “unleaded” gasoline is considered). In addition, during 2013, the average price for the gasoline mix during 2013increased by approximately 29.8%, compared to 2012. These factors represented a net increase in gasoline revenues during 2013 ofapproximately Ps. 5,320 million compared to 2012, which represents an increase of 43%; • Fuel oil revenues increased in 2013 by approximately Ps. 359 million compared to 2012 in domestic market, which represented anincrease of approximately 19.8%. Volumes sold in local market were flat during 2013 when compared to 2012 (734,000 tons versus736,000 tons), having been mainly provided to the electricity generation market. Volumes had substantially increased during the firstquarter of 2013, but were affected by the lower processing capacity temporarily at the La Plata refinery due to the fire on April 2, 2013. Inaddition, fuel oil prices increased approximately by 20.1% during 2013 compared to 2012; • Crude oil sales to third parties revenues increased in 2013 by approximately Ps. 1,702 million compared to 2012, which represented anincrease of 298%. This increase was due to the temporary lower processing capacity in La Plata refinery, as mentioned elsewhere in thisannual report, crude oil volumes in excess of amounts processed by our Downstream segment were sold to local third parties whichrepresented an increase of 123,000 cm, and also there were exports sales of 378,000 cm in 2013; • Natural gas revenues from sales in Argentina increased in 2013 by approximately Ps. 4,492 million compared to 2012, which representedan increase of 98%. This increase was due to a partial recovery in prices obtained in certain segments in the domestic natural gas market,such as CNG, power generation plants and some industries. In addition, during 2013, we recorded revenues related to the IncentiveScheme for Additional Injection of Natural Gas, set by Resolution No. 1/2013 from the Planning and Strategic Coordination Commissionof the National Plan of Hydrocarbon Investments. The increase was partially offset by a decrease mainly in sales to the power generationsegment and secondarily in the CNG; • Grain and related products commercialization revenues increased in 2013 by Ps. 1,013 million compared to 2012, which represented anincrease of 78.9%, mainly as a result of higher export volumes, partially offset by lower sales in the local market; and • In addition, revenues also increased by Ps. 1,363 million as a result of the consolidation of GASA, which controls Metrogas, followingour acquisition of control of such company, and by Ps. 266 million as a result of revenues from YPF Energía Eléctrica S.A. See Note 13 tothe Audited Consolidated Financial Statements. 129Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCost of salesCost of sales in 2014 was Ps. 104,492 million, representing a 53.5% increase compared to Ps. 68,094 million in 2013. Among the main factorscontributing to this increase were: • An increase in imported gasoline and diesel fuel, especially “premium” and “ultradiesel,” of Ps. 2,745 million, or 42.4%, primarily as aresult of depreciation of the Argentine peso against the dollar (slightly lower in U.S. dollars), while diesel fuel imported volumesremained flat and gasoline imported volumes increased slightly; • A net increase in purchases of crude oil from third parties of approximately Ps. 2,267 million, or 28.6%, primarily as a result of anincrease in average prices charged by third parties in Argentine peso terms of approximately 55.3%, which was mainly related todepreciation of the Argentine peso. In comparison, there was a 5% increase in average prices charged by third parties in U.S. dollar terms.This increase was partially offset by (i) a 527,000 cm decrease in purchased volumes, primarily as a result of higher than usual purchasesof heavy crude oil during the first quarter of 2013 to supply higher fuel oil production for electricity generation and (ii) the inclusion ofcrude oil production of YSUR; • An increase in purchases of biofuels of Ps. 2,799 million, or 70.3%, primarily as a result of an approximately 37% increase in the price offatty acid methyl esters (“FAME”) and a 50% increase in the price of bioethanol. The volumes purchased of FAME and bioethanolincreased 5% and 49%, respectively; • An increase in fixed assets depreciation costs of Ps. 8,435 million, or 78.4%, primarily as a result of (i) increased investments in assets,(ii) overall increases in Argentine peso terms of the value of fixed assets, which was related to the depreciation of the Argentine pesoagainst the U.S. dollar (which is the functional currency of the Company), (iii) increases in production volumes with a consequentialeffect on depreciation rates and (iv) the depreciation of additional assets incorporated as a result of the YSUR acquisition; • An increase in the costs of operational services and other repair and maintenance service contracts of Ps. 6,201 million, or 64.5%,primarily as a result of (i) increases in services provided in the Upstream business segment related to oil and natural gas productionincreases, (ii) operational costs linked to YSUR’s operations since the acquisition in early 2014 and (iii) an overall increase in prices; • An increase in royalty payments of Ps. 3,617 million, or 65.7%, primarily as a result of increases of (i) Ps. 2,586 million related to crudeoil production of YPF S.A., (ii) Ps. 543 million related to natural gas production of YPF S.A., (iii) Ps. 460 million related to crude oil andnatural gas production of YSUR and (iv) Ps. 28 million related to crude oil and natural gas production of YPF Energía Eléctrica S.A.These increases resulted from higher production volumes and also from higher prices in Argentine peso terms, which were mainly relatedto the depreciation of the Argentine peso against the U.S. dollar; • Increases in salaries and other personnel expenses of Ps. 1,644 million or 30.9%, mainly as a result of negotiations and agreements withcorresponding unions; • Increases in environmental provisions of Ps. 205 million, primarily as a result of developments related to environmental liabilities inboth the Exploration and Production and Downstream business segments; and • An increase in other production costs of Ps. 323 million, primarily as a result of the acquisition and incorporation of YSUR in ourconsolidated financial statements.These increases were partially offset by insurance compensation of Ps. 2,041 million recognized during 2014, which stemmed from YPF’s insurancecoverage related to the April 2013 La Plata refinery fire. This compensation was recorded primarily as lower costs for purchases. In relation to this event, in2013 we recorded compensation of Ps. 1,479 million under other income (expense), net by way of pecuniary damage compensation and Ps. 477 million inlost profits, which is reflected as lower costs for purchases. We used a similar approach to recording the compensation in 2014.Cost of sales during 2013 was Ps. 68,094 million compared to Ps. 50,267 million during 2012, which represented a 35.5% increase. Among the maincauses that contributed to this increase, we highlight the following: • Higher volumes purchased and prices paid for fuels resulted in a cost increase of Ps. 8,349 million. This increase in cost of sales was dueto higher volumes imported of diesel, mainly in its variety of low sulfur (“Eurodiesel”), and of “unleaded” and “premium” gasoline, withthe aim of domestic demand satisfaction, taking into consideration the effects of the fire that affected our La Plata refinery that reducedour processing capacity. These imports have been made at higher prices in Argentine pesos (slightly lower in U.S. dollars) during 2013compared to 2012, resulting in an increase of costs of fuels of approximately Ps. 2,946 million, or 78%. In addition, local purchases ofdiesel and gasoline were made at higher prices of approximately Ps. 342 million. Furthermore, the purchases of biofuels (FAME andbioethanol) 130Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents added to diesel and gasoline sold by the Company, in compliance with regulations, during 2013, were made at higher prices than in2012. In the case of bioethanol, volumes purchased increased by approximately 18.6%, which represented an increase of approximatelyPs. 916 million in bioethanol costs; • Increase in expenses related to operational services and other repair and maintenance services contracts of approximately Ps.1,974 million, or 27%, due to increased activity mainly in the Upstream segment where the Company has managed to stop the decline ofoil production and further increase natural gas production; • During 2013, approximately 150,000 cm more of crude oil were purchased from third parties compared to 2012, in order to optimize thesupply of liquid fuels in the local market, and to increase the supply of fuel oil to the electricity generating plants, among others. Theaverage price of crude oil purchases, in Argentine pesos, increased by approximately 24.5% during 2013 compared to 2012, principallydue to the impact of the depreciation of the Argentine peso against the U.S. dollar. These factors caused a net increase in costs of thepurchase of crude oil of approximately Ps. 1,871 million, or 31%; • Increase in fixed assets depreciation by Ps. 2,934 million, or 37%, mainly as a result of higher asset values under depreciation comparedto 2012, due to higher investments in fixed assets during 2012 and 2013, as well as to higher translation differences of fixed assetsremeasured in Argentine pesos (taking into account that the U.S. dollar is the functional currency of the Company); • Higher salaries, social security taxes and other personnel expenses, mainly arising from negotiations and agreements with unions, with anincrease of Ps. 1,308 million, or 33%, in costs during 2013 when compared to 2012; and • Increase in oil royalties paid by approximately Ps. 1.258 million, or 37%, due mainly to the higher wellhead value of hydrocarbonsproduced (as a reference, the average purchase price of crude oil during 2013 compared to 2012, showed a slight increase of 2.5%,reaching U.S.$77 per barrel at the end of 2013: it has greater impact expressed in Argentine pesos, due to the 20.4% average devaluationof the Argentine peso between the two periods). Additionally, the amount of royalties for 2013 compared to 2012 increased as a result ofthe increase in the royalty rates which applied to production from recently renewed concessions, such as Santa Cruz at the end of 2012.These increases were partially offset by insurance compensation of Ps. 477 million recognized during 2013, which stemmed from YPF’s insurancecoverage related to the April 2013 La Plata refinery fire. This compensation was recorded primarily as lower costs for purchases.Administrative expensesAdministrative expenses in 2014 were Ps. 4,530 million, representing a 68.7% increase compared to Ps. 2,686 million in 2013, primarily as a result ofincreases in publicity and advertising expenses, personnel cost increases for wage increases, IT service contracts and higher expenses due to the incorporationinto the consolidation process as a result of the acquisitions of Metrogas S.A. since the takeover of that company in May 2013 and YSUR, as discussed inNote 13 to the Audited Consolidated Financial Statements.Administrative expenses were Ps. 2,686 million for 2013, an increase of Ps. 454 million, or 20.3%, compared to 2012, particularly due to increases inwages and social security costs, driven mainly by wage adjustments during 2012 and during 2013, as well as increases in legal fees related to certaincontingencies and because we began consolidating Metrogas S.A. since the takeover of that company in May 2013, into our consolidated financialstatements, as described in Note 13 to our Audited Consolidated Financial Statements.Selling expensesSelling expenses in 2014 increased to Ps. 10,114 million, a 33.6% increase compared to Ps. 7,571 million in 2013, primarily as a result of higher banktransaction taxes as a consequence of our increased activity and increased transportation fees for fuel products in the domestic market.Selling expenses were Ps. 7,571 million during 2013 compared to Ps. 5,662 million in 2012, which represented an increase of 33.7%, resulting mainlyfrom increase in fuel freight rates in the domestic market and from higher volumes transported related to sales increases, and higher export taxes as a result ofincreased volumes exported during 2013, especially crude oil and LPG volumes compared to 2012. Higher export taxes related to crude oil exports amountedto Ps. 367 million in 2013. 131Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExploration expensesExploration expenses in 2014 increased to Ps. 2,034 million, representing a 145.4% increase compared to Ps. 829 million in 2013, primarily as a resultof an increment in the exploration activity in Argentina. In 2014, investments of exploration assets increased to Ps. 2,259 million, representingapproximately a 149% increase compared to the previous year.Exploration expenses were Ps. 829 million in 2013, with a net increase of Ps. 247 million compared to 2012. This was mainly due to the registration ofthe permanent abandonment of six exploratory wells in the Neuquina Basin, for shale oil projects. Although these wells did discover hydrocarbons andprovide geological data for the future development of the area, given the production volume and other particular characteristics thereof, we did not considerthem for further commercial development.Other (expenses) income, netOther (expenses) income, net in 2014 decreased to a loss of Ps. 1,030 million, compared to income of Ps. 227 million in 2013, a decrease of Ps. 1,257million. The net loss recorded in 2014 was primarily as a result of (i) a provision of approximately Ps. 1,227 million that was recorded in 2014 by MaxusEnergy Corporation, a subsidiary of YPF Holdings, which was related to third party claims based on alleged contractual responsibilities, which it iscontesting (see Note 3 to the Audited Consolidated Financial Statements); (ii) revenues of approximately Ps. 369 million recorded during 2014 from the saleof a 30% interest in the extension of the La Ventana concession area in the province of Mendoza to Sinopec; and (iii) the income for the transfer of assets toPluspetrol (primarily Cerro Arena) for approximately Ps. 188 million. The net income recorded in 2013 was primarily as a result of (i) expenses during thesecond quarter of 2013 related to the AES Uruguaiana Emprendimientos S.A. (AESU) and Transportadora de Gas del Mercosur (TGM) arbitration based on apartial award rendered by the International Chamber of Commerce Arbitration Tribunal; and (ii) revenue of Ps. 1,479 million recorded in 2013 correspondingto the accrual of insurance for material damage of the Coke A Unit and Topping C Unit, both as a result of the previously-discussed April 2, 2013 fire at theLa Plata refinery.During 2013, other (expense) income, net, was income of Ps. 227 million compared to expenses of Ps. 528 million in 2012. This increase is mainlyattributable to the net effect of the following factors: the U.S.$227 million (Ps. 1,479 million) recognized in our results of operations relating to the partialcompensation of Coke A Unit damages for 2013 related to our insurance coverage for the La Plata refinery incident in April 2013. partially offset by the non-material effect attributable to the total write-off of the book value of the La Plata refinery Coke A Unit and partial write-off of the book value of the ToppingC Unit; our increased provisions related to arbitration proceedings involving the Company in connection with AESU and TGM, and to the partial awardissued by the International Chamber of Commerce Arbitration Tribunal. See Note 3 to the Audited Consolidated Financial Statements.As previously mentioned, the Company was affected by the consequences of an unprecedented storm that involved all the La Plata, Berisso andEnsenada areas and particularly our La Plata refinery. This storm damaged certain facilities of the Company, and also had an impact on operating marginsassociated with our Downstream segment. Since the storm, the Company has made significant efforts to continue to satisfy demand, as well as to restore theprocessing capacity of its Topping C Unit on schedule, which has been fully operational since the end of May 2013.Operating incomeOperating income in 2014 increased to Ps. 19,742 million, representing a 76.9% increase compared to Ps. 11,160 million in 2013, due to the factorsdiscussed above.Operating income in 2013 was Ps. 11,160 million compared to Ps. 7,903 million in 2012, which represented an increase of Ps. 3,257 million or 41.2%,due to the factors described above.Financial income (expense), netFinancial income (expense), net in 2014 was income of Ps. 1,772 million compared to income of Ps. 2,835 million in 2013, primarily as a result ofhigher net financial interest expenses due to overall higher levels of indebtedness and higher interest rates in 2014, which was partially offset by the effect ofhigher foreign exchange gains on net monetary liabilities in Argentine pesos related to the depreciation of the Argentine peso against the U.S. dollar. Theaverage net amount of financial indebtedness in 2014 was Ps. 30,362 million, compared to Ps. 16,767 million during 2013. The average net amount offinancial indebtedness was calculated as the linear average of current and non-current loans at the beginning and end of the corresponding period, net of thelinear average of cash and cash equivalents at the beginning and end of the corresponding period. 132Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsFinancial income (expense), net for 2013 was income of Ps. 2,835 million compared to income of Ps. 548 million in 2012. This income was mainly dueto higher interest paid due to the higher average amount of borrowings during 2013 and also due to higher interest rates applicable to our debt due tochanges in market conditions in Argentina, which were more than offset by the higher positive exchange rate differences generated by higher Argentine pesodepreciation during 2013 compared to 2012, considering the net liability position in pesos of the Company.Income tax and deferred income taxIncome tax and deferred income tax in 2014 totaled Ps. 13,223 million, representing a 42.7% increase compared to Ps. 9,269 million during 2013,primarily as a result of (i) an increase in current income tax payable of Ps. 4,479 million as a result of increased taxable income mainly explained for thereasons described above and (ii) a decrease of deferred tax liabilities of Ps. 525 million.Income tax and deferred income tax during 2013 were Ps. 9,269 million, Ps. 4,606 million higher than the charge in 2012, which had reached Ps. 4,663million. The total charge related to current income tax was Ps. 2,844 million and Ps. 2,720 million in 2013 and 2012, respectively, while Ps. 6,425 millionand Ps. 1,943 million correspond to deferred income tax charges in 2013 and 2012, respectively. The latter charges are primarily related to the recording ofdeferred tax liabilities associated with the translation differences of fixed assets, taking into account the functional currency of the Company, whichrepresented an increase of Ps. 4,482 million that affected the Company’s results.Net income and other comprehensive incomeNet income in 2014 was Ps. 8,849 million, representing a 74.2% increase compared to Ps. 5,079 million in 2013, due to the factors discussed above.Net income for 2013 was Ps. 5,079 million compared to Ps. 3,902 million in 2012, representing an increase of 30.2%, due to the factors describedabove.Other comprehensive income in 2014 was Ps. 16,276 million representing an approximately 35.3% increase compared to Ps. 12,031 million in 2013,primarily as a result of higher currency translation difference of fixed assets, taking into account that the U.S. dollar is the functional currency of theCompany and changes in the exchange rate.Total comprehensive income in 2014 was Ps. 25,125 million, representing an approximately 46.8% increase compared to Ps. 17,110 million during thesame period in 2013, as a result of the factors discussed above.Other comprehensive income in 2013 was Ps. 12,031 million compared to Ps. 4,241 million for 2012, which represented an increase of 183.7%. Thisincrease is mainly attributable to higher translation differences of fixed assets, due to the impact of the depreciation of the peso against the U.S. dollar, whichis the functional currency of the Company, and the changes in the U.S. dollar/peso exchange rate.Based on the above, the total comprehensive income for 2013 was Ps. 17,110 million compared to Ps. 8,143 million in 2012, which represented anincrease of 110.1%.Consolidated results of operations by business segment for the years ended December 31, 2014, 2013 and 2012In 2013, we reorganized our reporting structure by grouping the Chemical and Refining and Marketing segments into a new Downstream segment. Wemade this change primarily because of the common strategy shared by the former Chemical and Refining and Marketing segments, in light of the synergiesinvolved in their activities to maximize the volume and quality of fuel offered to the market. Accordingly, the Company has adjusted comparativeinformation for 2012 to reflect this reorganization. 133Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe following table sets forth revenues and operating income for each of our business segments for the years ended December 31, 2014, 2013 and2012: For the year ended December 31, 2014 2013 2012 (in millions of pesos) Revenues (1) Exploration and production Revenues 8,853 3,851 1,135 Revenue from intersegment sales (3) 61,844 38,846 30,179 Total exploration and production 70,697 42,697 31,314 DownstreamRevenues 132,254 85,624 65,047 Revenue from intersegment sales 1,489 1,147 1,069 Total refining and marketing 133,743 86,771 66,116 Corporate and otherRevenues 835 638 992 Revenue from intersegment sales 5,212 2,285 1,243 Total corporate and others 6,047 2,923 2,235 Less inter-segment sales and fees (68,545) (42,278) (32,491) Total revenues 141,942 90,113 67,174 Operating income (Loss) (2)Exploration and production 12,353 6,324 5,730 Downstream 10,978 6,721 4,095 Corporate and other (3,343) (1,522) (2,492) Consolidation adjustments (246) (363) 570 Total operating income 19,742 11,160 7,903 (1)Revenues are net of payment of a fuel transfer tax and turnover tax. Customs duties on hydrocarbon exports are disclosed in “Taxes, charges andcontributions,” as indicated in Note 2.k) to the Audited Consolidated Financial Statements. Royalties with respect to our production are accounted foras a cost of production and are not deducted in determining revenues. See Note 1.b.16) to the Audited Consolidated Financial Statements.(2)Includes exploration costs in Argentina and the United States and production operations in Argentina and the United States.(3)Intersegment revenues of crude oil to Downstream are recorded at transfer prices that reflect our estimate of Argentine market prices.Exploration and ProductionNet revenues from the Exploration and Production business segment in 2014 were Ps. 70,697 million, representing a 65.6% increase compared to Ps.42,697 in 2013.Operating income for the Exploration and Production business segment in 2014 was Ps. 12,353 million, representing a 95.3% increase compared to Ps.6,324 million in 2013. This increase in operating income was principally due to the following factors: • The intersegment oil price measured in U.S. dollars increased 2.2%, representing an approximately 51% increase in Argentine peso terms,which was related primarily to the depreciation of the Argentine peso against the U.S. dollar. Oil production in respect of our operationsin Argentina in 2014 reached 235.7 thousand barrels per day, representing a 2.0% increase, in addition to 7,800 barrels per day as a resultof the YSUR acquisition. This contributed to the increase of 1.2 million cm of crude oil, or 9.3%, transferred from the Exploration andProduction business segment to the Downstream business segment and a decrease of 212,000 cm of crude oil sales to third partiesprincipally outside Argentina. • Natural gas production in respect of our operations in Argentina in 2014 reached 37.6 million cm per day, representing approximately an11.1% increase, in addition to a 4.8 million cm per day increase as a result of the YSUR acquisition. With the exception of the YSURproduction, all natural gas produced, net of internal consumption, is assigned to the Downstream segment for sale to third parties. TheExploration and Production business segment records the average price obtained by YPF in such sales net of sales and marketing fees.The Exploration and Production segment also includes revenues from the Gas Plan, which increases the average prices obtained by YPFas a result of increasing YPF and YSUR’s natural gas production. The average gas income per millon BTU recorded by the Company in2014, including revenues from the Gas Plan, reached U.S.$ 4.32 representing a 6.5% increase compared to U.S.$. 4.05 per millon of BTUin 2013. 134Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Total production costs in respect of our operations in Argentina in 2014 were Ps. 56,311 million, representing a 58.4% increasecompared to Ps. 35,544 million in 2013. Among the main factors contributing to the increase were: – A Ps. 7,589 million, or 79.1%, increase in fixed assets depreciation costs, primarily as a result of overall increases of the value offixed assets in Argentine peso terms, which was related to the depreciation of the Argentine peso against the U.S. dollar, as well asincreased investments in fixed assets and increased production; – A Ps. 5,057 million, or 57.9% increase in the costs of operational services and other repair and maintenance service contracts,primarily as a result of (i) increases in production activity, including crude oil and natural gas production, (ii) an increase in tariffdue to a general increase in prices and (iii) an increase in prices as a result of the depreciation of the Argentine peso; – A Ps. 282 million increase for environmental expenditures/provisions; – An increase in royalty payments of Ps. 3,617 million, or 65.7%, principally due to increases of (i) Ps. 2,586 million relating tocrude oil production of YPF S.A., (ii) Ps. 543 million relating to natural gas production of YPF S.A., (iii) Ps. 460 million relating tothe production of crude oil and natural gas of YSUR and (iv) Ps. 28 million relating to the production of crude oil and natural gasof YPF Energía Eléctrica S.A. These increases resulted from higher production volumes and higher prices in Argentine pesos,which was principally due to depreciation of the Argentine peso against the U.S. dollar; • During 2014, we recorded net revenues of Ps. 369 million for the sale of a 30% interest in the extension of the La Ventana concessionarea in the province of Mendoza to Sinopec and Ps. 188 million for the transfer of assets to Pluspetrol (primarily Cerro Arena). During2013, expenses related to the AESU and TGM arbitration were recorded, based on a partial award rendered by the International Chamberof Commerce Arbitration Tribunal. • Exploration expenses in 2014 were Ps. 2,034 million, representing a 145.4% increase compared to Ps. 829 million during 2013, primarilyas a result of an increase in domestic exploration activity. In 2014, investment in exploration assets increased to Ps. 2,259 million,representing an approximately 149% increase compared to the previous year.During 2013, the Exploration and Production business segment had operating income of Ps. 6,324 million, an increase of 10.4% compared to Ps.5,730 million for the year 2012.During 2013 total crude oil production was 2.2% higher than in 2012 (2.81% if only fields operated by YPF are taken into account), reflecting theefforts of the Company to reverse the production decline since mid-2012. Regarding operations between business segments, transferred volume between theExploration and Production segment and Downstream segment was 2.8% lower during 2013 compared to 2012, mainly due to the temporary reduction inprocessing capacity suffered at our La Plata refinery due to the storm on April 2, 2013. As a result of this, crude oil sales increased in the local market during2013 (about 123,000 cm) and 378,000 cm were exported, mainly during the second quarter of the year, while there were no exports of crude oil in 2012.The intersegment price in U.S. dollars during 2013 increased slightly (2.7%, despite an increase of approximately 23.7% measured in Argentine pesos,considering the depreciation of the peso against the U.S. dollar) compared to 2012.Natural gas production during 2013 amounted to 33.9 mmcm/d, which represented an increase of approximately 1.4% over the last year (4.4% if onlyfields operated by YPF are taken into account), thus showing a reversal of the decline in production. Our entire natural gas production, net of internalconsumption, is assigned to the Downstream segment for commercialization to third parties, in which the Exploration and Production segment received theaverage price obtained by the Company in such sales, net of commercialization fees. Additionally, the Exploration and Production segment includes theIncentive Scheme for Additional Injection of Natural Gas, which represented an increase of Ps. 4,281 million in revenues during 2013.As a result of the above factors, crude oil and natural gas net income increased by 36.4% during 2013 compared to 2012. 135Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOperating expenses for the Exploration and Production segment during 2013, compared to 2012, were affected by the following factors: • A Ps. 2,713 million increase in fixed assets depreciation, mainly as a result of higher asset values under depreciation compared to thesame period of 2012, due to the increase of investments in fixed assets during 2012 and 2013, as well as to higher translation differencesof fixed assets taking into account that the U.S. dollar is the functional currency of the Company; • A Ps. 1,974 million increase in costs related to operation services and other repair and maintenance services contracts, primarily due toincreased activity, which resulted in the reversal of in the decline in production of crude oil and natural gas, and also as a result ofincreased prices paid for such services; • A Ps. 1,258 million increase in royalties paid, due to the higher wellhead price of hydrocarbons produced (as a reference, the averagepurchase price of crude oil during 2013, compared to 2012, showed a slight increase of 2.5% to U.S.$77 per barrel at the end of 2013,although it had greater impact expressed in Argentine pesos, due to the 20.4% average devaluation of the peso against the U.S. dollar).Additionally, the amount of royalties paid for 2013 increased as a result of the increase in royalty rates applicable to production fromrecently renewed concessions, such as Santa Cruz at the end of 2012; and • An increase in provisions recorded by the Company in connection with AESU and TGM arbitration claims, and based on the partialaward issued by the International Chamber of Commerce Arbitration Tribunal. See Note 3 to the Audited Consolidated FinancialStatements.DownstreamNet revenues from the Downstream business segment in 2014 were Ps. 133,743 million, representing a 54.2% increase compared to Ps. 86,771 in 2013.Operating income for the Downstream business segment in 2014 was Ps. 10,978 million, representing a 63.3% increase compared to Ps. 6,721 millionin 2013. This increase in operating income is primarily due to the following factors: • The average volume of oil processed per day in YPF’s refineries increased 4.6% to 290,000 barrels of oil per day, primarily as a result ofthe restoration of the refining capacity at the La Plata refinery after the damage on April 2, 2013 and, to a lesser extent, the increasedavailability of light crude in 2014. • An increase in diesel fuel revenues of Ps. 18,165 million, or 52.4%, primarily as a result of an increase in the average price received fordiesel mix of approximately 51.2% and an increase in sales volumes of approximately 0.8%; • An increase in gasoline revenues of Ps. 11,325 million, or 64.0%, primarily as a result of an increase in the average prices received forgasoline mix of approximately 57.8% and an increase in sales volumes of approximately 3.9%; • An increase in fuel oil revenues of Ps. 3,777 million, or 95.3%, primarily as a result of an increase in the average price received for fueloil of 46.4% and an increase in sales volumes, mainly in the domestic market, of 33.4%; • An increase in petrochemical revenues of Ps. 1,989 million, or 50.9%, primarily in the local market as a result of an increase in theaverage prices received for methanol and aromatics and an increase in sales volumes, which increased revenues by Ps. 1,500 million.Exports increased by Ps. 489 million driven by higher sales volumes of methanol and generally higher prices in Argentine peso terms,which was partially offset by lower overall export volumes of solvents and light paraffinics; and • An increase in natural gas sales volumes and higher average prices received for sales to third parties, which increases the average pricesobtained by YPF when increasing natural gas production. Sales volumes of natural gas, most of which are domestic, increasedapproximately 22%. This increase in natural gas sales had a positive effect on the Downstream results as a consequence of increasedmarketing fees.All of this was partially offset by: • An increase in costs to purchase crude oil from third parties and the Exploration and Production business segment of Ps. 22,547 million,or 58.2%, primarily as a result of increases in crude oil prices in Argentine peso terms related to the depreciation of the Argentine pesoagainst the U.S. dollar as well as higher volumes of crude oil transferred from the 136Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents Exploration and Production business segment. This in turn was partially offset by a decrease in the volume of crude oil purchased fromthird parties of approximately 17% (about 527,000 cm). The average purchase price in Argentine peso terms for crude oil transferred fromthe Exploration and Production business segment increased approximately 51% compared to an increase for oil purchased from thirdparties of approximately 55%. This variation in the percentage amounts is due to different mixes of grades of crude oil purchased fromthird parties; • An increase in the cost of imported gasoline and diesel, especially “premium” and “ultradiesel,” of Ps. 2,745 million, or 42.4%, primarilyas a result of the effect of the depreciation of the Argentine peso (slightly lower in U.S. dollars), while diesel imported volumes remainedflat and gasoline imported volumes increased slightly; • An increase in purchases of biofuels of Ps. 2,799 million or 70.3%, primarily as a result of an approximately 37% increase in the price ofFAME and a 50% increase in the price of bioethanol. The volumes purchased of FAME and bioethanol increased 5% and 49%,respectively; and • An increase in production costs of Ps. 1,895 million, representing a 51.5% increase, primarily as a result of increases in (i) freight costs fortransporting crude oil and raw material, (ii) fees for use of port facilities, (iii) contracted services rates for refinery repair and maintenanceand (iv) insurance policies. These increases were driven by different factors, including general price increases in the economy and wageincreases. Decreased costs were also recorded with respect to provisions for environmental liabilities of Ps. 77 million. As a result of thesecost increases as well as increased refining activities, refining costs increased 45% in Argentine peso terms during 2014.These increases to costs were partially offset by insurance income of Ps. 2,041 million recorded during 2014, which stemmed from YPF’s insurancecoverage related to the April 2013 La Plata Refinery fire. This income was registered primarily as lower costs for purchases. In relation to this event, in 2013we had recorded a gain of Ps. 1,479 million under Other (expense) income, net by way of pecuniary damage compensation and Ps. 477 million in lost profits,which is reflected as lower costs for purchases. We used with a similar approach to recording the income in 2014.During 2013, the Downstream segment, which activities include refining and marketing, logistics, chemicals, natural gas distribution and electricitypower generation, recorded operating income of Ps. 6,721 million, compared to Ps. 4,095 million in 2012. The main factors that affected the results ofoperations of this segment during 2013 are the following: • Diesel oil sales revenues during 2013 increased by approximately Ps. 7,259 million compared to 2012. Within this context, the averageprice for diesel mix during 2013, represented an increase of approximately 25.4% over the average price obtained for the same period in2012. In addition, there was a slight increase in sales volumes of approximately 1% primarily in our Diesel 500 and Eurodiesel productsin the retail segment, which was partially offset by a decrease in sales of Ultradiesel at YPF-branded service stations and transportationsegment; • Net increase in gasoline sales, during 2013, of approximately Ps. 5,320 million compared to 2012 . Within this context, there was anincrease in volumes sold of approximately 10.1% (12.7% if only considered the “unleaded” gasoline). Additionally, during 2013, theaverage price for the gasoline mix showed an increase of approximately 29.8% , compared to the average price registered in 2012; • Sales volumes of fuel oil in the local market during 2013 remained almost unchanged from 2012 (approximately 734,000 tons in 2013versus 736,000 tons in 2012), which represented primarily sales to the electricity generation market. Product volumes had increasedsubstantially during the first, quarter of 2013, but then we were affected by lower capacity utilization temporarily suffered in ourRefinery in La Plata from April 2 accident explained below. Additionally, the average price of fuel oil increased during 2013,approximately 20.1% compared to 2012. These effects had a positive impact of approximately Ps. 359 million in sales revenues fromthese products compared to 2012; • Petrochemicals sales revenues in the local market, during 2013, experienced higher volumes and higher prices related to aromaticproducts, LAB and alcohols, and lower volumes of methanol, but with higher prices, all which represented a net revenue increase ofapproximately Ps. 470 million compared to 2012. Regarding exports of petrochemicals, there were higher volumes exported of methanoland solvents , cut under light paraffinic and alcohols, offset by the sales price of petrochemical exports, resulting in a negative net effecton sales revenue of approximately Ps. 33 million; • During 2013, higher volumes imported of “unleaded” and “Premium” gasoline and diesel, mainly in its variety of low sulfur(“Eurodiesel”), the latter having been made at higher prices in pesos (slightly less in dollars) compared to 2012, which resulted in acombined increase of approximately Ps. 2,946 million. These imports, like the higher local purchases of diesel and gasoline ofapproximately Ps. 342 million, were undertaken in order to maintain the level of customer satisfaction; 137Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Higher volumes and costs in purchases of biofuels (“FAME” and bioethanol) to be included in diesel and gasoline sold by the Company,in compliance with current regulations (Law No. 26,093), In the case of bioethanol, volumes increased by approximately 18.6%, all ofwhich represented an increase of approximately Ps. 916 million; • During 2013 (especially during the first quarter), approximately 150 thousand cm of crude oil were purchased from third partiescompared to 2012, in order to optimize the supply of liquid fuels in the local market and to increase the supply of fuel oil to electricitygenerating plants, among others. The average price of crude oil purchases, in pesos, increased approximately 24.5% during 2013compared to 2012, due to an increase in the exchange rate. These effects contributed to a net increase of the purchase of crude oil fromother producers of approximately Ps. 1,871 million. Also, the average purchase price of crude oil exploration and production segment,measured in pesos, increased approximately 23,7% during 2013 compared to 2012; • Regarding production costs, during 2013, freight rates for crude oil and raw materials transportation increased as well as rates for use ofport and harbor facilities and contracted services rates for repair and maintenance of our refineries, primarily due to economic recoveryand wage increases. Also, especially in the second and third quarter of 2013, we recorded charges related to the repair of damages causedby the storm suffered at our refinery La Plata, and to cleaning, remediation and general repairs of the Complex. As a result of this, thetotal amount of charges increased by approximately by 32.8% and considering also the lower level of processing in refineries asmentioned below, the refining cost increased by approximately 38.2% during 2013 compared to in 2012, being the current Ps. 37.5 perbarrel; • Increases in provisions for environmental remediation were recorded for approximately Ps. 287 million in 2013 compared to 2012; and • Regarding natural gas, the Company has continued to fulfill domestic demand, allocating almost all of its production to the local market.During 2013, there was a similar level of volumes sold to distributors in the residential segment, decreasing the volumes allocated topower generation plants, CNG, and to suppliers and customers of the industrial segment. In terms of prices, there was a partial recoveryprimarily on CNG and industrial segments in the Argentine market. On the other hand, average selling prices in dollars to our jointly-controlled company, Mega, whose contract links prices to internationally traded commodities, decreased approximately by 9.1%, havingbeen increased by approximately 9.4% when expressed in pesos.During 2013, the utilization capacity of our refineries was approximately 278 thousand barrels of oil per day, representing a decrease of approximately3.6% compared to 2012. This decrease was due almost entirely to the lower refining capacity of La Plata refinery, affected by a storm. The other two refineriesof the Company, Lujan de Cuyo and Plaza Huincul, operated practically at 100% capacity during 2013.On April 2, 2013 our facilities in the La Plata refinery were hit by a severe and unprecedented storm, recording over 400 mm of rainfall (which was themaximum ever recorded in the area). The heavy rainfall disrupted refinery systems and caused a fire that affected the Coke A and Topping C Units in therefinery. This incident temporarily affected the crude processing capacity of the refinery, which had to be stopped entirely. Seven days after the event, theprocessing capacity was restored to about 100 mbbl/d through the commissioning of two distillation units (Topping IV and Topping D). The Coke A Unit hasbeen shut down permanently since the storm, and, after a significant restoration effort, the Topping C unit resumed operation with full nominal capacity inlate May 2013.Regarding this incident, during 2013 we recognized U.S.$ 300 million in our results of operations relating to the partial compensation of Coke Adamages and operational losses for 2013 related to our insurance coverage for the La Plata refinery incident in April 2013, partially offset by the non materialeffect attributable to the total write-off of the book value of the La Plata refinery Coke A Unit and partial write-off of the book value of the Topping C Unit.For information related to revenues and costs of our subsidiaries Metrogas S.A. and YPF Energía Eléctrica S.A., which we began consolidating in thesecond and third quarters of 2013, respectively, see Note 13 to the Audited Consolidated Financial Statements. 138Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCorporate and othersThe operating loss for the corporate and others segment in 2014 was Ps. 3,343 million, representing a 120% increase compared to a loss of Ps.1,522 million in 2013, primarily as a result of (i) a provision of Ps. 1,227 million, recorded in 2014 by Maxus Energy Corporation, a subsidiary of YPFHoldings, which was related to third party claims based on alleged contractual responsibilities, which it is contesting (see Note 3 to the Audited ConsolidatedFinancial Statements); (ii) increased wages and social contributions; and (iii) higher fees for services and publicity and advertising, all of which was partiallyoffset by improved results from our subsidiary A-Evangelista S.A.In 2013, the operating loss for the corporate and others segment was Ps. 1,522 million, compared to Ps. 2,492 million for 2012 . Segment results werepositively affected by lower losses related to (i) the estimated costs of environmental remediations of our subsidiary YPF Holdings compared to thoserecorded in 2012; (ii) improved results in 2013 by our subsidiary A-Evangelista S.A.; and (iii) the effect of the redistribution of certain corporate costs tobusiness units, all of which were partially offset by higher costs of salaries, social security and IT services contracts and institutional advertising.Liquidity and Capital ResourcesFinancial conditionTotal loans outstanding as of December 31, 2014, 2013, and 2012 was Ps. 49,305 million, Ps. 31,890 million and Ps. 17,104 million, respectively,consisting of (i) current loans (including the current portion of non-current debt) of Ps. 13,275 million and non-current debt of Ps. 36,030 million as ofDecember 31, 2014, (ii) current loans of Ps. 8,814 million (including the current portion of non-current debt) and non-current debt of Ps. 23,076 million as ofDecember 31, 2013 and (iii) current debt of Ps. 5,004 million (including the current portion of non-current debt) and non-current debt of Ps. 12,100 million asof December 31, 2012. As of December 31, 2014, 2013 and 2012, approximately 66%, 60%, and 52% of our debt was denominated in U.S. dollars,respectively.In the past we have repurchased certain of our publicly-traded bonds in open market transactions on an arms-length basis. As of December 31, 2014, wehad repurchased approximately U.S.$26.24 million of our outstanding bonds. We may, from time to time, make additional purchases of, or effect othertransactions relating to, our publicly-traded bonds if, in our own judgment, the market conditions are attractive.The following tables set forth our consolidated cash flow information for the periods indicated. For the year ended December 31, 2014 2013 2012 (in millions of pesos) Net cash flows provided by operating activities 46,154 20,964 17,301 Net cash flows used in investing activities (53,405) (22,201) (16,403) Net cash flows provided by financing activities 4,986 6,979 2,654 Translation differences generated by cash and equivalents 1,310 224 83 Net (decrease) increase in cash and equivalents (955) 5,966 3,635 Cash and equivalents at the beginning of period 10,713 4,747 1,112 Cash and equivalents at the end of period 9,758 10,713 4,747 Net cash flows provided by operating activities were Ps. 46,154 million in 2014, compared to Ps. 20,964 million in 2013. This 120% increase was primarilyattributable to better operating results, without considering depreciation of fixed assets and increased non-cash 139Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsprovisions (See Note 3 to the Audited Consolidated Financial Statements). In addition, during 2014 we collect Ps. 1,689 million in insurance for lost profits,in connection with the La Plata refinery fire in April 2013. In our opinion, given the high level of cash flows provided by our operating activities, weconsider our working capital to be reasonable for the Company’s present requirements.Net cash flow provided by operating activities was Ps. 20,964 million in 2013, compared to Ps. 17,301 million in 2012. This 21% increase wasprimarily attributable to improved operating results, whithout considering depreciation of fixed assets and provisions included in liabilities (mainlyrecording the provisions related to the effects of awards in arbitration proceedings relating to TGM and AESU), which did not require disbursement of funds,during 2013 compared to 2012.Our use of cash in investing activities during 2014 reached Ps. 53,405 million, an increase of Ps. 31,204 million compared with the previous year,representing an increase of approximately 140.6%, which relate mainly to investments made by our Exploration and Production segment and investment inour refineries, and also considering the contributions of capital investments in companies, for a total of Ps. 29,731 million, including the acquisitions ofYSUR, the additional interests in the Puesto Hernández, Lajas, La Amarga Chica and Bajada de Añelo areas. Moreover, there was also a lower collection fromsale of fixed assets and intangible assets of Ps. 3,291 million, based on 2014 revenues from the sale of assets to Pluspetrol and partial sales extensionsconcessions of La Ventana and Magallanes concessions, while in 2013 included the collection from the investment agreement with Chevron in the LomaCampana area. There is also the collection in 2014 of Ps. 1,818 million in property damage insurance, related to the loss suffered by our La Plata refinery in2013.Net cash flow provided by financing activities during 2014 was Ps. 4,986 million, which primarily came from the issuance of notes in the local marketand international markets, net of repayments of principal and interest, including issuance of notes in the international debt capital markets for an aggregateprincipal amount of U.S.$1 billion, which was the largest made by an Argentine company in history. In 2013, net cash flow provided by financing activitiesduring 2013 was Ps. 6,979 million, which primarily came from the issuance of notes in the local market and international markets, net of repayments ofprincipal and interest.Our principal uses of cash in investing and financing activities during 2012 included Ps. 16,403 million for investments in fixed assets, which relatemainly to investments made by our Exploration and Production unit and investment in our refineries. Our net cash flows provided by financing activitiesincreased by Ps. 2,654 million as a result of corporate borrowings.In 2014, at the shareholders’ general ordinary and extraordinary meeting held on April 30, 2014, and its continuation on May 21, 2014, a dividend ofPs. 464 million (Ps. 1.18 per share or ADS) was authorized for payment during 2014. In 2013, at the ordinary and extraordinary general shareholders’ meetingheld on April 30, 2013 and its continuation on May 30, 2013, a dividend of Ps. 326 million (Ps.0.83 per share or ADS) was authorized for payment during2013. After the passage of the Expropriation Law, in the shareholders’ meeting held on July 17, 2012, a dividend of Ps. 303 million (Ps.0.77 per share orADS) was authorized for payment during 2012. In addition, our strategy provides for an increased level of investments that will require a significantreinvestment of earnings and therefore considers a potential dividend distribution consistent with our strategy.The shareholders’ meeting held on January 8, 2008, approved a Medium-Term Notes Program for an amount up to U.S.$1.0 billion. On September 13,2012 and on April 30, the shareholders’ meeting approved the increase of the amount of the program, mentioned above, for an amount of U.S.$2.0 billion ineach time, resulting in a maximum nominal amount in circulation at any time under the program of U.S.$5.0 billion, or its equivalent in other currencies, andproviding the use of the proceeds, to cover all alternatives contemplated by Article 36 of Law No. 23,576 of Negotiable Obligations and Supplementaryrules. On February 5, 2015, the shareholders’ meeting resolved by a majority of computable votes to approve the increase of the amount of the Company’sGlobal Medium-Term Notes Program of U.S.$5.0 billion or its equivalent in other currencies by U.S.$3.0 billion, resulting in the total maximum nominalamount outstanding under the program at any time becoming U.S.$8.0 billion, or its equivalent in other currencies, or a lower amount as may be determinedby the Board of Directors.Under such Medium-Term Notes Program, YPF S.A. issued several series of notes in the local and international markets, and at different interest rates.All such securities are authorized to be traded on the Buenos Aires Stock Exchange (Bolsa de Comercio de Buenos Aires) and the Electronic Open Market(Mercado Abierto Electrónico) in Argentina. In addition, during 2013 we acquired the control of GASA which has outstanding notes, including those relatedto its controlled company Metrogas S.A., for an amount of Ps. 1,737 million as of December 31, 2014. For additional information about the outstanding notesof YPF S.A. and our controlled companies as of December 31, 2014, see Note 13 to the Audited Consolidated Financial Statements. 140Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe following table sets forth our commitments for the periods indicated below with regard to the principal amount of our debt, as of December 31,2014, plus accrued but unpaid interest as of that date: Expected Maturity Date Total Lessthan 1year 1 – 2Years 2 – 3Years 3 – 4Years 4 – 5Years Morethan 5years (in millions of pesos) Debt 49,305 13,275 8,619 4,341 8,784 2,830 11,456 For detailed information regarding our indebtedness, see Note 2.i to the Audited Consolidated Financial Statements.Contractual obligationsThe following table sets forth information with regard to our commitments, expressed in U.S. dollars, under commercial contracts for the periodsindicated below, as of December 31, 2014: Contractual Obligations Total Less than 1year 1 – 3Years 3 – 5Years More than 5years (in millions of U.S.$)(5) Debt(1) 8,175 2,106 2,408 1,904 1,757 Operating Lease Obligations 828 284 279 155 111 Purchase Obligations(2) 3,994 1,905 1,431 608 51 Purchases of services 3,269 1,306 1,322 596 45 Purchases of goods 725 599 109 12 6 LPG 16 12 4 — — Electricity 28 10 18 — — Gas 6 5 — — 1 Oil 74 67 3 3 2 Steam 25 6 12 6 — Others 577 499 72 2 4 Other Liabilities(3)(6) 9,246 4,616 1,025 1,095 2,510 Total(3)(4) 22,243 8,911 5,142 3,761 4,429 (1)These projected amounts include interest due during all the periods presented. Interest on variable rate instruments is calculated using the rate as ofDecember 31, 2014 for all periods. See additionally Operating and Financial Review and Prospects—Liquidity and Capital Resources—Covenants inour indebtedness.”(2)Includes purchase commitments under commercial agreements that do not provide for a total fixed amount, which have been valued using our bestestimates. Accordingly, our actual purchase obligations may differ from the estimated amounts shown in the table.(3)Reserves for contingent liabilities under commercial contracts, which amounted to U.S.$ 925 million as of December 31, 2014, are not included in thetable above since we cannot, based on available evidence, reasonably estimate the settlement dates of such contingencies.(4)In addition to the contractual obligations detailed in the preceding table, we are also committed to carry out exploration activities in certainexploration areas and to make certain investments and expenditures until the expiration of some of our concessions. These commitments amounted toapproximately U.S.$ 12,452 million as of December 31, 2014.(5)The table is presented in U.S.$, which is the Company’s functional currency, and not in its reporting currency, as the majority of the Company’scontractual obligations are originally denominated in U.S.$.(6)Includes accounts payable, salaries and social security, taxes payable, provisions for pensions, provisions for environmental liabilities and provisionsfor hydrocarbon wells abandonment obligations as set forth in our audited consolidated financial statements included as of December 31, 2014.We have additional commitments under guarantees. For a discussion of these additional commitments see “—Guarantees provided.”Covenants in our indebtednessOur financial debt generally contains customary covenants. With respect to a significant portion of our financial debt totaling Ps. 49,305 million,including accrued interest (long- and short-term debt) as of December 31, 2014, we have agreed, among other things and subject to certain exceptions, not toestablish liens or charges on our assets. In addition, approximately 33% of our financial debt outstanding as of December 31, 2014 was subject to financialcovenants related to our leverage ratio and debt service coverage ratio. 141Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsRegarding our outstanding notes amounting to Ps. 36,916 million as of December 31, 2014, the creditors may, upon an event of default, declare dueand immediately payable the principal and accrued interest on amounts owed to them.Almost all of our total outstanding financial debt is subject to cross-default provisions. As a result of these cross-default provisions, a default on ourpart or, in certain cases, the part of any of our consolidated subsidiaries covered by such provisions, could result in a substantial portion of our debt beingdeclared in default or accelerated.As of the date of this annual report none of our debt is under any event of default that could trigger an acceleration provision. As of December 31,2014, we were in compliance with all covenants in connection with our indebtedness.Guarantees providedAs of December 31, 2014, we have issued letters of credit in an aggregate total value of U.S.$ 27 million (as of the date of this annual report thisamount remains unchanged) to guarantee certain environmental obligations and guarantees in an aggregate amount of U.S.$ 221 million in relation with theperformance of contracts of certain of our controlled companies.In addition, see Note 11.c to the Audited Consolidated Financial Statements for a description of the transaction we entered into with Chevron.Capital investments, expenditures and divestituresCapital investments and expendituresCapital investments in 2014 totaled approximately Ps. 52,208 million. The table below sets forth our capital expenditures and investments by activityfor each of the years ended 2014, 2013 and 2012. 2014 2013 2012 (inmillionsof pesos) (%) (inmillionsof pesos) (%) (inmillionsof pesos) (%) Capital Expenditures and Investments(1) Exploration and Production 42,408 81 24,807 82 12,377 74 Downstream 8,392 16 4,903 16 4,232 25 Corporate and Other 1,408 3 453 2 142 1 Total 52,208 100% 30,163 100% 16,751 100 (1)Includes acquisitions of fixed assets and exploration expenses, net of unproductive drilling expenses and well abandonment costs.Our strategy intends to reaffirm our commitment to creating a new model of the Company in Argentina which aligns our objectives, seeking profitableand sustainable growth that generates shareholder value, with those of the country, thereby positioning YPF as an industry-leading company aiming at thereversal of the national energy imbalance and the achievement of hydrocarbon self-sufficiency in the long term.To achieve the goals set forth above, we intend to focus on (i) the development of unconventional resources, which we see as a unique opportunitybecause a) we have expectations related to the existence of large volumes of unconventional resources in Argentina according to estimates of leading reportson global energy resources, b) we currently possess a relevant participation in terms of exploration and exploitation rights on the acreage in which suchresources could be located in, and c) we believe we can integrate a portfolio of projects with high production potential; (ii) the re-launch of conventional andunconventional exploration initiatives in existing wells and expansion to new wells, including offshore; (iii) an increase in capital and operatingexpenditures in mature areas with expected higher return and efficiency potential (through investment in improvements, increased use of new perforationmachinery and well intervention); (iv) a return to active production of natural gas to accompany our oil production; and (v) an increase in production ofrefined products through an enhancement of the refining capacity (including improving and increasing our 142Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsinstalled capacity and upgrading and converting our refineries). The previously mentioned initiatives have required and will continue to require organizedand planned management of mining, logistic, human and financing resources within the existing regulatory framework, with a long-term perspective.The investment plan related to our growth needs to be accompanied by an appropriate financial plan, whereby we intend to reinvest earnings, searchfor strategic partners and acquire debt financing at levels we consider prudent for companies in our industry. Consequently, the financial viability of theseinvestments and hydrocarbon recovery efforts will generally depend, among other factors, on the prevailing economic and regulatory conditions inArgentina, the ability to obtain financing in satisfactory amounts at competitive costs, as well as the market prices of hydrocarbon products.Capital divestituresWe have not made any significant divestitures in the past three years.Quantitative and Qualitative Disclosures about Market RiskFor a description of our exposure to market risk, see “Item 11. Quantitative and Qualitative Disclosures about Market Risk.”Off-Balance Sheet ArrangementsWe do not have any material off-balance sheet agreements. Our off-balance sheet agreements are described in “—Liquidity and Capital Resources—Guarantees provided.”Research and Development, Patents and Licenses, etc.For a description of our research and development policies, see “Item 4. Information on the Company—Research and Development.” ITEM 6.Directors, Senior Management and EmployeesManagement of the CompanyOn May 3, 2012, the Argentine Congress enacted the Expropriation Law. Among other matters, the Expropriation Law provided for the expropriationof 51% of the share capital of YPF represented by an identical stake of Class D shares owned, directly or indirectly, by Repsol and its controlled orcontrolling entities. The shares subject to expropriation, which have been declared of public interest, will be assigned as follows: 51% to the federalgovernment and 49% to the governments of the provinces that compose the National Organization of Hydrocarbon Producing States. To ensure compliancewith its objectives, the Expropriation Law provides that the National Executive Office, by itself or through an appointed public entity, shall exercise all thepolitical rights associated with the shares subject to expropriation until the transfer of political and economic rights to the provinces that compose theNational Organization of Hydrocarbon Producing States is completed.The Expropriation Law states that YPF shall continue as a publicly traded corporation and the management of the shares subject to expropriation shallbe carried out according to the following principles: (i) strategic contribution of the Company to the aims established in the Expropriation Law; (ii) themanagement of the Company in accordance with the best industry and corporate governance practices, preserving the interests of the Company´sshareholders and creating value for them; and (iii) the professional management of the Company.The information provided below describes the composition and responsibilities of our Board of Directors and committees as of the date of this annualreport.Board of DirectorsComposition of our Board of DirectorsOur business and affairs are managed by the Board of Directors in accordance with our by-laws and the Argentine Corporations Law No. 19,550 (the“Argentine Corporations Law”). Our by-laws provide for a Board of Directors of 11 to 21 members, and up to an equal number of alternates. Alternates arethose elected by the shareholders to replace directors who are absent from meetings or who 143Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsare unable to exercise their duties, when and for whatever period appointed to do so by the Board of Directors. Alternates have the responsibilities, duties andpowers of directors only if and to the extent they are called upon to attend board meetings and as long as they perform the duties of a director.Directors shall hold office from one to three years, as determined by the shareholders’ meetings. Since the Ordinary and Extraordinary GeneralShareholders’ Meeting held on April 30, 2014 and its continuation on May 21, 2014, our Board of Directors is composed of 18 directors and 12 alternates.In accordance with our by-laws, the Argentine government, as the sole holder of Class A shares, is entitled to elect one director and one alternate.Under the Argentine Corporations Law, a majority of our directors must be residents of Argentina. All directors must establish a legal domicile inArgentina for service of notices in connection with their duties.Our by-laws require the Board of Directors to meet at least once every quarter in person or by videoconference, and a majority of directors is required inorder to constitute a quorum. If a quorum is not met one hour after the start time set for the meeting, the President or his substitute may invite alternates of thesame class as that of the absent directors to join the meeting, or call a meeting for another day. Resolutions must be adopted by a majority of the directorspresent (including those connected by video conference), and the President or his substitute is entitled to cast the deciding vote in the event of a tie.The current members of our Board of Directors, the year in which they were appointed and the year their term of appointment expires is as follows: Name Position Age DirectorSince TermExpiration Miguel Galuccio (6) Chairman, Chief Executive Officer (CEO) andDirector 46 2014 2015 Jorge Marcelo Soloaga (6) Director 57 2014 2015 Gustavo Alejandro Nagel Director 47 2014 2015 Jorge Manuel Gil (1) Director 68 2014 2015 Ignacio Perincioli (2) Director 38 2014 2015 Omar Chafí Félix Director 54 2014 2015 Elizabeth Dolores Bobadilla (3) Director 42 2014 2015 Héctor Walter Valle Director 79 2014 2015 Rodrigo Cuesta Director and Legal Affairs Corporate Vice-President 40 2014 2015 José Iván Brizuela Director 41 2014 2015 Sebastián Uchitel Director 43 2014 2015 Nicolás Marcelo Arceo (6) Director and Administration and Finance Vice-President 41 2014 2015 Fernando Dasso (6) Director and Human Resources Vice-President 49 2014 2015 Daniel Cristian González Casartelli (6) Director 45 2014 2015 Patricia María Charvay Director 32 2014 2015 Carlos Alberto Alfonsi (6) Director and Downstream ExecutiveVice-President 54 2014 2015 Nicolás Eduardo Piacentino Director 48 2014 2015 Axel Kiciloff (5) Director 43 2014 2015 Sergio Affronti (6) Alternate Director and Shared ServicesVice-President 45 2014 2015 Omar Gutiérrez Alternate Director 47 2014 2015 Francisco Ernesto García Ibañez Alternate Director 50 2014 2015 Edgardo Raúl Valfré (4) Alternate Director 50 2014 2015 Mariana Laura González Alternate Director 38 2014 2015 Fernando Pablo Giliberti (6) Alternate Director and Strategy and BusinessDevelopment Vice-President 48 2014 2015 Gonzalo Martín Vallejos Alternate Director 40 2014 2015 Cynthia De Paz (5) Alternate Director 32 2014 2015 144Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents(1)Assumed position as Director at the Board of Directors’ meeting held in August 7, 2014, replacing Mr. Oscar Alfredo Cretini, who resigned.(2)Designated by the Supervisory Committee and assumed the position as Director at the Board of Directors’ meeting held on June 11, 2014, replacingMr. Roberto Ariel Ivovich, who resigned.(3)Assumed position as Director at the Board of Directors’ meeting held in December 16, 2014, replacing Mr. Marcos Enrique Calachi, who resigned.(4)Designated by the Supervisory Committee and assumed as Director at the Board of Directors’ meeting held on June 11, 2014, replacing Mr. José CarlosBlassiotto, who resigned.(5)Representing our Class A shares.(6)As of March 20, 2015, the person owns less than one percent of our Class D shares.The Chairman of the Board of Directors, who, according to our by-laws, must be a Class D director, was elected by the Board of Directors in the meetingheld on April 30, 2014. All other officers serve at the discretion of the Board of Directors and may be terminated at any time without notice.Outside business interests and experience of the members of our Board of DirectorsMiguel GaluccioMr. Galuccio holds a degree in oil engineering from the Technological Institute of Buenos Aires. Until April 16, 2012, Mr. Galuccio was part of themanagement team of Schlumberger in London. He has more than 20 years of international experience in the oil and gas industry. During his career atSchlumberger, he held the positions of Real Time Reservoir Manager, Mexico and Central America General Manager, President of Integrated ProjectManagement – IPM and President of Production Management. In 2011, he created the strategic “Schlumberger Production Management” division, based inLondon, which he led until joining YPF. Throughout his career at Schlumberger, Mr. Galuccio led companies and working teams in the United States, MiddleEast, Asia, Europe, Latin America, Russia and China. Prior to joining Schlumberger, he worked at YPF where he participated in the Company’sinternationalization process as Manager within Maxus Energy. During his career at YPF, he held among others the positions of Development Manager – YPFDivision South, Asset Manager Advisor at Maxus – YPF International and Business Unit Manager at Maxus – YPF International. On May 7, 2012, throughDecree No. 676/2012 of the National Executive Office, Mr. Galuccio was appointed General Manager of the Company during the Intervention period and wasappointed Chairman of the Company by the General Shareholders Meeting held in June 4, 2012 and was appointed CEO of the Company by the Board ofDirectors meeting held on June 4, 2012. Currently he has been the Chairman of the Board and CEO since June 2012.Axel KicillofMr. Kicillof graduated with a degree in economics with a focus on the public sector, from the School of Economic Sciences of the University of BuenosAires, from which he subsequently received a Ph.D. in economics. He has extensive experience as an undergraduate and graduate professor. He was a headresearcher at the Institute of Economic Research of the University of Buenos Aires, a researcher of the Argentine National Scientific and Technical ResearchCouncil (CONICET), Director of the UBACYT E017 research project “Argentina After the Convertibility Collapse, Continuities and Breakouts: A NewGrowth Standard.” He was the Assistant Director of the IIE’s Center of Studies for Development Planning, University of Buenos Aires, and a researcher of theCenter of Studies for Argentine’s Development. In December 2011, he was officially designated Secretary of Economic Policy and Development Planning atthe Argentine National Ministry of Economy and Finance and since November 2013 he is the Minister of Economy and Public Finance. Mr. Kicillof waselected as the representative of the Class A shares held by the Argentine government.Jorge Marcelo SoloagaMr. Soloaga graduated from the Industrial School in Caleta Olivia as a chemical technician. He is currently an employee of the Company and has beenChairman of the Commission for the Development of Cañadón Seco since 2009. Since 1993, he has acted as General Secretary of the Oil and HydrocarbonUnion (Sindicato Unido Petroleros e Hidrocarburíferos or SUPeH), in Santa Cruz. Among other offices, he served as a member of congress in the low chamberof the province of Santa Cruz for the period between 1985 and 1989. 145Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsGustavo Alejandro NagelMr. Nagel graduated as an industrial engineer with a major in mechanics from the National University of the Comahue in Neuquén, and was awarded amaster’s degree in business administration from the International School of Business. He has served as the head of Teams and Maintenance, SouthwestAffiliate, Service and Operations team leader in Venezuela, a business area manager (Neuquén—Mendoza—Rosario), a manager at Oil and Gas Argentina andBolivia, and the country manager for the Andean Region at Gas y Petróleo del Neuquén S.A. He was the Undersecretary of Planning and Public Services inthe province of Neuquén. Currently, he is the Director Representative for the Province of Neuquén at Hidroelectrica Piedra del Águila, as well as the Directorof Exploration and Production at Gas y Petróleo del Neuquén S.A.Jorge Manuel GilMr. Gil obtained a degree as a certified public accountant from the University of Buenos Aires and is a doctoral candidate in business and economics atthe Universidad Autónoma de Madrid. He served a consultant in corporate reorganization at Petroquímica Comodoro Rivadavia and provided counsel in thedesign and evaluation of projects on plastic industry, wind power, industrial gases, phone industry, video cables, metallurgy, melting and oil stocks. From2010 to 2012, he served as Director at Banco Del Chubut S.A. Currently, he is a professor at Universidad Nacional de la Patagonia San Juan Bosco,Universidad Nacional de la Patagonia Austral and Universidad Nacional de Río Negro.Ignacio PerincioliMr. Perincioli obtained a degree as a Certified Public Accountant from the University of Buenos Aires and obtained a degree in businessadministration. He was awarded a project management specialization by the Asociación Argentina de Evaluadores with a specialization in management ofsmall and medium enterprises. He served in the Department of Control of External Indebtedness of the Auditor General’s Office, in the Secretariat forCoordination and Management Control and in the Provincial Roads Program within the Ministry of Federal Planning, Public Investment and Services.Currently, he works at the Administration and Finance Management of La Opinión Austral S.A. in Río Gallegos, province of Santa Cruz.Omar Chafi FélixMr. Félix has served as Secretary of the Public Work Ministry of the province of Mendoza. He also has served as City Councilman of the city of SanRafael, Mendoza from 1995 to 1999, as Mayor of the city of San Rafael, Mendoza from 2003 until 2009 and National Legislator representing the province ofMendoza from 2009 to 2013. Currently he is President of Telcom Argentina S.A., a company engaged in mining exploitation and soil transportation.Mr. Félix is also active in the livestock industry.Elizabeth Dolores BobadillaMs. Bobadilla obtained a law degree from Universidad John F. Kennedy and a master’s degree in Internationalization of local development, design andsmall and medium enterprises at Universidad Nacional de La Plata—Universitá di Bologna in Argentina (thesis submission pending). From 1997 to 2009, sheworked at Medanito S.A. performing tasks such as negotiating sales of LPG, natural gas and oil, investment promotion for cultivated forests, analysis ofcommercial and banking contracts related to oil and gas sector and forestry. Currently, she collaborates at the Ministry of Economy and Finance of theprovince of Formosa in contractual and legislative issues related to oil exploitation.Héctor Walter ValleMr. Valle graduated with a degree in political economics from the University of Buenos Aires. He majored in economic and social planning at theLatin American Institute of Economic and Social Planning and has a specialization in problems of economic development and foreign trade from theUniversity of Grenoble. Among other positions, he has been an Assistant Vice-President of the Economic Science Professional Association of the City ofBuenos Aires, the President of the Economic Commission of the Economic Science Professional Association of the City of Buenos Aires and a board memberof the Economic Science Graduates Association of the City of Buenos Aires. From 1990 to 1992 he was the Director of the National Institute of Statistics andCensuses (INDEC) and in 1991 he was the Director of the National Population Census. From January 2005 to June 2012, he was the President of theArgentine National Fund for the Arts. He has been the president of the Development Research Foundation (FIDE) since 1991.Rodrigo CuestaMr. Cuesta holds a law degree from the School of Law and Social Sciences of the University of Buenos Aires and a master’s degree in administrativelaw from the Austral University. Among other positions, he was legal advisor to the National Office of Legal Affairs of the Office of the Attorney of theArgentine Treasury, General Secretary of Aerolíneas Argentinas Group and Assistant Comptroller General of Argentina. He has been our Corporate VicePresident for Legal Services since June 2012. 146Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsJosé Ivan BrizuelaMr. Brizuela graduated from the University of Buenos Aires with a degree in administration with a focus in finance and a degree in sociology with afocus in sociology of culture. He has been served as a consultant at Alpha Estudio de Economía advising on M&A transactions of financial institutions; theDirector of the Agency for Development of Investments at the Argentine National Ministry of the Economy and an associate at the Technology TransferOffice of the School of Engineering of the University of Entre Ríos. In 2003 he founded Brisa de Argentina S.A., a software development company, where hecurrently serves as Director.Sebastian UchitelMr. Uchitel graduated in computer science at the School of Exact and Natural Sciences of the University of Buenos Aires, and earned a Ph.D. incomputing from the School of Engineering, Imperial College in London. Among other positions, he was a full-time regular Associate Professor in theComputer Department, School of Exact and Natural Sciences of the University of Buenos Aires, Reader of the Department of Computers, Imperial College inLondon, Independent Researcher at CONICET and founding partner and Director of Lemma Informática S.R.L.Nicolas Marcelo ArceoMr. Arceo earned a degree in economics from the University of Buenos Aires. He holds a Ph.D. in social science and a master’s degree in politicaleconomics from the Latin-American Faculty of Social Sciences. Mr. Arceo has been our Administration and Finance Vice-president since June 2012.Fernando DassoMr. Dasso earned a degree in labor relations from the University of Buenos Aires and completed a management development program at IAE in 1993company. He has held various positions within the Company. In 2006, he was appointed Director of Human Resources of Argentina, Bolivia and Brazil of theExploration and Production business. He has been our Human Resources Vice-President since July 2007.Daniel Cristian González CasartelliMr. Gonzalez is the President of the Disclosure Committee. Daniel Gonzalez holds a degree in business administration from the Argentine CatholicUniversity. He served for 14 years in the investment bank Merrill Lynch & Co in Buenos Aires and New York, holding the positions of Head of Mergers andAcquisitions for Latin America and President for the Southern Cone (Argentina, Chile, Peru and Uruguay), among others. While at Merrill Lynch,Mr. Gonzalez played a leading role in several of the most important investment banking transactions in the region and was an active member of the firm´sglobal fairness opinion committee. He remained as a consultant to Bank of America Merrill Lynch after his departure from the bank. Previously, he was Headof Financial Planning and Investor Relations in Transportadora de Gas del Sur SA. He currently is also member of the Board of Directors of Adecoagro S.A.and Hidroeléctrica Piedra del Águila S.A. Mr. Gonzalez has been our Chief Financial Officer since July 2012.Patricia María CharvayMs. Charvay obtained an economics degree from the University of Buenos Aires. Among other positions, she previously served as a consultant for theCouncil of Coordination of Social Policies. Until 2013, she served as a National Director in the Secretary of Economic Policies and Development Planningfor the Argentine National Ministry of Economy and Finance, and represented the Argentine government serving as a director in several companies,including among others Edenor S.A. and Endesa Costanera S.A.Carlos Alberto AlfonsiMr. Alfonsi graduated with a degree in chemistry from the Technological University of Mendoza. Additionally, he has a degree in IMD ManagingCorporate Resources from Lausanne University and has studied at the Massachusetts Institute of Technology. Since 1987, he has held various positions atour Company, serving as an operations manager, the Director of the La Plata refinery, Operation Planning Director, Director of Commerce and Transportationfor Latin America, Director of Refinery and Marketing in Peru, Country Manager for Peru, and R&M for Peru, Chile, Ecuador and Brazil. Mr. Alfonsi has beenour Downstream Executive Vice-President since June 2010. 147Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsNicolás Eduardo PiacentinoMr. Piacentino is an engineer, holds studies and masters in IMD, Harvard and IAE business schools and he has over 20 years of extensive experience ininternational markets. He started his multinational career at Andre et Cie. (Switzerland) and recently completed his corporate career heading the Americanand Latin Energy markets for Glencore Ltd (USA). Mr. Piacentino is consultant to governmental energy agencies, hedge funds as well as private and publiccommodity trading companies all around the world. He is an active participant in different philanthropic organizations and is part of the corporategovernance of various companies worldwide.Sergio P. AffrontiMr. Affronti earned a certified public accountant degree and a degree in business administration from the Argentine Catholic University, and a degreefrom the Management and Engineering Program of the University of Texas, Austin. He has more than 20 years of experience in the oil and gas industry inLatin America, Europe and North Africa. Among other positions, he was Strategic Planning Manager for YPF Upstream Latin America, Country and GeneralManager for Repsol in Ecuador, Director for Corporate Development for Repsol Upstream, Director of Procurement for Repsol Upstream, Director of Planningand Control for Europe, Asia and Africa for Repsol Upstream and Technical Planning Director for Algeria projects. He has been our Shared Services Vice-President since June 2012.Omar GutiérrezMr. Gutiérrez obtained a certified public accountant degree from National University of the Comahue in Neuquén. He served as General Director ofAdministration from 1992 to 2004 and, during 1995, General Director of Coordination, both within the Ministry of Government of the province of Neuquén.He was administrative prosecretary from 1999 to 2001 and Secretary in the Legislature of the province, from 2002 to 2003. He was a member of the DeliberateCouncil of the city of Neuquén’s Municipality and President of the Committee on Finance and Budget. Since 2011, he is the Minister of Economy andPublic Work of the province of Neuquén and Director of Gas y Petróleo del Neuquén S.A.Francisco Ernesto García IbáñezMr. García Ibañez earned a law degree from the Litoral University. Among other positions he served as Chief of Cabinet of the Ministry ofInfrastructure, Housing and Transport of the province of Mendoza, Director representing the province of Mendoza in the Federal Council of Electric Power,chairman of the Discipline Board of Ministry of Economy and Finance, counsel advisor in the Legal Department of the Ministry of Finance and deputyinspector in the Purchasing and Supply Ministry. Currently he is the General, Legal and Technician Minister Secretary of the Government of Mendoza.Edgardo Raúl ValfreMr. Valfre obtained a degree as a Certified Public Accountant from the Universidad Nacional de Córdoba. He has worked as an Accountant Auditorunder the Ministry of the Provincial Government of Santa Cruz, General Accountant of the province of Santa Cruz, Undersecretary of Planning and FinancialEvaluation, State Secretary of Finance from 2009 to 2010. He was appointed Director of Banco de Santa Cruz S.A. and Revenue Secretary of the province ofSanta Cruz from 2010 to 2014. Currently, he is the Minister of Economy and Public Works of the province of Santa Cruz.Mariana Laura GonzálezMs. González obtained a degree in economics from the University of Buenos Aires and a Ph.D. in Social Sciences from the Facultad Latinoamericanade Ciencias Sociales (“FLACSO”). Between 2004 and 2005 she served as a consultant for the Strategic Studies Centre’s Labour and Employment ofArgentina at the office of the Undersecretary of Technical Programming and Labor Studies, Ministry of Labour, Employment and Social Security. She was aresearcher and professor at different public universities. Between 2008 and 2009 she served at the National Investment Development Agency of the Ministryof Economy and Production. She was also a consultant for the Institutional Strengthening Program of the Secretary of Economic Policy at the Ministry ofEconomy and Public Finance. Currently, she is Undersecretary of Economic Planning and Competitiveness Improvement at the Secretary of Economic Policyand Development Planning of the Ministry of Economy and Public Finance of Argentina. 148Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsFernando Pablo GilibertiMr. Giliberti earned a certified public accountant degree from the Argentine Catholic University, an MBA from the Argentine University of theEnterprise, a postgraduate diploma in Management and Economics of Natural Gas from the College of Petroleum Studies, Oxford University, and master’sdegree in the Science of Management, from the Sloan Program at Stanford University. Among other positions, he previously served at YPF as Head ofAccounting and Finance at our headquarters in Mendoza, as South Division Business Support Manager, as Asset Manager of the El Guadal-Lomas del Cuyo(Pilot project of Asset Management Model called “Economic Units”), as Business Development Manager and Exploration and Production BusinessDevelopment Director. In San Antonio (Pride International), he was Vice President of Business Development and Vice President of the Latin AmericaDivision. After that he was Vice President of Business Development at Pioneer Natural Resources of Argentina. In 2006, he founded Oper-Pro Services S.A.He has been our Strategy and Business Development Vice-President since June 2012.Gonzalo Martín VallejosMr. Vallejos obtained a licentiate degree in business administration from Universidad de San Andrés. He obtained a master’s degree in finance fromTorcuato Di Tella University and an MBA and advanced management program degree from Austral University. He was Corporate Banking Senior Analyst atItaú until 2006. He was appointed CFO of Emege S.A. between 2006 and 2008 and Director and Head of Investment Banking at Puente between 2008 and2013. He has rich experience in building and developing high performance teams in Argentina, Uruguay and Chile, involving different cultures, industriesand business styles. Currently, he is Managing Director and Head of Capital Markets in Advanced Capital Securities Argentina S.A.Cynthia de PazMs. de Paz obtained a degree in economics from the University of Buenos Aires. She was a teaching assistant of Economics of Social Security at theEconomics School of the University of Buenos Aires. She worked as researcher at the Department of Gender of the International Society for Development. Shecompleted a master’s degree in public politics for social inclusion development at FLACSO (thesis submission pending). Until December 2014, she was theUndersecretary of Economic Planning at the Secretary of Economic Policy and Development Planning of the Ministry of Economy and Public Finance ofArgentina. Ms. de Paz was elected as alternate director representative of the Class A shares by the Argentine government.Board practicesThe information provided below describes the composition and responsibilities of our Board of Directors.Board practices of our Board of DirectorsIn accordance with the Argentine Corporations Law, directors have an obligation to perform their duties with loyalty and with the diligence of aprudent business person. Directors are jointly and severally liable to us, our shareholders and to third parties for the improper performance of their duties, forviolating the law or our by-laws or regulations, and for any damage caused by fraud, abuse of authority or gross negligence. Specific duties may be assignedto a director by the by-laws, applicable regulations, or by resolution of the shareholders’ meeting. In such cases, a director’s liability will be determined byreference to the performance of such duties as long as the director’s appointment and the determination of duties approved by a shareholders’ meeting isregistered with the Superintendency of Corporations.Only shareholders, through a shareholders’ meeting, may authorize directors to engage in activities in competition with us. Transactions or contractsbetween directors and us in connection with our activities are permitted to the extent they are performed under fair market conditions. Transactions that donot comply with the above requirements may only be carried out with prior approval of the Board of Directors or, in the case of an absence of a quorum in aBoard of Directors meeting, the Supervisory Committee. In addition, these transactions must be subsequently approved by the shareholders at a generalmeeting. If our shareholders do not approve the relevant transaction, the directors and members of the Supervisory Committee who approved suchtransactions are jointly and severally liable for any damages caused to us.Any director whose personal interests are adverse to ours with respect to any matter shall notify the Board of Directors and the Supervisory Committeeand abstain from voting on such matters. Otherwise, such director may be held liable to us. 149Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsA director will not be liable if, notwithstanding his presence at the meeting at which a resolution was adopted or his knowledge of such resolution, awritten record exists of his opposition to such resolution and he reports his opposition to the Supervisory Committee before any complaint against him isbrought before the Board of Directors, the Supervisory Committee, the shareholders’ meeting, the appropriate governmental agency or the courts. Anyliability of a director to us terminates upon approval of the director’s actions by the shareholders at a general meeting, provided that shareholdersrepresenting at least 5% of our capital stock do not object and provided further that such liability does not result from a violation of the law, our by-laws orother regulations.Senior ManagementOur current senior management as of the date of this annual report consists of: Name PositionMiguel Galuccio(1) Chairman, Chief Executive Officer and DirectorDaniel González(1) Chief Financial OfficerRodrigo Cuesta Legal Affairs Corporate Vice-PresidentJesús Grande(1) Upstream Executive Vice-PresidentCarlos Alfonsi(1) Downstream Executive Vice-PresidentFernando Giliberti(1) Strategy and Business Development Vice-PresidentNicolás Arceo(1) Administration and Finance Vice-PresidentDoris Capurro(1) Communication and Institutional Relations Vice-PresidentFernando Dasso(1) Human Resources Vice-PresidentSergio Affronti(1) Shared Services Vice-PresidentDaniel Palomeque(1) Quality, Environment, Security and Health Vice-President (1)Owns less than one percent of our Class D shares as of March 20, 2015.In addition to the members of our senior management for whom outside business interests and experience were described above, we include thefollowing:Doris CapurroMs. Capurro graduated with a degree in Sociology from the University of Buenos Aires. During her career Ms. Capurro specialized in public relations,media, advertising, public affairs, marketing and market research. Ms. Capurro is President of two leading consultant companies in Argentina (CAPComunications S.A. and Ibarómetro S.A.). Additionally, she founded and ran a leading agency for advertising and communication services (Capurro andAssociates) for 20 years until it was acquired in 1999 by the French group Publicis. She received several national and international awards for advertising,creativity, innovation, strategy and management. Ms. Capurro is the organizer of International Conferences of Political Management in Buenos Aires,sponsored by the Graduate School of Political Management at George Washington University and Torcuato Di Tella University. She teaches in the Master ofPolitical Communication program at the Pontifical University of Salamanca, Spain, and at FLACSO in Buenos Aires. She is our Communication andInstitutional Relations Vice-President since January 2013.Daniel PalomequeMr. Palomeque graduated with a degree in Chemical Engineering from the National University of La Plata (UNLP) and obtained a master degree inEnvironmental Engineering from the Technological University of La Plata (UTN). He has also studied at the Massachusetts Institute of Technology. Hebegan his career at YPF in 1980 in the area of lubricants at the La Plata refinery in various positions until his appointment as Planning Manager in 1998 andLatin America. Planning Director in 2000. He was promoted as Director of the Lujan Industrial Complex Cuyo in 2002 and in 2005 was appointed Director ofthe Industrial Complex in La Plata. He was also our Executive Manager Refining, and he is Chairman of the Argentine Institute of Oil and Gas of La Plata andprofessor at the UTN and UNLP. He has been our Quality, Environment, Security and Health Vice-President since June 2014.Jesús Guillermo GrandeMr. Grande graduated with honors from the National University of Tucumán with an engineering degree. He worked in Schlumberger from 1993 to2012. Over those 20 years, he held operational, managerial and staff positions in Kuwait, Argentina, Brazil, Angola, France and the United States. In his last 5years, he served as Director of Human Resources and President of Testing Services. His specialty is management and operations optimization. Mr Grande isour Upstream Executive Vice-President since January 2013. 150Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe Audit CommitteeThe information provided below describes the composition and responsibilities of our Audit Committee,Composition and responsibilities of our Audit CommitteeThe Stock Market Law as defined in “Item 9. The Offer and Listing Argentine Securities Market” and Resolution No. 622/2013 of the CNV, requirethat Argentine public companies appoint an audit committee (comité de auditoría) composed of at least three members of the Board of Directors. The by-lawsmust set forth the composition and regulations for the operation of the Audit Committee. A majority of the members of the Audit Committee must beindependent directors. See “—Independence of the Members of our Board of Directors and Audit Committee.”The Board of Directors of the Company, at its meeting held on April 30, 2014, appointed, the current members of the Audit Committee, who as of thedate of this filing are: president Héctor Walter Valle, members José Iván Brizuela and Sebastián Uchitel. Mr. Omar Chafí Félix was appointed as an alternatemember of our Audit Committee. Additionally, Mr. Valle was determined by our Board of Directors to be an “Audit Committee Financial Expert” pursuant tothe rules and regulations of the SEC.Executive directors may not sit on the Audit Committee.Our Audit Committee, among other things: • periodically inspects the preparation of our financial and economic information; • reviews and opines with respect to the Board of Directors’ proposals regarding the designation of the external auditors and the renewal,termination and conditions of their appointment; • evaluates internal and external audit work, monitors our relationship with the external auditors, and assures their independence; • provides appropriate disclosure regarding operations in which there exists a conflict of interest with members of the corporate committees orcontrolling shareholders; • opines on the reasonability of the proposals by the Board of Directors for fees and stock option plans of the directors and administrators; • verifies compliance with applicable national or international regulations in matters related to behavior in the stock markets; and • ensures that the internal Code of Ethics complies with normative demands and is adequate.Activities of the Audit CommitteeThe Audit Committee, which pursuant to its regulations shall meet as many times as needed and at least once every quarter, held nine meetingsbetween March 2014 and March 2015.Performing its basic function of supporting the Board of Directors in its oversight duties, the Audit Committee periodically reviews economic andfinancial information relating to us, supervises the internal financial control systems and oversees the independence of the external auditors.Economic and financial informationWith the assessment of the Administration and Finance Vice-President and considering the work performed by our external and internal auditors, theAudit Committee analyzes the consolidated annual and quarterly financial statements before they are submitted to the Board of Directors. The AuditCommittee reviewed our consolidated financial statements as of and for the year ended December 31, 2014, and comparative information, included in ourreport on Form 6-K submitted to the SEC on March 6, 2015. 151Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOversight of the internal control systemTo supervise the internal financial control systems and ensure that they are sufficient, appropriate and efficient, the Audit Committee oversees theprogress of the annual internal audit, which is aimed at identifying our critical risks.Throughout each year, the Audit Committee is informed by our internal audit department of the most relevant facts and recommendations arising out ofits work, and the status of the recommendations issued in prior years.Our internal control system for financial reporting was aligned with the requirements established by Section 404 of the Sarbanes-Oxley Act, a processsupervised by the Audit Committee. These regulations require that, along with the annual audit, a report must be presented from our management relating tothe design, maintenance and periodic evaluation of the internal control system for financial reporting, accompanied by a report from our external auditor.Several of our departments are involved in this activity, including the internal audit department.Relations with the external auditorsThe Audit Committee maintains a close relationship with the external auditors, allowing it to make a detailed analysis of the relevant aspects of theaudit of financial statements and to obtain detailed information on the planning and progress of the work.The Audit Committee also evaluates the services provided by our external auditors, determines whether the condition of independence of the externalauditors, as required by applicable law, is met and monitors the performance of external auditors to ensure that it is satisfactory.As of the date of this annual report, and pursuant to the evaluation process described in the paragraph above, the Audit Committee had no objections tothe designation of Deloitte & Co. S.A. as our external auditors of the financial statements for the year ending December 31, 2014. In addition, the AuditCommittee at its meeting in February 2015, as a result of the evaluation process outlined in the preceding paragraph, had no objections to the designation ofDeloitte & Co. SA as our external auditors for the year ended December 31, 2015, which will be addressed in a general shareholders’ meeting to be held thisyear.Independence of the Members of our Board of Directors and Audit CommitteePursuant to CNV regulations, a director is not considered independent when such director (i) owns at least a 15% equity interest in a company, or alesser interest if the director has the right to appoint one or more directors of the company, which we refer to as a “Significant Participation,” or has aSignificant Participation in another company that in turn has a Significant Participation in the company or a significant influence on the company(“significant influence” as defined by Argentine GAAP); (ii) is a member of the board of directors of, or depends on, or is otherwise related to shareholders,who have a Significant Participation in the company or another company in which these shareholders have a direct or indirect Significant Participation orsignificant influence; (iii) is or has been in the previous three years an employee of the company; (iv) has a professional relationship with, or is a member of acompany that maintains professional relationships with, or receives remuneration (other than that received in consideration of his performance as a director)from the company or any of its shareholders who has a direct or indirect Significant Participation in or significant influence on the company, or with a third-party company that has a direct or indirect Significant Participation or a significant influence; (v) directly or indirectly sells or provides goods or services tothe company or to any of its shareholders who has a direct or indirect Significant Participation in or significant influence on the company for an amountexceeding his remuneration as a member of the Board of Directors or audit committee; or (vi) is the spouse or parent (up to second grade of affinity or up tofourth grade of consanguinity) of persons who, if they were members of the Board of Directors or Audit Committee, would not be independent, according tothe above-listed rules.As of the date of this annual report, Directors Jorge Manuel Gil, Ignacio Perincioli, Omar Chafí Félix, Elizabeth Bobadilla, Héctor Walter Valle,Sebastián Uchitel, José Iván Brizuela, Nicolás Eduardo Piacentino and Axel Kicillof, and Alternate Directors Francisco Ernesto García Ibañez, Edgardo RaúlValfre, Gonzálo Martín Vallejos and Cynthia de Paz qualified as independent members of our Board of Directors under the above-described criteria. 152Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDisclosure CommitteeComposition and responsibilities of our Disclosure CommitteeIn February 2003, we created a Disclosure Committee to: • monitor the overall compliance with regulations and principles of conduct of voluntary application, especially in relation to listed companiesand their corporate governance; • direct, establish and maintain procedures for the preparation of accounting and financial information to be approved and filed by us or which isgenerally released to the markets; • direct, establish and maintain internal control systems that are adequate and efficient to ensure that our financial statements included in annualand quarterly reports, as well as any accounting and financial information to be approved and filed by us, are accurate, reliable and clear; • identify significant risks to our businesses and activities that may affect the accounting and financial information to be approved and filed; • assume the activities that, according to U.S. laws and SEC regulations, are applicable to us and may be assumed by disclosure committees orother internal committees of a similar nature, especially those activities relating to the SEC regulations dated August 29, 2002 (“Certification ofDisclosure in Companies’ Quarterly and Prospectus”—SEC Release number 33-8124), in relation to the support for the certifications by ourChief Executive Officer and Chief Financial Officer as to the existence and maintenance by us of adequate procedures and controls for thegeneration of the information to be included in our annual reports on Form 20-F, and other information of a financial nature; • take on activities similar to those stipulated in SEC regulations for a disclosure committee with respect to the existence and maintenance by us ofadequate procedures and controls for the preparation and content of the information to be included in the annual financial statements, and anyaccounting or financial information to be filed with the CNV and other regulators of the stock markets on which our stock is traded; and • formulate proposals for an internal code of conduct on the stock markets that follow applicable rules and regulations or any other standardsdeemed appropriate.In addition, the Disclosure Committee reviews and supervises our procedures for the preparation and filing of: • official notices to the SEC, the Argentine stock market authorities and other regulators of the stock markets on which our stock is traded; • interim financial reports; • press releases containing financial data on results, earnings, large acquisitions, divestitures or any other information relevant to the shareholders; • general communications to the shareholders; and • presentations to analysts, investors, rating agencies and lending institutions.As of the date of this annual report, the Disclosure Committee was composed of the following persons: Name PositionMiguel Galuccio Chairman, Chief Executive Officer and DirectorDaniel González Chief Financial Officer and President of the DisclosureCommitteeRodrigo Cuesta Legal Affairs Corporate Vice-President and Secretaryof the Disclosure CommitteeJesús Grande Upstream Executive Vice-PresidentDaniel Palomeque Quality, Environment, Security and Health Vice-PresidentCarlos Alfonsi Downstream Executive Vice-PresidentFernando Giliberti Strategy and Business Development Vice-PresidentNicolás Arceo Administration and Finance Vice-President 153Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDoris CapurroCommunication and Institutional Relations Vice-PresidentFernando DassoHuman Resources Vice-PresidentJavier FevreInternal AuditorJavier SanaguaReserves AuditorIn addition to the members of our senior management for whom outside business interests and experience were described above, we include thefollowing:Javier SanaguaMr. Sanagua obtained a degree in Geology from the National University of Tucumán with postgraduate studies in Management ExecutiveDevelopment Program from IAE (Austral University). Following positions as a university teacher and researcher, in 1996 he joined YPF where, during over 18years of experience, he held positions in different areas such as Reservoir, Development, Exploration and Production. Also, he was District Chief, Manager ofthe Los Perales area, Manager of the Economic Unit from Cañadón Seco, province of Chubut, and after that, Director of Business Unit in Mendoza. He hasbeen our Reserves Auditor since February 2013.Javier FevreMr. Fèvre obtained a certified public accountant degree from the Argentine University of the Enterprise (“UADE”). He has served as auditor at theGeneral Auditor Office, and as Advisor to the Deputy General Syndic at the Argentine Office of the General Comptroller. He was also Assistant InternalAuditor at the Ministry of Foreign Affairs, International Trade and Worship and General Coordinator of Internal Audit at Aerolíneas Argentinas S.A. He hasbeen our Internal Auditor since September 2012.Compliance with New York Stock Exchange Listing Standards on Corporate GovernanceIn accordance with the New York Stock Exchange (the “NYSE”) corporate governance rules, as of July 31, 2005, all members of the Audit Committeewere required to be independent. Independence is determined in accordance with highly detailed rules promulgated by the NYSE and SEC. Each of themembers of our Audit Committee was determined to be independent in accordance with the applicable NYSE and SEC rules.Significant differences between our corporate governance practices and those required by NYSE listing standardsNon-U.S. NYSE-listed companies may, in general, follow their home country corporate governance practices in lieu of most of the NYSE corporategovernance requirements. The NYSE rules, however, require that non-U.S. companies disclose any significant ways in which their specific corporategovernance practices differ from U.S. companies under the NYSE listing standards.The following is a summary of the significant differences between our corporate governance practices and those applicable to U.S. companies under theNYSE listing standards.Independence of the directors on the Board of DirectorsIn accordance with the NYSE corporate governance rules, a majority of the board of directors of U.S. companies listed on the NYSE must be composedof independent directors, whose independence is determined in accordance with highly detailed rules promulgated by the NYSE. The relevant Argentinerules for determining director independence are described under “—Independence of the Members of our Board of Directors and Audit Committee” above.Compensation and nomination committeesIn accordance with the NYSE corporate governance rules, all U.S. companies listed on the NYSE must have a compensation committee and anomination committee and all members of such committees must be independent in accordance with highly detailed rules promulgated by the NYSE. UnderArgentine law, these committees are not required as mandatory, but are recommended by the CNV under CNV’s General Resolution No. 606/12. TheCompany follows partially the CNV’s recommendation and has a Compensation Committee, established by the Board of Directors under the option providedin Article 17 clause (xii) of the Company’s by-laws, which currently is composed of Directors Daniel Cristian Gonzalez, Fernando Dasso and Miguel MatiasGaluccio, who are not independent. 154Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsShareholder approval of equity compensation plansThe NYSE rules require that, with limited exemptions, all equity compensation plans must be subject to a shareholder vote. Under Argentine law, theapproval of equity compensation plans is within the authority of the board of directors.Separate meetings for non-management directorsIn accordance with the NYSE corporate governance rules, independent directors must meet periodically outside of the presence of the executivedirectors. Under Argentine law, this practice is not required and as such, the independent directors on our Board of Directors do not meet outside of thepresence of the other directors, except for the meetings of the Audit Committee, which members are independent directors.Code of EthicsWe have adopted a code of ethics and conduct applicable to the Board of Directors and all employees, which was recently amended effectiveAugust 22, 2014. Since January 1, 2014, we have not waived compliance with the code of ethics.The main changes adopted by the new Code of Ethics refer to (i) the implementation of an ethics hotline to receive complaints regarding the lack offulfilment of the Code of Ethics, (ii) the creation of an Ethics Committee that will consider the received complaints, the appointment of an Ethics Officer whowill conduct the pertinent investigations, (iii) the incorporation of a policy on prohibited periods for trading YPF securities to be followed by the officers andthose others to whom the Code is applicable when conducting stock transactions and (iv) among other dispositions.Compensation of members of our Board of Directors and Supervisory CommitteeArgentine law provides that the aggregate annual compensation paid to the members of the Board of Directors (including those directors acting in anexecutive capacity) and the Supervisory Committee with respect to a fiscal year may not exceed 5% of net income for such year if YPF is not payingdividends in respect of such net income, which percentage is increased up to 25% of net income based on the amount of dividends, if any, are paid. Thecompensation of the Chairman and other directors acting in an executive capacity, together with the compensation of all other directors and members of theSupervisory Committee, requires the ratification of an ordinary general shareholders’ meeting as provided by Argentine law. When the exercise of specialcommissions or technical administrative functions by one or more directors and the reduced or lack of profits imposed the need to exceed the limits, suchremunerations may only be paid in excess if expressly agreed by the shareholders’ meeting, for which the matter should be included as one of the agendapoints.For the year ended December 31, 2014 the total cost of the aggregate compensation accrued to the members of the Board of Directors and YPF’sexecutive officers for services in all capacities was Ps. 221.2 million, including Ps. 52.1 million in the form of an equity compensation plan, pension,retirement or similar benefits that YPF provides to members of its Board of Directors and executive officers and including Ps. 2.16 million in compensationpaid to the members of the Supervisory Committee. During 2014, YPF’s performance-based compensation programs included a performance bonus programfor approximately 6,700 non-unionized YPF employees and 8,700 unionized YPF employees. This bonus program is intended to motivate and rewardindividuals for annual achievement of business objectives. The program provided for cash to be paid to its participants based on a measurable and specific setof objectives under YPF’s Management by Objectives program and the results of the review of individual performance. The participation of each eligibleemployee in the bonus plan ranged from 6% to 50% of such employee’s annual base salary.In 2014, our Shareholders’ Meeting, as proposed by our Board of Directors, approved the creation of a voluntary reserve of Ps. 200 million to be setaside to fulfill our long-term incentive plan which contemplates compensation in shares for certain employees. To that end, the Company purchased its ownshares in accordance with Section 64 et seq. of Law No. 26,831. For additional information see Note 1.b.10.iii to our Audited Consolidated FinancialStatements. The share-based benefit plan: (i) encourages the alignment of performance of key personnel with the objectives of the strategic plan of thecompany, (ii) generates a clear and direct link between the creation of shareholder value and compensation of key personnel, rewarding them for achievinglong-term results reflected in share price and (iii) assists in the retention of key personnel in the organization.YPF’s directors do not have any service contracts with YPF involving the payment of compensation other than those previously mentioned and theperformance of their duties in the Company. 155Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsSupervisory CommitteeThe Supervisory Committee is responsible for overseeing compliance by the management and the Board of Directors with the Argentine CorporationsLaw, the by-laws and regulations (if any), and shareholders’ resolutions. The functions of the Supervisory Committee include, among others, attending allmeetings of the Board of Directors, preparing a report of the financial statements for our shareholders, attending shareholders’ meetings and providinginformation upon request to holders of at least 2% of our capital stock.The by-laws provide for a Supervisory Committee consisting of three to five members and three to five alternate members, elected to one-year terms.The Class A shares are entitled to elect one member and one alternate member of the Committee so long as one share of such class remains outstanding. Theholders of Class D shares elect up to four members and up to four alternates. Under the by-laws, meetings of the Supervisory Committee may be called by anymember. The meeting requires the presence of all members, and a majority vote of the members in order to make a decision. The members and alternatemembers of the Supervisory Committee are not members of our Board of Directors. The role of our Supervisory Committee is distinct from that of the AuditCommittee. See “—The Audit Committee.” For the year 2014, the aggregate compensation paid to the members of the Supervisory Committee was Ps. 2.16million.The current members of the Supervisory Committee, the year in which they were appointed and the year their current term expires are as follows: Name Class ofSharesRepresented Age MemberSince TermExpires Gustavo Adolfo Mazzoni A 63 2014 2015(*) Maria de las Mercedes Archimbal D 32 2014 2015(*) Enrique A. Fila D 55 2014 2015(*) Raquel Inés Orozco (alternate member) A 59 2014 2015(*) Guillermo Cardirola (alternate member) D 39 2014 2015(*) Cecilia Carabelli (alternate member) D 44 2014 2015(*) (*)Members of our Supervisory Committee are appointed in connection with a fiscal year. Our shareholders, in the ordinary and extraordinary generalshareholders’ meeting held on April 30, 2014 appointed the members of our Supervisory Committee for fiscal year 2014.Gustavo Adolfo MazzoniMr. Mazzoni earned a certified public accountant degree and a postgraduate degree in finance from the University of Buenos Aires. He also earned adegree in social psychology from the Pichon Riviere School of Psychology. Among other positions, he previously worked as a senior auditor for PriceWaterhouse & Co., and the Argentine National Office of the Comptroller General, supervising private companies and different national ministries, includingJustice, Labor, Health and Social Development, among others. He is currently the statutory auditor of several companies such as Aerolíneas Argentinas S.A.,Austral S.A., Optar S.A., Empresa Argentina de Soluciones Satelitales S.A. (Ar-Sat), Emprendimientos Energéticos Binacionales S.A., Centro de Ensayos deAlta Tecnología S.A., Gas Natural BAN S.A., among others.María de las Mercedes ArchimbalMs. Archimbal earned a law degree from the Argentine Catholic University with a Master’s degree in international relations and negotiation from theUniversity of San Andrés and a master’s degree in international economic relations from the University of Barcelona. Among other positions, she previouslyserved as legal coordinator for the National Under Secretary of Financing For Small and Medium Companies from the National Ministry of Industry. She wasa member of the advisory board to the Mercosur Guaranty Fund for medium and small companies. She was also invited by the Department of State of theUnited States to participate in the International Visitors Program for the accountability in Government Edition. She currently is a member of the ArgentineNational Office of the Comptroller General and an alternate statutory auditor in different companies such as Radio y Televisión Argentina S.E. and PampaEnergía S.A.Enrique Alfredo FilaMr. Fila earned a certified public accountant degree from the University of La Plata. Among other positions, previously he was a councilor in the Cityof La Plata, an advisor to the mayor of La Plata, and a consultant to the Argentine National Ministry of Social 156Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDevelopment between 2008 and 2009. Currently, he is the statutory auditor of Tandanor S.A.I.C. y N., Aeropuertos Argentina 2000 S.A., Distribuidora de GasCuyana S.A., Radio y Television Argentina S.E. and YPF Gas S.A., and an alternate statutory auditor of Nación A.F.J.P. S.A., Servicios de Radio y Televisiónde la Universidad Nacional de Córdoba S.A., Empresa de Transporte de Energía Eléctrica Por Distribución Troncal de la Provincia de Buenos Aires S.A.,Compañía de Transporte de Energía Eléctrica S.A., Compañía Inversora de Trasmisión Eléctrica S.A., Telam S.E., Veng S.A. and Sociedad del Estado Casa deMoneda.Raquel Inés OrozcoMs. Orozco obtained a law degree from the University of Buenos Aires. Currently, she is the principal corporate statutory auditor at the followingcompanies: Central Térmica Guemes S.A., Telam S.E., Ubatec S.A., Inder S.E. (e.I), Foncap S.A., LT10 Radio Universidad del Litoral S.A., and LoteriaNacional S.E.Guillermo Leandro CadirolaMr. Cadirola earned his degree as a certified public accountant from the University of Buenos Aires, and has a master’s degree in Economics andBusiness Administration from the IESE Business School in Barcelona, Spain. Currently, he is a member of the Argentine National Office of the ComptrollerGeneral, performing duties as statutory auditor at Administración General de Puertos S.E., ADIF S.E., All Central S.A. and All Mesopotámica S.A., amongother public companies. He has extensive experience with the management of different multinational companies in the areas of operations, purchasing andfinance.Cecilia Leonor CarabelliMs. Carabelli has a law degree from the School of Law and Social Science of the University of Buenos Aires. She completed postgraduate studies inGovernmental Control at the Economics School of the University of Buenos Aires. Among other positions she previously worked for the legal affairsdirection of the National Social Security Administration, in the Secretary of Social Development, she was also head of a Senators’ Bureau at the ArgentineNational Senate, and as a Member of the Administration Committee to the Fiduciary Fund for Mortgage Debtors, representing the Argentine NationalMinistry of Economy and Finance. She worked as a Manager on behalf of the National Social Security Administration for the Federal Projects “Anses I andAnses II” financed partly by Banco Mundial. Currently, she is a member of the Argentine National Office of the Comptroller General.Employee MattersOur total workforce consist of permanent and temporary employees, as of December 31, 2012, 2013 and 2014, we had 15,782, 17,747 and 22,032employees, respectively. In 2014, this included, 9,991 employees in the Downstream business segment, 4,331employees in the Upstream business segment,and 7,710 employees in the Corporate and Other segment. We had 2,957 temporary employees in 2014. The most significant variations in 2014 included anincrease in the Upstream business of 403 employees and the acquisition of Apache Group. See “Item 4. Information on the Company—Exploration andProduction Overview—Main properties.” with approximately 385 employees as of the date of the acquisition, and the increase of 284 employees in OPESSAas a result of internalization of third party employees and the natural rotation of oil station personnel. In addition, A-Evangelista S.A., which is part of thecorporate and other business segment, increased during 2014 approximately 2,681 employees (2,032 of which are temporary labor contracts to preventfurther claims which is standard in construction hires) mostly dedicated to the commissioning stage of the coke unit at our refinery in La Plata. See “Item 4.Information on the Company—Downstream—Refining division.” and the increase in the Oil Services business related to the increased activity in ourUpstream business segment. Approximately 40% of our employees are represented by the Federation of Oil Workers Union (SUPeH, for its acronym inSpanish) that negotiates with us labor agreements and salaries which apply to YPF and OPESSA unionized employees. The SUPeH is permanentlynegotiating with us, and we maintain a good level of communication. In general, requests of labor unions related to the petrochemical industry wereconsistent with general wage increases given by the General Unions Confederation.Labor agreements negotiated in 2011 expired at the end of 2014. Although under Argentinian law renewal is not mandatory, we expect unions to startnegotiations in this matter during this year.In addition, labor conditions and salaries of third-party employees, are represented by sixteen other unions. Approximately 60% of third-partyemployees, mostly in Upstream business, are represented by nine unions with whom we directly negotiate their labor agreements and salaries. These unionsare clustered in three groups, Petroleros Privados with five unions, Personal Jerárquico with three unions and SUPeH Emprendimientos. The remaining 40%of third-party employees are represented by unions with whom we do not participate in labor agreements. 157Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDuring the last quarter of 2014, we have been negotiating an agreement regarding 2015 salary increases, which we hope will be finished in the nextmonths.As part of its privatization, YPF restructured its internal organization and significantly reduced the number of its employees. YPF reduced its workforce from over 51,000 employees (including approximately 15,000 personnel under contract) at December 31, 1990 to approximately 7,500 at December 31,1993. YPF paid to the employees affected by these reductions the termination payments required under Argentine labor laws that amounted to Ps. 686million. A substantial majority of lawsuits that originated as a consequence of this restructuring process have been brought by former employees who allegethat they received insufficient severance payments in connection with their dismissal and various job-related illnesses, injuries, typically seeking unspecifiedrelief.As of December 31, 2014, YPF was a party in approximately 1,285 labor lawsuits that relate to events or acts that took place after December 31, 1990.The outcome of said lawsuits depends on factual issues that vary from case to case, and it is not always feasible to predict the outcome of particular cases.However, based on the number and character of the lawsuits already commenced, the estimated likelihood of additional claims in view of the number ofdismissed employees, applicable statutes of limitations, the legal principles involved in the suits and the financial statement reserves previously established,our management does not expect the outcome of these lawsuits to have a material adverse effect on our financial condition or future results of operations.Maxus (a YPF subsidiary) has a number of contributory health and welfare plans covering its full-time employees and their dependents. Maxusprovides matching contributions of up to 6% of employees’ deferrals to the employee savings plan, along with a non-discretionary contribution of 7.5%,which was implemented following the termination of the Maxus pension plan. There is a non-qualified pension plan where a small number of executivesreceive contributions associated with the savings plan, which would have been denied them due to IRS annual limits. Retiree health and life insurancecoverage for active employees was terminated in October 2011. Maxus continues to provide health and welfare plans to a select group of retired employeeswho were promised coverage for life at no cost to them. The coverage provided varies by the year in which the employees retired and the companies theyretired from. Due to the advanced ages of these retirees, this is a significantly decreasing population. Maxus continues to provide supplementalnoncontributory and non-qualified retirement payments to certain former executives, officers, and surviving spouses, which is a closed group.As of December 31, 2014 there were also approximately 48,000 third-party employees under contract, mostly with large international service providers.Although we have policies regarding compliance with labor and social security obligations by its contractors, we are not in a position to ensure thatcontractors’ employees will not initiate legal actions to seek indemnification from us based upon a number of Argentine judicial labor court precedentsrecognizing joint and several liability between the contractor and the entity to which it is supplying services under certain circumstances.The following table provides a breakdown of our employees by business units as of December 31, 2014. Employees by Business Units Upstream 4,331 Downstream 9,991 Refining and Marketing 8,642 Chemicals 39 Natural gas distribution and Electricity Generation(1) 1,310 Corporate and Other(2) 7,710 Total YPF 22,032 (1)Includes 1,228 employees of Metrogas S.A. and its subsidiaries(2)Includes 5,856 employees of A-Evangelista S.A. and its subsidiaries.The following table provides a breakdown of our employees by geographic locations. Employees by geographic location Argentina 21,882 Rest of South America 123 United States 27 Total YPF 22,032 158Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsITEM 7.Major Shareholders and Related Party TransactionsThe Expropriation Law has significantly changed our shareholding structure. The Class D shares subject to expropriation from Repsol or its controllingor controlled entities, which represent 51% of our share capital and have been declared of public interest, will be assigned as follows: 51% to the federalgovernment and 49% to the governments of the provinces that compose the National Organization of Hydrocarbon Producing States. In addition, theArgentine federal government and certain provincial governments already own our Class A and Class B shares. See “Item 3. Key Information—Risk Factors—Risks Relating to Argentina—The Argentine federal government has taken control over the Company and will operate it according to domestic energypolicies in accordance with the Expropriation Law.” Additionally, see “Item 4. Information on the Company—Regulatory Framework and Relationship withthe Argentine Government—Law No. 26,932” for a description of the agreement between Repsol and the Argentine Republic relating to compensation forthe expropriation of 51% of the share capital of YPF owned, directly or indirectly, by Repsol.As of the date of this annual report, the transfer of the shares subject to expropriation between National Executive Office and the provinces thatcompose the National Organization of Hydrocarbon Producing States is still pending. According to Article 8 of the Expropriation Law, the distribution of theshares among the provinces that accept their transfer must be conducted in an equitable manner, considering their respective levels of hydrocarbonproduction and proved reserves. To ensure compliance with its objectives, the Expropriation Law provides that the National Executive Office, by itself orthrough an appointed public entity, shall exercise all the political rights associated with the shares subject to expropriation until the transfer of political andeconomic rights to the provinces that compose the National Organization of Hydrocarbon Producing States is completed. In addition, in accordance withArticle 9 of the Expropriation Law, each of the Argentine provinces to which shares subject to expropriation are allocated must enter into a shareholder’sagreement with the federal government which will provide for the unified exercise of its rights as a shareholder. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—The Expropriation Law.”The following table sets forth information relating to the beneficial ownership of our shares as of March 20 , 2015: Number ofshares (%) National State - Ministry of Economy and Public Finance(1) 200,589,525 51.000% Public(2)(3) 170,601,458 43.376% Slim Family(4) 22,070,000 5.611% Argentine federal and provincial governments(5) 11,388 0.003% Employee fund(6) 40,422 0.010% (1)The expropriated Class D shares, which represent 51% of our share capital, and which now are owned by the Republic of Argentina will be assigned asfollows: 51% to the federal government and 49% to the governments of the provinces that compose the National Organization of HydrocarbonProducing States. The completion of this assignment is pending. To ensure compliance with its objectives, the Expropriation Law provides that theNational Executive Office, by itself or through an appointed public entity, shall exercise all the political rights associated with the shares subject toexpropriation until the transfer of political and economic rights to the provinces that compose the National Organization of Hydrocarbon ProducingStates is completed. In addition, in accordance with Article 9 of the Expropriation Law, each of the Argentine provinces to which shares subject toexpropriation are allocated must enter into a shareholder’s agreement with the federal government which will provide for the unified exercise of itsrights as a shareholder. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—TheExpropriation Law.”(2)According to data provided by The Bank of New York Mellon, as of March 20, 2015.(3)According to data provided by The Bank of New York Mellon, as of March 20, 2015, there were 175,971,679 ADSs outstanding and 58 holders ofrecord of ADSs. Such ADSs represented approximately 44.75% of the total number of issued and outstanding Class D shares as of such date.(4)According to Schedule 13G filed with the SEC on February 17, 2015. “Slim Family” consists of Carlos Slim Helú, Carlos Slim Domit, Marco AntonioSlim Domit, Patrick Slim Domit, María Soumaya Slim Domit, Vanessa Paola Slim Domit and Johanna Monique Slim Domit through InmobiliariaCarso, S.A. de C.V. and Grupo Financiero Inbursa, S.A.B. de C.V.(5)Reflects the ownership of 3,764 Class A shares and 7,624 Class B shares by the Argentine federal government and provincial governments,respectively.(6)Reflects the ownership of 40,422 Class C shares.Related Party TransactionsAll material transactions and balances with related parties as of December 31, 2014 are set forth in Note 6 to the Audited Consolidated FinancialStatements. The principal such transactions were our sales of refined and other products to certain joint ventures and affiliates (which amounted to Ps.3,884 million in 2014), our purchase of petroleum and other products that we do not produce ourselves from certain joint ventures and affiliates (whichamounted to Ps. 1,269 million in 2014), all this in addition to what is mentioned in the following paragraphs. 159Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, the Expropriation Law was passed by the Argentine Congress, which was ruled by Decree No. 660 of the National Executive Office.Among other matters this Law declares of public interest and subject to expropriation 51% of the share capital of YPF represented by an identical stake ofClass D shares owned, directly or indirectly, by Repsol and its controlled or controlling entities. See “Item 4. Information on the Company—RegulatoryFramework and Relationship with the Argentine Government—The Expropriation Law.” Consequently, since the passage on May 3, 2012 of theExpropriation Law, the federal government is a related party of the Company. Consequently, and in addition to transactions mentioned in paragraph before,we are party to numerous agreements with the federal government, as well as with certain agencies or institutions dependent on such governments and stated-owned companies.The information disclosed in Note 6 to the Audited Consolidated Financial Statements disclose the balances with joint ventures and affiliatedcompanies as of December 31, 2014, December 31, 2013 and December 31, 2012, and transactions with the mentioned parties for the twelve-month periodsended December 31, 2014, 2013 and 2012. Additionally, the balances and transactions held with the entities within the Repsol group are included until thedate the conditions required to be considered as related parties were no longer met. Information regarding major transactions with government entities arealso described in Note 6 to the Audited Consolidated Financial Statements.In addition, see Note 1.b.10.iii to our Audited Consolidated Financial Statements regarding our long-term share compensation plan offered to certainpersonnel.For an organizational chart showing our organizational structure, including our interests in our principal affiliates, see “Item 4. Information on theCompany—Overview.”Argentine Law Concerning Related Party TransactionsSection 72 of the Stock Market Law provides that before a company whose shares are listed in Argentina may enter into an act or contract involving a“significant amount” with a related party or parties, such company must obtain approval from its board of directors, and obtain an opinion, prior to suchboard approval, from its audit committee or from two independent valuation firms that states that the terms of the transaction are consistent with those thatcould be obtained on an arm’s-length basis.For the purpose of Section 72 of the Stock Market Law and CNV Regulations, “significant amount” means an amount that exceeds 1% of the issuer’snet worth as reflected in the latest approved financial statements. For purposes of the Stock Market Law, “related party” means (i) directors, members of thesupervisory committee or managers; (ii) the persons or entities that control or hold a significant participation in the company or in its controlling shareholder(to be regulated by CNV); (iii) any other company under common control; (iv) direct relatives of the persons mentioned in (i) and (ii); or (v) companies inwhich the persons referred to in (i) to (iv) hold directly or indirectly significant participations.The acts or contracts referred to above, immediately after being approved by the board of directors, shall be disclosed to the CNV, making expressindication of the audit committee’s or independent valuation firm’s opinion, as the case may be. Also, beginning on the business day following the day thetransaction was approved by the board of directors, the audit committee’s or independent valuation firm’s reports shall be made available to the shareholdersat the company’s principal executive offices.If the audit committee or the two independent valuation firms do not find that the contract is on arm’s-length terms, prior approval must be obtained atthe company’s shareholders’ meeting. ITEM 8.Financial InformationFinancial StatementsSee Item 18 for our Audited Consolidated Financial Statements.Legal ProceedingsArgentinaThe Privatization Law provides that the Argentine State shall be responsible, and shall hold us harmless, for any liabilities, obligations or othercommitments existing as of December 31, 1990 that were not acknowledged as such in the financial statements of 160Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYacimientos Petrolíferos Fiscales Sociedad del Estado, our predecessor, as of that date arising out of any transactions or events that had occurred as of thatdate, provided that any such liability, obligation or other commitment is established or verified by a final decision of a competent judicial authority. Incertain lawsuits related to events or acts that took place before December 31, 1990, we have been required to advance the payment of amounts established incertain judicial decisions, and have subsequently been reimbursed or are currently in the process of requesting reimbursement from the Argentine governmentof all material amounts in such cases. We are required to keep the Argentine government apprised of any claim against us arising from the obligationsassumed by the Argentine government. We believe we have the right to be reimbursed for all such payments by the Argentine government pursuant to theabove-mentioned indemnity, which payments in any event have to date not been material. This indemnity also covers fees and expenses of lawyers andtechnical consultants subject, in the case of our lawyers and consultants, to the requirement that such fees and expenses not be contingent upon the amountsin dispute.Accrued, probable contingenciesAccruals totaling Ps. 6,513, Ps. 4,674 and Ps. 2,634 million as of December 31, 2014, 2013 and 2012, respectively, have been provided in connectionwith contingencies which are probable and can be reasonably estimated. In the opinion of our management, in consultation with our external counsel, theamount accrued reflects management’s reasonable estimate, based on the information available as of the date of this annual report, of the probable outcome ofthe mentioned contingencies. The most significant legal proceedings and claims accrued are described in the following paragraphs.Alleged defaults under natural gas supply contracts. Since 2004, the Argentine Secretariat of Energy and the Undersecretariat of Fuels, through RuleNo. 27/04, Resolutions No. 265/04, 659/04, 752/05, 1329/06 and 599/07, have on various occasions instructed us to supply certain quantities of natural gasto the Argentine domestic market, in each case notwithstanding the lack of a contractual commitment on our part to do so. In addition, the Argentinegovernment has, at various times since 2004, imposed direct volume limitations on natural gas exports in different ways. On January 5, 2012, the OfficialGazette published Resolution SE No. 172 which temporarily extends the allocation rules and other criteria established by Resolution No. 599/07. As a resultof these measures, from 2004 to the present we have been required in many instances to partially or fully suspend natural gas export deliveries that arecontemplated by our contracts with export customers. See “Item 4. Information on the Company—Exploration and Production—Delivery commitments—Natural gas supply contracts” for additional information on the restrictions affecting contracted volumes.We appealed these measures, but, pending favorable final resolution of such appeals, we have been obliged to comply in order to avoid greater lossesto us and our export customers that could be occasioned by the revocation of our export permits or other penalties. We informed our natural gas exportcustomers of our position that these governmental measures constitute an event of force majeure that releases us from any contractual or extra-contractualliability deriving from the failure to deliver the agreed upon volumes of gas. Some of our customers have rejected our position and a number of them havesought damages and/or penalties for breach of supply commitments under a contractual “deliver or pay” clause.On June 25, 2008, AES Uruguaiana Emprendimientos S.A. (“AESU”) claimed damages in a total amount of U.S.$28.1 million for natural gas “deliver orpay” penalties for cutbacks accumulated from September 16, 2007 through June 25, 2008. AESU also claimed an additional amount of U.S.$2.7 million fornatural gas “deliver or pay” penalties for cutbacks accumulated from January 18, 2006 until December 1, 2006. YPF has contested both claims. OnSeptember 15, 2008, AESU notified YPF of the interruption of the fulfillment of its commitments alleging delay and breach of YPF obligations. YPF hascontested the arguments of this notification. On December 4, 2008, YPF notified AESU that the force majeure conditions had ceased and, pursuant to thecontract in force, it would suspend its delivery commitments due to the repeated breaches of AESU’s obligations. AESU has contested this notification. OnDecember 30, 2008, AESU contested YPF’s right to suspend its natural gas deliveries and on March 20, 2009, notified YPF of the termination of the contract.On March 20, 2009 AESU formally notified YPF of the termination of the contract. On April 6, 2009, YPF initiated an arbitration process at the InternationalChamber of Commerce (“ICC”) against AESU, Companhía do Gas do Estado do Río Grande do Sul (“Sulgás”) and Transportadora de Gas del Mercosur S.A.(“TGM”). On the same date YPF was notified by the ICC of an arbitration process initiated by AESU and Sulgás against YPF in which they claim, amongother matters considered inadmissible by YPF, consequential loss, AESU’s plant dismantling costs and the payment of “deliver or pay” penalties mentionedabove, all of which totaled approximately U.S.$ 1,052 million.Additionally, YPF was notified of an arbitration process brought by TGM at the ICC, claiming YPF owed approximately U.S.$10 million plus interestup to the date of effective payment in connection with the payment of invoices related to a gas transportation contract entered into in September 1998between YPF and TGM, associated with the aforementioned natural gas exportation contract signed with AESU. On April 8, 2009, YPF requested that thisclaim be denied and counterclaimed for the termination of the natural gas transportation contract based on its rights upon the termination by AESU andSulgás of the related natural gas export contract. In turn, YPF initiated an arbitration process at the ICC against TGM, among others. YPF received the reply tothe complaint from TGM, who requested the full denial of YPF’s claims and introduced a counterclaim against YPF asking the Arbitration Tribunal to compel 161Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF to compensate TGM for all present and future damages suffered by TGM due to the termination of the gas transportation contract and the memorandumof agreement dated October 2, 1998 by which YPF undertook to pay irrevocable non-capital contributions to TGM in return for the Uruguayana Projectpipeline expansion. TGM also requested the panel hold AESU-Sulgás—if it finds that the termination of the Gas Contract occurred due to the breach ofAESU or Sulgás—jointly and severally liable to indemnify TGM for all damages caused by such termination. Additionally, on July 10, 2009, TGM increasedthe amount of its claim to U.S.$17 million and claimed an additional amount of approximately U.S.$366 million for loss of profits, both contested by YPF.On April 6, 2011, the arbitration tribunal appointed in the “YPF vs. AESU” arbitration sustained YPF’s motion, and consolidated all the relatedarbitrations (“AESU vs. YPF,” “TGM vs. YPF” and “YPF vs. AESU”) into the “YPF vs. AESU” arbitration.On May 24, 2013 YPF was notified of the partial award decreed by a majority in the “YPF vs. AESU and TGM” arbitration whereby YPF was heldresponsible for the termination in 2009 of the natural gas export and transportation contracts signed with AESU and TGM. The award only determined theliability of the parties, leaving the determination of the damages that could exist subject to the subsequent proceedings before the same tribunal. Moreover,the tribunal rejected the admissibility of “deliver or pay” claims asserted by Sulgás and AESU for the years 2007 and 2008 for U.S.$ 28 million and for theyear 2006 for U.S.$2.4 million.On May 31, 2013, YPF filed with the arbitration tribunal a writ of nullity, in addition to making several presentations in order to safeguard its rights.Against the rejection of the writ of nullity, on August 5, 2013 YPF filed a complaint appeal with the Argentinean National Court of Appeals in CommercialMatters.On July 29, 2013, the arbitration tribunal rejected the nullity request and suspended the arbitration proceedings until September 30, 2013. OnOctober 17, 2013 the arbitration tribunal resumed the proceedings and established a proceeding schedule to be held during 2014, during which the reports ofthe experts proposed by the parties occurred.On October 23, 2013 the National Court of Appeals in Commercial Matters declared its jurisdictional incompetency and reassigned the nullity requestto the National Court of Appeals in the Federal Contentious Administrative. On December 16, 2013 the intervening official issued its opinion in favor of thecompetence of this court.On December 27, 2013, the Federal Court of Appeals hearing Administrative Litigation matters granted the reconsideration motion from denial onappeal, then sustained the appeal for procedural violations and stayed relief pending the arbitration process. In addition, the court granted, until the appealfor procedural violations is finally admitted, a restrictive injunction to prevent the advance of the arbitration process while a decision on the reconsiderationmotion from denial on appeal and on the appeal for procedural violations filed by YPF is pending. On October 7, 2014, the Argentine Federal Court ofAppeals ordered a suspension of the second stage of arbitration until the Court issues a final decision on the writ of nullity filed by YPF against the arbitralaward on adjudication of liability. On October 31, 2014, the arbitration tribunal suspended the arbitration process until February 2, 2015.On January 10, 2014, YPF was served with (i) the complaint for damages filed by AESU with the arbitration tribunal claiming a total amount of U.S.$815.5 million and (ii) the complaint for damages filed by TGM with the arbitration tribunal claiming a total amount of U.S.$362.6 million. On April 25,2014, YPF filed a reply to the complaint for damages with the arbitration tribunal, contesting the amounts claimed by TGM and AESU and alleging that theamounts were incorrect due to errors in the technical valuations. On July 8, 2014, TGM filed an answer to the reply, to which YPF in turn replied onSeptember 23, 2014 with a second answer.Despite having brought the action above, and considering the information available to date, the estimated time remaining until the end of theproceedings, the outcomes of the additional evidence presented in the continuation of the dispute and the provisions of the partial award, YPF has accrued itsbest estimate with respect to the amount of the claims.In addition, YPF is subject to certain claims related to transportation fees and charges associated with transportation services under contracts associatedwith natural gas exports. Transportadora de Gas del Norte S.A. (“TGN”), one of the parties to these contracts, initiated mediation proceedings with us in orderto determine the merits of its claim. The mediation proceedings did not result in an agreement and, on March 12, 2010, YPF was notified of the lawsuit filedby such company claiming the fulfillment of contractual obligations and the payment of unpaid invoices while reserving the right to claim for damages. TGNsubsequently claimed the alleged related damages in a note addressed to the Company in November 2011. On April 3, 2013, YPF was notified of the lawsuitfiled by TGN claiming damages. The total amount claimed by TGN amounts to approximately U.S.$207 million as of the date of this annual report. YPF hasanswered the lawsuit brought by TGN. Additionally, the plaintiff notified us that it was terminating the contract, invoking YPF’s alleged breach of suchcontract due to an alleged lack of payment of the related transportation fees. The Federal Court of Appeals in Civil and Commercial Matters has ruled in favorof the jurisdiction of the federal civil and commercial courts (and against jurisdiction of ENARGAS) to resolve this matter. Additionally, on January 12, 2012and following a mediation 162Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsprocess which ended without any agreement, NAFISA filed a complaint against YPF before ENARGAS, under Article 66 of Law No. 24,076, claiming thepayment of Ps.339 million in relation to payments of applicable fees for natural gas transportation services to Uruguaiana relating to the transportationinvoices claimed by TGN. On February 8, 2012 we answered the claim raising ENARGAS’s lack of jurisdiction (as we did in the proceeding against TGN), theconsolidation with the trial “TGN / YPF” and rejecting the claim based on the theory of legal impossibility. On the same date, a similar order of confirm wasalso submitted in the “TGN / YPF” matters. On April 12, 2012, ENARGAS ruled in favor of NAFISA.On May 12, 2012, YPF filed an appeal against such ruling to the National Court of Appeals in the Federal Contentious Administrative. OnNovember 11, 2013 the National Court of Appeals in the Federal Contentious Administrative ruled in favor of NAFISA. On November 19, 2013, YPF filed anordinary appeal against such ruling to the Supreme Court of Justice. On November 27, 2013 YPF filed an extraordinary appeal against such ruling to theSupreme Court of Justice. In the opinion of YPF’s management, the matters referred to above, will not have a material adverse effect on the Company’s resultsof operations.On September 18, 2012, the judge presiding in the “TGN / YPF” matters: a) dismissed the order of consolidation made by YPF on the ground that thecourt has no jurisdiction to hear the case because it lacks administrative jurisdiction in NAFISA litigation and considering that there is no possibility that thedecision made to any of them have the same effect on the other; b) accepted YPF’s claim that notification made by TGN on December 16, 2010 in respect ofthe termination of the contract and the call of a public tender by TGN on March 10, 2011 to award the public and firm service transportation of natural gasthrough its northern pipeline system, including transport capacity remaining under the contract with YPF, terminated the contract; c) extended the demandfor which TGN claims invoices relating to services for November and December 2010; and d) opened the case to trial.In connection with the above, on April 8, 2009, YPF filed a complaint against TGN with ENARGAS, seeking the termination of the natural gastransportation contract with TGN for the transport of natural gas in connection with the natural gas export contract entered with AESU and other parties. Thecomplaint is based on the termination of the referenced natural gas export contract and the legal impossibility of assigning the transportation contract toother shippers because of certain changes in law in effect since 2002; as a second order matter, the legal impossibility for TGN to render the transportationservice on a firm basis because of certain changes in law in effect since 2004; and as a third order matter, the Teoría de la Imprevisión (hardship provisionunder Article 1198 of the Argentine Civil Code) available under Argentine law when extraordinary events render a party’s obligations excessivelyburdensome.On April 3, 2013 the complaint for damages brought by TGN was filed whereby TGN claimed YPF should pay the amount of U.S.$ 142 million, plusinterests and legal fees for the termination of the transportation contract, and that YPF would have 30 days to file and answer thereto. On May 31, 2013 YPFanswered the claim requesting the dismissal thereof. On April 3, 2014 the evidence production period commenced for a 40-days lapse, and the court notifiedthe parties that they shall submit a copy of evidence offered by them to create exhibit binder. As of the date of these annual report, evidence offered by theparties is being produced.La Plata and Quilmes environmental disputes. On June 29, 1999, a group of three neighbors of the La Plata refinery filed claims for the remediation ofalleged environmental damages in the peripheral water channels of the refinery, investments related to contamination and compensation for alleged healthand property damages as a consequence of environmental pollution caused by YPF prior to and after privatization. We notified the National Executive Officethat there is a chance that the tribunal may find us responsible for the damages. In such event, due to the indemnity provided by Privatization Law (LawNo. 24,145) and in accordance with that law, we should be allowed to request reimbursement of the expenses for liabilities existing on or prior to January 1,1991 (before privatization) from the Argentine government.On December 27, 2002, a group of 264 claimants who resided near the La Plata refinery requested compensation for alleged quality of life deteriorationand environmental damages purportedly caused by the operation of the La Plata refinery. The amount claimed is approximately Ps. 42 million. We filed awrit answering the complaint. There are three similar additional claims raised by three groups of 120, 343 and 126 neighbors, respectively. The first group hasmade a claim for compensation of approximately Ps. 16 million, the second group has made a claim for compensation of approximately Ps. 45 million and thethird one has made a claim of approximately Ps. 16 million, in addition to a request for environmental cleanup.On December 17, 1999, a group of 37 claimants who resided near La Plata refinery, demanded the specific performance by us of different works,installation of equipment, technology and execution of work necessary to stop any environmental damage, as well as compensation for health damagesalleged to be the consequence of gaseous emissions produced by the refinery, currently under monitoring. On August 11, 2011, the judge ruled against YPFand the Argentine government requiring us to pay approximately Ps. 3.5 million plus interest. The Court of Appeals confirmed the lower court judge’s rulingand ordered YPF to file an improvement plan to reduce gaseous emissions produced by the refinery. YPF filed an appeal before the Supreme Court but it wasrejected in March 2013. Subsequently, the Judge ordered YPF to file an improvement plan, which YPF filed in March 2013. The plan was analyzed by courtexperts, who presented their report. YPF was served and presented a request for clarification that has not been responded to yet. 163Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn January 25, 2011, we entered into an agreement with the Provincial Entity for Sustainable Development (“OPDS”) of the government of theprovince of Buenos Aires, within the scope of the remediation, liability and environmental risk control program, created by Resolution 88/10 of the OPDS.Pursuant to such agreement, YPF and the relevant authorities agreed to jointly perform an eight-year work program in the canals adjacent to the La Platarefinery, including the conduct of characterization and risk assessment studies of sediments. The agreement provides that when a required remediation actionis identified as a result of a risk assessment study, different alternatives and available techniques will be considered, as well as the steps needed for itsimplementation. Studies to determine how old the contamination is will also be performed pursuant to the agreement, in order to evaluate whether theArgentine government should be liable for such contamination pursuant to its obligation to hold us harmless under the Privatization Law, which establishedthe procedures for our privatization. YPF has provided an accrual of the estimated cost of the characterization and risk assessment studies mentioned above.The cost of the remediation actions, if required, will be recorded in those situations where the loss is probable and can be reasonably estimated.Quilmes claims. We have been notified of 37 judicial claims filed by neighbors living near the riverside in Quilmes, in the province of Buenos Aires, asa consequence of a leak related to the La Plata – Dock Sud pipeline, which occurred in 1988 as third parties damaged and stole fuel from the pipeline, whichwas then repaired by Yacimientos Petrolíferos Fiscales. One of the claims has been filed by a group of people that allegedly live in this area and haverequested the remediation of environmental damages and the payment of approximately Ps. 47 million plus interest as compensation for alleged personaldamages for hydrocarbons exposure. We have answered the complaint requesting its rejection and impleading the Argentine government. We have alsonotified the Argentine government of the existence of this claim and that we plan to request that it hold us harmless and indemnify us against any liabilityderived from this lawsuit, as provided by the Privatization Law. The Argentine government, through an administrative decision, has denied anyresponsibility to indemnify us for this matter; therefore we have sued the Argentine government to obtain a declaratory judgment declaring thisadministrative decision null and void. Such declaratory judgment is still pending. On December 18, 2014 the Argentine government was cited, bynotification of the demand and its extensions, by letter to the Ministry of Federal Planning. There are 29 other judicial claims that have been brought againstus based on similar allegations, amounting to approximately Ps. 19 million. Additionally, we are aware of the existence of other actions brought against usthat have not yet been served and which are based on similar allegations. As of the date of this annual report, a remediation plan is being performed in theaffected area, under the supervision of the environmental authority of the province of Buenos Aires.New Jersey claims. On December 13, 2005, the New Jersey Department of Environmental Protection (the “DEP”) and the New Jersey SpillCompensation Fund filed a claim with a New Jersey court against Occidental Chemical Corporation, Tierra, Maxus, Repsol YPF, YPF, YPF Holdings andCLH Holdings. See “Item 4. Information on the Company—Environmental Matters—YPF Holdings–Operations in the United States.” YPF International S.A.and Maxus International Energy Company were added to the claim in 2010. The plaintiffs are claiming economic compensation, including damages andassociated investigation and cleanup costs, in an undetermined amount and punitive damages as a consequence of environmental damages, as well as thecosts and fees associated with this proceeding, based on alleged violations of the Spill Compensation and Control Act (“Spill Act”), the Water PollutionControl Act and common law claims relating to a facility allegedly operated by the defendants and located in Newark, New Jersey that allegedly impactedthe Passaic River and Newark Bay. For detailed information about this legal proceeding, see “YPF Holdings-Passaic River/Newark Bay, New Jersey—NewJersey-litigation with DEP.”Tax claims. We have received several claims from the AFIP and from the provincial and municipal fiscal authorities, which are not individuallysignificant, and which have been accrued based on the best information available as of the date of this annual report.Non-accrued, possible contingenciesIn addition to the probable contingencies described in the preceding paragraphs, we are subject to several labor, civil, commercial and environmentalclaims in respect of which, we have not provided any accrual since management, based on the evidence available to date and in consultation with ourexternal counsel, have considered them to be possible contingencies.Based on the information available to the Company, including the amount of time remaining before trial, the results of discovery and the judgment ofinternal and external counsel, the Company is unable to estimate the reasonably possible loss or range of loss resulting for these contingencies.The most significant of these contingencies are described below:Patagonian Association of Land-Owners claims. On August 21, 2003, the Patagonian Association of Land-Owners (“ASSUPA”) sued the companiesoperating production concessions and exploration permits in the Neuquina Basin, including us, claiming for the remediation of the general environmentaldamage purportedly caused in the development of such activities or the establishment of an environmental restoration fund, and the implementation ofmeasures to prevent environmental damages in the future. The total amount 164Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsclaimed against all companies is more than U.S.$ 547.6 million. The plaintiff requested that the Argentine government (Secretariat of Energy), the FederalEnvironmental Council, the provinces of Buenos Aires, La Pampa, Neuquén, Río Negro and Mendoza and the National Ombudsman be summoned. Itrequested, as a preliminary injunction, that the defendants refrain from carrying out activities affecting the environment. Both the Ombudsman’s summons aswell as the requested preliminary injunction were rejected by the Argentine Supreme Court. Once the complaint was served, we and the other defendants fileda motion for a more definitive statement of claims. The court granted the motion, and the plaintiff had to file a supplementary complaint. We requested thatthe claim be rejected because the defects of the complaint indicated by the Argentine Supreme Court have not been corrected, but such request was denied.However, we have also requested its rejection for other reasons, and impleaded the Argentine government, due to its obligation to indemnify us against anyliability and hold us harmless for events and claims arising prior to January 1, 1991, according to the Privatization Law and Decree 546/1993. OnFebruary 23, 2009, the Argentine Supreme Court ordered that certain provinces, the Argentine government and the Federal Environmental Council besummoned. Therefore, pending issues were deferred until the impleaded parties appear before the court and procedural issues are resolved. The provinces ofRío Negro, Buenos Aires, Neuquén, Mendoza, and the Argentine government have presented their arguments to the Supreme Court, although such argumentsare not available to us. The provinces of Neuquén and La Pampa have claimed lack of jurisdiction, which has been opposed by the plaintiff, and the claim ispending resolution. On December 13, 2011, the Supreme Court suspended the proceeding for 60 days and ordered YPF and the plaintiff to present a scheduleof the conferences that would take place during said suspension, authorizing the participation of the rest of the parties as well as third parties in suchconferences. ASSUPA reported the interruption of the negotiations in the claim and the Supreme Court finalized the 60-day period of suspension ordered.On December 1, 2014, ASSUPA sued the companies operating production concessions and exploration permits in the Northwest Basin, including us,claiming for the remediation of environmental damage purportedly caused in the execution of such activities, or the establishment of an environmentalrestoration fund, and the implementation of measures to prevent environmental damages in the future. YPF expects to respond within the required time periodand to assert available defense appropriate to the case. The required time period to answer the complaint is currently suspended.On December 30, 2014 the Supreme Court issued two interlocutory judgments. In the first, it supported the claim of the Provinces of Neuquen and LaPampa, and declared that all environmental damages related to local and provincial situations were outside the scope of his original competence, and thatonly “inter-jurisdictional situations” (such as the Colorado River basin) would fall under his venue.By the second judgment, the Court rejected the petition filed by ASSUPA to incorporate Repsol and the directors who served in YPF until April 2012as a necessary third party. The Court also rejected precautionary measures and other proceedings related to such request.Additionally it should be noted that the Company is aware of an action in which it has not yet been served, in which, three other legal claims havebeen brought by ASSUPA against: i)Concessionaire companies in the San Jorge Gulf basin areas: The complaint has not yet been forwarded to YPF. However, YPF has beennotified about an information request. Currently, the court has ordered the suspension of procedural terms; ii)Concessionaire companies in the Austral basin areas: In this case, a highly summarized action has been ordered. Although it has beenordered to forward the complaint, YPF has not yet been notified. A precautionary measure has also been ordered to inform differententities about the existence of the trial and the defendants may provide certain information, a decision already appealed by YPF. iii)Concessionaire companies in the Northwest basin areas: On December 1, 2014, the Company was notified about the complaint.Currently, terms to answer are suspended at the Company’s request.Dock Sud environmental claim. We have been sued in the following environmental lawsuits that have been filed by residents living near Dock Sud, inthe province of Buenos Aires: (i) “Mendoza, Beatriz against National State et al.,” and (ii) “Cicero, María Cristina against Antivari S.A.C.I. et al. fordamages.” In the Mendoza lawsuit before the Argentine Supreme Court, the Argentine government, the province of Buenos Aires, the City of Buenos Aires,14 municipalities and 44 companies (including us) were sued. The plaintiffs have requested unspecified compensation for collective environmental damageto the Matanza and Riachuelo river basins and for physical and property damage, which they claim to have suffered. The Argentine Supreme Court declareditself legally competent to settle only the conflict related to the collective environmental damages, including prevention of future pollution, 165Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsremediation of environmental damages already caused and monetary compensation for irreparable environmental damages, and has requested that thedefendants submit specific reports. In particular, it has requested that the Argentine government, the province of Buenos Aires, the City of Buenos Aires andthe Federal Environmental Council submit a plan with environmental objectives. We answered the complaint and requested the impleading of the Argentinegovernment, based on its obligation to indemnify us against any liability and hold us harmless for events and claims prior to January 1, 1991, according tothe Privatization Law and Decree No. 546/1993. In July 2008, the Argentine Supreme Court decided that the Basin Authority (Law 26,168) (“ACUMAR”)will be in charge of performing a remediation plan as well as of taking preventive measures in the area. The Argentine government, as well as the provinceand City of Buenos Aires, will be responsible for the performance of these measures. It also declared the exclusive competence of the First Instance FederalCourt in Quilmes to hear any claims or disputes arising out of the remediation plan or the preventive measures and determined that any future action seekingthe environmental remediation of the basin will be dismissed (litis pendentia). We have been notified of certain resolutions issued by ACUMAR, pursuant towhich we are required to submit a Restructuring Industrial Plan regarding certain of our facilities. While we have appealed such resolutions, we havesubmitted to the relevant authority a Restructuring Industrial Plan. Additionally, the Argentine Supreme Court declared that it will determine whether andhow much liability is to be borne by the parties involved. In the Cicero lawsuit, the plaintiffs, who are residents of Villa Inflamable, Dock Sud, also demandthe environmental remediation of Dock Sud and Ps.33 million in compensation for physical and property damages against many companies that haveoperations there, including us. We answered the complaint by requesting its rejection and asked the citation of the Argentine government, due to itsobligation to indemnify us against any liability and hold us harmless for events and claims prior to January 1, 1991, according to the Privatization Law andDecree No. 546/1993.La Plata refinery environmental claims. We are aware of an action in which we have not yet been served, in which the plaintiff requests the cessation ofcontamination and the cleanup of the canals adjacent to the La Plata refinery, in Río Santiago, and other sectors near the coast (removal of mud, drainage ofwetlands, restoration of biodiversity, among other things), and, if such sanitation is not practicable, compensation of Ps. 500 million or an amount to bedetermined from evidence produced in discovery. We believe that this claim partially overlaps with the requests made by a group of neighbors of the La Platarefinery on June 29, 1999. Accordingly, we consider that if we are served in this proceeding or any other proceeding related to the same subject matters, thecases will need to be consolidated to the extent that the claims overlap. With respect to claims that would not be included in the previous proceedings, for thetime being we are unable to estimate the prospects of such claims. Additionally, we believe that most of the damages that do not overlap with theaforementioned claims may be attributable to events that occurred prior to YPF’s privatization and could therefore be the responsibility of the Argentinegovernment in accordance with the Privatization Law concerning YPF.In addition to the above, YPF has entered into an agreement with the OPDS in connection with the claims related to the channels adjacent to the LaPlata refinery, which is described under “—Accrued, probable contingencies—La Plata and Quilmes environmental disputes” above.Claims related to the gas market and others. In addition to the claims described under “—Accrued, probable contingencies—Alleged defaults undernatural gas supply contracts,” we are involved in the following proceedings also related to the administration of exports imposed by the Argentinegovernment in the natural gas market:CNDC claims. On November 17, 2003, the CNDC requested explanations, within the framework of an official investigation pursuant to Article 29 ofthe Antitrust Protection Law, from a group of almost 30 natural gas production companies, including us, with respect to the following items: (i) the inclusionof clauses purportedly restraining trade in natural gas purchase/sale contracts and (ii) gas imports from Bolivia, in particular (a) expired contracts signed byYPF, when it was state-owned, and YPFB (the Bolivian state-owned oil company), under which YPF allegedly sold Bolivian gas in Argentina at prices belowthe purchase price; and (b) the unsuccessful attempts in 2001 by Duke and Distribuidora de Gas del Centro to import gas into Argentina from Bolivia. OnJanuary 12, 2004, we submitted explanations in accordance with Article 29 of the Antitrust Protection Law, contending that no antitrust violations had beencommitted and that there had been no price discrimination between natural gas sales in the Argentine market and the export market. On January 20, 2006, wereceived a notification of resolution dated December 2, 2005, whereby the CNDC (i) rejected the “non bis in idem” petition filed by us, on the grounds thatENARGAS was not empowered to resolve the issue when ENARGAS Resolution No. 1,289 was enacted; and (ii) ordered that the preliminary opening of theproceedings be undertaken pursuant to the provisions of Section 30 of Law No. 25,156. On January 15, 2007, the CNDC charged us and eight other producerswith violations of Law No. 25,156. We have contested the complaint on the basis that no violation of the Law took place and that the charges are barred bythe applicable statute of limitations, and have presented evidence in support of our position. On June 22, 2007, without acknowledging any conduct inviolation of the Antitrust Protection Law, we filed with the CNDC a commitment according to Article 36 of the Antitrust Protection Law requesting that theCNDC approve the commitment, suspend the investigation and dismiss the proceedings. We are still awaiting a formal response. On December 14, 2007, theCNDC elevated the investigation to the Court of Appeals. 166Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, on January 11, 2012, the Argentine Secretary of Transport filed with the CNDC a complaint against five oil companies (including YPF) foralleged abuse of a dominant position regarding bulk sales of diesel fuel to public bus transportation companies. The alleged conduct consists of selling bulkdiesel fuel to public bus transportation companies at prices higher than the price charged in service stations. According to the provisions of Article 29 of theAntitrust Protection Law, YPF has submitted the corresponding explanations to the CNDC, questioning certain formal aspects of the complaint, and arguingthat YPF has acted at all times in conformity with current regulations and that it did not engage in any discrimination or abuse in determining prices.On January 26, 2012, the Argentine Secretariat of Domestic Commerce issued Resolution No. 6/2012 whereby (i) each of these five oil companies wasordered to sell diesel fuel to public bus transportation companies at a price no higher than the retail price charged by its service station located, in generalterms, nearest to the place of delivery of diesel fuel to each such transportation company, while maintaining both historic volumes and delivery conditions;and (ii) it created a price monitoring scheme of both the retail and the bulk markets to be implemented by the CNDC. YPF has challenged this Resolution andrequested a preliminary injunction against its implementation. YPF’s preliminary injunction has been granted and the effects of the Resolution No. 6/2012have been temporarily suspended, until the appeal is ruled upon. Against that preliminary injection, the Argentinian government presented an extraordinaryfederal appeal, which has not yet been served to YPF. On December 9, 2014, the Federal Civil and Commercial Appeals Court has ruled that the case hasbecome moot and that there are no actual consequences for YPF arising from the challenged Resolution, since prices of the diesel fuel to public bustransportation have suffered several variations since the date such Resolution entered into effect.We are also subject to other claims before the CNDC that are related to alleged price discrimination in the sale of fuels. Our management, based on theevidence available to date and upon the opinion of our external counsel, has considered them to be possible contingencies.Users and Consumers’ Association claim. The Users and Consumers’ Association is seeking (originally against Repsol YPF before extending its claimto YPF) reimbursement of allegedly excessive prices charged to bottled LPG consumers between 1993 and 2001. The claim is for a sum of Ps. 91.2 million forthe period 1993 to 1997 (this sum, in current pesos, would amount to approximately Ps. 584 million), together with an undetermined amount for the period1997 to 2001. We invoked the statute of limitations, since the applicable two-year statute of limitation had already elapsed. A ruling is pending on theapplicability of the statute of limitations. Notwithstanding the above, the evidence production period commenced on August 6, 2009.Quilmes claims. The Company has been notified of a complaint filed by a group of neighbors of Quilmes, in the province of Buenos Aires, claimingapproximately Ps. 353 million in compensation for personal damages.Non-accrued, remote contingenciesOur management, in consultation with our external counsel, believes that the following contingencies, while individually significant, are remote:Congressional request for investigation to CNDC. On November 7, 2003, certain former members of the Argentine Congress, Arturo Lafalla, RicardoFalu and others, filed with the CNDC a complaint against us for abuse of a dominant position in the bulk LPG market during 2002 and part of 2003. Thealleged conduct consisted of selling bulk LPG in the domestic market at prices higher than the export price, thereby restricting the availability of bulk LPGin the domestic market. On December 15, 2003, the CNDC forwarded the complaint to us, and requested explanations under Article 29 of the AntitrustProtection Law. On January 21, 2004, we submitted explanations in accordance with Article 29 of the Antitrust Protection Law, contending that no antitrustviolations had been committed. At this point, the CNDC may accept our explanations or begin a criminal investigation. We contend that we did not restrictLPG supply in the domestic market during the relevant period, that during this period all domestic demand for LPG could have been supplied by ourcompetitors and that therefore our market share could not be deemed a dominant position. The CNDC requested information in relation to the prices in theinternal and external markets for 2000 to 2008 and that we file the LPG export contracts signed from 2001 to 2004 as well as explain the evolution of theprices in the internal and external markets of propane and butane during the March to December period from 2001 to 2004. We provided the requestedinformation. Having provided the requested information, we have become aware that the CNDC has issued an opinion suggesting that the proceedings bedismissed. However, the matter is still pending before the Argentine Secretariat of Domestic Commerce.Pursuant to the provisions of Resolution No. 189/99, referred to above, certain third parties have claimed compensation for alleged damages sufferedby them as a consequence of our sanctioned conduct. We have denied these claims and presented our defenses. 167Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOther export tax disputes. Between 2006 and 2009, the Customs General Administrations in Neuquén, Comodoro Rivadavia and Puerto Deseadoinformed us that certain summary proceedings had been brought against us based on alleged formal misstatements on forward oil deliveries (futurecommitments of crude oil deliveries) in the loading permits submitted before these agencies. In December 2008, the Customs General Administration ofNeuquén rejected our arguments and issued a ruling against us. We will appeal before the National Fiscal Court. Although our management, taking intoaccount the opinion of legal counsel, believes the claim has no legal basis, the potential fines imposed could be substantial.Additional InformationRepsol S.A. complaints: The Company has been served with the following complaints:A complaint filed by Repsol on July 31, 2012 in the Supreme Court of the State of New York, New York County, United States, against The Bank ofNew York Mellon (“BONY”) and the Company. The complaint alleges that Repsol had the right to vote ADSs owned by a certain third party that werepledged in Repsol’s favor, but that it was unable to exercise those voting rights due to BONY’s alleged failure to accept and carry out Repsol’s votinginstructions in connection with, among other things, the election of the Company’s Board of Directors at the Company’s shareholders’ meeting on June 4,2012. The complaint also asserts claims against the Company for allegedly improperly instructing BONY not to accept Repsol’s voting instructions. OnFebruary 4, 2014, the court granted the Company’s and BONY’s motions to dismiss the complaint, and dismissed all claims against the Company withprejudice. Repsol withdrew the complaint on May 13, 2014, pursuant to the Repsol and YPF agreement described below.YPF was notified of four complaints filed by Repsol in Argentina in connection with the enforcement of the Expropriation Law, requesting theinvalidation of the ordinary shareholders’ meetings held on June 4, 2012 and July 17, 2012, the Annual General Meeting No. 38 held on September 13, 2012and April 30, 2013 and its continuation of May 30, 2013, all of which have been answered by YPF. Repsol withdrew the complaint on May 13, 2014,pursuant to the Repsol and YPF agreement discussed below. The Argentine Ministry of Economy and Public Finance and Repsol executed an agreement onFebruary 27, 2014, pursuant to which Repsol accepted U.S.$5.0 billion in sovereign bonds. In exchange, Repsol withdrew judicial and arbitral claims it hadfiled, including claims against YPF, and waived additional claims. YPF and Repsol executed a separate agreement on February 27, 2014, pursuant to which,subject to the effectiveness of the agreement between the Argentine government and Repsol, YPF and Repsol each withdrew, subject to certain exclusions, allpresent and future actions and/or claims based on causes occurring prior to the date of the separate agreement arising from the expropriation of the YPF sharesowned by Repsol pursuant to the Expropriation Law, including the intervention and temporary possession for public purposes of YPF’s shares. On May 8,2014, YPF was notified of the entrance into force of the agreement between the Argentine government and Repsol. See “Item 3. Key Information—RiskFactors—Risks Relating to the Argentine Oil and Gas Business and Our Business—We face risk relating to certain legal proceedings” for a description of theAgreement between Repsol and the Argentine Republic relating to compensation for the expropriation of 51% of the share capital of YPF owned, directly orindirectly, by Repsol.YPF HoldingsThe following is a brief description of certain environmental and other liabilities related to YPF Holdings, a Delaware corporation and a wholly-owned subsidiary of YPF. See “Item 4. Information on the Company—Environmental Matters—YPF Holdings—Operations in the United States” foradditional information.In connection with the sale of Maxus’ former chemical subsidiary, Chemicals Company, to Occidental in 1986, Maxus agreed to indemnifyChemicals Company and Occidental from and against certain liabilities relating to the business or activities of Chemicals Company prior to the ClosingDate, including certain environmental liabilities relating to certain chemical plants and waste disposal sites used by Chemicals Company prior to the ClosingDate. See “Item 4. Information on the Company—Environmental Matters—YPF Holdings—Operations in the United States.”As of December 31, 2014, YPF Holdings’ accruals for environmental and other contingencies totaled approximately Ps. 2,153 million. YPFHoldings management believes it has adequately accrued for all environmental and other contingencies that are probable and can be reasonably estimatedbased on information available as of such time; however, such contingencies are subject to significant uncertainties, including the completion of ongoingstudies, the discovery of new facts, allocation of responsibility among potentially responsible parties, and the possibility of administrative or judicialenforcement actions by authorities, which could result in material additions to such accruals in the future. It is possible that additional claims will be made,and additional information about new or existing claims (such as results of ongoing investigations, the issuance of court decisions, the signing ofparticipation agreements, or the signing of settlement agreements) is likely to develop over time. YPF Holdings’ accruals for the environmental and othercontingencies described below are based solely on currently available information and as a result, YPF Holdings, Maxus and Tierra may have to incur coststhat may be material, in addition to the accruals already taken. 168Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn the following discussion concerning plant sites and third party sites, references to YPF Holdings include, as appropriate and solely for ease ofreference, references to Maxus and Tierra. As indicated above, Tierra is also a subsidiary of YPF Holdings and has assumed certain of Maxus’s obligations. 1.Environmental matters at the Lister Avenue site and the Passaic River 1.1.Environmental issues related to the lower eight miles of the Passaic RiverNewark, New Jersey. A consent decree, previously agreed upon by the EPA, the New Jersey DEP and Occidental, as successor to ChemicalsCompany, was entered in 1990 by the United States District Court of New Jersey for Chemicals Company’s former Newark, New Jersey agricultural chemicalsplant. The approved interim remedy has been completed and paid for by Tierra pursuant to the above described indemnification agreement between Maxusand Occidental. Operations and maintenance of the constructed remedy are ongoing.Passaic River/Newark Bay, New Jersey. Maxus, acting on behalf of Occidental, negotiated an agreement with the EPA (the “1994 AOC”) underwhich Tierra has conducted testing and studies to characterize contaminated sediment and biota in a six-mile portion of the Passaic River near the Newark,New Jersey plant site described above. While some work remains, the work under the 1994 AOC was substantially subsumed by about 70 companies(including Occidental and TS) of the lower 17-mile portion of the Passaic River (including the portion already studied) pursuant to a 2007 administrativesettlement agreement (the “2007 AOC”). The parties to the 2007 AOC are discussing the possibility of further remediation work with the EPA. The entitiesthat have agreed to fund the remedial investigation and feasibility study (“RI/FS”) have negotiated an interim allocation of RI/FS costs among themselvesbased on a number of considerations. This group, consisting of approximately 70 companies is referred to as the Cooperating Parties Group (the “CPG”). The2007 AOC is being coordinated with a joint federal, state, local and private sector cooperative effort designated as the Lower Passaic River RestorationProject (“PRRP”). On May 29, 2012, Occidental, Maxus and Tierra withdrew from the CPG under protest and reserving all their rights. A description of thecircumstances of such decision can be found below in the paragraph titled “Passaic River—Mile 10.9—Removal Action.” However, Occidental remains arespondent to the 2007 AOC and its withdrawal from the CPG does not change its obligations under the mentioned AOC. The RI/FS concerning the 2007AOC is expected to be completed by the first or second quarter of 2015 together with the filing with the EPA by the CPG of a preliminary report containingits recommendation as to preferred remediation. The EPA will have to assess such recommendation and then render an opinion in this connection. Thisprocess may take from 12 to 18 months. After an agreement is reached by the CPG and the EPA on preferred remediation, the report will be published forpublic opinion, which will be considered for the purpose of issuing a Record of Decision or final decision on remediation.The EPA’s findings of fact in the 2007 AOC indicate that combined sewer overflow/storm water outfall discharges are an ongoing source ofhazardous substances to the Lower Passaic River Study Area (the 17-mile stretch of the Passaic River from the Dundee Dam south to Newark Bay). For thisreason, during the first half of 2011, Maxus and Tierra negotiated with the EPA, on behalf of Occidental, a draft Administrative Settlement Agreement andOrder on Consent for Combined Sewer Overflow/Storm Water Outfall Investigation (“CSO AOC”), which was signed and became effective in September2011. Besides providing for a study of combined sewer overflows in the Passaic River, the CSO AOC confirms that there will be no further obligations to beperformed under the 1994 AOC. In the second half of 2014, Tierra submitted to the EPA its report (thus completing phase 1) and still expects the EPA’scomments on the proposed work plan. Tierra previously estimated that the total cost to implement the CSO AOC is approximately U.S.$5.0 million and willtake approximately two more years to be completed once EPA authorizes phase 2 (the work plan).Tierra, acting on behalf of Occidental, is also performing and funding a separate RI/FS to characterize sediment contamination and evaluateremedial alternatives in Newark Bay and portions of the Hackensack River, the Arthur Kill, and the Kill van Kull pursuant to a 2004 administrative order onconsent with EPA (the “2004 AOC”). The EPA has issued General Notice Letters to a series of additional parties concerning the contamination of Newark Bayand the work being performed by Tierra under the 2004 AOC. In addition, in August 2010, Tierra proposed to the other parties that, for the third stage of theRI/FS undertaken in Newark Bay, the costs be allocated on a per capita basis. As of December 31, 2013, the parties had not agreed to Tierra’s proposal. In July2014, the EPA advised Tierra that it anticipated at the end of 2014 to propose the means by which Tierra would accomplish the necessary modeling ofNewark Bay sediment processes. Although the EPA was considering three alternatives, at December 31, 2014 EPA had not yet laid out a course of action forTierra. At this time, YPF Holdings lacks sufficient information to determine additional costs, if any, it might have with respect to this matter once the finalscope of the phase III is approved, as well as the proposed distribution mentioned above.In December 2005, the DEP issued a directive to Tierra, Maxus and Occidental directing said parties to pay the State of New Jersey’s costs ofdeveloping a Source Control Dredge Plan focused on allegedly dioxin-contaminated sediment in the lower six-mile portion of the Passaic River describedabove. The development of this Plan was estimated by the DEP to cost approximately U.S.$2.3 million. The DEP has advised the recipients that they are notrequired to respond to the directive until otherwise notified. 169Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn August 2007, the National Oceanic Atmospheric Administration (“NOAA”), as one of the Federal Natural Resources Trustees (“Trustees”), senta letter to a number of entities that it alleged have liability for natural resource damages, including Tierra and Occidental, requesting that the group enter intoan agreement to conduct a cooperative assessment of natural resources damages in the Passaic River and Newark Bay. In January 2008, the NOAA sent a letterto YPF Holdings, CLH Holdings Inc. and other entities. In November 2008, Occidental and Tierra entered into an agreement with the Trustees to fund aportion of the Trustees’ past costs and conduct certain assessment activities during 2009. A group of approximately 20 other parties has also entered into asimilar agreement with the Trustees. In November 2009, Tierra declined to extend this agreement.In June 2008, the EPA, Occidental, and Tierra entered into an Administrative Order on Consent (“Removal AOC 2008”), pursuant to whichTierra (on behalf of Occidental) will undertake the removal of sediment from a portion of the Passaic River in the vicinity of Chemicals Company’s formerNewark, New Jersey facility described above. This action will result in the removal of approximately 200,000 cubic yards of sediment, which will be carriedout in two phases. The field work on the first phase, which encompassed the removal of 40,000 cubic yards, started in July 2011 and was substantiallycompleted in the fourth quarter of 2012. The EPA inspection was held in January 2013 and Tierra received written confirmation of completion in March2013. The second phase, which will encompass the removal of approximately 160,000 cubic yards of sediment, will be completed on a different schedule.Pursuant to the Removal AOC of 2008, the EPA has required the provision of financial assurance for the execution of the removal work which could decreaseor increase over time if the anticipated cost of completing the removal work contemplated by the AOC changes. The removal work will remove a number ofcontaminants, such as dioxin, PCBs, and mercury, which may have come from sources other than or in addition to the former Chemicals Company plant. YPFHoldings may seek cost recovery from the parties responsible for such contamination; however, at this time it is not possible to make any predictionsregarding the likelihood of success or the funds potentially recoverable in a cost-recovery action. The removal work required pursuant to the Removal AOCwill be conducted concurrently with and in addition to the other investigations and remedial actions described above, including those undertaken inconnection with the FFS concerning the lower eight miles of the Passaic River, the RI/FS addressing the lower 17-mile portion of the Passaic River, and theRI/FS relating to contamination in Newark Bay, portions of the Hackensack River, the Arthur Kill and the Kill van Kull. 1.2.Focused Feasibility Study (“FFS”) for remedial action in the lower eight miles of the Passaic RiverFirst draft—2007. In June 2007, the EPA released a draft Focused Feasibility Study that outlined several alternatives for remedial action in thelower eight miles of the Passaic River. Tierra, in conjunction with the other parties of the CPG, submitted comments on the draft FFS to the EPA, as did anumber of other interested parties. As a result of the comments received, the EPA withdrew the FFS for revision and further consideration of the comments.On November 14, 2013, at a Community Advisory Group (“CAG”) meeting, the EPA described the alternatives it was considering in the revisedFFS. The EPA stated that the FFS would set forth four alternatives: (i) no action, (ii) deep dredging with backfill of 9.7 million cubic yards over 12 years,which it estimated would cost U.S.$1.4 billion to U.S.$3.5 billion, depending on whether the dredged sediment is disposed of in a confined aquatic disposalfacility (“CAD”) at the bottom of Newark Bay, at an off-site disposal facility or locally decontaminated and put to beneficial use; (iii) capping with dredgingof 4.3 million cubic yards over six years, which it estimated would cost U.S.$1.0 billion to U.S.$1.8 billion, depending on whether there is a CAD, off-sitedisposal or local decontamination and beneficial use and (iv) focused dredging and capping of 0.9 million cubic yards over three years, which it estimatedwould cost U.S.$0.4 billion to U.S.$0.6 billion, depending on whether there is a CAD, off-site disposal or local decontamination and beneficial use. The EPAhas indicated that it has discarded alternative (iv) and it favors alternative (iii).Second draft—2014. On April 11, 2014, the EPA published the revised FFS for the lower eight miles of the Passaic River in final. Among thevarious measures considered in the final FFS, the EPA recommended as its preferred remedial action for this area that approximately 4.3 million cubic yardsof sediment be removed through bank-to-bank dredging, which sediments would then be dehydrated locally and transported by train for their incineration ordisposal at an off-site disposal facility. An engineering cap (a physical barrier mainly consisting of sand and stone) would then be placed over the bank-to-bank dredged area. In its final FFS, the EPA estimated the cost of the preferred measure for the lower eight miles of Passaic River to be U.S.$1,731 million(present value estimated with a 7% discount rate).On August 20, 2014, Maxus and Tierra, on behalf of OCC, submitted extensive comments on the final FFS to the EPA. The main commentsoffered by Maxus, Tierra and OCC on the final FFS were: • The FFS is not a process legally authorized to select the type and size of remediation proposed by the EPA for the lower eight milesof the Passaic River; • The FFS is based on a flawed site design; • The FFS overstates the human health and ecological risk issues; • The proposed remediation plan is not executable or economically reasonable in terms of cost-benefit; 170Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • The processes of the EPA Region 2 have a lack of public transparency; and • The inclusion in the remediation plan of dredging for navigational purposes is not covered by the regulation.In addition to the comments received from Maxus and Tierra, the EPA also received comments from approximately 400 other companies,institutions, government agencies, non-governmental organizations and individuals, including the CPG, Amtrak (the federal railway company), NJ Transit,the American Army Corps of Engineers, the Passaic Valley Sewerage Commission, yacht clubs, public officials and others.In addition to commenting on the final FFS, Maxus and Tierra have proposed a preliminary project called In-ECO, which is an ecological andsustainable bio-remediation alternative, as a substitute for the remediation chosen by the EPA in its final FFS. Maxus and Tierra presented In-ECO to the EPAin May 2014. The EPA provided comments in September 2014, and Maxus and Tierra presented a revised version in November 2014.Currently, the EPA is considering these comments and will issue a response before it makes its final decision regarding the remediation plan forthe area. The EPA’s decision on the remedy will likely be published in a “Record of Decision” sometime during 2015 or 2016.Based on the information available to the Company as of the issuance date of this annual report, considering the uncertainties related to thedifferent remedial alternatives and those that may be incorporated in the Record of Decision and their associated costs, the results of the studies anddiscoveries to be produced, the amounts previously incurred by YPF Holdings in remedial activities in the area covered by FFS, the many potentiallyresponsible parties involved in the matter, the uncertainties related with potential allocation of removal and remediation costs, and also considering theopinion of external counsels, it is not possible to reasonably estimate a loss or range of losses on these outstanding matters. Therefore, no amount has beenaccrued for this litigation by YPF Holdings. 1.3.Environmental issues related to the lower 17-mile portion of the Passaic RiverPassaic River Mile 10.9 Removal Action. In February 2012, the EPA issued to the CPG, of which Tierra then was a member, a draftAdministrative Settlement Agreement and order on Consent (“AOC RM 10.9”) for Removal Action and Pilot Studies to address high levels of contaminationof TCDD, PCBs, mercury and other contaminants of concern in the vicinity of the Passaic River’s mile 10.9, comprised of a sediment formation (“mud flat”)of approximately 8.9 acres. This proposed AOC RM 10.9 ordered that 16,000-30,000 cubic yards of sediments be removed and that pilot scale studies beconducted to evaluate ex situ decontamination beneficial reuse technologies, innovative capping technologies, and in situ stabilization technologies forconsideration and potential selection as components of the remedial action to be evaluated in the 2007 AOC and the FFS and selected in one or moresubsequent records of decision. Occidental declined to execute this AOC and Occidental, Maxus and Tierra formalized their resignations from the CPG,effective May 29, 2012, under protest and subject to a reservation of rights. On June 18, 2012, the EPA announced that it had signed an AOC for RM 10.9with 70 Settling Parties, all members of the CPG, which contained, among other requirements, an obligation to provide to the EPA financial assurance, in theamount of U.S.$20 million, that the work would be completed. On June 25, 2012, the EPA issued Occidental a Unilateral Administrative Order (UAO) forRemoval Response Activities. Occidental sent to the CPG and EPA its notice of intent to comply with such order on July 23, 2012 followed by its good faithoffer on July 27, 2012 to provide the use of Tierra’s existing dewatering facility. On August 10, 2012, the CPG rejected Occidental’s good faith offer and, onSeptember 7, 2012, the CPG stated that it has alternative plans for handling sediment to be excavated at RM 10.9 and, therefore, has no use for the existingdewatering facility. The EPA, by letter of September 26, 2012, advised that it will be necessary for the EPA and Occidental to discuss other options forOccidental to participate and cooperate in the RM 10.9 removal action, as required by its Unilateral Administrative Order. On September 18, 2012, the EPAadvised the Passaic River CAG that the bench scale studies of the treatment technologies did not sufficiently lower concentrations of the chemicals to justifythe cost, so the RM 10.9 sediments will be removed offsite for disposal. In March 2014, responding to the EPA’s request for action, Tierra, on behalf ofOccidental, submitted a Statement of Work (“SOW”) for the conduct of surveys to more precisely locate two water mains that cross under the Passaic River atRM 10.9. The EPA granted conditional acceptance of the SOW, and Tierra in early April 2014 responded to EPA’s comments on the SOW. EPA extended thedeadline for delivering financial assurance to March 14, 2014 and later further extended the deadline indefinitely. The water line survey work consists of ageophysical survey, the results of which will be validated with physical probing. In the third quarter of 2014, the EPA approved the Quality AssuranceProject Plan for Tierra’s contractor to conduct soundings at River Mile 10.9 to more precisely locate the two water mains buried at that location.Additionally, in the fourth quarter of 2014, the contractor conducted fieldwork at that location to locate the water mains.FFS for remedial action in the lower 17-mile of the Passaic River. Notwithstanding the discussion above, for the lower 17-mile portion of thePassaic River, from its confluence with the Newark Bay to the Dundee Dam, under the 2007 AOC, the RI/FS is in process and is expected to be completed in2015, after which the EPA will select a remedial action and open the decision for public comments. 171Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn February 2015, the CPG submitted a draft report concerning the lover 17-mile portion of the Passaic River to the EPA. The draft reportsummarizes historical information and data that were collected as part of research regarding the remediation. The draft report will be reviewed by the EPAwithin 60 to 180 days of submission.New Jersey Litigation with DEP. With respect to the alleged contamination, that dioxin, DDT and other “hazardous substances” discharged fromChemicals Company’s former Newark plant and contaminated the lower 17-mile portion of the Passaic River, Newark Bay, and other nearby waterways andsurrounding areas, in December 2005 the DEP and the New Jersey Spill Compensation Fund sued YPF Holdings, Tierra, Maxus and other affiliates, as well asOccidental (the “New Jersey Litigation with DEP”). These plaintiffs sought damages for the past cost of investigation and cleanup of these waterways,property damage and other economic impacts (such as decreases in tax revenues and value of real estate and increases in public medical costs, etc.), andpunitive damages. The defendants made responsive pleadings and/or filings. In March 2008, the court denied motions to dismiss for failure to state a claimby Occidental Chemical Corporation, and by Tierra and Maxus. DEP filed its Second Amended Complaint in April 2008; YPF’s motion to dismiss for lack ofpersonal jurisdiction was denied in September 2008. The decision was affirmed by the Court of Appeals following an appeal by YPF. The court denied theplaintiffs’ motion to bar third party practice and allowed defendants to file third-party claims. Third-party claims against approximately 300 companies andgovernmental entities (including certain municipalities and sewage treatment authorities), which could have responsibility in connection with the claim werefiled by Tierra and Maxus in February 2009. Anticipating this considerable expansion of the number of parties in the litigation, the court appointed a SpecialMaster to assist the court in the administration of discovery. DEP filed its Third Amended Complaint in August 2010, adding Maxus International EnergyCompany and YPF International S.A. as additional named defendants. Plaintiffs allege that defendants Repsol, YPF, YPF International S.A., YPF Holdings,CLH Holdings, Maxus, Maxus International Energy Company and Tierra are alter egos of one another and engaged in a scheme to defraud the plaintiffsthrough corporate restructurings designed to cap and strand the environmental liabilities associated with the contamination of the area. To this end, plaintiffsassert claims for the fraudulent transfer of Maxus’ assets, civil conspiracy, breach of fiduciary duty, aiding and abetting, and piercing the corporate veil andalter ego liability. In September 2010, governmental entities of the State of New Jersey and a number of third-party defendants filed motions to dismiss andMaxus and Tierra filed their responses. Except in a few cases, these motions were rejected in January 2011. In October 2010, a number of public third-partydefendants filed a motion to sever and stay, which would allow the State of New Jersey to proceed against the direct defendants. However, the judge ruledagainst this motion in November 2010. Third-party defendants have also brought motions to dismiss, which have been rejected by the Special Master inJanuary 2011. Some of the mentioned third-parties appealed the decision, but the judge denied such appeal in March 2011. In May 2011, the judge issuedCase Management Order XVII (“CMO XVII”), which contains the Trial Plan for the case. This Trial Plan divides the case into two phases and ten tracks. PhaseOne will determine liability and Phase Two will determine damages. In July 2012, the Court amended the trial plan for Track II (plaintiffs’ and Occidentals’claims against Foreign defendants) and Track IV (liability for plaintiffs’ and Occidental’s claims stemming from the alleged fraudulent transfers, alter ego,and conspiracy), and scheduled trial for a date on or after June 1, 2013. Following the issuance of CMO XVII, the State of New Jersey and Occidental filedmotions for partial summary judgment. The State filed two motions: one against Occidental and Maxus on liability under the Spill Act and the other againstTierra on liability under the Spill Act. In addition, Occidental filed a motion for partial summary judgment that Maxus owes a duty of contractual indemnityto Occidental for liabilities under the Spill Act. In July and August 2011, the judge ruled that, although the discharge of hazardous substances by ChemicalsCompany has been proved, liability cannot be imposed if the nexus between any discharge and the alleged damage is not established. Additionally, theCourt ruled that Tierra has Spill Act liability to the State based merely on its current ownership of the Lister Avenue site (an area located nearby the PassaicRiver); and that Maxus has an obligation under the 1986 Stock Purchase Agreement to indemnify Occidental for any Spill Act liability arising fromcontaminants discharged on the Lister Avenue site, and that Maxus and Tierra share each other’s liabilities as alter-egos.During the fourth quarter of 2011, the parties agreed on a consensus trial plan for Track III under CMO XVII, which narrowed the scope of issuesfor discovery and trial in May 2012 to factual issues relevant to determining Maxus’s alleged direct liability to the State of New Jersey and to issues relatingto responsibility for discharges during the era when the Newark plant site was under the ownership of Kolker Chemical Works. The Court accepted sixapplications for Fast Track Arbitration-discovery proceeded in January 2012, to be followed by depositions and arbitration briefing. In addition, Maxussubmitted to the Special Master and the “Additional Dischargers” Committee a plan to sample the area around mile 10.9 of the Passaic River for the HCXchemical marker that Maxus suspects may be associated with dioxin discharged by one or more third-party defendants. The HCX sampling was completed inJanuary 2012 and validated results were received in March.In February 2012, plaintiffs and Occidental filed motions for partial summary judgment, seeking summary adjudication that Maxus has liabilityunder the Spill Act. The Judge held that Maxus and Tierra have direct liability for the contamination generated into the Passaic River. However, volume,toxicity and cost of the contamination were not verified (these issues will be determined in a later phase of the trial). Maxus and Tierra have the right toappeal such decision. 172Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn September 21, 2012, the presiding Judge (trial judge) granted the State’s application for an Order to Show Cause to Stay all proceedingsagainst third party defendants who entered into a Memorandum of Understanding (“MOU”) with the State to discuss settlement of the claims against the thirdparty defendants.On September 27, 2012, Occidental filed its Amended Cross-Claims and the following day, the State filed its fourth Amended Complaint. Theprincipal changes to the State’s pleading concern the State’s allegations against YPF and Repsol, all of which Occidental has adopted in its cross-claims. Inparticular, there are three new allegations against Repsol involving asset stripping from Maxus and also from YPF based on the Argentine government’sMosconi Report.On February 14, 2013, the State and all defendants except Occidental appeared before the Court to seek a stay of the litigation because they hadagreed to recommend terms for a settlement framework to resolve the claims between them.During the fourth quarter of 2012 and the first quarter of 2013, Maxus and Tierra, together with certain other direct defendants in the litigation,engaged in on-going mediation and negotiation seeking the possibility of a settlement with the State.YPF and certain affiliates (among them, YPF Holdings, Maxus and Tierra) subsequently approved a Settlement Agreement with Repsol and theState of New Jersey. The Settlement Agreement provides, without acknowledging any fact or right: (i) a payment of U.S.$65 million by Maxus and/or YPF tothe State of New Jersey and (ii) a hard cap of up to U.S.$400 million with respect to certain of Occidental’s unresolved cross-claims against Repsol, YPF andYPFI; and would resolve certain environmental claims of the plaintiffs against all Settling Defendants within a certain range of the Passaic River, and thedeferral of Tracks II and IV until after trial of the State’s damages against Occidental in Track VIII. The Settlement Agreement does not resolve Occidental’scross-claims.On December 12, 2013, the Court approved the Settlement Agreement. On January 24, 2014 Occidental filed a notice of appeal from the Court’sapproval of the Settlement Agreement. On February 10, 2014 Maxus made the U.S.$65 million payment provided in the Settlement Agreement to an escrowaccount. Occidental’s appeal was subsequently dismissed on March 26, 2014, and the settlement amount was paid out of escrow to the State of New Jersey.On August 20, 2014, the State of New Jersey and Occidental informed the Superior Court that they had agreed on the general terms andconditions of a settlement of the Plaintiff’s claims against Occidental (the “Consent Judgment”). On December 16, 2014 the Court approved the ConsentJudgment by which the State of New Jersey accepted to resolve all claims against Occidental related to environmental claims within a certain area of thePassaic River. In exchange, Occidental will pay U.S.$190 million in three installments, the last one due on June 15, 2015; and the contingency payment ofup to U.S.$400 million in case the State of New Jersey is required to pay its share for future remediation actions.On January 5, 2015, Maxus received a letter from Occidental requesting that Maxus agree to indemnify Occidental for all of the settlementpayments that Occidental agreed to make to the State of New Jersey. The Court previously issued an interlocutory order in 2011, which is subject to appealafter all trial proceedings are concluded, stating that Maxus had the contractual duty to indemnify Occidental for the liabilities under the New Jersey SpillAct arising from contaminants discharged into the Passaic River from the Lister Avenue Plant Site, which was owned by a company Occidental acquired andmerged with in 1986. Maxus contends that whether and to what extent its obligation to indemnify Occidental applies to the settlement payments Occidentalhas agreed to make to the State of New Jersey pursuant to the Consent Judgment must await the outcome of further proceedings in the Passaic Riverlitigation.On November 12, 2014, the Superior Court issued a new schedule (“CMO XXV”) with discovery and litigation deadlines to resolve the so-calledTrack III proceedings (allocation of responsibility for contamination between Maxus and Occidental) and Track IV proceedings (Occidental’s claims allegingliability by YPF on grounds of alter ego and fraudulent transfer). Pursuant to this new schedule the following actions occurred, among others:1) On November 24, 2014, YPF and Repsol submitted their motions to dismiss Occidental’s second amended complaint for failure to state aclaim and based on the statute of limitations. Maxus and Tierra joined in these motions. On December 4, 2014 Occidental submitted its response.On December 8, 2014 the defendants (including YPF) submitted their written reply to Occidental’s response.On January 13, 2015, a court-appointed Special Master issued an opinion recommending that the Court dismiss most of Occidental’s claimsagainst YPF on the grounds that they were barred by the statute of limitations and/or failed to allege the elements of the claims. On January 29,2015, the Court adopted the opinion of the Special Master in its totality and dismissed most of Occidental’s claims. Occidental’s remainingclaims against YPF are: (i) breach of the Share Purchase Agreement on an alter ego basis, (ii) contractual indemnification under the SharePurchase Agreement on an alter ego basis, (iii) environmental contribution liability under the New Jersey Spill Act and (iv) environmentalcontribution under other New Jersey statutes. The latter two contribution claims are limited by the terms of YPF’s settlement with the State ofNew Jersey. In addition, the presiding Judge notified the parties that, effective at the end of the month of January 2015, he was retiring and that anew Judge would be appointed to handle the litigation. 173Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents2) In addition, CMO XXV, as amended, established deadlines for completion of domestic fact witness depositions (February 13, 2015),completion of foreign fact witness depositions (May 15, 2015), submission of expert reports (April 6, 2015 for affirmative experts and May 6,2015 for responsive experts), and completion of expert depositions (June 30, 2015). Motions for summary judgment after completion ofdiscovery must be filed by September 30, 2015, and the trial date is currently set for December 7, 2015. However, on January 25, 2015,Occidental sought a delay in this schedule based on the fact that one of its principal external attorneys suffered a heart attack on January 24,2015. The parties have agreed on a new tim-table for the case and are awaiting Court approval.With respect to the third-party claims for contribution that Maxus and Tierra brought against approximately 300 companies and governmentalentities, including certain municipalities and sewage authorities, which could have responsibility in connection with the above claims, the State of NewJersey has also sought to settle those claims. On March 26, 2013, the plaintiffs advised the Superior Court that a proposed settlement between the plaintiffsand certain third party defendants had been approved by the requisite threshold number of private and public third party defendants pursuant to which thethird party defendants would pay the State of New Jersey approximately U.S.$34.5 million. That third party defendant settlement was subsequently submittedfor Superior Court approval, which would extinguish Maxus’s and Tierra’s third-party claims in the litigation. The Superior Court approved that settlementon December 12, 2013.As of December 31, 2014, for all matters relating to environmental issues related to the lower 17-mile portion of the Passaic River, YPF Holdingshas accrued a total of Ps. 1,843, management’s reasonable estimate of the expenditures that YPF Holdings Inc. may incur for remediation activities based oninformation available at the time, given the impossibility of reasonably estimating a loss or range of loss in relation to the possible costs of the previouslydiscussed FFS. The provision considers studies by Tierra, estimated costs for the Removal AOC of 2008 and other matters related to the Passaic River andNewark Bay. This includes associated legal issues discussed above. However, it is possible that other work, including remedial measures in addition to ordifferent from those considered may be required. Additionally, the development of new information, the imposition of penalties or remedial action oroutcome of negotiations related to those cases that differ from the situations assessed by YPF Holdings could result in the need to incur higher expenses bythe company than those currently provisioned.Considering the information available to YPF Holdings as of the date of this annual report; the results of the studies and testing phase; as well asthe potential liability of the other parties involved in this issue and the possible allocation of the costs of removal; and in consultation with our internal andexternal legal counsel, the accrual represents management’s reasonable estimate of the probable cost. 2.Other environmental issues unrelated to the Passaic RiverHudson and Essex Counties, New Jersey. Until the 1970s, Chemicals Company operated a chromite ore processing plant at Kearny, New Jersey(the “Kearny Plant”). DEP has identified over 200 sites in Hudson and Essex Counties alleged to contain chromite ore processing residue either from theKearny Plant or from plants operated by two other chromium manufacturers. Tierra, Occidental and DEP signed an administrative consent order in April 1990(“ACO”) which requires remediation at 40 sites in Hudson and Essex Counties alleged to be impacted by the Kearny Plant operations. Tierra, on behalf ofOccidental, is providing financial assurance in the amount of U.S.$20 million for performance of the work required by the ACO (which is ongoing at all ACOSites at various stages) and associated with the issues described below.In May 2005, the DEP took two actions in connection with the chrome sites in Hudson and Essex Counties. First, the DEP issued a directive toMaxus, Occidental and two other chromium manufacturers (the “Respondents”) directing them to arrange for the cleanup of chromite ore residue at three sitesin Jersey City and for the conduct of a study by paying the DEP a total of U.S.$19.5 million. Second, the DEP filed a lawsuit against Occidental and two otherentities in state court in Hudson County seeking, among other things, cleanup of various sites where chromite ore processing residue is allegedly located,recovery of past costs incurred by the state at such sites (including in excess of U.S.$2.3 million dollars allegedly spent for investigations and studies) and,with respect to certain costs at 18 sites, treble damages. In February 2008, the parties reached an agreement in principle, pursuant to which Tierra agreed topay, on behalf of Occidental, U.S.$5 million and agreed to perform remediation works at three sites, with a total cost of approximately U.S.$2.1 million,subject to the terms of a Consent Judgment between and among DEP, Occidental and two other parties, which was published in the New Jersey register inJune 2011 and became final and effective as of September 2011. Pursuant to the Consent Judgment, the U.S.$5 million dollar payment was made in October2011 and a master schedule was delivered to DEP for the remediation, during a ten-year period, of the three orphan sites plus the remaining chromite ore sites(approximately 28 sites) under the Kearny ACO. DEP indicated that it could not approve a ten-year term; therefore, in March 2012, Maxus submitted arevised eight-year schedule, which was approved by DEP on March 24, 2013. Tierra is currently performing work pursuant to the Master Schedule. InNovember 2005, several environmental groups sent a notice of intent to sue the owner of the property adjacent to the former Kearny Plant and five otherparties, including Tierra, under the Resource Conservation and Recovery Act. The parties have entered into an agreement that addresses the concerns of theenvironmental groups and these groups have agreed not to file suit. After the original agreement expired, the parties entered into a new Standstill Agreement,effective March 7, 2013. 174Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn March 2008, the DEP approved an Interim Response Action (“IRA”) work plan for work to be performed at the Kearny Plant site by Tierra andat the adjacent property by Tierra in conjunction with other parties. Work on the IRA has begun. In addition, this adjacent property was listed by the EPA onthe National Priority List in 2007. In July 2010, the EPA notified Tierra, along with three other parties, which are considered potentially responsible for thisadjacent property and requested to conduct a RIFS for the site. The three parties have agreed to coordinate remedial efforts, forming the “PeninsulaRestoration Group” or “PRG.” In the fourth quarter of 2011, the PRG reached an agreement with another potentially responsible party (Cooper Industries),whereby Cooper Industries would join the PRG. In May 2013, the PRG and the EPA entered into an RI/FS AOC for the Standard Chlorine ChemicalCompany site. Under the terms of the AOC, the Group is able to rely on the substantial work that has already or is now taking place at the site (including theIRA), to streamline the RI/FS (now denominated an RI/FFS) and press for selection of a final remedy that includes the features of the IRA as the majorcomponent. The Remedial Investigation Work Plan for the site was submitted to the EPA on April 8, 2013 in advance of the execution of the AOC as part ofthe PRP Group’s show of good faith. The Remedial Investigation Work Plan was approved in September 2013 and work under the RI/FFS AOC began in thefourth quarter 2013 and has proceeded since that time. The PRP Group also responded to an EPA request to draft an Community Involvement Plan (CIP)which the EPA has adopted. The following AOC deliverables have been submitted, approved and/or are pending during 2014: • Candidate Technologies Memo (CTM) and Draft Pathway Analysis Report (PAR). • Screening Level Ecological Risk Assessment (SLERA). • Work Plan for Supplemental Investigation in localized area outside barrier wall. • Baseline Ecological Risk Assessment (BERA).Pursuant to a request of the DEP, in the second half of 2006, the PRG tested the sediments in a portion of the Hackensack River near the formerKearny Plant. A report of those test results was submitted to the DEP. DEP requested additional sampling, and the PRG submitted to DEP work plans foradditional sampling in January 2009. In March 2012, the PRG received a Notice of Deficiency (“NOD”) letter from DEP relating to the Hackensack RiverStudy Area (“HRSA”) Supplemental Remedial Investigation Work Plan (“SRIWP”) that the PRG had submitted to the DEP in January 2009. In the NOD, DEPseeks to expand the scope of work that would be required in the Hackensack River under the SRIWP to add both additional sample locations/core segmentsand parameters. While the PRG acknowledges that it is required to investigate and prevent chrome releases from certain upland sites into the river, the PRGcontends that it is has no obligation under the governing ACOs and Consent Judgment to investigate chrome contamination in the river generally.Negotiations between the PRG and the DEP are ongoing.As of December 31, 2014, YPF Holdings has accrued a total of approximately Ps. 362 million in connection with the foregoing chrome-relatedmatters. Soil action levels for chromium in New Jersey have not been finalized, and the DEP continues to review the proposed action levels. The cost ofaddressing these chrome-related matters could increase significantly depending upon the final soil action levels, the DEP’s response to Tierra’s studies andreports and other developments.Painesville, Ohio. From about 1912 through 1976, Chemicals Company operated manufacturing facilities in Painesville, Ohio (the “PainesvilleWorks Site”). The operations there over the years involved several discrete but contiguous plant sites over an area of about 1,300 acres. The investigation andremediation of the Painesville Works Site is governed by agreements and orders in place with the EPA and the Ohio Environmental Protection Agency(“OEPA”). The primary area of concern historically has been Chemicals Company’s former chromite ore processing plant (the “Chrome Plant”). The OEPAhas approved certain work, including the remediation of 20 specific operable units within the former Painesville Works Site and work associated withdevelopment plans (the “Remediation Work”). The Remediation Work has begun. As each operable unit within the Site receives OEPA approval for projectsrelated to investigation, Remediation Work, or operation and maintenance activities, additional orders and agreements will be implemented, and additionalamounts may need to be accrued. YPF Holdings has accrued a total of approximately Ps. 117 million as of December 31, 2014 for its estimated share of thecost to perform the remedial investigation and feasibility study, the Remediation Work and other operation and maintenance activities at this site.The scope and nature of any further investigation or remediation that may be required cannot be determined at this time; however, as the RI/FSprogresses, YPF Holdings will continuously assess the condition of the Painesville Works Site and make any required changes, including additions, to itsprovision as may be necessary.Third Party Sites. Pursuant to settlement agreements with the Port of Houston Authority (the “Port”) and other parties, Tierra and Maxus areparticipating (on behalf of Occidental) in the remediation of property adjoining Chemicals Company’s former Greens Bayou facility where dichloro-diphenyl-trichloroethane (“DDT”) and certain other chemicals were manufactured. Additionally, in 2007 the parties entered into a Memorandum ofAgreement (“MOA”) with federal and state natural resources trustees in connection with claims for natural resources damages. In 2008, the Final DamageAssessment and Restoration Plan/Environmental Assessment was approved specifying the restoration projects to be implemented. During the first half of2011, Tierra negotiated, on behalf of 175Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOccidental, a draft Consent Decree with governmental agencies of the United States and Texas addressing natural resource damages at the Greens Bayou Site.The Consent Decree was signed by the parties in January 2013 and notice of approval of the Consent Decree was published in the Official Gazette onJanuary 29, 2013. After the publication of the notice a period of 30 days was opened for comments. Under the Consent Decree, Occidental agreed toreimburse certain costs incurred by the aforementioned governmental agencies and conducting two restoration projects for a total amount of U.S.$0.8 million.Although the primary work was largely finished in 2009, some follow-up activities and operation and maintenance remain pending. As of December 31,2014, YPF Holdings has accrued approximately Ps. 36 million for its estimated share of the remediation and the MOA associated with the Greens Bayoufacility. The remediation activities were largely finished in 2009, but some minor closure activities, as well as ongoing operations and maintenance, are stillin progress. • Milwaukee Solvay SiteIn June 2005, the EPA designated Maxus as a potentially responsible party (“PRP”) at the Milwaukee Solvay Coke & Gas Site in Milwaukee,Wisconsin. The basis for this designation is Maxus’ alleged status as the successor to Pickands Mather & Co. and Milwaukee Solvay Coke Co. companiesthat the EPA has asserted are former owners or operators of such site.In November 2006, Maxus and four other PRPs entered into a Joint Participation and Defense Agreement, which establishes the allocation of costs formaking a RI/FS. Under the agreement Maxus is responsible for a significant part of the costs. In January 2007 those PRPs and the EPA entered into an AOC toperform a RI/FS regarding the investigation of “upland” soil and groundwater, as well as sediment in the Kinnickinnic River. Maxus’ exposure at the Siteappears tied to the 1966-1973 period, although there is some dispute about it. The PRP Agreement includes an interim allocation, under which Maxus has asubstantial share.On April 25, 2012 EPA made a proposal concerning the scope of future investigations of sediments, which was rejected by the PRP group.On June 6, 2012 the PPR Group submitted a proposed Field Sampling Plan (“FSP”) that included detailed plans for the remaining upland investigationand a phased approach to the sediment investigation. In July 2012, the EPA responded to the FSP requiring expanded sediment sampling as part of the nextphase of the investigation and additional evaluation for the possible presence of distinct coal and coke layers on parts of the upland portion of the Site. InDecember 2012, the EPA approved the PRP Group’s revised FSP, and the PRP Group commenced upland and sediment investigation activities. The estimatedcost of implementing the field work associated with the FSP is approximately U.S.$0.8 million.In February 2014, the PRP Group submitted to the EPA and Wisconsin Department of Natural Resources (“DNR”) a Baseline Human Health RiskAssessment (“BHHRA”) Scoping Document, an Upland Screening Level Ecological Risk Assessment (“SLERA”) Scoping Document and an AquaticBaseline Ecological Risk Assessment (“BERA”). Currently, additional upland and sediment investigation activities continued pursuant to the approved FSP.In June 2014, the PRP Group submitted to the EPA and WDNR the draft Remedial Investigation (“RI”) Report and risk assessment documents (i.e.,Baseline Human Health Risk Assessment, Screening Level Ecological Risk Assessment, and Aquatic Baseline Ecological Risk Assessment) and a RemedialAction Objectives Technical Memorandum. Comments to the draft RI Report were received in October 2014. In accordance with the timeline established bythe Agencies, in November 2014 the PRP Group submitted written responses to the EPA/WDNR comments concerning the draft RI and risk assessmentdocuments. The PRP Group received approval from EPA to defer preparation of responses to the comments on the draft RAOs until after the RI has beenapproved.YPF Holdings has accrued approximately Ps. 5 million as of December 31, 2014 for its estimated share of the costs of the RI/FS. The main area of concern andfocus is the extent of river sediment investigation that will be required. Maxus lacks sufficient information to determine additional exposure or costs, if any,it might have in respect of this site.Other sites—Black Leaf Chemical SiteIn September 2011, Occidental and Exxon Mobil received a liability notice from EPA under the ruling known as 104(e) for the site called Black LeafChemical located at Louisville, Kentucky. Occidental requested that Maxus undertake the defense of this matter by virtue of the indemnity established in theStock Purchase Agreement of 1986. Maxus accepted the defense, reserving its rights with 176Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsrespect to the case and without acknowledging any responsability. In March 2013, the EPA requested that Maxus, on behalf of Occidental, and Exxon Mobil,perform specific remedial tasks and to reimburse EPA and the local regulatory authority certain past costs (estimated at between U.S.$ 3 and U.S.$ 5 million).Investigation work began in September 2014 and should be completed in the fourth quarter of 2015. However, despite the fact that as at December 31, 2014no agreement exists between the potentially liable parties, the share of liabilities for Occidental/Maxus is expected to be minor. • Tuscaloosa SiteThe Company has completed the remediation activities at this site. YPF Holdings Inc. has accrued Ps. 31 million for these matters as of December 31,2014. • Malone Services SiteMaxus is responsible for certain liabilities attributable to Occidental, as successor to Chemicals Company, in respect of the Malone Service CompanySuperfund Site in Galveston County, Texas. This site is a former waste disposal site where Chemicals Company is alleged to have sent waste products prior toSeptember 1986. The potentially responsible parties, including Maxus, on behalf of Occidental, formed a PRP Group to finance and perform an AOC RI/FS.The RI/FS has been completed and the EPA has selected a Final Remedy, the EPA Superfund Division Director signed the Record of Decision onSeptember 30, 2009. The PRP Group signed the Consent Decree in the second quarter of 2012, and it became effective in July 2012. During 2012, 2013 and2014, the PRP Group proceeded with the planning and design phase and remediation, which is ongoing. As of December 31, 2014 the Company has reservedapproximately Ps. 3 million in connection with its obligations for this matter. • Other third party sitesChemicals Company has also been designated as a PRP by the EPA under the Comprehensive Environmental Response, Compensation and Liability Act of1980, as amended (“CERCLA”) with respect to a number of third-party sites where hazardous substances from Chemicals Company’s plant operationsallegedly were disposed or have come to be located. Numerous PRPs have been named at substantially all of these sites. At several of these, ChemicalsCompany has no known exposure. At December 31, 2014, YPF Holdings had accrued approximately Ps. 31 million in connection with its estimated share ofcosts related to the Milwaukee Solvay Coke & Gas Site, the Malone Service Company Superfund Site, and the other sites mentioned in this paragraph. • Occidental’s claim for past events—TexasDallas Litigation. In 2002, Occidental sued Maxus and Tierra in state court in Dallas, Texas seeking a declaration that Maxus and Tierra have theobligation under the agreement pursuant to which Maxus sold Chemicals Company to Occidental to defend and indemnify Occidental from and againstcertain historical obligations of Chemicals Company, notwithstanding the fact that said agreement contains a 12-year cut-off for defense and indemnityobligations with respect to most litigation. Tierra was dismissed as a party, and the matter was tried in May 2006. The trial court decided that the 12-year cut-off period did not apply and entered judgment against Maxus. This decision was affirmed by the Court of Appeals in February 2008. Maxus’ petition to theTexas Supreme Court for review was denied. This decision will require Maxus to accept responsibility for various matters for which it has refused toindemnify Occidental since 1998, which could result in the incurrence of costs in addition to YPF Holdings’ current accrued for this matter. This decisionwill also require Maxus to reimburse Occidental for past costs. In 2009, Maxus received a statement from Occidental of the costs Occidental believed to bedue under the judgment, in the amount of U.S.$16.7 million. In March 2009, Maxus paid U.S.$14.9 million in respect of court costs, interests through the endof 2007 and estimates of future costs for which Maxus could become liable under the declaratory judgment. In September 2009, Maxus paid to OccidentalU.S.$1.9 million. In March 2012, Maxus paid to OCC U.S.$0.6 million covering OCC’s costs for 2010 and 2011, and in September 2012 Maxus paid to OCCan additional U.S.$31,000 for OCC’s costs for the first semester of 2012. Maxus anticipates that OCC’s costs in the future under the Dallas case will notexceed those incurred in 2012. A significant category of claims refused by Maxus on the basis of its interpretation of the 12-year clause, were claims relatingto “Agent Orange.” All pending Agent Orange litigation in the United States was dismissed in December 2009, except with respect to one case filed in 2012,which was dismissed in March 2013. Although it is possible that additional claimants may come forward in the future, it is estimated that no significantliability will result from this category of claims.The remaining claims refused consist primarily of claims of personal injury from exposure to vinyl chloride monomer (“VCM”), and other chemicals,although they are not expected to result in significant liability. However, the declaratory judgment includes liability for claims arising in the future, if any,which are currently unknown as of the date of this report, and if such claims arise, they could result in additional liability. As of December 31, 2014, YPFHoldings has accrued approximately Ps. 3 million with respect to these matters. 177Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents• Turtle BayouTurtle Bayou Litigation. In March 2005, Maxus agreed to defend Occidental, as successor to Chemicals Company, in respect of an action seeking thecontribution of costs for the remediation of the Turtle Bayou waste disposal site in Liberty County, Texas. Judgment was entered in this action, and Maxusfiled a motion for reconsideration which was partially successful. The court’s decision was appealed by Maxus In June 2010, the Court of Appeals ruled thatthe District Court had committed errors in the admission of certain documents and remanded the case to the District Court for further proceedings. A newruling was issued in January 2011, requiring Maxus to pay, on behalf of Occidental, 15.86% of the costs incurred by one of the plaintiffs. On behalf ofOccidental, Maxus filed its appeal in the February 2011, and the Court of Appeals affirmed the District Court’s ruling in March 2012. Maxus paid to theplaintiff, on behalf of Occidental, U.S.$2 million in June 2012 covering past costs and $0.9 million in November 2012 to cover the costs incurred by El Pasoin 2007-2011. As of December 31, 2014, YPF Holdings has accrued approximately Ps. 8 million in respect of this matter.Ruby Mhire Litigation. In May 2008, Ruby Mhire and others (“Mhire”) brought suit against Maxus and third parties, alleging that various partiesincluding a predecessor of Maxus had contaminated certain property in Cameron Parish, Louisiana, during oil and gas activities on the property; Maxus’predecessor operated on the property from 1969 to 1989. The Mhire plaintiffs demanded remediation and other compensation from approximately U.S.$159million to U.S.$210 million, basing themselves on plaintiffs’ expert’s study. During June 2012, the parties in the case held a court-ordered mediation. OnJune 11, 2013, Maxus signed a Settlement Agreement with the plaintiffs pursuant to which Maxus shall make installment payments totaling U.S.$12 millionover three years and also perform remediation at the site, which is estimated to cost between U.S.$1 and U.S.$3 million. On July 31, 2013, the 38th JudicialDistrict Court for the Parish of Cameron, State of Louisiana, approved the Settlement Agreement following receipt on July 8, 2013 of the No Objection Letterfrom the Louisiana Department of Natural Resources, Office of Conservation. In August 2013, pursuant to the Settlement Agreement, Maxus made an initialpayment of U.S.$2 million and in December 2013, Maxus made a second payment of U.S.$3 million. In June 2014, Maxus made a third payment of U.S.$3million, and in December 2014 Maxus made a fourth payment of U.S.$3 million. One last instalment in the amount of U.S.$1 million is payable in June2015.] As of December 31, 2014, YPF Holdings has accrued approximately Ps. 34 million in respect to these matters.Dividend PolicySee “Item 10. Additional Information—Dividends.”Significant ChangesSince December 31, 2014, there have been no significant changes regarding the Company. ITEM 9.The Offer and ListingShares and ADSsNew York Stock ExchangeThe ADSs, each representing one Class D share, are listed on the NYSE under the trading symbol “YPF.” The ADSs began trading on the NYSE onJune 28, 1993, and were issued by The Bank of New York Mellon, as depositary (the “Depositary”).The following table sets forth, for the five most recent full financial years and for the current financial year, the high and low closing prices in U.S.dollars of our ADSs on the NYSE: High Low 2010 50.60 33.89 2011 54.58 31.25 2012 41.14 9.57 2013 34.17 12.26 2014 38.91 21.85 2015(1) 29.55 23.00 (1)Through March 20, 2015 178Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe following table sets forth, for each quarter of the most recent two financial years and for each quarter of the current financial year, the high and lowclosing prices in U.S. dollars of our ADSs on the NYSE. High Low 2013: First Quarter 17.45 12.60 Second Quarter 15.21 12.26 Third Quarter 20.98 14.84 Fourth Quarter 34.17 20.00 2014: First Quarter 33.08 21.85 Second Quarter 35.95 27.90 Third Quarter 38.91 30.97 Fourth Quarter 35.42 22.50 2015: First Quarter(1) 29.55 23.00 (1)Through March 20, 2015The following table sets forth, for each of the most recent six months and for the current month, the high and low closing prices in U.S. dollars of ourADSs on the NYSE. High Low 2014: September 37.55 33.71 October 35.17 30.01 November 35.42 32.69 December 32.29 22.50 2015: January 26.11 23.00 February 27.33 23.75 March(1) 29.55 25.82 (1)Through March 20, 2015According to data provided by The Bank of New York Mellon, as of March 20, 2015, there were 175,971,679 ADSs outstanding and 58 holders ofrecord of ADSs. Such ADSs represented approximately 44.75% of the total number of issued and outstanding Class D shares as of such date.Buenos Aires Stock MarketThe Buenos Aires Stock Market is the principal Argentine market for trading the ordinary shares.The Buenos Aires Stock Market (Mercado de Valores de Buenos Aires, or “MERVAL”) is the largest stock market in Argentina and is affiliated withthe BASE. MERVAL is a corporation consisting of 134 shareholders who are the sole individuals or entities authorized to trade, either as principals or agents,in the securities listed on the BASE. Trading on the BASE is conducted either through the traditional auction system from 11 a.m. to 5 p.m. on trading days,or through the Computer-Assisted Integrated Negotiation System (Sistema Integrado de Negociación Asistida por Computación, or “SINAC”). SINAC is acomputer trading system that permits trading in both debt and equity securities and is accessed by brokers directly from workstations located in their offices.Currently, all transactions relating to listed negotiable obligations and listed government securities can be effectuated through SINAC. In order to controlprice volatility, MERVAL imposes a 15-minute suspension on trading when the price of a security registers a variation in price between 10% and 15% andbetween 15% and 20%. Any additional 5% variation in the price of a security will result in an additional 10-minute successive suspension period. 179Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsInvestors in the Argentine securities market are mostly individuals and companies. Institutional investors, which are responsible for a growingpercentage of trading activity, consist mainly of insurance companies and to a lesser extent mutual funds.Certain information regarding the Argentine stock market is set forth in the table below 2014 2013 2012 2011 2010 2009 2008 Market capitalization (in billions of pesos)(1) 3,893 3,356 2,300 1,611 1,900 2,185 1,234 As percent of GDP(1) 86% 124% 107% 87% 132% 191% 119% Volume (in millions of pesos) 621,831 367,830 242,324 207,805 177,613 133,208 237,790 Average daily trading volume (in millions of pesos) 2,581.0 1,5263 1,005.5 848.2 722.0 545.93 962.71 The following table sets forth, for the five most recent full financial years and for the current financial year, the high and low prices in Argentine pesosof our Class D shares on the Buenos Aires Stock Market: High Low 2010 205.00 137.00 2011 222.60 150.50 2012 188.50 66.50 2013 294.00 181.00 2014 558.00 250.00 2015(1) 355.50 277.00 (1)Through March 20, 2015The following table sets forth, for each quarter of the most recent two financial years and for each quarter of the current financial year, the high and lowprices in Argentine pesos of our Class D shares on the Buenos Aires Stock Market. High Low 2013: First Quarter 133.50 101.30 Second Quarter 136.00 106.00 Third Quarter 192.00 115.00 Fourth Quarter 294.00 181.00 2014: First Quarter 330.00 250.00 Second Quarter 357.00 277.00 Third Quarter 558.00 340.00 Fourth Quarter 506.00 255.00 2015: First Quarter(1) 355.50 277.00 (1)Through March 20, 2015The following table sets forth, for each of the most recent six months and for the current month, the high and low prices in Argentine pesos of our ClassD shares on the Buenos Aires Stock Market. High Low 2014: September 558.00 432.00 October 506.00 400.00 November 471.00 387.00 December 380.00 255.00 2015: January 321.00 277.00 February 330.00 289.00 March(1) 355.50 305.50 (1)Through March 20, 2015 180Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAs of December 31, 2014, there were approximately 31,707 holders of Class D shares in Buenos Aires Stock Market.Stock Exchange Automated Quotations System InternationalThe ADSs are also quoted on the Stock Exchange Automated Quotations System International.Argentine Securities MarketThe securities market in Argentina is composed of 13 stock exchanges, which are located in the City of Buenos Aires (the “BASE”), Bahía Blanca,Chaco, Corrientes, Córdoba, La Plata, La Rioja, Mendoza, Rosario, Salta, Santa Fe, and Tucumán. Six of these exchanges (the BASE, Rosario, Córdoba, LaRioja, Mendoza, and Santa Fe) have affiliated stock markets and, accordingly, are authorized to quote publicly offered securities. Securities listed on theseexchanges include corporate equity and bonds and government securities.The BASE, which began operating in 1854, is the principal and longest-established exchange in Argentina. Bonds listed on the BASE maysimultaneously be listed on the Argentine over-the-counter market (Mercado Abierto Electrónico, or “MAE”), pursuant to an agreement between BASE andMAE that stipulates that equity securities are to be traded exclusively on the BASE, while debt securities (both public and private) may be traded on both theMAE and the BASE. In addition, through separate agreements with the BASE, all of the securities listed on the BASE may be listed and subsequently tradedon the Córdoba, Rosario, Mendoza, La Plata and Santa Fe exchanges, by virtue of which many transactions originating on these exchanges relate to BASE-listed companies and are subsequently settled in Buenos Aires. Although companies may list all of their capital stock on the BASE, controlling shareholdersin Argentina typically retain the majority of a company’s capital stock, resulting in a relatively small percentage of active trading of the companies’ stock bythe public on the BASE.Argentina’s equity markets have historically been composed of individual investors, though in recent years there has been an increase in the level ofinvestment by banks and insurance companies in these markets; however, Argentine mutual funds (fondos comunes de inversión) continue to have very lowparticipation.The Argentine securities market is regulated and overseen by the CNV, pursuant to Law No. 26,831 (the “Stock Market Law”) which governs theregulation of security exchanges, as well as stockbroker transactions, market operations, the public offering of securities, corporate governance mattersrelating to public companies and the trading of futures and options. Argentine institutional investors and insurance companies are regulated by separategovernment agencies, whereas financial institutions are regulated primarily by the Argentine Central Bank.In Argentina, debt and equity securities traded on an exchange or the over-the-counter market must, unless otherwise instructed by their shareholders,be deposited with Stock Exchange Incorporated (Caja de Valores S.A.), a corporation owned by the Buenos Aires Stock Exchange (the “BASE”), MERVALand certain provincial exchanges. Stock Exchange Incorporated is the central securities depositary of Argentina and provides central depositary facilities, aswell as acting as a clearinghouse for securities trading and as a transfer and paying agent for securities transactions. Additionally, it handles the settlement ofsecurities transactions carried out by the BASE and operates SINAC.Among the key provisions of the Stock Market Law are the following: the definition of a “security,” that governs the treatment of negotiable securities;the corporate governance requirements, including the obligations for publicly listed companies to form audit committees composed of three or more membersof the Board of Directors (the majority of whom must be independent under CNV regulations); regulations for market stabilization transactions under certaincircumstances, regulations that governs insider trading, market manipulation and securities fraud and regulates going-private transactions and acquisitions ofvoting shares, including controlling stakes in public companies. In addition, the Stock Market Law included very relevant changes for the modernization andfuture design of the capital market, like the demutualization of the stock exchanges; new regulatory powers and resources for the CNV; a mandatory tenderoffer system and other provisions, like the new requirements for brokers/dealers and other market participants. These provisions were regulated by the CNVwith Resolution No. 622/2013. Before offering securities to the public in Argentina, an issuer must meet certain requirements established by the CNV withregard to the issuer’s assets, operating history and management. Only securities approved for a public offering by the CNV may be listed on a stock exchange.However, CNV approval does not imply any kind of certification as to the quality of the securities or the solvency of the issuer, even though issuers of listedsecurities are required to file unaudited quarterly financial statements and audited annual financial statements in accordance with the internationalaccounting standards (IFRS) and various other periodic reports with the CNV and the stock exchange on which their securities are listed, as well as to reportto the CNV and the relevant stock exchange any event related to the issuer and its shareholders that may affect materially the value of the securities traded. 181Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsMoney laundering regulationsRecent modifications to Argentine money laundering regulations have resulted in their application to increasing numbers and types of securitiestransactions.The notion of money laundering is generally used to refer to transactions aimed at introducing funds derived from unlawful activities into theinstitutionalized system and therefore, transforming profits obtained from unlawful activities into assets having a presumed lawful origin.Law No. 25,246 (as subsequently amended by Law No. 26,087, Law No. 26,119, Law No. 26,268 and Law No 26,683) provides for an administrativecriminal system and replaces several sections of the Argentine Criminal Code, incorporating, among other matters, the definition of money laundering as atype of crime committed whenever a person converts, transfers, manages, sells, charges, conceals or otherwise markets any asset derived from a criminaloffense, with the possible consequence that the original assets or substitutes thereof appear to come from a lawful source, provided that the total value of theasset exceeds Ps. 300,000 regardless of whether such amount results from one act or a series of related acts.According to Article 303 of the Argentine Criminal Code, money laundering (as defined above) shall be punished with three to ten years ofimprisonment and a fine of two to ten times the amount of the transactions made. The penalty prescribed above shall be increased by one third of themaximum and one half of the minimum if: (a) the wrongdoer carries out the act on a regular basis or as a member of an association or gang organized with thepurpose of continuously committing acts of a similar nature; or (b) if the primary wrongdoer is a public officer who committed the infringement in theexercise of his/her duties (in such a case, the wrongdoer shall also be punished by special disqualification for three to ten years, and the same penalty shallapply to a wrongdoer who commits the offense in the service of a profession or trade requiring special qualification). The individual who receives money orother assets derived from a criminal offense with the purpose of applying them to a money laundering transaction shall be punished with imprisonment fromsix months to three years. If the value of the assets is not over Ps.300,000, the wrongdoer will be punished with imprisonment from six months to three years.The provisions in this section shall apply even when the criminal offense is committed outside the geographical jurisdiction of the Argentine Criminal Code,so long as the crime is also penalized in the jurisdiction where it was committed.Article 277 of the Argentine Criminal Code sets forth that an imprisonment of between six months and three years shall be applied (with varyingminimum terms attaching depending on the particular circumstances) to any person who helps a perpetrator to avoid investigation, obscures or destroysevidence of a crime, acquires, receives, hides or alters money or other proceeds from a crime, does not report the commission of the crime or does not identifythe perpetrator or participant in a crime with knowledge that such person would have been obliged to assist in the criminal prosecution of such crime and/oraids or abets the perpetrator or participant to make safe the proceeds of the crime. The minimum and maximum terms of punishment shall be doubled when:(a) the offense implies a particularly serious crime (for which minimum penalty is higher than three years of imprisonment); (b) the abettor acts for profit;(c) the abettor habitually commits concealment acts; or (d) the abettor is a public official.Law No. 25,246 contemplates that the legal entity whose management collected or provided assets or money, whatever their value, knowing that suchassets were to be used by a terrorist organization, may be subject to a fine between five to 20 times the value of such assets. Furthermore, whenever themanagement of the legal entity infringes the duty to treat the information submitted to the Financial Information Unit (Unidad de Información Financiera)(“UIF”) as confidential, the legal entity shall be subject to a fine between Ps. 50,000 to Ps. 500,000. Additionally such regulation created the UIF as anautonomous and financially self-sufficient entity within the jurisdiction of the Argentine Ministry of Justice and Human Rights, in charge of analyzing,treating and transmitting information in order to preclude and prevent money laundering. Pursuant to this legislation, the UIF is empowered to receive andrequest reports, documents, background and any other information deemed useful to fulfill its duties from any public entity, whether federal, provincial ormunicipal, and from individuals or public or private entities, all of which entities must furnish such information in accordance with Law No. 25,246.Whenever the information furnished or analyses performed by the UIF show the existence of sufficient evidence to suspect that a money laundering orterrorist financing crime has been committed, the UIF shall transmit such evidence to the Government Attorney’s Office so that it may start the relevantcriminal action, and the UIF may appear as an accusing party to such proceedings. Moreover, Law No. 26,087 mandates that banking secrecy or professionalprivilege, or legal or contractual commitments, cannot be considered exceptions to the compliance with the obligation to submit information to the UIF inthe context of an investigation of suspicious activity. 182Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe main goal of Law No. 25,246 is to prevent money laundering. In line with internationally accepted practices, the duty to control such illegaltransactions is not concentrated solely in Argentine federal governmental entities but also distributed among several private sector entities such as banks,brokers, brokerage firms and insurance companies. Such duties mainly consist of data collection functions, such as: (i) gathering from clients, applicants orcontributors any documentation sufficient to prove their identity, legal capacity, domicile and further data as necessary on a case by case basis; (ii) reportingany suspicious fact or transaction irrespective of its amount; and (iii) abstaining from disclosing to the client or third parties any procedures being followedpursuant to law. According to Law No. 25,246, a suspicious transaction shall mean any transaction that, in accordance with standard business practices and inthe experience of the entities and individuals subject to reporting obligations, is regarded as unusual, unjustified from an economic or legal standpoint, orunnecessarily complex, whether it is a one-time transaction or a series of transactions.Resolution No. 121/2011 issued by the UIF (“Resolution 121”), as amended by Resolutions No. 1/12, 2/12, 68/13 and 03/14, is applicable to financialentities subject to Law No. 21,526, to entities subject to the Law No. 18,924, as amended, and to natural and legal entities authorized by the ArgentineCentral Bank to intervene in the purchase and sale of foreign currency through cash or checks issued in foreign currency or through the use of credit orpayment cards, or in the transfer of funds within or outside the national territory. Resolution No. 229/2011 of the UIF (“Resolution 229”), as amended byResolution No 140/12 and 03/14, is applicable to brokers and brokerage firms, companies managing common investment funds, agents of the over-the-counter market, intermediaries in the purchase or leasing of securities affiliated with stock exchange entities with or without associated markets, andintermediary agents registered on forwards or option markets. Resolution 121 and Resolution 229 regulate, among other matters, the obligation to collectdocumentation from clients and the terms, obligations and restrictions for compliance with the reporting duty regarding suspicious money laundering andterrorism financing operations.Resolution 121 and Resolution 229 set forth general guidelines in connection with the client’s identification (including the distinction betweenoccasional and regular clients), the information to be requested, the documentation to be archived and the procedures to detect and report suspicioustransactions. Moreover, the main duties established by such resolutions are the following: a) creating a manual establishing the mechanisms and proceduresto be used to prevent money laundering and terrorism financing; b) designation of a compliance officer; c) the implementation of periodic audits; d)personnel training; e) elaboration of analysis records and risk management of detected unusual operations and of those which have been reported becausethey were considered suspicious; f) implementation of technological tools which allow the establishment of efficient control systems and prevention ofmoney laundering and terrorism financing; and g) implementation of measures which allow Subjects Obliged under Resolution 121 and Subjects Obligedunder Resolution 229, respectively, to electronically consolidate the operations carried out with clients, and electronic tools which allow the analysis andcontrol of different variables in order to identify certain behaviors and observe possible suspicious transactions. Entities covered by Resolution 121 mustreport any money laundering suspicious activity to the UIF within 30 calendar days of its occurrence (or attempt) and any terrorism financing suspiciousactivity before a 48 hour period has elapsed.According to Resolution 229, unusual transactions are those attempted or consummated transactions, on a one-time or on a regular basis, withouteconomic or legal justification, inconsistent with the economic and financial profile of the client, and which deviate from standard market practices, based ontheir frequency, regularity, amount, complexity, nature or other particular features. According to Resolution 229, an unusual transaction is one that,considering the suitability of the reporter in light of the activity it carries out, and the analysis made, may be suspicious of money laundering and financingterrorism. On other hand, suspicious transactions are those attempted or consummated transactions that, having been previously identified as unusualtransactions, are inconsistent with the lawful activities declared by the client or, even if related to lawful activities, give rise to suspicion that they are linkedor used to finance terrorism.Likewise, Resolution 229 provides for a list of factors which shall be specially taken into account in order to determine whether a transaction should bereported to UIF, including but not limited to: (i) clients who refuse to provide data or documents required by Resolution 229, or data provided by clientswhich is proved to be irregular; (ii) clients attempting to avoid compliance with the requirements set forth by Resolution 229 or other anti-money launderingregulations; (iii) indications about the illicit origin, management or destination of funds and other assets used in the transactions, in respect of which thereporting person or company does not receive a viable explanation; (iv) transactions involving countries or jurisdictions which are deemed tax heavens oridentified as non cooperative by the Financial Action Task Force (“FATF”); (v) the purchase or sale of securities at prices conspicuously higher or lower thatthose quoted at the moment the transaction is consummated; (vi) the purchase of securities at extremely high prices; (vii) transactions where the clientdeclares assets not consistent with the size of their business, thereby implying the possibility that such client is not acting in its own name but as an agent ofan anonymous third party; (viii) investment transactions with securities for high nominal values, which are not consistent with the volume of securitieshistorically negotiated according to the client’s transactional profile; and (ix) the receipt of an electronic transfer of funds without all the requiredinformation.In addition, the CNV rules establish that brokers and brokerage firms, and companies managing common investment funds, agents of the over-the-counter market, intermediaries in the purchase or lease of securities affiliated with stock exchange entities with 183Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsor without associated markets and intermediary agents registered on forwards or option markets, and individuals or legal entities acting as trustees, for anytype of trust fund, and individuals or legal entities, owners of or related to, directly or indirectly, with trust accounts, trustees and grantors in the context of atrust agreement, shall comply with Law No. 25,246, the UIF’s rulings and the CNV’s regulations. Additionally, companies managing common investmentfunds, any person acting as placement agent or performing activities relating to the trading of common investment funds, any person acting as placementagent in any primary issuance of marketable securities, and any issuer with respect to capital contributions, irrevocable capital contributions for futureissuances of stock or significant loans, must also comply with such regulations.Such resolutions also contain certain requirements for the reception and delivery of checks and payments made between the individuals and entitieslisted above, as well as the prohibition of transactions relating to the public offering of securities, when they are consummated or ordered by individuals orcompanies domiciled or residing in domains, jurisdictions, territories or associated states not included in the list of Decree 589/2013 (Regulatory Law ofIncome Tax No. 20,628 and its amendments), among other provisions, which mainly includes jurisdictions considered “cooperating for the purpose of taxtransparency.” Brokers and dealers must duly know their clients and apply policies and maintain adequate structures and systems in line with a policy againstmoney laundering and terrorist financing. Also, interested investors undertake the obligation to submit any information and documents that may be requiredin order to comply with criminal regulations and other laws and regulation in connection with money laundering, including capital markets’ regulationspreventing money laundering issued by the UIF and similar regulations issued by the CNV. ITEM 10.Additional InformationCapital StockOur capital stock consists of Ps.3,933,127,930, divided into 3,764 Class A shares, 7,624 Class B shares, 40,422 Class C shares and 393,260,983 Class Dshares, each fully subscribed and paid, with a par value of ten pesos each and the right to one vote per share. Our total capital stock has not changed sinceDecember 31, 2004.In November 1992, the Privatization Law became effective. Pursuant to the Privatization Law, in July 1993, we completed a worldwide offering of160 million Class D shares, representing approximately 45% of our outstanding capital stock, which had been owned by the Argentine government.Concurrently with the completion of such offering, the Argentine government transferred approximately 40 million Class B shares to the Argentineprovinces, which represented approximately 11% of our outstanding capital stock, and made an offer to holders of pension bonds and certain other claims toexchange such bonds and other claims for approximately 46.1 million Class B shares, representing approximately 13% of our outstanding capital stock. As aresult of these transactions, the Argentine government’s ownership percentage of our capital stock was reduced from 100% to approximately 30%, includingshares that had been set aside to be offered to our employees upon establishment of the terms and conditions by the Argentine government in accordancewith Argentine law. The shares set aside to be offered to employees represented 10% of our outstanding capital stock.In July 1997, the Class C shares set aside for the benefit of our employees in conjunction with the privatization, excluding approximately 1.5 millionClass C shares set aside as a reserve against potential claims, were sold through a global public offering, increasing the percentage of our outstanding sharesof capital stock held by the public to 75%. Proceeds from the transactions were used to cancel debt related to the employee plan, with the remainderdistributed to participants in the plan. Additionally, Resolution 1,023/06 of the Ministry of Economy, dated December 21, 2006, effected the transfer to theemployees covered by the employee share ownership plan, or PPP, of 1,117,717 Class C shares, corresponding to the Class C shares set aside as a reserveagainst potential claims, and reserving 357,987 Class C shares until a decision was reached in a pending lawsuit. Subsequently, with a final decision havingbeen reached in the lawsuit, and consistent with the mechanism of conversion of Class C shares into Class D shares established by Decree 628/1997 and itsaccompanying rules, as of December 31, 2009, 1,447,983 Class C shares had been converted into Class D shares. In 2010, a former employee of the companywho was allegedly excluded from the Argentine government’s YPF PPP, filed a claim against YPF seeking recognition of his status as a shareholder of YPF. Inaddition, the Federation of Former Employees of YPF joined the proceeding as a supporting third-party claimant, purportedly acting on behalf of other formeremployees who were also allegedly excluded from the PPP. Pursuant to the plaintiff’s request, the federal judge of first instance of Bell Ville, in the provinceof Cordoba, granted a preliminary injunction (the “Preliminary Injunction”), ordering that any sale of shares of YPF or any other transaction involving thesale, assignment or transfer of shares of YPF carried out by Repsol YPF or YPF be suspended, unless the plaintiff and other beneficiaries of the PPP, organizedunder the Federation of Former Employees of YPF, are involved or participate in such transactions. We filed an appeal against such decision, requesting thatthe Preliminary Injunction be revoked. In addition, we requested the recusal of the federal judge of first instance of Bell Ville and the issuance of apreliminary injunction offsetting the effects of the Preliminary Injunction. On March 1, 2011, we were notified that the intervening judge had allowed ourappeal, suspending the effects of the Preliminary Injunction. In addition, a preliminary injunction was granted to explicitly allow the free disposition of ourshares, provided that Repsol YPF, directly or indirectly continues to own at least 10% of our shares. On December 5, 2011, 184Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsthe Court of Appeals confirmed this preliminary injunction and modified the Preliminary Injunction of the federal judge of first instance of Bell Ville. Boththe federal judge of first instance of Bell Ville, on July 21, 2011, and the Court of Appeals, on December 15, 2011, decided in favor of the jurisdiction thefederal court in Buenos Aires to resolve this matter. Under the jurisprudence of the Federal Supreme Court of Argentina (upholding numerous decisions of therelevant Courts of Appeals), YPF should not be held liable for claims of this nature related to the PPP. Through Law No. 25.471, the Argentine governmentassumed sole responsibility for any compensation to be received by YPF’s former employees who were excluded from the PPP. On April 16, 2014 thePreliminary Injunction in this proceeding was lifted. Further, although the decision was appealed by the claimant, the appeal was conceded withoutsuspending the effects of the decision, thus while there is no contrary decision by the superior tribunal which must decide the appeal, the PreliminaryInjunction is not applicable.The Class A shares held by the Argentine government became eligible for sale in April 1995 upon the effectiveness of legislation which permitted theArgentine government to sell such shares. In January 1999, Repsol YPF acquired 52,914,700 Class A shares in block (14.99% of our shares) which wereconverted to Class D shares. Additionally, on April 30, 1999, Repsol YPF announced a tender offer to purchase all outstanding Class A, B, C and D shares at aprice of U.S.$44.78 per share (the “Offer”). Pursuant to the Offer, in June 1999, Repsol YPF acquired an additional 82.47% of our outstanding capital stock.On November 4, 1999, Repsol YPF acquired an additional 0.35%. On June 7, 2000, Repsol YPF announced a tender offer to exchange newly issued RepsolYPF’s shares for 2.16% of our Class B, C and D shares held by minority shareholders. Pursuant to the tender offer, and after the merger with Astra CompañíaArgentina de Petróleo, S.A. (“Astra”) and Repsol Argentina, S.A., Repsol YPF owned 330,551,981 Class D shares and therefore controlled us through a99.04% ownership interest until 2008. Following the different transactions that started in 2008, Repsol YPF ended up with a total ownership of 57.43% inApril 2012.The Expropriation Law has significantly changed our shareholding structure. The Class D shares subject to expropriation from Repsol YPF or itscontrolling or controlled entities, which represent 51% of our share capital and were declared of public interest and are currently held by the Republic ofArgentina, will be assigned as follows:51% to the federal government and 49% to the governments of the provinces that compose the National Organizationof Hydrocarbon Producing States. In addition, the Argentine federal government and certain provincial governments already own our Class A and Class Bshares. See “Item 3. Key Information—Risk Factors—Risks Relating to Argentina—The Argentine federal government will control the Company accordingto domestic energy policies in accordance with Law 26,741 (the “Expropriation Law”).”As of the date of this annual report, the transfer of the shares subject to expropriation between National Executive Office and the provinces thatcompose the National Organization of Hydrocarbon Producing States was still pending. According to Article 8 of the Expropriation Law, the distribution ofthe shares among the provinces that accept their transfer must be conducted in an equitable manner, considering their respective levels of hydrocarbonproduction and proved reserves. To ensure compliance with its objectives, the Expropriation Law provides that the National Executive Office, by itself orthrough an appointed public entity, shall exercise all the political rights associated with the shares subject to expropriation until the transfer of political andeconomic rights to the provinces that compose the National Organization of Hydrocarbon Producing States is completed. In addition, in accordance withArticle 9 of the Expropriation Law, each of the Argentine provinces to which shares subject to expropriation are allocated must enter into a shareholder’sagreement with the federal government that will provide for the unified exercise of its rights as a shareholder. See “Item 4. Information on the Company—Regulatory Framework and Relationship with the Argentine Government—The Expropriation Law” and “Item 7. Major Shareholders and Related PartyTransactions.”Memorandum and Articles of AssociationYPF’s by-laws were approved by National Executive Decree No. 1,106, dated May 31, 1993, and notarized by public deed No. 175, dated June 15,1993 at the National Notary Public Office, sheet 801 of the National Registry, and registered at the Inspection Board of Legal Entities of the ArgentineRepublic on the same date, June 15, 1993 under number 5,109 of the book of Corporations number 113, volume “A.”At a shareholders’ meeting on April 14, 2010, YPF’s shareholders approved an amendment to YPF’s by-laws. Copies of the by-laws, which have beenfiled as described in “Item 19. Exhibits” in this annual report, are also available at the offices of YPF.For a detailed description of YPF’s object and purpose, see “Item 4. Information on the Company.” YPF’s object is set forth in Section 4 of its by-laws.Pursuant to Argentine Corporations Law, the Board of Directors or the Supervisory Committee shall call either annual general or extraordinaryshareholders’ meetings in the cases provided by law and whenever they consider appropriate. Shareholders representing not less than 5% of YPF’s capitalstock may also request that a shareholders’ meeting be called. 185Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsA shareholders’ meeting shall be called at least twenty days prior to the meeting date by notice published in the legal publications journal for a periodof five days. The notice shall include the nature, date, time and place of the meeting, the agenda to be discussed and the specific requirements shareholdersmust meet to attend the meeting.Shareholders’ MeetingsPursuant to the Argentine Corporations Law, the Board of Directors or the Supervisory Committee shall call either annual ordinary or extraordinaryshareholders’ meetings in the cases provided by law and whenever they consider appropriate. Shareholders representing not less than 5% of our capital stockmay also request that a shareholders’ meeting be called, in which case the meeting must take place within 40 days of such shareholders’ request. If the Boardof Directors or the Supervisory Committee fails to call a meeting following such a request, a meeting may be ordered by the CNV or by the courts.Shareholders’ meetings may be ordinary meetings or extraordinary meetings. We are required to convene and hold an ordinary meeting of shareholderswithin four months of the closing of each fiscal year to consider the matters specified in the first two paragraphs of Section 234 of the Argentine CorporationsLaw, such as the approval of our financial statements, allocation of net income for such fiscal year, approval of the reports of the Board of Directors and theAudit Committee and the election, performance and remuneration of directors and members of the Supervisory Committee. In addition, pursuant to the StockMarket Law, at ordinary shareholders’ meetings, shareholders must consider (i) the disposition of, or creation of any lien over, assets as long as such decisionhas not been performed in the ordinary course of business and (ii) the execution of administration or management agreements and whether to approve anyagreement by virtue of which the assets or services provided to us are paid partial or totally with a percentage of our income, results or earnings, if thepayment is material when measured against the volume of the ordinary course of business and our shareholders’ equity. Other matters which may beconsidered at an ordinary shareholders’ meeting convened and held at any time include the responsibility of directors and members of the SupervisoryCommittee, capital increases and the issuance of certain notes. Extraordinary shareholders’ meetings may be called at any time to consider matters beyondthe authority of an ordinary meeting including, without limitation, the amendment of our by-laws, issuance of debentures, early dissolution, merger, spin-off,reduction of capital stock and redemption of shares, transformation from one type of entity to another and limitation or suspension of shareholders’preemptive rights.Notices of meetingsNotice of shareholders’ meetings must be published for five days in the Official Gazette, in an Argentina newspaper of wide circulation and in thebulletin of the BASE, at least 20 but not more than 45 days prior to the date on which the meeting is to be held. Such notice must include informationregarding the type of meeting to be held, the date, time and place of such meeting and the agenda. If a quorum is not available at such meeting, a notice for ameeting on second call, which must be held within 30 days of the date on which the first meeting was called, must be published for three days at least eightdays before the date of the meeting on second call. The above-described notices of shareholders’ meetings may be effected simultaneously for the meeting onsecond call to be held on the same day as the first meeting, only in the case of ordinary meetings. Shareholders’ meetings may be validly held without noticeif all the shares of our outstanding share capital are present and resolutions are adopted by unanimous vote of shares entitled to vote.Quorum and voting requirementsExcept as described below, the quorum for ordinary meetings of shareholders on first call is a majority of the shares entitled to vote, and action may betaken by the affirmative vote of an absolute majority of the shares present that are entitled to vote on such action. If a quorum is not available at the firstmeeting, a meeting on second call may be held at which action may be taken by the holders of an absolute majority of the shares present, regardless of thenumber of such shares. The quorum for an extraordinary shareholders’ meeting on first call is 60% of the shares entitled to vote, and if such quorum is notavailable, a meeting or second call may be held, at which action may be taken by the holders of an absolute majority of the shares present, regardless of thenumber of such shares.Our by-laws establish that in order to approve (i) the transfer of our domicile outside Argentina, (ii) a fundamental change of the corporate purpose setforth in our by-laws, (iii) delisting of our shares from the BASE or NYSE, and (iv) a spin-off by us, when as a result of such spin-off more than 25% of ourassets are transferred to the resulting corporations, a majority of the shares representing 75% or more of our voting shares is required, both in first and secondcall. Our by-laws also establish that in order to approve (i) certain amendments to our by-laws concerning tender offers of shares (as described below), (ii) thegranting of certain guarantees in favor of our shareholders, (iii) full stop of refining, commercialization and distribution activities and (iv) rules regardingappointment, election and number of members of our Board of Directors, a majority of the shares representing 66% or more of our voting shares is required,both in first and second call, as is the affirmative vote of the Class A shares, voting at a special meeting of the holders of such shares. 186Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn order to attend the meeting, shareholders must deposit their shares, or a certificate representing book-entry shares issued by a bank, clearing house ordepository trust company, with us. This certificate will allow each shareholder to be registered in the attendance book which closes three business days beforethe date on which the meeting will be held. We will issue to each shareholder a deposit certificate required for admission into the meeting. Shares certifiedand registered in the attendance book may not be disposed of before the meeting is held unless the corresponding deposit is cancelled.Under the Argentine Corporations Law, foreign companies that own shares in an Argentine corporation are required to register with the Superintendentof Corporations (Inspección General de Justicia, or “IGJ”) in order to exercise certain shareholder rights, including voting rights. Such registration requiresthe filing of certain corporate and accounting documents. Accordingly, if a shareholder owns Class D shares directly (rather than in the form of ADSs) and it isa non-Argentine company, and such shareholder fails to register with the IGJ, the ability to exercise its rights as a holder of Class D shares may be limited.Directors, members of the Supervisory Committee and senior managers are both entitled and required to attend all shareholders’ meetings. Thesepersons may only exercise voting power to the extent they have been previously registered as shareholders, in accordance with the provisions described inthe above paragraph. Nevertheless, these persons are not allowed to vote on any proposal regarding the approval of their management duties or their removalfor cause.Shareholders who have a conflict of interest with us and who do not abstain from voting may be liable for damages to us, but only if the transactionwould not have been approved without such shareholders’ votes. Furthermore, shareholders who willfully or negligently vote in favor of a resolution that issubsequently declared void by a court as contrary to the law or our by-laws may be held jointly and severally liable for damages to us or to other third parties,including shareholders.DirectorsElection of DirectorsOur business and affairs are managed by the Board of Directors in accordance with our by-laws and the Argentine Corporations Law. Our by-lawsprovide for a Board of Directors of 11 to 21 members, and up to an equal number of alternates. Alternates are those elected by the shareholders to replacedirectors who are absent from meetings or who are unable to exercise their duties, when and for whatever period appointed to do so by the Board of Directors.Alternates have the responsibilities, duties and powers of directors only if and to the extent they are called upon to attend board meetings or for such longerperiod as they may act as replacements.Directors shall hold office from one to three years, as determined by the shareholders’ meetings. As of the date of the annual report, our Board ofDirectors is composed of 18 directors and 8 alternates.In accordance with our by-laws, the Argentine government, as sole holder of Class A shares, is entitled to elect one director and one alternate.Under the Argentine Corporations Law, a majority of our directors must be residents of Argentina. All directors must establish a legal domicile inArgentina for service of notices in connection with their duties.Our by-laws require the Board of Directors to meet at least once every quarter in person or by video conference, and a majority of directors is requiredin order to constitute a quorum. If a quorum is not met one hour after the start time set for the meeting, the President or his substitute may invite alternates ofthe same class as that of the absent directors to join the meeting, or call a meeting for another day. Resolutions must be adopted by a majority of the directorspresent, and the President or his substitute is entitled to cast the deciding vote in the event of a tie.Duties and liabilities of DirectorsIn accordance with the Argentine Corporations Law, directors have an obligation to perform their duties with loyalty and with the diligence of aprudent business person. Directors are jointly and severally liable to us, our shareholders and to third parties for the improper performance of their duties, forviolating the law or our by-laws or regulations, and for any damage caused by fraud, abuse of authority or gross negligence. Specific duties may be assignedto a director by the by-laws, company regulations, or by resolution of the shareholders’ meeting. In such cases, a director’s liability will be determined byreference to the performance of such duties. 187Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOnly shareholders, through a shareholders’ meeting may authorize directors to engage in activities in competition with us. Transactions or contractsbetween directors and us in connection with our activities are permitted to the extent they are performed under fair market conditions. Transactions that donot comply with the Argentine Corporations Law require prior approval of the Board of Directors or the Supervisory Committee. In addition, thesetransactions must be subsequently approved by the shareholders at a general meeting. If our shareholders do not approve the relevant transaction, thedirectors and members of the Supervisory Committee who approved such transactions are jointly and severally liable for any damages caused to us.Any director whose personal interests are adverse to ours shall notify the Board of Directors and the Supervisory Committee and abstain from voting onsuch matters. Otherwise, such director may be held liable to us.A director will not be liable if, notwithstanding his presence at the meeting at which a resolution was adopted or his knowledge of such resolution, awritten record exists of his opposition to such resolution and he reports his opposition to the Supervisory Committee before any complaint against him isbrought before the Board of Directors, the Supervisory Committee, the shareholders’ meeting, the appropriate governmental agency or the courts. Anyliability of a director to us terminates upon approval of the director’s actions by the shareholders at a general meeting, provided that shareholdersrepresenting at least 5% of our capital stock do not object and provided further that such liability does not result from a violation of the law, our by-laws orother regulations.Foreign Investment LegislationUnder the Argentine Foreign Investment Law, as amended, and its implementing regulations (together, referred to as the “Foreign InvestmentLegislation”), the purchase of shares of an Argentine corporation by an individual or legal entity domiciled abroad or by an Argentine company of “foreigncapital” (as defined in the Foreign Investment Legislation) constitutes foreign investment. Currently, foreign investment, other than investments inbroadcasting, the purchase of land located in frontier and other security areas by foreigners and limits on the ownership of rural land by foreign individuals orlegal entities according to Law No. 26,737, is not restricted, and no prior approval is required to make foreign investments. No prior approval is required inorder to purchase Class D shares or ADSs or to exercise financial or corporate rights thereunder.DividendsUnder our by-laws, all Class A, Class B, Class C and Class D shares rank equally with respect to the payment of dividends. All shares outstanding as ofa particular record date share equally in the dividend being paid, except that shares issued during the period to which a dividend relates may be entitled onlyto a partial dividend with respect to such period if the shareholders’ meeting that approved the issuance so resolved. No provision of our by-laws or of theArgentine Corporations Law gives rise to future special dividends only to certain shareholders.The amount and payment of dividends are determined by majority vote of our shareholders voting as a single class, generally, but not necessarily, onthe recommendation of the Board of Directors. In addition, under the Argentine Corporations Law, our Board of Directors has the right to declare dividendssubject to further approval of shareholders at the next shareholders’ meeting.After the passage of the Expropriation Law, at our shareholder’s meeting held on July 17, 2012 a dividend of Ps.303 million (Ps.0.77 per share or ADS)was authorized for payment during 2012. Our strategy provides for an increased level of investments that will require a significant reinvestment of earningsand therefore considers a potential dividend distribution consistent with such strategy. At our shareholders’ meeting held on April 30, 2013 and itscontinuation on May 30, 2013, a dividend of Ps. 326 million (Ps. 0.83 per share or ADS) was authorized for payment during August 2013. Furthermore, at theshareholders’ ordinary and extraordinary general meeting held on April 30, 2014 and its continuation on May 21, 2014 a dividend of Ps. 464 million (Ps.1.18 per share or ADS) was authorized for payment during July 2014. On February 26, 2015, the Board approved to propose to the Shareholders’ meeting thefollowing distribution of profits: (i) allocate the amount of Ps. 120 million to constitute a Reserve for purchasing of own shares, in order to give theopportunity to the Board to acquire own shares at the time it deems appropriate, and comply, during the execution of plans, commitments generated and togenerate in the future, (ii) allocate the amount of Ps. 8,410 million to constitute a reserve for investments in terms of Article 70, third paragraph of ArgentineCorporation Law No.19,550 (O.T. 1984) , and its amendments, and (iii) allocate the amount of Ps. 503 million to a reserve for the payment of dividends,authorizing the Board to determine the opportunity for its distribution within a period not exceeding the end of 2015. 188Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe following table sets forth for the periods and dates indicated, the quarterly dividend payments made by us, expressed in pesos. Pesos Per Share/ADS Year Ended December 31, 1Q 2Q 3Q 4Q Total 2005 — 8.00 — 4.40 12.40 2006 — 6.00 — — 6.00 2007 6.00 — — — 6.00 2008 10.76 6.50 — 6.35 23.61 2009 — 6.30 — 6.15 12.45 2010 — 5.50 — 5.80 11.30 2011 — 7.00 — 7.15 14.15 2012 — — — 0.77 0.77 2013 — — 0.83 — 0.83 2014 — — 1.18 — 1.18 Amount Available for DistributionUnder Argentine law, dividends may be lawfully paid only out of our retained earnings reflected in the annual audited financial statements prepared inaccordance with accounting rules prevailing in Argentina and CNV regulations and approved by a shareholders’ meeting. The Board of Directors of a listedArgentine company may declare interim dividends, in which case each member of the Board and of the Supervisory Committee is jointly and severally liablefor the repayment of such dividend if retained earnings at the close of the fiscal year in which the interim dividend was paid would not have been sufficient topermit the payment of such dividend.According to the Argentine Corporations Law and our by-laws, we are required to maintain a legal reserve of 20% of our then-outstanding capitalstock. The legal reserve is not available for distribution to shareholders.Under our by-laws, our net income is applied as follows: • first, an amount equivalent to at least 5% of net income, plus (less) prior year adjustments, is segregated to build the legal reserve until suchreserve is equal to 20% of our subscribed capital; • second, an amount is segregated to pay the accrued fees of the members of the Board of Directors and of the Supervisory Committee. See “Item 6.Directors, Senior Management and Employees—Compensation of members of our Board of Directors and Supervisory Committee”; • third, an amount is segregated to pay dividends on preferred stock, if any; and • fourth, the remainder of net income may be distributed as dividends to common shareholders or allocated for voluntary or contingent reserves asdetermined by the shareholders’ meeting.Our Board of Directors submits our financial statements for the preceding fiscal year, together with reports thereon by the Supervisory Committee andthe auditors, at the annual ordinary shareholders’ meeting for approval. Within four months of the end of each fiscal year, an ordinary shareholders’ meetingmust be held to approve our yearly financial statements and determine the allocation of our net income for such year.Under applicable CNV regulations, cash dividends must be paid to shareholders within 30 days of the shareholders’ meeting approving such dividendsor, in the case in which the shareholders’ meeting delegates the authority to distribute dividends to the Board of Directors, within 30 days of the Board ofDirectors’ meeting approving such dividends. In the case of stock dividends, shares are required to be delivered within three months of our receipt of noticeof the authorization of the CNV for the public offering of the shares arising from such dividends. In accordance with the Argentine Commercial Code, thestatute of limitations to the right of any shareholder to receive dividends declared by the shareholders’ meeting is three years from the date on which it hasbeen made available to the shareholder.Owners of ADSs are entitled to receive any dividends payable with respect to the underlying Class D shares. Cash dividends are paid to the Depositaryin pesos, directly or through BONY, as depositary, although we may choose to pay cash dividends outside Argentina in a currency other than pesos,including U.S. dollars. The deposit agreement provides that the Depositary shall convert cash dividends received by the Depositary in pesos to dollars, to theextent that, in the judgment of the Depositary, such conversion may be made on a reasonable basis, and, after deduction or upon payment of the fees andexpenses of the Depositary, shall make payment to the holders of ADSs in U.S. dollars. 189Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsPreemptive and Accretion RightsExcept as described below, in the event of a capital increase, a holder of existing shares of a given class has a preferential right to subscribe a number ofshares of the same class sufficient to maintain the holder’s existing proportionate holdings of shares of that class. Preemptive rights also apply to issuances ofconvertible securities, but do not apply upon conversion of such securities. Pursuant to the Argentine Corporations Law, in exceptional cases and on a case-by-case basis when required for our best interest, the shareholders at an extraordinary meeting with a special majority may decide to limit or suspendshareholders’ preemptive rights, provided that such limitation or suspension of the shareholders’ preemptive rights is included in the agenda of the meetingand the shares to be issued are paid in kind or are issued to cancel preexisting obligations.Under our by-laws, we may only issue securities convertible into Class D shares, and the issuance of any such convertible securities must be approvedby a special meeting of the holders of Class D shares.Holders of ADSs may be restricted in their ability to exercise preemptive rights if a registration statement under the Stock Market Law relating theretohas not been filed or is not effective. Preemptive rights are exercisable during the 30 days following the last publication of notice informing shareholders oftheir right to exercise such preemptive rights in the Official Gazette and in an Argentine newspaper of wide circulation. Pursuant to the ArgentineCorporations Law, if authorized by an extraordinary shareholders’ meeting, companies authorized to make public offering of their securities, such as us, mayshorten the period during which preemptive rights may be exercised from 30 to ten days following the publication of notice of the offering to theshareholders to exercise preemptive rights in the Official Gazette and a newspaper of wide circulation in Argentina. Pursuant to our by-laws, the terms andconditions on which preemptive rights may be exercised with respect to Class C shares may be more favorable than those applicable to Class A, Class B andClass D shares.Shareholders who have exercised their preemptive rights have the right to exercise accretion rights, in proportion to their respective ownership, withrespect to any unpreempted shares, in accordance with the following procedure: • Any unpreempted Class A shares will be converted into Class D shares and offered to holders of Class D shares that exercised preemptive rightsand indicated their intention to exercise additional preemptive rights with respect to any such Class A shares. • Any unpreempted Class B shares will be assigned to those provinces that exercised preemptive rights and indicated their intention to exerciseaccretion rights with respect to such shares; any excess will be converted into Class D shares and offered to holders of Class D shares thatexercised preemptive rights and indicated their intention to exercise accretion rights with respect to any such Class D shares. • Any unpreempted Class C shares will be assigned to any PPP participants who exercised preemptive rights and indicated their intention toexercise accretion rights with respect to such shares; any excess will be converted into Class D shares and offered to holders of Class D shares thatexercised preemptive rights and indicated their intention to exercise accretion rights with respect to any such Class C shares. • Any unpreempted rights will be assigned to holders of Class D shares that exercised their preemptive rights and indicated their intention toexercise accretion rights; any remaining Class D shares will be assigned pro rata to any holder of shares of another class that indicated his or herintention to exercise accretion rights.The term for exercise of additional preemptive rights is the same as that fixed for exercising preemptive rights.Voting of the Underlying Class D SharesUnder the by-laws, each Class A, Class B, Class C and Class D share entitles the holder thereof to one vote at any meeting of the shareholders of YPF,except that a specified number of Directors is elected by majority vote of each class (except as provided below). See “—Directors—Election of Directors”above for information regarding the number of directors that holders of each class of shares are entitled to elect and certain other provisions governingnomination and election of directors. The Depositary has agreed that, as soon as practicable after receipt of a notice of any meeting of shareholders of YPF, itwill mail a notice to the holders of ADRs, evidencing ADSs, registered on the books of the Depositary which will contain the following: • a summary in English of the information contained in the notice of such meeting; 190Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • a statement that the holders of ADRs at the close of business on a specified record date will be entitled, subject to any applicable provisions ofArgentine law, the by-laws of YPF and the Class D shares, to instruct the Depositary to exercise the voting rights, if any, pertaining to the Class Dshares evidenced by their respective ADSs; and • a statement as to the manner in which such instructions may be given to the Depositary.The Depositary shall endeavor, to the extent practicable, to vote or cause to be voted the amount of Class D shares represented by the ADSs inaccordance with the written instructions of the holders thereof. The Depositary will vote Class D shares, as to which no instructions are received, inaccordance with the recommendations of the Board of Directors of YPF. The Depositary will not vote Class D shares, as to which no instructions have beenreceived, in accordance with the recommendations of the Board of Directors, however, unless YPF has provided to the Depositary an opinion of Argentinecounsel stating that the action recommended by the Board of Directors is not illegal under Argentine law or contrary to the by-laws or Board regulations ofYPF. In addition, the Depositary will, if requested by the Board of Directors and unless prohibited by any applicable provision of Argentine law, deposit allClass D shares represented by ADSs for purposes of establishing a quorum at meetings of shareholders, whether or not voting instructions with respect to suchshares have been received.VotingUnder our by-laws, each Class A, Class B, Class C and Class D share entitles the holder thereof to one vote at any meeting of our shareholders, exceptthat the Class A shares (i) vote separately with respect to the election of our Board of Directors and are entitled to appoint one director and one alternatedirector and, (ii) have certain veto rights, as described below.Class A Veto RightsUnder the by-laws, so long as any Class A shares remain outstanding, the affirmative vote of such shares is required in order to: (i) decide upon themerger of the company; (ii) approve any acquisition of shares by a third party representing more than 50% of the company’s capital; (iii) transfer to thirdparties all the exploitation rights granted to YPF pursuant to the Hydrocarbons Law, applicable regulations thereunder or the Privatization Law, if suchtransfer would result in the total suspension of the company’s exploration and production activities; (iv) voluntarily dissolve the company; and (v) transferour legal or fiscal domicile outside Argentina. The actions described in clauses (iii) and (iv) above also require prior approval of the Argentine Congressthrough enactment of a law.Reporting RequirementsPursuant to our by-laws, any person who, directly or indirectly, through or together with its affiliates and persons acting in concert with it, acquiresClass D shares or securities convertible into Class D shares, so that such person controls more than 3% of the Class D shares, is required to notify us of suchacquisition within five days of such acquisition, in addition to complying with any requirements imposed by any other authority in Argentina or elsewherewhere our Class D shares are traded. Such notice must include the name or names of the person and persons, if any, acting in concert with it, the date of theacquisition, the number of shares acquired, the price at which the acquisition was made, and a statement as to whether it is the purpose of the person orpersons to acquire a greater shareholding in, or control of, us. Each subsequent acquisition by such person or persons requires a similar notice.Certain Provisions Relating to Acquisitions of SharesPursuant to our by-laws: • each acquisition of shares or convertible securities, as a result of which the acquirer, directly or indirectly through or together with its affiliatesand persons acting in concert with it (collectively, an “Offeror”), would own or control shares that, combined with such Offeror’s prior holdings,if any, of shares of such class, would represent: • 15% or more of the outstanding capital stock, or • 20% or more of the outstanding Class D shares; and • each subsequent acquisition by an Offeror (other than subsequent acquisitions by an Offeror owning or controlling more than 50% of our capitalprior to such acquisition) (collectively, “Control Acquisitions”), must be carried out in accordance with the procedure described under “—Restrictions on Control Acquisitions” below. 191Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, any merger, consolidation or other combination with substantially the same effect involving an Offeror that has previously carried out aControl Acquisition, or by any other person or persons, if such transaction would have for such person or persons substantially the same effect as a ControlAcquisition (“Related Party Share Acquisition”), must be carried out in accordance with the provisions described under “—Restrictions on Related PartyShare Acquisitions” below. The voting, dividend and other distribution rights of any shares acquired in a Control Acquisition or a Related Party ShareAcquisition carried out other than in accordance with such provisions will be suspended, and such shares will not be counted for purposes of determining theexistence of a quorum at shareholders’ meetings.The Expropriation Law has not triggered these obligations.Restrictions on Control AcquisitionsPrior to consummating any Control Acquisition, an Offeror must obtain the approval of the Class A shares, if any are outstanding, and make a publictender offer for all of our outstanding shares and convertible securities. The Offeror will be required to provide us with notice of, and certain specifiedinformation with respect to, any such tender offer at least fifteen business days prior to the commencement of the offer, as well as the terms and conditions ofany agreement with any shareholder proposed for the Control Acquisition (a “Prior Agreement”). We will send each shareholder and holder of convertiblesecurities a copy of such notice at the Offeror’s expense. The Offeror is also required to publish a notice containing substantially the same information in anewspaper of general circulation in Argentina, New York and each other city in which our securities are traded on an exchange or other securities market, atleast once per week, beginning on the date notice is provided to us, until the offer expires.Our Board of Directors shall call a special meeting of the holders of Class A shares to be held ten business days following the receipt of such notice forthe purpose of considering the tender offer. If the special meeting is not held, or if the shareholders do not approve the tender offer at such meeting, neitherthe tender offer nor the proposed Control Acquisition may be completed.The tender offer must be carried out in accordance with a procedure specified in our by-laws and in accordance with any additional or stricterrequirements of jurisdictions, exchanges or markets in which the offer is made or in which our securities are traded. Under the by-laws, the tender offer mustprovide for the same price for all shares tendered, which price may not be less than the highest of the following (the “Minimum Price”): (i)the highest price paid by, or on behalf of, the Offeror for Class D shares or convertible securities during the two years prior to the notice providedto us, subject to certain antidilution adjustments with respect to Class D shares; (ii)the highest closing price for the Class D shares on the BASE during the thirty-day period immediately preceding the notice provided to us,subject to certain antidilution adjustments; (iii)the price resulting from clause (ii) above multiplied by a fraction, the numerator of which shall be the highest price paid by or on behalf of theOfferor for Class D shares during the two years immediately preceding the date of the notice provided to us and the denominator of which shallbe the closing price for the Class D shares on the BASE on the date immediately preceding the first day in such two-year period on which theOfferor acquired any interest in or right to any Class D shares, in each case subject to certain antidilution adjustments; and (iv)the net earnings per Class D share during the four most recent full fiscal quarters immediately preceding the date of the notice provided to us,multiplied by the higher of (A) the price/earnings ratio during such period for Class D shares (if any) and (B) the highest price/earnings ratio forus in the two-year period immediately preceding the date of the notice provided to us, in each case determined in accordance with standardpractices in the financial community.Any such offer must remain open for a minimum of 20 days and a maximum of 30 days following the provision of notice to the shareholders orpublication of the offer, plus an additional period of a minimum of five days and a maximum of ten days required by CNV regulations, and shareholders musthave the right to withdraw tendered shares at any time up until the close of the offer. Following the close of such tender offer, the Offeror will be obligated toacquire all tendered shares or convertible securities, unless the number of shares tendered is less than the minimum, if any, upon which such tender offer wasconditioned, in which case the Offeror may withdraw the tender offer. Following the close of the tender offer, the Offeror may consummate any PriorAgreement within thirty days following the close of the tender offer; provided, however, that if such tender offer was conditioned on the acquisition of aminimum number of shares, the Prior Agreement may be consummated only if such minimum was reached. If no Prior Agreement existed, the Offeror mayacquire the number of shares indicated in the notice provided to us on the terms indicated in such notice, to the extent such number of shares were notacquired in the tender offer, provided that any condition relating to a minimum number of shares tendered has been met.The Expropriation Law has not triggered these obligations. 192Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsRestrictions on Related Party Share AcquisitionsThe price per share to be received by each shareholder in any Related Party Share Acquisition must be the same as, and must not be less, than thehighest of the following: (i)the highest price paid by or on behalf of the party seeking to carry out the Related Party Share Acquisition (an “Interested Shareholder”) for(A) shares of the class to be transferred in the Related Party Share Acquisition (the “Class”) within the two-year period immediately preceding thefirst public announcement of the Related Party Share Acquisition or (B) shares of the Class acquired in any Control Acquisition, in each case asadjusted for any stock split, reverse stock split, stock dividend or other reclassification affecting the Class; (ii)the highest closing sale price of shares of the Class on the BASE during the thirty days immediately preceding the announcement of the RelatedParty Share Acquisition or the date of any Control Acquisition by the Interested Shareholder, adjusted as described above; (iii)the price resulting from clause (ii) multiplied by a fraction, the numerator of which shall be the highest price paid by or on behalf of theInterested Shareholder for any share of the Class during the two years immediately preceding the announcement of the Related Party Transactionand the denominator of which shall be the closing sale price for shares of the Class on the date immediately preceding the first day in the two-year period referred to above on which the Interested Shareholder acquired any interest or right in shares of the Class, in each case as adjusted asdescribed above; and (iv)the net earnings per share of the shares of the Class during the four most recent full fiscal quarters preceding the announcement of the RelatedParty Transaction multiplied by the higher of the (A) the price/earnings ratio during such period for the shares of the Class and (B) the highestprice/earnings ratio for us in the two-year period preceding the announcement of the Related Party Transaction, in each case determined inaccordance with standard practices in the financial community.In addition, any transaction that would result in the acquisition by any Offeror of ownership or control of more than 50% of our capital stock, or thatconstitutes a merger or consolidation of us, must be approved in advance by the Class A shares while any such shares remain outstanding.Material ContractsNone.Exchange RegulationsSee “Item 3. Key Information—Exchange Regulations” for information on the monetary and currency exchange control restrictions in effect inArgentina.TaxationArgentine Tax ConsiderationsThe following discussion is a summary of the material Argentine tax considerations relating to the purchase, ownership and disposition of our Class Dshares or ADSs.Dividends taxDividends paid on our Class D shares or ADSs, whether in cash, property or other equity securities, are not subject to income tax withholding, exceptfor dividends paid in excess of our taxable accumulated income for the previous fiscal period, which are subject to withholding at a rate of 35% in respect ofsuch excess. This is a final tax, and it is not applicable if dividends are paid in shares (acciones liberadas) rather than in cash. 193Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsPersonal assets taxArgentine individuals and undivided estates, foreign individuals and undivided estates, and foreign entities are subject to personal assets tax of 0.5%of the value of any shares or ADSs issued by Argentine entities, held at December 31 of each year. The tax is levied on the Argentine issuers of such shares orADSs, such as the Company, which must pay this tax in substitution of the relevant shareholders, and is based on the equity value (valor patrimonialproporcional), of the shares derived from the latest financial statements at December 31 of each year. Pursuant to the Personal Assets Tax Law, we are entitledand expect to seek reimbursement of such paid tax from the applicable shareholders, including by foreclosing on the shares, or by withholding dividends.Tax on debits and credits in bank accountsTax on debits and credits in bank accounts is levied, with certain exceptions, for debits and credits on checking accounts maintained at financialinstitutions located in Argentina and other transactions that are used as a substitute for the use of checking accounts. The general tax rate is 0.6% for eachdebit and credit, although in certain cases a decreased rate may apply. The account holder may use up to 34% of the tax paid in respect of credits as a creditagainst other federal taxes.Value added taxThe sale, exchange or other disposition of our Class D shares or ADSs and the distribution of dividends are exempt from the value added tax.Stamp taxesStamp taxes may apply in certain Argentine provinces if transfer of our Class D shares or ADSs is performed or executed in such jurisdictions by meansof written agreements. Transfer of our Class D shares or ADSs is exempt from stamp tax in the City of Buenos Aires.Estate and gift taxThe Province of Buenos Aires has imposed a tax on the reception of assets through inheritance or gift, effective January 1, 2011. The tax rates varyfrom 4% to 21.925%, depending on the value of the transferred assets and the relationship between the transferor and the transferee. The transfer of Class Dshares or ADSs among residents of the Province of Buenos Aires shall be subject to this tax if other applicable conditions are met.Other taxesSubject to the discussion above regarding estate and gift taxes in the Province of Buenos Aires, there are no Argentine inheritance or succession taxesapplicable to the ownership, transfer or disposition of our Class D shares or ADSs. In addition, neither the minimum presumed income tax nor any local grossturnover tax is applicable to the ownership, transfer or disposition of our Class D shares or ADSs.In the case of litigation regarding the Class D shares or ADSs before a court of the City of Buenos Aires, a 3% court fee would be charged, calculated onthe basis of the claim.Tax treatiesArgentina has tax treaties for the avoidance of double taxation currently in force with Australia, Belgium, Bolivia, Brazil, Canada, Denmark, Finland,France, Germany, Italy, the Netherlands, Norway, Russia, Spain, Sweden, Switzerland, the United Kingdom and Uruguay. The tax treaty between Argentinaand Switzerland had remained in force until January 16, 2012. The new one has been signed but not ratified by their governments. The new tax treatybetween Argentina and Spain has been ratified by their governments and is in effect as of January 1, 2013. There is currently no tax treaty or convention ineffect between Argentina and the United States. It is not clear when, if ever, a treaty will be ratified or entered into effect. As a result, the Argentine taxconsequences described in this section will apply, without modification, to a holder of our Class D shares or ADSs that is a U.S. resident. Foreign shareholderslocated in certain jurisdictions with a tax treaty in force with Argentina may be (i) exempted from the payment of the personal assets tax and (ii) entitled toapply for reduced withholding tax rates on payments to be made by Argentine parties. 194Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsModifications to the Income Tax LawOn September 23, 2013, Law No. 26,893 introducing modifications to the Income Tax was published in the Official Gazette. The abovementionedmodifications are mainly related to the taxability of the income originating for the purchase and sale of shares and the collection of dividends. The scope ofthe law was clarified by means of the Regulatory Decree 2334. Below is a description of the main modifications introduced by Law No. 26,893: • Income originating from the purchase and sale of shares – As from its entry into force, any income originated from the disposal of shares, quotas, equity interests, certificates, bonds and othersecurities shall be taxable regardless of the subject that holds them. – However, the income originating from the transfer of those securities listed in the stock exchange or securities market authorized by theCNV, and obtained by undivided state and individuals residing in the country is exempted. – The income obtained by overseas beneficiaries originating from the disposal of shares, quotas, equity interests, certificates, bonds andother securities, is also subject to the tax. – When ownership corresponds to a subject abroad and the acquirer is also an individual or legal entity abroad, the tax will be borne by thepurchaser of the shares, quotas, equity interests or other security. – The tax aliquot is 15%. Furthermore, it was established that when income was obtained by a subject abroad, the calculation of the tax, atthe option of the taxpayer, shall be performed by using any of the methods detailed below: • Applying the 15% aliquot on 90% of the sums paid. • Applying the 15% aliquot, on the sum resulting from the deduction of the gross profit paid or credited, the expenses incurred in thecountry necessary for its obtaining, maintenance and conservation, as well as the deductions admitted by the Income Tax Law. • Distribution of DividendsThe collection of dividends and profits, in cash or in kind, except for shares or quotas, distributed by companies and other entities incorporated in thecountry mentioned by article a), paragraphs 1,2,3,6 and 7 e paragraph b), of article 69 of the Income Tax Law, are included in the 10% aliquot, except for thedividends received by companies and other local entities, which are still not computed for tax purposes (regardless of its application, in this case, the so-called “Equalization Tax”).Dividends distributed to overseas beneficiaries shall be subject to a one-time 10% withholding. Therefore, every distribution of dividends performedby the Company to its shareholders shall be covered by the extension of the scope of the tax, except for those beneficiaries that are local “subjects-companies.”United States Federal Income Tax ConsiderationsThe following are the material U.S. federal income tax consequences of owning and disposing of our Class D shares or ADSs. This discussion does notpurport to be a comprehensive description of all of the tax considerations that may be relevant to a particular person’s decision to hold such securities.This discussion applies only if you are a U.S. Holder (as defined below) and you hold our Class D shares or ADSs as capital assets for U.S. federalincome tax purposes, and it does not describe all of the tax consequences that may be relevant to holders subject to special rules, such as: • certain financial institutions; • insurance companies; • dealers and traders in securities or financial instruments, who use a mark-to-market method of tax accounting; 195Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • persons holding Class D shares or ADSs as part of a hedge, “straddle,” wash sale, conversion transaction, integrated transaction or similartransaction or persons entering into a constructive sale with respect to the Class D shares or ADSs; • persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; • entities classified as partnerships for U.S. federal income tax purposes; • persons liable for the alternative minimum tax; • persons who acquired our Class D shares or ADSs pursuant to the exercise of an employee stock option or otherwise as compensation; • persons holding Class D shares or ADSs in connection with a trade or business conducted outside of the United States; • tax-exempt entities, including “individual retirement accounts” or “Roth IRAs”; or • persons holding Class D shares or ADSs that own or are deemed to own ten percent or more of our voting stock.If an entity that is classified as a partnership for U.S. federal income tax purposes holds Class D shares or ADSs, the U.S. federal income tax treatment ofa partner will generally depend on the status of the partner and upon the activities of the partnership. Partnerships holding Class D shares or ADSs andpartners in such partnerships should consult their tax advisers as to the particular U.S. federal income tax consequences of holding and disposing of the ClassD shares or ADSs.This discussion is based on the Internal Revenue Code of 1986, as amended (the “Code”), administrative pronouncements, judicial decisions and final,temporary and proposed Treasury regulations, all as of the date hereof. These laws are subject to change, possibly on a retroactive basis. It is also based in parton representations by the Depositary and assumes that each obligation under the deposit agreement and any related agreement will be performed inaccordance with its terms.You are a “U.S. Holder” if you are a beneficial owner of Class D shares or ADSs and are, for U.S. federal income tax purposes: • a citizen or individual resident of the United States for U.S. federal income tax purposes; • a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or theDistrict of Columbia; or • an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.In general, if you own ADSs, you will be treated as the owner of the underlying shares represented by those ADSs for U.S. federal income tax purposes.Accordingly, no gain or loss will be recognized if you exchange ADSs for the underlying shares represented by those ADSs.The U.S. Treasury has expressed concerns that parties to whom American depositary shares are released before the underlying shares are delivered tothe depositary, or intermediaries in the chain of ownership between U.S. Holders and the issuer of the shares underlying the American depositary shares, maybe taking actions that are inconsistent with the claiming of foreign tax credits by U.S. holders of American depositary shares. Such actions would also beinconsistent with the claiming of the reduced rate of tax, described below, applicable to dividends received by certain non-corporate holders. Accordingly,the analysis of the creditability of Argentine taxes, and the availability of the reduced tax rate for dividends received by certain non-corporate holders, eachdescribed below, could be affected by actions taken by such parties or intermediaries.Please consult your own tax adviser concerning the U.S. federal, state, local and foreign tax consequences of owning and disposing of Class D shares orADSs in your particular circumstances.This discussion assumes that YPF is not, and will not become, a passive foreign investment company, as described below. 196Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsTaxation of distributionsDistributions paid on Class D shares or ADSs, other than certain pro rata distributions of ordinary shares, will be treated as dividends to the extent paidout of current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Because we do not maintain calculations ofearnings and profits under U.S. federal income tax principles, it is expected that distributions will generally be reported to U.S. Holders as dividends. Subjectto applicable limitations (including a minimum holding period requirement), the discussion above regarding concerns expressed by the U.S. Treasury and thediscussion below regarding Passive foreign investment company rules, certain dividends paid by qualified foreign corporations to certain non-corporate U.S.Holders are taxable at a maximum rate of 20%. Some Holders may also be subject to a 3.8% net investment surtax. A foreign corporation is treated as aqualified foreign corporation with respect to dividends paid on stock that is readily tradable on an established securities market in the United States, such asthe NYSE, where our ADSs are listed. You should consult your own tax adviser to determine whether the favorable rate may apply to dividends you receive inrespect of our Class D shares or ADSs and whether you are subject to any special rules that limit your ability to be taxed at this favorable rate. The amount ofa dividend will include any amounts withheld by us in respect of Argentine income taxes. The dividends will be treated as foreign-source dividend incomeand will not be eligible for the dividends-received deduction generally allowed to U.S. corporations under the Code.Any dividends paid in Argentine pesos will be included in your income in a U.S. dollar amount calculated by reference to the exchange rate in effecton the date of your, or in the case of ADSs, the Depositary’s, receipt of the dividend, regardless of whether the payment is in fact converted into U.S. dollars. Ifthe dividend is converted into U.S. dollars on the date of receipt, you generally would not recognize foreign currency gain or loss in respect of the dividendincome. You may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of receipt. Foreign currency gain or loss thatyou recognize will generally be treated as U.S.-source ordinary income.Subject to applicable limitations (including a minimum holding period requirement) that may vary depending upon your circumstances and, in thecase of ADSs, subject to the discussion above regarding concerns expressed by the U.S. Treasury, Argentine income taxes, if any, withheld from dividends onClass D shares or ADSs will be creditable against your U.S. federal income tax liability. Amounts paid on account of the Argentine personal assets tax will notbe eligible for credit against your U.S. federal income tax liability. You should consult your tax adviser to determine the tax consequences applicable to youas a result of the payment of the Argentine personal assets tax or the withholding of the amount of such tax from distributions, including whether suchamounts are includible in income or are deductible for U.S. federal income tax purposes. The rules governing the foreign tax credit are complex. You areurged to consult your tax adviser regarding the availability of the foreign tax credit under your particular circumstances.If Argentine income tax is withheld on the sale or other taxable disposition of a Class D share or ADS, the amount realized by a U.S. Holder will includethe gross amount of the proceeds of the sale or other taxable disposition before deduction of such tax. Capital gain or loss, if any, realized by a U.S. Holder onthe sale or other taxable disposition of the Class D share or ADS generally will be treated as U.S.-source gain or loss for U.S. foreign tax credit purposes.Consequently, in the case of a gain from the disposition of a Class D share or ADS that is subject to Argentine income tax, the U.S. Holder may not be able tobenefit from the U.S. foreign tax credit for the tax unless the U.S. Holder can apply the credit against U.S. federal income tax payable on other income fromforeign sources. Alternatively, the U.S. Holder may take a deduction for the Argentine income tax if it does not elect to claim a foreign tax credit for any non-U.S. income taxes paid during the taxable year.Sale or other disposition of Class D shares or ADSsFor U.S. federal income tax purposes, gain or loss you realize on the sale or other disposition of Class D shares or ADSs will, subject to the discussionbelow regarding Passive foreign investment company rules, be capital gain or loss and will be long-term capital gain or loss if you held the Class D shares orADSs for more than one year. The amount of your gain or loss will be equal to the difference between the amount realized on the disposition and your taxbasis in the relevant Class D shares or ADSs, each as determined in U.S. dollars. The deductibility of capital losses is subject to limitations.Passive foreign investment company rulesYPF believes that it was not a “passive foreign investment company” (“PFIC”) for U.S. federal income tax purposes for the taxable year of 2014 anddoes not expect to be a PFIC in the foreseeable future. However, since PFIC status depends upon the composition of a company’s income and assets and themarket value of its assets (including, among other things, less than 25 percent owned equity investments) from time to time, there can be no assurance thatYPF will not be considered a PFIC for any taxable year. If YPF were treated as a PFIC for any taxable year during which you held a Class D share or ADS, yougenerally would be subject to additional filing requirements, imputed interest charges and other disadvantageous tax treatment (including the denial oftaxation at the lower rates applicable to long-term capital gains with respect to any gain from the sale or exchange of Class D shares or ADSs). Certainelections might be available that would result in alternative treatments (such as mark-to-market treatment). U.S. Holders should consult their tax advisers todetermine whether any of these elections would be available and, if so, what the consequences of the alternative treatments would be in their particularcircumstances. 197Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, if YPF were to be treated as a PFIC in a taxable year in which it paid a dividend or the prior taxable year, the 20% dividend rate discussedabove with respect to dividends paid by qualified foreign corporations to certain non-corporate holders would not apply.Information reporting and backup withholdingPayments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries generally aresubject to information reporting and may be subject to backup withholding unless (i) you are an exempt recipient or (ii) in the case of backup withholding,you provide a correct taxpayer identification number and certify that you are not subject to backup withholding.The amount of any backup withholding from a payment to you will be allowed as a credit against your U.S. federal income tax liability and may entitleyou to a refund, provided that the required information is timely furnished to the Internal Revenue Service.Certain U.S. Holders may be required, generally on IRS Form 8938, to report information relating to their ownership of securities of a non-U.S. person,subject to certain exceptions (including an exception for stock held in certain accounts maintained by a U.S. financial institution, such as our ADSs). A U.S.Holder who fails to timely furnish the required information may be subject to a penalty. U.S. Holders are urged to consult their tax advisers regarding theeffect, if any, of these rules on their ownership and disposition of Class D shares or ADSs.Available InformationYPF is subject to the information requirements of the U.S. Securities Exchange Act (the “Exchange Act”), except that as a foreign issuer, YPF is notsubject to the proxy rules or the short-swing profit disclosure rules of the Exchange Act. In accordance with these statutory requirements, YPF files orfurnishes reports and other information with the SEC. Reports and other information filed or furnished by YPF with the SEC may be inspected and copied atthe public reference facilities maintained by the SEC at 100 F Street, N. E., Washington, D.C. 20549. Copies of such material may be obtained by mail fromthe Public Reference Section of the SEC at 100 F Street, N.E., Washington, D.C. 20549, at prescribed rates. You may obtain information on the operation ofthe Public Reference Section by calling the SEC at +1-800-732-0330. The SEC maintains a World Wide Web site on the Internet at http://www.sec.gov thatcontains reports and information statements and other information regarding us. Such reports and other information may also be inspected at the offices of theNew York Stock Exchange, 11 Wall Street, New York, New York 10005, on which YPF’s American Depositary Shares are listed. ITEM 11.Quantitative and Qualitative Disclosures about Market RiskThe following quantitative and qualitative information is provided about financial instruments to which we are a party as of December 31, 2014, andfrom which we may derive gains or incur losses from changes in market, interest rates, foreign exchange rates or commodity prices. We do not enter intoderivative or other financial instruments for trading purposes.This discussion contains forward-looking statements that are subject to risks and uncertainties. Actual results could vary materially as a result of anumber of factors including those set forth in “Item 3. Key Information—Risk Factors.”Foreign currency exposureThe value of financial assets and liabilities denominated in a currency different from the Company’s functional currency is subject to variationsresulting from fluctuations in exchange rates. Since YPF’s functional currency is the U.S. dollar, the currency that generates the greatest exposure is theArgentine peso, the Argentine legal currency. See Note 1.d to the Audited Consolidated Financial Statements).In addition, our costs and receipts denominated in currencies other than the Argentine peso, including the U.S. dollar, often do not match. We generallyfollow a policy of not hedging our debt obligations in U.S. dollars. See “Item 3. Key Information—Risk Factors—Risks Relating to Argentina—We may beexposed to fluctuations in foreign exchange rates.” 198Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe annual rate of devaluation of the Argentine peso was approximately 31.1% considering the period-end exchange rates for U.S. dollars as ofDecember 31, 2014 and 2013. See “Item 5. Operating and Financial Review and Prospects—Macroeconomic Conditions” for additional information. Themain effects of a devaluation of the Argentine Peso on our net income are those related to the accounting of deferred income tax related mainly to fixedassets, which we expect would have a negative effect; current income tax which we expect would have a positive effect; increased depreciation andamortization resulting from the remeasurement in pesos of our fixed and intangible assets; and exchange rate differences as a result of our exposure to thepeso, which we expect would have a positive effect due to the fact that our functional currency is the U.S. dollar. See “Item 3. Key Information—Risk Factors—Risks Relating to Argentina—We may be exposed to fluctuations in foreign exchange rates.”As mentioned in Note 1.b to Audited Consolidated Financial Statements, the Company has determined that the U.S. dollar is its functional currency.Therefore, the effect of changes in the dollar exchange rate on dollar currency positions have no impact on the exchange difference recorded in theconsolidated statements of comprehensive income included in the Audited Consolidated Financial Statements, but affect the amount of our assets andliabilities remeasured in pesos as a consequence of devaluation and considering our reporting currency (pesos). For additional information about our assetsand liabilities denominated in currencies other than pesos (principally U.S. dollars) see Annex iii to our Audited Consolidated Financial Statements.Interest rate exposureThe table below provides information about our assets and liabilities as of December 31, 2014 that may be sensitive to changes in interest rates. See“Item 3. Key Information—Risk Factors—Risks Relating to Argentina—Variations in interest rates and exchange rate on our current and/or future financingarrangements may result in significant increases in our borrowing costs.” Expected Maturity Date Less than1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years More than5 years Total Fair Value (in millions of pesos) Assets Fixed rate Other Receivables 1,266 — — — — — 1,626 1,626 Interest rate 4.82%-22.02% Variable rate Other Receivables 1,865 19 19 19 — — 1,921 1,921 Interest rate CER(1)+8%/13,83%-25,22% CER(1)+8% CER(1)+8% CER(1)+8% Liabilities YPF’s Negotiable Obligations 682 5,492 1,047 6,338 103 8,665 22,327 20,529 Interest rate 0.1%-8.875% 2%-8.875% 1.29%-3.5% 3.5%-8.875% 3.5% 3.5%-10% Other debt 8,148 570 262 170 153 — 9,303 9,314 Interest rate 2-28% 2-26% 2-26% 2-26% 2-26% Variable rate YPF’s Negotiable Obligations 2,289 1,510 2,769 2,039 2.574 2.791 13,973 13,973 Interest rate BADLAR(2)+4 / LIBOR+7.5% BADLAR(2)+3.2 + 4% /LIBOR+7.5% BADLAR(2)+ 4.25% /LIBOR +7.5% BADLAR(2)+ 4.25%-+4.75% /LIBOR +7.5% BADLAR(2)+3. 5% BADLAR(2)+ 2.25% 199Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents Expected Maturity Date Less than1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 –5 years More than5 years Total Fair Value (in millions of pesos) Other debt 1,416 1,063 279 254 — — 3,012 3,012 Interest rate Libor +4-7.25%/BADLAR(2)+4% Libor +4-7.25%/BADLAR(2)+4% Libor +4-7.25%/BADLAR(2)+4% Libor +4-4.5%/BADLAR(2)+4% (1)Coeficiente de Estabilización de Referencia (CER) is a reference stabilization index established by the Public Emergency Law and published by theArgentine Central Bank.(2)Refers to the average interest rate that banks pay for deposits of more than Ps. 1 million.Crude oil and other hydrocarbon product price exposureOur results of operations are also exposed to volatility mainly in the prices of certain oil products, especially in connection with imports. Although wehave occasionally contracted financial derivatives in the past with the aim of decreasing exposure to these commodities price risks, as of the date of thisannual report YPF was not a party to any commodity hedging instruments. For information on our hydrocarbons delivery commitments as of December 31,2014, see “Item 4. Information on the Company—Exploration and Production—Delivery commitments.” ITEM 12.Description of Securities Other than Equity SecuritiesAmerican Depositary SharesOur ADSs are listed on the NYSE under the symbol “YPF.” The Bank of New York Mellon is the depositary issuing ADSs pursuant to our depositagreement (the “Depositary”). Each ADS represents the right to receive one share.The Depositary collects its fees for delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs for the purpose ofwithdrawal or from intermediaries acting for them. The Depositary collects fees for making distributions to investors by deducting those fees from theamounts distributed or by selling a portion of distributable property to pay the fees. The Depositary may collect its annual fee for depositary services bydeductions from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. TheDepositary may generally refuse to provide fee-attracting services until its fees for those services are paid.The table below sets forth the fees payable, either directly or indirectly, by a holder of ADSs as of the date of this annual report. Persons depositing or withdrawing shares must pay: For:U.S.$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) Issuance of ADRs (including, without limitation, issuance pursuant to astock dividend or stock split declared by YPF, an exchange of stock or adistribution of rights) and surrender of ADRs Cancellation of ADSs for the purpose of withdrawalA fee equivalent to the fee that would be payable if securities distributed to aholder had been shares and the shares had been deposited for issuance of ADSs Sale, on behalf of the holder, of rights to subscribe for additional shares orany right of any nature distributed by YPFTransfer fees, as may from time to time be in effect Transfer and registration of shares on YPF share register to or from the nameof the depositary or its agent when a holder deposits or withdraws shares 200Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExpenses of the depositaryCable, telex and facsimile transmission expenses, as provided in thedeposit agreementExpenses incurred by the depositary in the conversion of foreigncurrency(1)Taxes and other governmental charges the depositary or the custodian have topay on any ADS or share underlying an ADS, for example, stock transfer taxes,stamp duty or withholding taxesAs necessary (1)Pursuant to our deposit agreement, whenever the depositary shall receive foreign currency, as a cash dividend or other distribution which, in thejudgment of the depositary, can be converted on a reasonable basis into U.S. dollars and transferred to the United States, it will convert such foreigncurrency into U.S. dollars and transfer the resulting U.S. dollars (after deduction of its customary charges and expenses in effecting such conversion) tothe United States.In 2014, the Depositary made no direct or indirect payments to YPF.PART II ITEM 13.Defaults, Dividend Arrearages and DelinquenciesNone. ITEM 14.Material Modifications to the Rights of Security Holders and Use of ProceedsNone. ITEM 15.Controls and ProceduresConclusion Regarding the Effectiveness of Disclosure Controls and ProceduresAs of December 31, 2014, YPF, under the supervision and with the participation of YPF’s management, including our current Principal ExecutiveOfficer and Principal Financial Officer, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (asdefined in Rule 13a-15(f) under the Exchange Act). There are, as described below, inherent limitations to the effectiveness of any control system, includingdisclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can provide only reasonable assurance of achieving theircontrol objectives.Based on such evaluation, YPF’s Principal Executive Officer and Principal Financial Officer concluded that YPF’s disclosure controls and procedureswere effective at the reasonable assurance level in ensuring that information relating to YPF, required to be disclosed in reports it files under the ExchangeAct is (1) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) accumulated andcommunicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisionsregarding required disclosure.Management’s Report on Internal Control Over Financial ReportingManagement of YPF is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f)under the Exchange Act). YPF’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability offinancial reporting and the preparation of financial statements for external purposes in accordance with IFRS and includes those policies and procedures that: • Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of YPF; 201Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance withgenerally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of YPF’smanagement and directors; and • Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that couldhave a material effect on the financial statements.Because of its inherent limitations, any system of internal control over financial reporting, no matter how well designed, may not prevent or detectmisstatements, due to the possibility that a control can be circumvented or overridden or that misstatements due to error or fraud may occur that are notdetected. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because ofchanges in conditions, or that the degree of compliance with the policies or procedures may deteriorate.Under the supervision and with the participation of YPF’s management, including our current Principal Executive Officer and Principal FinancialOfficer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria established in Internal Control-Integrated Framework (2013 framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“the COSO criteria”). Based onthis assessment, our management concluded that, as of December 31, 2014, our internal control over financial reporting was effective based on those criteria.Our internal control over financial reporting as of December 31, 2014 has been audited by Deloitte & Co. S.A., an independent registered publicaccounting firm, as stated in their report included in the F-pages.Changes in Internal Control Over Financial ReportingThere has been no change in YPF’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred duringthe period covered by this annual report on Form 20-F that has materially affected, or is reasonably likely to materially affect, internal control over financialreporting. ITEM 16. ITEM 16A.Audit Committee Financial ExpertOur Board of Directors determined that Héctor W. Valle is an Audit Committee Financial Expert at the meeting held on April 30, 2014. YPF believesthat Mr. Valle possesses the attributes of an Audit Committee Financial Expert set forth in the instructions to Item 16A of Form 20-F. Mr. Valle is anindependent director. ITEM 16B.Code of EthicsYPF has adopted a Code of Ethics and Conduct (“Code of Ethics”) applicable to all employees of YPF and the Board of Directors, which was mostrecently amended effective August 22, 2014. Since January 1, 2014, we have not waived compliance with the Code of Ethics. A copy of our Code of Ethics isfiled as an Exhibit to this annual report. YPF undertakes to provide to any person without charge, upon request, a copy of such Code of Ethics.The principal changes adopted in the new Code of Ethics include the implementation of an ethics hotline” to receive complaints regarding the lack offulfilment of the Code of Ethics, the creation of an ethics committee that will consider, complaints received, the appointment of an ethics officer who willconduct investigations, the incorporation of restrictions on trading YPF securities for the officers and those others to whom the Code of Ethics is applicable.A copy of the Code of Ethics can be requested in writing by telephone or facsimile from us at the following address:YPF S.A.Office of Shareholders RelationsMacacha Güemes 515C1106BKK Buenos Aires, ArgentinaTel. (011-54-11) 5441-3500Fax (011-54-11) 5441-3726 202Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsITEM 16C.Principal Accountant Fees and ServicesThe following table provides information on the aggregate fees billed by our principal accountants, Deloitte & Co. S.A. and affiliates by type of servicerendered for the periods indicated. 2014 2013 2012 Services Rendered Fees Expenses Fees Expenses Fees Fees (in thousands of pesos) Audit Fees 30,156 651 18,943 295 13,988 188 Audit-Related Fees(1) 3,646 — 455 — 686 66 Tax Fees 666 — 85 — — — All Other Fees 170 — 288 — 389 — 34,637 651 19,771 295 15,063 254 (1)Includes the fees for the issuance of agreed upon procedures reports.The annual shareholders’ meeting of YPF appoints the external auditor of YPF, along with the Audit Committee’s non-binding opinion, which issubmitted for consideration to the annual shareholders’ meeting.The Audit Committee of YPF has a pre-approval policy regarding the contracting of YPF’s external auditor, or any affiliate of the external auditor, forprofessional services. The professional services covered by such policy include audit and non-audit services provided to YPF or any of its subsidiaries.The pre-approval policy is as follows: 1.The Audit Committee must pre-approve all audit and non-audit services to be provided to YPF or any of its subsidiaries by the external auditor(or any of its affiliates) of YPF. 2.The Chairman of the Audit Committee has been delegated the authority to approve the hiring of YPF’s external auditor (or any of its affiliates)without first obtaining the approval of the Audit Committee for any of the services which require pre-approval as described in (1) above.Services approved by the Chairman of the Audit Committee as set forth above must be ratified at the next plenary meeting of the Audit Committee.All of the services described in the table above were approved by the Audit Committee of YPF. ITEM 16D.Exemptions from the Listing Standards for Audit CommitteesNone ITEM 16E.Purchases of Equity Securities by the Issuer and Affiliated Purchasers Period Total Numberof SharesPurchased Average PricesPaid per Share(Ps per share) Total Number of SharesPurchased as Part of PubliclyAnnounced Plans orPrograms Maximum Approximate Ps.Value of Shares that MayYet Be Purchased Under thePlans or Programs (a)January 2014 — — — — February 2014 — — — — March 2014 — — — — 203Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents April 2014— — — — May 2014— — — — June 2014— — — 200,000,000June 2014 (from 13/06/2014to 30/06/2014)183,814289.74183,814146,742,307July 2014 (from 3/07/2014to 31/07/2014)286,338330.73286,33852,040,641August 2014 (from 01/08/2014to 22/08/2014)157,552314.09157,5522,554,454September 2014— — — 2,554,454October 2014(15/10/2014)6,500390.026,50019,318November 2014December 2014— — — — (a)The Board of Directors, at its meeting held on June 11, 2014, approved a Stock Compensation Plan for employees, which allows YPF to repurchase itsshares on the BASE and NYSE for an aggregate amount of up to Ps. 200 million.See Note 1.b.10.iii to the Audited Consolidated Financial Statements. ITEM 16F.Change in Registrant’s Certifying AccountantDuring the years ended December 31, 2014, 2013 and 2012 and through the date of this annual report, the principal independent accountant engagedto audit our financial statements, Deloitte & Co S.A., has not resigned, indicated that it has declined to stand for re-election after the completion of its currentaudit or been dismissed. ITEM 16G.Corporate GovernanceSee “Item 6. Directors, Senior Management and Employees—Compliance with New York Stock Exchange Listing Standards on CorporateGovernance.”PART III ITEM 17.Financial StatementsThe registrant has responded to Item 18 in lieu of responding to this Item. ITEM 18.Financial StatementsThe following financial statements are filed as part of this annual report: Reports of Independent Registered Public Accounting Firm F-2 Consolidated Statements of Comprehensive Income of YPF S.A. for the years ended December 31, 2014, 2013 and 2012 F-8 Consolidated Balance Sheets of YPF S.A. as of December 31, 2014, 2013 and 2012 F-7 Consolidated Statements of Cash Flow of YPF S.A. for the years ended December 31, 2014, 2013 and 2012 F-11 Consolidated Statements of Changes in Shareholders’ Equity of YPF S.A. for the years ended December 31, 2014, 2013 and 2012 F-9 Notes to the Audited Consolidated Financial Statements of YPF S.A. for the years ended December 31, 2014, 2013 and 2012 F-12 204Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsITEM 19.Exhibits 1.1By-laws (Estatutos) of YPF S.A. as amended (Spanish Version) * 1.2By-laws (Estatutos) of YPF S.A. as amended (English Version) **11.1Code of Ethics12.1Section 302 Certification by Chief Executive Officer12.2Section 302 Certification by Chief Financial Officer13.1Section 906 Certification23.1Consent of DeGolyer and MacNaughton99.1(a)Reserves Audit Report of DeGolyer and MacNaughton for YPF S.A. as of September 30, 2014, dated March 3, 2015.99.1(b)Reserves Audit Report of DeGolyer and MacNaughton for YPF S.A. as of December 31, 2014, dated March 3, 2015.99.1(c)Third Party Reserves Estimate Report of DeGolyer and MacNaughton for YPF S.A. as of December 31, 2014, dated March 3, 2015.99.1(d)Reserves Audit Report of DeGolyer and MacNaughton for Maxus Energy Corporation as of December 31, 2014, dated January 14, 2015. *Filed as Exhibit 1.1 to YPF’s 2009 annual report on Form 20-F filed on June 29, 2010.**Filed as Exhibit 1.2 to YPF’s 2009 annual report on Form 20-F filed on June 29, 2010. 205Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsSIGNATURESThe registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to signthis annual report on its behalf. YPF SOCIEDAD ANÓNIMABy: /s/ Daniel Gonzalez Name: Daniel Gonzalez Title: Chief Financial OfficerDated: March 30, 2015 206Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents Consolidated Financial Statementsas of December 31, 2014and Comparative InformationIndependent Auditors’ ReportSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsReport of Independent Registered Public Accounting FirmTo the Board of Directors and Shareholders of YPF SOCIEDAD ANONIMA:We have audited the accompanying consolidated balance sheets of YPF SOCIEDAD ANONIMA (an Argentine Corporation) and its controlled companies(the “Company”) as of December 31, 2014, 2013 and 2012, and the related consolidated statements of comprehensive income, cash flows and changes inshareholders’ equity for each of the three years in the period ended December 31, 2014. These consolidated financial statements are the responsibility of theCompany’s Management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by Management, as well as evaluating the overall financial statements presentation. We believethat our audits provide a reasonable basis for our opinion.In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of YPF SOCIEDADANONIMA and its controlled companies as of December 31, 2014, 2013 and 2012, and the results of their operations and their cash flows for each of the threeyears in the period ended December 31, 2014, in conformity with International Financial Reporting Standards (“IFRS”) as issued by the InternationalAccounting Standards Board (“IASB”).We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States of America), the Company’sinternal control over financial reporting as of December 31, 2014, based on the criteria established in Internal Control - Integrated Framework (2013) issuedby the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 30, 2015, expressed an unqualified opinion on theCompany’s internal control over financial reporting.Buenos Aires City, ArgentinaMarch 30, 2015Deloitte & Co. S.A./s/ Guillermo D. CohenPartnerSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsReport of Independent Registered Public Accounting FirmTo the Board of Directors and Shareholders of YPF SOCIEDAD ANONIMA:We have audited the internal control over financial reporting of YPF SOCIEDAD ANONIMA (an Argentine Corporation) and its controlled companies (the“Company”) as of December 31, 2014, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee ofSponsoring Organizations of the Treadway Commission. The Company’s management is responsible for maintaining effective internal control over financialreporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report onInternal Control over Financial Reporting (Item 15). Our responsibility is to express an opinion on the Company’s internal control over financial reportingbased on our audit.We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained inall material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weaknessexists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures aswe considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.A company’s internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principalfinancial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to providereasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally acceptedaccounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition ofthe company’s assets that could have a material effect on the financial statements.Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override ofcontrols, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of theeffectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because ofchanges in conditions, or that the degree of compliance with the policies or procedures may deteriorate.In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014, based on thecriteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States of America), the consolidatedfinancial statements of YPF SOCIEDAD ANONIMA and its controlled companies as of and for the year ended December 31, 2014 and our report datedMarch 30, 2015 expressed an unqualified opinion on those consolidated financial statements.Buenos Aires City, ArgentinaMarch 30, 2015Deloitte & Co. S.A./s/ Guillermo D. CohenPartnerSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2014AND COMPARATIVE INFORMATION Index Page – Cover F-6 – Consolidated balance sheet F-7 – Consolidated statements of comprehensive income F-8 – Consolidated statements of changes in shareholders’ equity F-9 – Consolidated statements of cash flow F-11 – Notes to the consolidated financial statements 1) Consolidated Financial Statements a) Presentation Basis F-12 b) Significant Accounting Policies b.1) Functional and Reporting Currency and tax effect on Other Comprehensive Income F-14 b.2) Financial assets F-14 b.3) Inventories F-15 b.4) Intangible assets F-15 b.5) Investments in companies F-16 b.6) Fixed assets F-17 b.7) Provisions F-18 b.8) Impairment of fixed assets and intangible assets F-19 b.9) Methodology used in the estimation of recoverable amounts F-20 b.10) Pension plans and other similar obligations F-21 b.11) Revenue recognition criteria F-23 b.12) Recognition of revenues and costs associated with construction contracts F-23 b.13) Leases F-23 b.14) Earnings per share F-24 b.15) Financial liabilities F-24 b.16) Taxes, withholdings and royalties F-24 b.17) Shareholders’ equity accounts F-26 b.18) Business combinations F-27 b.19) New standards issued F-28 c) Accounting Estimates and Judgments F-29 d) Financial Risk Management F-30 Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents2)Analysis of the main accounts of the consolidated financial statementsa)Cash and equivalents F-34 b)Trade receivables F-34 c)Other receivables and advances F-34 d)Inventories F-35 e)Investments in companies F-35 f)Evolution of intangible assets F-35 g)Composition and evolution of fixed assets F-36 h)Accounts payable F-38 i)Loans F-38 j)Provisions F-42 k)Revenues, cost of sales, expenses, and other (expense) income, net F-42 3)Provisions for pending lawsuits, claims and environmental liabilities F-43 4)Capital Stock F-60 5)Investments in Companies and Joint Ventures and Other Agreements F-61 6)Balances and Transactions with Related Parties F-63 7)Benefit Plans and Other Obligations F-65 8)Operating Leases F-66 9)Earnings per Share F-67 10)Income Tax F-67 11)Contingent Liabilities, Contingent Assets, Contractual Commitments, Main Regulations and othersa)Contingent liabilities F-68 b)Contingent assets F-72 c)Contractual commitments, main regulations and others F-72 12)Consolidated Business Segment Information F-86 13)Business combinations F-88 14)Subsequent Events F-91 15)Supplemental information on oil and gas producing activities (unaudited) F-91 –Exhibits to Consolidated Financial Statements F-93 Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMAMacacha Güemes 515 – Ciudad Autónoma de Buenos Aires, ArgentinaFISCAL YEAR NUMBER 38BEGINNING ON JANUARY 1, 2014CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2014 AND COMPARATIVE INFORMATIONPrincipal business of the Company: exploration, development and production of oil, natural gas and other minerals and refining, transportation, marketingand distribution of oil and petroleum products and petroleum derivatives, including petrochemicals, chemicals and non-fossil fuels, biofuels and theircomponents; production of electric power from hydrocarbons; rendering telecommunications services, as well as the production, industrialization,processing, marketing, preparation services, transportation and storage of grains and its derivatives.Date of registration with the Public Commerce Register: June 2, 1977.Duration of the Company: through June 15, 2093.Last amendment to the bylaws: April 14, 2010.Optional Statutory Regime related to Compulsory Tender Offer provided by Decree No. 677/2001 art. 24: not incorporated (modified by Law No. 26,831).Capital structure as of December 31, 2014(expressed in Argentine pesos) – Subscribed, paid-in and authorized for stock exchange listing 3,933,127,930(1) (1)Represented by 393,312,793 shares of common stock, Argentine pesos 10 per value and 1 vote per share. F-6Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESCONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2014 AND COMPARATIVE INFORMATION(amounts expressed in millions of Argentine pesos – Note 1.b.1) Note 2014 2013 2012 Noncurrent Assets Intangible assets 2.f 4,393 2,446 1,492 Fixed assets 2.g 156,930 93,496 56,971 Investments in companies 2.e 3,177 2,124 1,914 Deferred income tax assets 10 244 34 48 Other receivables and advances 2.c 1,691 2,927 1,161 Trade receivables 2.b 19 54 15 Total noncurrent assets 166,454 101,081 61,601 Current AssetsInventories2.d 13,001 9,881 6,922 Other receivables and advances2.c 7,170 6,506 2,635 Trade receivables2.b 12,171 7,414 4,044 Cash and equivalents2.a 9,758 10,713 4,747 Total current assets 42,100 34,514 18,348 Total assets 208,554 135,595 79,949 Shareholders’ equityShareholders’ contributions 10,400 10,600 10,674 Reserves, other comprehensive income and retained earnings 62,230 37,416 20,586 Shareholders’ equity attributable to the shareholders of the parent company 72,630 48,016 31,260 Non-controlling interest 151 224 — Total shareholders’ equity (per corresponding statements) 72,781 48,240 31,260 Noncurrent LiabilitiesProvisions2.j 26,564 19,172 10,663 Deferred income tax liabilities10 18,948 11,459 4,685 Other taxes payable 299 362 101 Salaries and social security — 8 48 Loans2.i 36,030 23,076 12,100 Accounts payable2.h 566 470 162 Total noncurrent liabilities 82,407 54,547 27,759 Current LiabilitiesProvisions2.j 2,399 1,396 820 Income tax liability 3,972 122 541 Other taxes payable 1,411 1,045 920 Salaries and social security 1,903 1,119 789 Loans2.i 13,275 8,814 5,004 Accounts payable2.h 30,406 20,312 12,856 Total current liabilities 53,366 32,808 20,930 Total liabilities 135,773 87,355 48,689 Total liabilities and shareholders’ equity 208,554 135,595 79,949 Notes 1 to 15 and the accompanying exhibits I, II and III are an integral part of these statements. F-7Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED DECEMBER 31, 2014 AND COMPARATIVE INFORMATION(amounts expressed in millions of Argentine pesos, except for per share amounts in Argentine pesos – Note 1.b.1) Note 2014 2013 2012 Revenues 2.k 141,942 90,113 67,174 Cost of sales 2.k (104,492) (68,094) (50,267) Gross profit 37,450 22,019 16,907 Selling expenses2.k (10,114) (7,571) (5,662) Administrative expenses2.k (4,530) (2,686) (2,232) Exploration expenses2.k (2,034) (829) (582) Other (expense) income, net2.k (1,030) 227 (528) Operating income 19,742 11,160 7,903 Income on investments in companies5 558 353 114 Financial income (expense), net:Gains (losses) on assetsInterests 1,326 924 198 Exchange differences (2,490) (2,175) (337) (Losses) gains on liabilitiesInterests (7,336) (3,833) (1,557) Exchange differences 10,272 7,919 2,244 Net income before income tax 22,072 14,348 8,565 Current Income tax10 (7,323) (2,844) (2,720) Deferred income tax10 (5,900) (6,425) (1,943) Net income for the year 8,849 5,079 3,902 Net income for the year attributable to:– Shareholders of the parent company 9,002 5,125 3,902 – Non-controlling interest (153) (46) — Earnings per share attributable to shareholders of the parent company basic and diluted9 22.95 13.05 9.92 Other comprehensive incomeActuarial gains (losses) – Pension Plans(2) 25 6 18 Translation differences from investments in companies(3) (677) (416) (198) Translation differences from YPF S.A.(4) 16,928 12,441 4,421 Total other comprehensive income for the year(1) 16,276 12,031 4,241 Total comprehensive income for the year 25,125 17,110 8,143 (1)Entirely assigned to the parent company’s shareholders.(2)Immediately reclassified to retained earnings.(3)Will be reversed to net income at the moment of the sale of the investment or full or partial reimbursement of the capital.(4)Will not be reversed to net income.Notes 1 to 15 and the accompanying exhibits I, II and III are an integral part of these statements. F-8Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEAR ENDED DECEMBER 31, 2014 AND COMPARATIVE INFORMATION(amounts expressed in millions of Argentine pesos, except for the amounts per share expressed in pesos – Note 1.b.1) Shareholders’ contributions Reserves Equityattributable to Subs-cribedcapital Adjust-menttocontri-butions Trea-suryshares Adjust-menttotreasuryshares Share -basedbenefitplans Acqui-sitioncost oftreasuryshares SharetradingPre-mium Issuancepre-mium Total Legal Futuredivi-dends Invest-ments Purchaseoftreasuryshares InitialIFRSadjust-ment Othercompre-hensiveincome Retai-nedearn-ings Parentcom-pany’sshare-holders Non-cont-rollinginterest Totalshare-holders’equity Balances as ofDecember 31, 2011 3,933 6,101 — — — — — 640 10,674 2,007 1,057 — — — 1,864 7,818 23,420 — 23,420 As decided by GeneralOrdinary Shareholders’meeting of July 17,2012: - Reversal of Reserve forfuture dividends — — — — — — — — — — (1,057) — — — — 1,057 — — — - Appropriation toReserve for investments — — — — — — — — — — — 5,751 — — — (5,751) — — — - Appropriation toReserve for futuredividends — — — — — — — — — — 303 — — — — (303) — — — As decided by the Board ofDirectors’ meeting ofNovember 6, 2012: - Cash dividends (0.77per share) — — — — — — — — — — (303) — — — — — (303) — (303) Other comprehensiveincome for the year — — — — — — — — — — — — — — 4,241 — 4,241 — 4,241 Actuarial gainsreclassification –Pension Plans — — — — — — — — — — — — — — (18) 18 — — — Net income — — — — — — — — — — — — — — — 3,902 3,902 — 3,902 Balances as ofDecember 31, 2012 3,933 6,101 — — — — — 640 10,674 2,007 — 5,751 — — 6,087 6,741 31,260 — 31,260 Purchase of treasury shares (12) (19) 12 19 — (120) — — (120) — — — — — — — (120) — (120) Accrual of share-basedbenefit plans — — — — 81(2) — — — 81 — — — — — — — 81 — 81 Settlement of share-basedbenefit plans (3) 3 5 (3) (5) (41) 10 (4) — (35) — — — — — — — (35) — (35) Acquisition of GASA(Note 13) — — — — — — — — — — — — — — — — — 178 178 YPF Tecnología S.A. non-controlling capitalcontributions — — — — — — — — — — — — — — — — — 92 92 As decided by the GeneralOrdinary Shareholders’meeting of April 30,2013 - Appropriation toreserve for investments — — — — — — — — — — — 2,643 — — — (2,643) — — — - Appropriation toreserve for futuredividends — — — — — — — — — — 330 — — — — (330) — — — - Appropriation toreserve for share-basedemployee benefit plans — — — — — — — — — — — — 120 — — (120) — — — - Appropriation tospecial reserve for IFRSinitial adjustment — — — — — — — — — — — — — 3,648 — (3,648) — — — As decided by the Board ofDirectors’ meeting ofAugust 9, 2013 - Cash dividends (0.83per share) — — — — — — — — — — (326) — — — — — (326) — (326) Other comprehensiveincome for the year — — — — — — — — — — — — — — 12,031 — 12,031 — 12,031 Actuarial gainsreclassification –Pension Plan — — — — — — — — — — — — — — (6) 6 — — — Net income — — — — — — — — — — — — — — — 5,125 5,125 (46) 5,079 Balances as ofDecember 31, 2013 3,924 6,087 9 14 40 (110) (4) 640 10,600 2,007 4 8,394 120 3,648 18,112 5,131 48,016 224 48,240 F-9Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESCONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFOR THE YEAR ENDED DECEMBER 31, 2014 AND COMPARATIVE INFORMATION(amounts expressed in millions of Argentine pesos, except for the amounts per share expressed in pesos – Note 1.b.1) Shareholders’ contributions Reserves Equityattributable to Subs-cribedcapital Adjust-menttocontri-butions Trea-suryshares Adjust-menttotreasuryshares Share -basedbenefitplans Acqui-sitioncost oftreasuryshares SharetradingPre-mium Issua-ncePre-mium Total Legal Futuredivi-dends Invest-ments Purch-aseoftreasuryshares InitialIFRSadjust-ment Othercompre-hensiveincome Retai-nedearn-ings Parentcom-pany’sshare-holders Non-cont-rollinginterest Totalshare-holders’equity Balances as ofDecember 31,2013 3,924 6,087 9 14 40 (110) (4) 640 10,600 2,007 4 8,394 120 3,648 18,112 5,131 48,016 224 48,240 Purchase oftreasury shares (6) (10) 6 10 — (200) — — (200) — — — — — — — (200) — (200) Settlement ofshare-basedbenefitplans (3) 4 6 (4) (6) (69) — (11) — (80) — — — — — — — (80) — (80) Accrual of share-based benefitplans — — — — 80 — — — 80 — — — — — — — 80 — 80 YPF TecnologiaS.A. non-controllingcapitalcontributions — — — — — — — — — — — — — — — — — 80 80 As decided bythe GeneralOrdinary andExtraordinaryShareholders’meeting ofApril 30,2014: - Appropriationto reserve forinvestments — — — — — — — — — — — 4,460 — — — (4,460) — — — - Appropriationto reserve forshare-basedemployeebenefit plans — — — — — — — — — — — — 200 — — (200) — — — - Appropriationto reserve forfuturedividends — — — — — — — — — — 465 — — — — (465) — — — As decided bythe Board ofDirectors’meeting ofJune 11, 2014: - Cashdividends(1.18 pershare) — — — — — — — — — — (464) — — — — — (464) — (464) Othercomprehensiveincome for theyear — — — — — — — — — — — — — — 16,276 — 16,276 — 16,276 Actuarial gainsreclassificationPension Planof investmentsin affiliatedcompanies — — — — — — — — — — — — — — (25) 25 — — — Net income — — — — — — — — — — — — — — — 9,002 9,002 (153) 8,849 Balances as ofDecember 31,2014 3,922 6,083 11 18 51 (310) (15) 640 10,400 2,007 5 12,854 320 3,648 34,363(1) 9,033 72,630 151 72,781 (1)Includes 35,764 corresponding to the effect of the translation of the financial statements of YPF S.A. and (1,401) corresponding to the effect of the translation of the financialstatements of investments in companies with functional currency different to dollar, as detailed in Note 1.b.1.(2)Includes 38 corresponding to long-term benefit plans as of December 31, 2012, which were converted to share-based benefit plans (see Note 1.b.10) and 43 corresponding to theaccrual of share-based benefit plans for the year ended December 31, 2013.(3)Net of employees income tax withholding related to the share-based benefit plans.Notes 1 to 15 and the accompanying exhibits I, II and III are an integral part of these statements. F-10Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESCONSOLIDATED STATEMENTS OF CASH FLOWFOR THE YEAR ENDED DECEMBER 31, 2014 AND COMPARATIVE INFORMATION(amounts expressed in millions of Argentine pesos – Note 1.b.1) 2014 2013 2012 Cash flows from operating activities Net income 8,849 5,079 3,902 Adjustments to reconcile net income to cash flows provided by operating activities: Income on investments in companies (558) (353) (114) Depreciation of fixed assets 19,936 11,236 8,129 Amortization of intangible assets 469 197 152 Consumption of materials and retirement of fixed assets and intangible assets, net of provisions 4,041 2,336 1,170 Income tax 13,223 9,269 4,663 Net increase in provisions 5,561 3,272 2,207 Exchange differences, interest and other (1) (2,116) (3,551) (1,660) Share-based benefit plan 80 81 — Accrued insurance (2,041) (1,956) — Changes in assets and liabilities: Trade receivables (3,824) (2,627) (517) Other receivables and advances 248 (1,332) 22 Inventories (244) (732) (81) Accounts payable 5,067 3,243 1,857 Other taxes payables 218 272 374 Salaries and social security 727 253 262 Decrease in provisions from payment (1,974) (713) (1,406) Dividends from investments in companies 299 280 388 Proceeds from collection of lost profit insurance 1,689 — — Income tax payments (3,496) (3,290) (2,047) Net cash flows provided by operating activities 46,154 20,964 17,301 Cash flows used in investing activities(2)Acquisition of fixed assets and intangible assets (50,213) (27,639) (16,403) Capital contributions to investments in companies (106) (20) — Proceeds from sale of fixed and intangible assets (Notes 11.c and 13, respectively) 2,060 5,351 — Acquisition of participation in joint operations (861) — — Acquisition of subsidiaries net of acquired cash and equivalents (6,103) 107 — Proceeds from collection of damaged property’s insurance 1,818 — — Net cash flows used in investing activities (53,405) (22,201) (16,403) Cash flows used in financing activitiesPayments of loans (13,320) (6,804) (28,253) Payments of interest (5,059) (2,696) (920) Proceeds from loans 23,949 16,829 32,130 Dividends paid (464) (326) (303) Purchase of treasury shares (200) (120) — Non-controlling capital contributions 80 96 — Net cash flows provided by financing activities 4,986 6,979 2,654 Translation differences generated by cash and equivalents 1,310 224 83 Net (decrease) increase in cash and equivalents (955) 5,966 3,635 Cash and equivalents at the beginning of year 10,713 4,747 1,112 Cash and equivalents at the end of year 9,758 10,713 4,747 Net (decrease) increase in cash and equivalents (955) 5,966 3,635 COMPONENTS OF CASH AND EQUIVALENTS AT THE END OF YEAR- Cash 6,731 4,533 950 - Other financial assets 3,027 6,180 3,797 TOTAL CASH AND EQUIVALENTS AT THE END OF YEAR 9,758 10,713 4,747 (1)Does not include translation differences generated by cash and equivalents, which is exposed separately in the statement.(2)The main investing activities that have not affected cash and equivalents correspond to unpaid acquisitions of fixed assets and concession extensioneasements not paid for 7,567, 5,604 and 3,325 as of December 31, 2014, 2013 and 2012, respectively, increases related to hydrocarbon wellsabandonment obligation costs for (268), 4,357 and (276) as of December 31, 2014, 2013 and 2012, respectively, capital contributions in kind for 342and 133 as of December 31, 2014 and 2013, respectively, and transfer of interest in areas as of December 31, 2014 for 325.Notes 1 to 15 and the accompanying exhibits I, II and III are an integral part of these statements. F-11Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2014 AND COMPARATIVE INFORMATION(amounts expressed in millions of Argentine pesos, except where otherwise indicated – Note 1.b.1)1. CONSOLIDATED FINANCIAL STATEMENTS1.a) Presentation Basis –Application of International Financial Reporting StandardsThe consolidated financial statements of YPF S.A. (hereinafter “YPF”) and its controlled companies (hereinafter and all together, the “Group” or the“Company”) for the year ended December 31, 2014 are presented in accordance with International Financial Reporting Standard (“IFRS”). Theadoption of these standards as issued by the International Accounting Standards Board (“IASB”) was determined by the Technical Resolution No. 26(ordered text) issued by Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) and the Regulations of the ArgentineSecurities Commission (“CNV”).The amounts and other information corresponding to the years ended on December 31, 2013 and 2012 are an integral part of the consolidated financialstatements mentioned above and are intended to be read only in relation to these statements.If applicable, the comparative balances have been reclassified to unify disclosure criteria. –Criteria adopted by YPF in the transition to IFRSAt the date of the transition to IFRS (January 1, 2011, hereinafter the “transition date”), the Company has followed the following criteria in the contextof the alternatives and exemptions provided by IFRS 1 “First-Time Adoption of International Financial Reporting Standards”: I.Fixed assets and intangible assets have been measured at the transition date at the functional currency defined by the Company according to thefollowing basis: a)Assets as of the transition date which were acquired or incorporated before March 1, 2003, date on which General Resolution No. 441 ofthe CNV established the discontinuation of the remeasurement of financial statements in constant pesos: the value of these assetsmeasured according to the accounting standards outstanding in Argentina before the adoption of IFRS (hereinafter the “PreviousArgentine GAAP”) have been adopted as deemed cost as of March 1, 2003 and remeasured into U.S. dollars using the exchange rate ineffect on that date; b)Assets as of the transition date which were acquired or incorporated subsequently to March 1, 2003: have been valued at acquisition costand remeasured into U.S. dollars using the exchange rate in effect as of the date of incorporation or acquisition of each asset. II.The cumulative translation differences generated by investments in foreign companies as of the transition date were reclassified to retainedearnings. Under previous Argentine GAAP, these differences were recorded under shareholders’ equity as deferred earnings.The effect arising from the initial application of IFRS, considering the mentioned criteria has been recorded in the “Initial IFRS adjustmentreserve” account within Shareholders’ equity. See additionally Note 1.b.17). –Use of estimationsThe preparation of the consolidated financial statements in accordance with IFRS, which is YPF’s Board of Directors’ responsibility, require certainaccounting estimates to be made and the Board of Directors and Management to make judgments when applying accounting standards. Areas of greatercomplexity or that require further judgment, or those where assumptions and estimates are significant, are detailed in Note 1.c) “Accounting Estimatesand Judgments”. F-12Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents–Consolidation policies a)General criteriaFor purpose of presenting the consolidated financial statements, the full consolidation method was used with respect to those subsidiaries in which theCompany holds, either directly or indirectly, control, understood as the ability to establish/manage the financial and operating policies of a companyto obtain benefits from its activities. This capacity is, in general but not exclusively, obtained by the ownership, directly or indirectly of more than50% of the voting shares of a company.Interest in joint operations and other agreements which gives the Company a percentage contractually established over the rights of the assets andobligations that emerge from the contract (“joint operations”), have been consolidated line by line on the basis of the mentioned participation over theassets, liabilities, income and expenses related to each contract. Assets, liabilities, income and expenses of joint operations are presented in theconsolidated balance sheet and in the consolidated statement of comprehensive income, in accordance with their respective nature.Paragraph a) of Exhibit I details the controlled companies which were consolidated using the full consolidation method and Exhibit II details the mainjoint operations which were proportionally consolidated.In the consolidation process, balances, transactions and profits between consolidated companies and joint operations have been eliminated.The Company’s consolidated financial statements are based on the most recent available financial statements of the companies in which YPF holdscontrol, taking into consideration, where necessary, significant subsequent events and transactions, information available to the Company’smanagement and transactions between YPF and such controlled companies, which could have produced changes to their shareholders’ equity. The dateof the financial statements of such controlled companies used in the consolidation process may differ from the date of YPF’s financial statements due toadministrative reasons. The accounting principles and procedures used by controlled companies have been homogenized, where appropriate, withthose used by YPF in order to present the consolidated financial statements based on uniform accounting and presentation policies. The financialstatements of controlled companies whose functional currency is different from the presentation currency are translated using the procedure set out inNote 1.b.1.YPF, directly and indirectly, holds approximately 100% of capital of the consolidated companies with the exception of the indirect holdings inMetroGAS S.A. (“MetroGAS”) and YPF Tecnología S.A. (“YPF Tecnología”). In accordance with the previously mentioned, there are no material non-controlling interests to be disclosed, as required by IFRS 12 “Disclosure of Interests in Other Entities”. b)Business combinationsAs detailed in Note 13, on February 12, 2014, YPF and its subsidiary YPF Europe B.V. accepted the offer made by Apache Overseas Inc. and ApacheInternational S.à.r.l. for the acquisition of 100% of its interest in companies controlling Apache Group’s assets in Argentina completing the precedentconditions set forth in that agreement on March 13, 2014 (take over control date). Additionally, during the second quarter of 2013 the Companyobtained control over Gas Argentino S.A. (“GASA”), parent company of MetroGAS, and as from August, 2013, over YPF Energía Eléctrica S.A. (“YPFEnergía Eléctrica”), a company resulting from the spin-off of Pluspetrol Energy S.A.The Company has consolidated the results of operations of Apache Group (hereinafter YSUR), GASA, and consequently of its subsidiaries, and of YPFEnergía Eléctrica as from the moment in which it obtained control over such companies. The accounting effects of the above mentioned transactions,which include the purchase price allocation to the assets and liabilities acquired, are disclosed in Note 13. F-13Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents1.b) Significant Accounting Policies1.b.1) Functional and Reporting Currency and tax effect on Other Comprehensive IncomeFunctional CurrencyYPF based on parameters set out in IAS 21 “The effects of change in foreign exchange rates”, has defined the U.S. dollar as its functional currency.Consequently, non-monetary cost-based measured assets and liabilities, as well as income or expenses, are remeasured into functional currency byapplying the exchange rate prevailing at the date of the transaction.Transactions in currencies other than the functional currency of YPF are deemed to be “foreign currency transactions” and are remeasured intofunctional currency by applying the exchange rate prevailing at the date of the transaction (or, for practical reasons and when exchange rates do notfluctuate significantly, the average exchange rate for each month). At the end of each year or at the time of cancellation the balances of monetary assetsand liabilities in currencies other than the functional currency are measured at the exchange prevailing at such date and the exchange differencesarising from such measurement are recognized as “Financial income (expense), net” in the consolidated statement of comprehensive income for theyear in which they arise.Assets, liabilities and income and expenses related to controlled companies and investments in companies are measured using their respectivefunctional currency. The effects of translating into U.S. dollars the financial information of companies with a functional currency different from the U.S.dollar are recognized in “Other comprehensive income” for the year.Reporting CurrencyAccording to General Resolution No. 562 of the CNV, the Company must file its financial statements in pesos. Accordingly, the financial statementsprepared by YPF in its functional currency have to be translated into reporting currency, following the criteria described below: –Assets and liabilities of each balance sheet presented are translated at the closing exchange rate outstanding at the date of each balance sheetpresented; –Items of the statement of comprehensive income are translated at the exchange rate prevailing at the date of each transaction (or, for practicalreasons and when exchange rates do not fluctuate significantly, the average exchange rate of each month); and –The exchange differences resulting from this process are reported in “Other comprehensive income”.Tax effect on other comprehensive income:Results accounted for in “Other comprehensive income” related to exchange differences arising from investments in companies with functionalcurrencies other than U.S. dollars and also as a result of the translation of the financial statements of YPF to its reporting currency (pesos), have noeffect on the current or deferred income tax because as of the time that such transactions were generated, they had no impact on net income nor taxableincome.1.b.2) Financial assetsThe Company classifies its financial assets when they are initially recognized and reviews their classification at the end of each year, according to IFRS9, “Financial Instruments”.A financial asset is initially recognized at its fair value. Transaction costs that are directly attributable to the acquisition or issuance of a financial assetare capitalized upon initial recognition of the asset, except for those assets designated as financial assets at fair value through profit or loss.Following their initial recognition, the financial assets are measured at its amortized cost if both of the following conditions are met: (i) the asset isheld with the objective of collecting the related contractual cash flows (i.e., it is held for non-speculative purposes); and (ii) the contractual terms of thefinancial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on its outstanding amount. If either of thetwo criteria is not met, the financial instrument is classified at fair value through profit or loss. F-14Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsA financial asset or a group of financial assets measured at its amortized cost is impaired if there is objective evidence that the Company will not beable to recover all amounts according to its (or their) original terms. The amount of the loss is measured as the difference between the asset’s carryingamount and the present value of the estimated cash flows discounted at the effective interest rate computed at its initial recognition, and the resultingamount of the loss is recognized in the consolidated statement of comprehensive income. Additionally, if in a subsequent period the amount of theimpairment loss decreases, the previously recognized impairment loss is reversed to the extent of the decrease. The reversal may not result in a carryingamount that exceeds the amortized cost that would have been determined if no impairment loss had been recognized at the date the impairment wasreversed.The Company writes off a financial asset when the contractual rights on the cash flows of such financial asset expire, or the financial asset is transferred.In cases where current accounting standards require the valuation of receivables at discounted values, the discounted value does not differ significantlyfrom their face value.1.b.3) InventoriesInventories are valued at the lower of their cost and their net realizable value. Cost includes acquisition costs (less trade discount, rebates and othersimilar items), transformation and other costs which have been incurred when bringing the inventory to its present location and condition.In the case of refined products, costs are allocated in proportion to the selling price of the related products (isomargin method) due to the difficulty fordistributing the production costs to each product.The Company assesses the net realizable value of the inventories at the end of each year and recognizes in profit or loss in the consolidated statementof comprehensive income the appropriate valuation adjustment if the inventories are overstated. When the circumstances that previously causedimpairment no longer exist or when there is clear evidence of an increase in the inventories’ net realizable value because of changes in economiccircumstances, the amount of a write-down is reversed.Raw materials, packaging and others are valued at their acquisition cost.1.b.4) Intangible assetsThe Company initially recognizes intangible assets at their acquisition or development cost. This cost is amortized on a straight-line basis over theuseful lives of these assets (see Note 2.f). At the end of each year, such assets are measured at cost, considering the criteria adopted by the Company inthe transition to IFRS (see Note 1.a), less any accumulated amortization and any accumulated impairment losses.The main intangible assets of the Company are as follows: I.Service concessions arrangements: includes transportation and storage concessions (see Note 2.f). These assets are valued at their acquisitioncost considering the criteria adopted by the Company in the transition to IFRS (see Note 1.a), net of accumulated amortization. They aredepreciated using the straight-line method during the course of the concession period. II.Exploration rights: the Company recognizes exploration rights as intangible assets, which are valued at their cost considering the criteriaadopted by the Company in the transition to IFRS (see Note 1.a), net of the related impairment, if applicable. Investments related to unprovedproperties are not depreciated. These investments are reviewed for impairment at least once a year or whenever there are indicators that the assetsmay have become impaired. Any impairment loss or reversal is recognized in profit or loss in the consolidated statement of comprehensiveincome. Exploration costs (geological and geophysical expenditures, expenditures associated with the maintenance of unproved reserves andother expenditures relating to exploration activities), excluding exploratory wells drilling costs, are charged to expense in the consolidatedstatement of comprehensive income as incurred. F-15Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents III.Other intangible assets: mainly includes costs relating to computer software development expenditures, as well as assets that represent the rightsto use technology and knowledge (“know how”) for the manufacture and commercial exploitation of equipment related to oil extraction. Theseitems are valued at their acquisition cost considering the criteria adopted by the Company in the transition to IFRS (see Note 1.a), net of therelated depreciation and impairment, if applicable. These assets are amortized on a straight-line basis over their useful lives, which rangebetween 3 and 14 years. Management reviews annually the mentioned estimated useful life.The Company has no intangible assets with indefinite useful lives as of December 31, 2014, 2013 and 2012.1.b.5) Investments in companiesInvestments in affiliated companies and Joint Ventures are valued using the equity method. Affiliated companies are considered those in which theCompany has significant influence, understood as the power to participate in the financial and operating policy decisions of the investee but does nothave control or joint control over those policies. Significant influence is presumed when the Company has an interest of 20% or more in a company.Under the provisions of IFRS 11, “Joint Arrangements”, and IAS 28 (2011), “Investments in Associates and Joint Ventures”, investments in which twoor more parties have joint control (defined as a “Joint Arrangement”) shall be classified as either a Joint Operation (when the parties that have jointcontrol have rights to the assets and obligations for the liabilities relating to the Joint Arrangement) or a Joint Venture (when the parties that have jointcontrol have rights to the net assets of the Joint Arrangement). Considering such classification, Joint Operations shall be proportionally consolidatedand Joint Ventures shall be accounted for under the equity method.The equity method consists in the incorporation in the balance sheet line “Investments in companies”, of the value of net assets and goodwill, if any, ofthe participation in the affiliated company or Joint Venture. The net income or expense for each year corresponding to the interest in these companiesis reflected in the statement of comprehensive income in the “Income on investments in companies” line.Investments in companies have been valued based upon the latest available financial statements of these companies as of the end of each year, takinginto consideration, if applicable, significant subsequent events and transactions, available management information and transactions between YPF andthe related company which have produced changes on the latter’s shareholders’ equity. The dates of the financial statements of such related companiesand Joint Operations used in the consolidation process may differ from the date of the Company’s financial statements due to administrative reasons.The accounting principles and procedures used by affiliated companies have been homogenized, where appropriate, with those used by YPF in order topresent the consolidated financial statements based on uniform accounting and presentation policies. The financial statements of affiliated companieswhose functional currency is different from the presentation currency are translated using the procedure set out in Note 1.b.1).Investments in companies in which the Company has no joint control or significant influence, have been valued at cost.Investments in companies with negative shareholders’ equity are disclosed in the “Accounts payable” account.The carrying value of the investments in companies does not exceed their estimated recoverable value.In paragraph b) of Exhibit I are detailed the investments in companies.As from the effective date of Law No. 25,063, dividends, either in cash or in kind, that the Company receives from investments in other companies andwhich are in excess of the accumulated income that these companies carry upon distribution shall be subject to a 35% income tax withholding as a soleand final payment. The Company has not recorded any charge for this tax since it has estimated that dividends from earnings recorded by the equitymethod will not be subject to such tax. F-16Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents1.b.6) Fixed assetsi. General criteria:Fixed assets are valued at their acquisition cost, plus all the costs directly related to the location of such assets for their intended use, considering thecriteria adopted by the Company in the transition to IFRS (see Note 1.a).Borrowing costs of assets that require a substantial period of time to be ready for their intended use are capitalized as part of the cost of these assets.Major inspections, necessary to restore the service capacity of the related asset (“overhauls”), are capitalized and depreciated on a straight-line basisover the period until the next overhaul is scheduled.The costs of renewals, betterments and enhancements that extend the useful life of properties and/or improve their service capacity are capitalized. Asfixed assets are retired, the related cost and accumulated depreciation are eliminated from the balance sheet.Repair and maintenance expenses are recognized in the statement of comprehensive income as incurred.These assets are reviewed for impairment at least once a year or whenever there are indicators that the assets may have become impaired.The carrying value of the fixed assets based on each cash generating unit, as defined in Note 1.b.8, does not exceed their estimated recoverable value.ii. Depreciation:Fixed assets, other than those related to oil and gas exploration and production activities, are depreciated using the straight-line method, over the yearsof estimated useful life of the assets, as follows: Years of EstimatedUseful LifeBuildings and other constructions 50Refinery equipment and petrochemical plants 20-25Infrastructure of natural gas distribution 20-50Transportation equipment 5-25Furniture, fixtures and installations 10Selling equipment 10Electric power generation facilities 15-20Other property 10Land is classified separately from the buildings or facilities that may be located on it and is deemed to have an indefinite useful life. Therefore, it is notdepreciated.The Company reviews annually the estimated useful life of each class of assets.iii. Oil and gas exploration and production activities:The Company recognizes oil and gas exploration and production transactions using the “successful-efforts” method. The costs incurred in theacquisition of new interests in areas with proved and unproved reserves are capitalized as incurred under Mineral properties, wells and relatedequipment. Costs related to exploration permits are classified as intangible assets (see Notes 1.b.4 and 2.f).Exploration costs, excluding the costs associated to exploratory wells, are charged to expense as incurred. Costs of drilling exploratory wells,including stratigraphic test wells, are capitalized pending determination as to whether the wells have found proved reserves that justify commercialdevelopment. If such reserves are not found, the mentioned costs are charged to expense. Occasionally, an exploratory well may be determined to havefound oil and gas reserves, but classification of those reserves as proved cannot be made. In those cases, the cost of drilling the exploratory well shallcontinue to be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well, and the company ismaking sufficient progress assessing the reserves as well as the economic and operating viability of the project. If any of the mentioned conditions arenot met, cost F-17Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsof drilling exploratory wells is charged to expense. In addition, the exploratory activity involves, in many cases, the drilling of multiple wells throughseveral years in order to completely evaluate a project. As a consequence some exploratory wells may be kept in evaluation for long periods, pendingthe completion of additional wells and exploratory activities needed to evaluate and quantify the reserves related to each project. The detail of theexploratory well costs in evaluation stage is described in Note 2.g).Intangible drilling costs applicable to productive wells and to developmental dry holes, as well as tangible equipment costs related to the developmentof oil and gas reserves, have been capitalized.The capitalized costs described above are depreciated as follows: a)The capitalized costs related to productive activities have been depreciated by field on a unit-of-production basis by applying the ratioof produced oil and gas to the estimated proved and developed oil and gas reserves. b)The capitalized costs related to the acquisition of property and the extension of concessions with proved reserves have been depreciatedby field on a unit-of-production basis by applying the ratio of produced oil and gas to the estimated proved oil and gas reserves.Revisions in oil and gas proved reserves are considered prospectively in the calculation of depreciation. Revisions in estimates of reserves areperformed at least once a year. Additionally, estimates of reserves are audited by independent petroleum engineers on a three-year rotation plan.iv. Costs related to hydrocarbon wells abandonment obligations:Costs related to hydrocarbon wells abandonment obligations are capitalized at their discounted value along with the related assets, and are depreciatedusing the unit-of-production method. As compensation, a liability is recognized for this concept at the estimated value of the discounted payableamounts. Revisions of the payable amounts are performed upon consideration of the current costs incurred in abandonment obligations on a field-by-field basis or other external available information if abandonment obligations were not performed. Due to the number of wells in operation and/or notabandoned and likewise the complexity with respect to different geographic areas where the wells are located, current costs incurred in pluggingactivities are used for estimating the plugging activities costs of the wells pending abandonment. Current costs incurred are the best source ofinformation in order to make the best estimate of asset retirement obligations. Future changes in the costs above mentioned, as well as changes inregulations related to abandonment obligations, which are not possible to be predicted at the date of issuance of these financial statements, could affectthe value of the abandonment obligations and, consequently, the related asset, affecting the results of future operations.v. Environmental tangible assets:The Company capitalizes the costs incurred in limiting, neutralizing or preventing environmental pollution only in those cases in which at least one ofthe following conditions is met: (a) the expenditure improves the safety or efficiency of an operating plant (or other productive assets); (b) theexpenditure prevents or limits environmental pollution at operating facilities; or (c) the expenditure is incurred to prepare assets for sale and do notraise the assets carrying value above their estimated recoverable value.The environmental related assets and the corresponding accumulated depreciation are disclosed in the consolidated financial statements together withthe other elements that are part of the corresponding assets which are classified according to their accounting nature.1.b.7) ProvisionsThe Company makes a distinction between: a)Provisions: represent legal or assumed obligations, arising from past events, the settlement of which is expected to give rise to an outflow ofresources and which amount and timing are uncertain. Provisions are recognized when the liability or obligation giving rise to an indemnity orpayment arises, to the extent that its amount can be reliably estimated and that the obligation to settle is probable or certain. Provisions includeboth obligations whose occurrence does not depend on future events (such as provisions for environmental liabilities and provision forhydrocarbon wells F-18Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents abandonment obligations), as well as those obligations that are probable and can be reasonably estimated whose realization depends on theoccurrence of a future events that are out of the control of the Company (such as provisions for contingencies). The amount recorded as provisioncorresponds to the best estimate of expenditures required to settle the obligation, taking into consideration the relevant risks and uncertainties;and b)Contingent liabilities: represent possible obligations that arise from past events and whose existence will be confirmed only by the occurrence ornon-occurrence of one or more future events not wholly within the control of the Company, or present obligations arising from past events, theamount of which cannot be estimated reliably or whose settlement is not likely to give rise to an outflow of resources embodying futureeconomic benefits. Contingent liabilities are not recognized in the consolidated financial statements, but rather are disclosed to the extent theyare significant, as required by IAS No 37, “Provisions, contingent liabilities and contingent assets” (see Notes 3 and 11).When a contract qualifies as onerous, the related unavoidable liabilities are recognized in the consolidated financial statements as provisions, net ofthe expected benefits.Except for provisions for hydrocarbon wells abandonment obligations, where the timing of settlement is estimated on the basis of the work plan of theCompany, and considering the estimated production of each field (and therefore its abandonment) and provisions for pension plans, in relation to othernoncurrent provisions, it is not possible to reasonably estimate a specific schedule of settlement of the provisions considering the characteristics of theconcepts included.1.b.8) Impairment of fixed assets and intangible assetsFor the purpose of evaluating the impairment of fixed assets and intangible assets, the Company compares their carrying value with their recoverablevalue at the end of each year, or more frequently, if there are indicators that the carrying amount of an asset may not be recoverable. In order to assessimpairment, assets are grouped into cash-generating units (“CGUs”), whereas the asset does not generate cash flows that are independent of thosegenerated by other assets or CGUs, considering regulatory, economic, operational and commercial conditions. Considering the above mentioned, andspecifically in terms of assets corresponding to the Upstream, they have been grouped into six CGUs (one of them grouping the assets of fields with oilreserves, and three units that group assets of fields with reserves of natural gas of YPF S.A. considering the country’s basins -Neuquina, Noroeste andAustral basins- and two of them grouping the assets of fields with reserves of natural gas of YSUR Neuquina and Austral), which are the best reflect ofhow the Company currently manage them in order to generate independent cash flows. The remaining assets are grouped at the Downstream CGUwhich mainly includes the assets assigned to the refining of crude oil (or that complement such activity) and marketing of such products, in MetroGASCGU which includes assets related to the distribution of natural gas and in YPF Energía Eléctrica CGU, which includes assets related to generation andcommercialization of electric energy.The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing the value in use, the estimated future cash flows arediscounted to their present value using a rate that reflects the weighted average capital cost employed for each CGU.If the recoverable amount of an asset (or a CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or the CGU) isreduced to its recoverable amount, and an impairment loss is recognized as an expense under “Impairment losses recognized and losses on disposal offixed assets/intangible assets” in the consolidated statement of comprehensive income.Any impairment loss is allocated to the assets comprising the CGU on a pro-rata basis based on their carrying amount. Consequently, the basis forfuture depreciation or amortization will take into account the reduction in the value of the asset as a result of any accumulated impairment losses.Upon the occurrence of new events or changes in existing circumstances, which prove that an impairment loss previously recognized could havedisappeared or decreased, a new estimate of the recoverable value of the corresponding asset is calculated to determine whether a reversal of theimpairment loss recognized in previous periods needs to be made. F-19Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn the event of a reversal, the carrying amount of the asset (or the CGU) is increased to the revised estimate of its recoverable amount so that theincreased carrying amount does not exceed the carrying amount that would have been determined in case no impairment loss had been recognized forthe asset (or the CGU) in the past.There were no impairment charges or reversals for the years ended on December 31, 2014, 2013 and 2012.1.b.9) Methodology used in the estimation of recoverable amounts –Company’s General Criteria: The recoverable amount of fixed assets and intangible assets is generally estimated on the basis of their value inuse, calculated on the basis of future expected cash flows derived from the use of the assets, discounted at a rate that reflects the weightedaverage capital cost.In the assessment of the value in use, cash flow forecasts based on the best estimate of income and expense available for each CGU using sectorinputs, past results and future expectations of business evolution and market development are utilized. The most sensitive aspects included inthe cash flows used in all the CGUs are the purchase and sale prices of hydrocarbons (including gas distribution applicable fees), outstandingregulations, estimation of cost increase, employee costs and investments.The cash flows from the exploration and production assets are generally projected for a period that covers the economically productive usefullives of the oil and gas fields and is limited by the contractual expiration of the concessions permits, agreements or exploitation contracts. Theestimated cash flows are based on production levels, commodity prices and estimates of the future investments that will be necessary in relationto undeveloped oil and gas reserves, production costs, field decline rates, market supply and demand, contractual conditions and other factors.The unproved reserves are weighted with risk factors, on the basis of the type of each one of the exploration and production assets.Cash flows of the Downstream and YPF Energía Eléctrica CGUs are estimated on the basis of the projected sales trends, unit contributionmargins, fixed costs and investment or divestment flows, in line with the expectations regarding the specific strategic plans of each business.However, cash inflows and outflows relating to planned restructurings or productivity enhancements are not considered.The reference prices considered are based on a combination of market prices available in those markets where the Company operates, also takinginto consideration specific circumstances that could affect different products the Company commercializes and management’s estimations andjudgments.Estimated net future cash flows are discounted to its present value using a rate that reflects the average capital cost for each CGU.For the valuation of the assets of the MetroGAS CGU, cash flows are developed based on estimates of the future behavior of certain variables thatare sensitive in determining the recoverable value, among which stands out: (i) the nature, timing and extension of tariff increases and costadjustments recognition, (ii) gas demand projections, (iii) evolution of costs to be incurred, and (iv) macroeconomic variables such as growthrate, inflation rate, foreign currency exchange rate, among others.MetroGAS prepared its projections on the understanding that it will get tariff increases according to the current economic and financial situationof MetroGAS. Within these premises, and in terms of tariff increase estimations, the scenarios range from a tariff adjustment in order to meetadjustments obtained by other companies in that business up to a recovery of tariff levels prevailing in 2001 and in relation to regional tariffs inSouth America, especially in Brazil and Chile. A probability approach has been used to weight the different scenarios assigning an outcomeprobability to each cash flow scenario projected, based on current objective information. However, MetroGAS is unable to ensure that therealization of the assumptions used to develop these projections will be in line with its estimates, so they might differ significantly from theestimates and assumptions used as of the date of preparation of these consolidated financial statements. F-20Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents1.b.10) Pension plans and other similar obligationsi. Retirement plan:Effective March 1, 1995, YPF and certain subsidiaries have established a defined contribution retirement plan that provides benefits for each employeewho elects to join the plan. Each plan member will pay an amount between 3% and 10% of his monthly compensation and YPF will pay an amountequal to that contributed by each member.The plan members will receive from YPF and certain subsidiaries the contributed funds before retirement only in the case of voluntary terminationunder certain circumstances or dismissal without cause and, additionally, in case of death or incapacity. Such companies have the right to discontinuethis plan at any time, without incurring termination costs.The total charges recognized under the Retirement Plan amounted to approximately 49, 42 and 41. for the years ended December 31, 2014, 2013 and2012, respectively.ii. Performance Bonus Programs:These programs cover certain YPF and its controlled companies’ personnel. These bonuses are based on compliance with business unit objectives andperformance. They are calculated considering the annual compensation of each employee, certain key factors related to the fulfillment of theseobjectives and the performance of each employee and are paid in cash.The amount charged to expense related to the Performance Bonus Programs was 781, 466 and 372 for the years ended December 31, 2014, 2013 and2012, respectively.iii. Share-based benefit plan:From the year 2013, YPF has decided to implement share-based benefits plans. These plans cover certain executive and management positions and keypersonnel with critical technical knowledge. The above mentioned plans are aimed at aligning the performance of executives and key technical staffwith the objectives of the strategic plan of the Company.These plans are to give participation, through shares of the Company, to each selected employee with the condition of remaining in it for thepreviously defined period (up to three years from the grant date, hereinafter “service period”), being this the only condition necessary to access theagreed final retribution. During the year 2013, the implementation of these plans has included the conversion of certain long term compensation plansexisting to date of implementation. Consequently, during the month of June 2013, the Company has converted these existing plans to new share-basedschemes, reversing a liability of 38 corresponding to existing plans as of December 31, 2012.Consistent with share-based benefit plans approved in 2013, the Board of Directors at its meeting held on June 11, 2014, approved the creation of anew share-based benefit plan 2014-2016, which will be valid for three years from July 1, 2014 (grant date), with similar characteristics to those of the2013-2015 plan.For accounting purposes, YPF recognizes the effects of the plans in accordance with the guidelines of IFRS 2, “Share-based Payment”. In this order, thetotal cost of the plans granted is measured at the grant date, using the fair value or market price of the Company’s share in the United States market. Theabove mentioned cost is accrued in the Company’s net income for the year, over the vesting period, with the corresponding increase in Shareholders’equity in the “Share-based Benefit Plans” account.The amounts recognized in net income in relation with the share-based plans previously mentioned, which are disclosed according to their nature,amounted to 80 and 43 for the years ended on December 31, 2014 and 2013 respectively. F-21Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsInformation related to the evolution of the quantity of shares, of the plans at the end of the years ended on December 31, 2014 and 2013 is as follows:Plan 2013-2015 2014 2013 Amount at beginning of year 1,289,841 — - Granted — 1,769,015 - Settled (563,754) (479,174) - Expired (31,072) — Amount at the end of year(1) 695,015 1,289,841 Expense recognized during the year 53 43 Fair value of shares on grant date (in dollars) 14.75 14.75 (1)The average remaining life of the plan is between 10 and 22 months as of December 31, 2014 and between 10 and 34 months as of December 31, 2013.Plan 2014-2016 2014 Amount at beginning of year — - Granted 356,054 - Settled — - Expired — Amount at the end of year(1) 356,054 Expense recognized during the year 27 Fair value of shares on grant date (in dollars) 33.41 (1)The average remaining life of the plan is between 10 and 30 months as of December 31, 2014.iv. Pension Plans and other Post-retirement and Post-employment benefitsYPF Holdings Inc., which has operations in the United States of America, has certain defined benefit plans and post-retirement and post-employmentbenefits.The funding policy related to the defined benefit plan, is to contribute amounts to the plan sufficient to meet the minimum funding requirements undergovernmental regulations, plus such additional amounts as management may determine to be appropriate.In addition, YPF Holdings Inc. provides certain health care and life insurance benefits for eligible retired employees, and also certain insurance, andother post-employment benefits for eligible individuals in the event employment is terminated by YPF Holdings Inc. before their normal retirement.Employees become eligible for these benefits if they meet minimum age and years-of-service requirements. YPF Holdings Inc. accounts for benefitsprovided when payment of the benefit is probable and the amount of the benefit can be reasonably estimated. No assets were specifically reserved forthe post-retirement and post-employment benefits, and consequently, payments related to them are funded as claims are received.The plans mentioned above are valued at their net present value, are accrued based on the years of active service of the participating employees and aredisclosed as noncurrent liabilities in the ‘‘Salaries and social security’’ account. The actuarial gains and losses arising from the remeasurement of thedefined benefit liability of pension plans are recognized in Other Comprehensive Income as a component of shareholders’ equity, and are transferdirectly to the retained earnings. YPF Holdings Inc. updates its actuarial assumptions at the end of each fiscal year.Additional disclosures related to the pension plans and other post-retirement and post-employment benefits, are included in Note 7.Additionally, the Company’s management believes that the deferred tax asset generated by the cumulative actuarial losses related to the pension plansof YPF Holdings Inc., will not be recoverable based on estimated taxable income generated in the jurisdiction in which they are produced. F-22Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents1.b.11) Revenue recognition criteriaRevenue is recognized on sales of crude oil, refined products and natural gas, in each case, when title and risks are transferred to the customer followingthe conditions described below: –the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; –the Company does not retain neither continuing managerial involvement to the degree usually associated with ownership nor effective controlover the goods sold; –the amount of revenue can be measured reliably; –it is probable that the economic benefits associated with the transaction will flow to the Company; and –the costs incurred or to be incurred in respect of the transaction can be measured reliably.Grants for capital goodsArgentine tax authorities provide a tax incentive for investment in capital goods, computers and telecommunications for domestic manufacturersthrough a fiscal bonus, provided that manufacturers have industrial establishments located in Argentina, a requirement that is satisfied by thecontrolled company A-Evangelista S.A. The Company recognizes such incentive when the formal requirements established by Decrees No. 379/01,1551/01, its amendments and regulations are satisfied, to the extent that there is reasonable certainty that the grants will be received.The bonus received may be computed as a tax credit for the payment of national taxes (i.e., Income Tax, Tax on Minimum Presumed Income, ValueAdded Tax and Domestic Taxes) and may also be transferred to third parties.1.b.12) Recognition of revenues and costs associated with construction contractsRevenues and costs related to construction activities performed by A-Evangelista S.A., controlled company, are accounted for in the consolidatedstatement of comprehensive income for the year using the percentage of completion method, considering the final contribution margin estimated foreach project at the date of issuance of the financial statements, which arises from technical studies on sales and total estimated costs for each of them, aswell as their physical progress.The adjustments in contract values, changes in estimated costs and anticipated losses on contracts in progress are reflected in earnings in the year whenthey become evident.The table below details information related to the construction contracts as of December 31, 2014, 2013 and 2012: Contracts in progress Revenues ofthe year Costs incurredplus accumulatedrecognized profits Advancesreceived Retentions 2014 419 418 — — 2013 312 2,359 368 — 2012 684 889 122 — 1.b.13) LeasesOperating leasesA lease is classified as an operating lease when the lessor does not transfer substantially to the lessee the entire risks and rewards incidental toownership of the asset.Costs related to operating leases are recognized on a straight-line basis in “Rental of real estate and equipment” and “Operation services and otherservice contracts” of the Consolidated Statement of Comprehensive income for the year in which they arise.Financial LeasesThe Company has no financial leases as they are defined by IFRS. F-23Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents1.b.14) Earnings per shareBasic earnings per share are calculated by dividing the net income for the year attributable to YPF’s shareholders by the weighted average of shares ofYPF outstanding during the year net of repurchased shares as mentioned in Note 4.Additionally, diluted earnings per share are calculated by dividing the net income for the year attributable to YPF’s shareholders by the weightedaverage of ordinary shares of YPF outstanding during the period adjusted by the weighted average of ordinary shares of YPF that would be issued onthe conversion of all the dilutive potential ordinary shares into YPF ordinary shares. As of the date of the issuance of these financial statements thereare no instruments outstanding that imply the existence of potential ordinary shares, thus the basic earnings per share matches the diluted earnings pershare.1.b.15) Financial liabilitiesFinancial liabilities (loans and account payables) are initially recognized at their fair value less the transaction costs incurred. Since the Company doesnot have financial liabilities whose characteristics require the recognition at their fair value, according to IFRS, after their initial recognition, financialliabilities are measured at amortized cost.Any difference between the financing received (net of transaction costs) and the repayment value is recognized in the consolidated statement ofcomprehensive income over the life of the related debt instrument, using the effective interest rate method.“Accounts payable” and “Other liabilities” are recognized at their face value since their discounted value does not differ significantly from their facevalue.The Company derecognizes financial liabilities when the related obligations are settled or expire.In order to account for the exchange of debt obligations arising from the voluntary reorganization petition of MetroGAS and GASA for new negotiableobligations executed on January 11, 2013 and March 15, 2013, respectively, as described in Note 2.i, the Company has followed the guidelinesprovided by IFRS 9, “Financial Instruments”.IFRS 9 states that an exchange of debt instruments between a borrower and a lender shall be accounted for as an extinguishment of the originalfinancial liability and the recognition of a new financial liability when the instruments have substantially different terms. The difference between thecarrying amount of the financial liability extinguished and the consideration paid, which includes any non-cash assets transferred or liabilitiesassumed, is recognized in net income. The Company considers that the terms of the outstanding debt obligations, arising from the voluntaryreorganization petition, subject to the exchange are substantially different from the new negotiable obligations. Additionally, the Company hasevaluated and positively concluded over the estimated funds that such companies will have to comply with the terms of the debt and that allows therecognition of the debt relief. Consequently, MetroGAS and GASA have recorded the debt instruments’ exchange following the guidelines mentionedabove. Also, according to IFRS 9 the new negotiable obligations were recognized initially at fair value, net of transaction costs incurred andsubsequently measured at amortized cost (see additionally Note 2.i). In the initial recognition, the fair value of such debt has been estimated using thediscounted cash flow method, in the absence of quoted prices in active markets representative for the amount issued.1.b.16) Taxes, withholdings and royaltiesIncome tax and tax on minimum presumed incomeThe Company recognizes the income tax applying the liability method, which considers the effect of the temporary differences between the financialand tax basis of assets and liabilities and the tax loss carry forwards and other tax credits, which may be used to offset future taxable income, at thecurrent statutory rate of 35%.Additionally, the Company calculates tax on minimum presumed income applying the current 1% tax rate to taxable assets as of the end of each year.This tax complements income tax. The Company’s tax liability will coincide with the higher between the determination of tax on minimum presumedincome and the Company’s tax liability related to income tax, calculated applying the current 35% income tax F-24Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsrate to taxable income for the year. However, if the tax on minimum presumed income exceeds income tax during one tax year, such excess may becomputed as prepayment of any income tax excess over the tax on minimum presumed income that may be generated in the next ten years.For the years ended December 31, 2013 and 2012, the amounts determined for YPF as current income tax were higher than tax on minimum presumedincome and they were included in the “Income tax” account of the statement of comprehensive income.Additionally, YPF estimates that in the current year, the amount to determine as tax liability for income tax will be higher than the tax on minimumpresumed income; therefore it has not recorded any charge for this item.Under Law No. 25,063, dividends distributed, either in cash or in kind, in excess of accumulated taxable income as of the end of the year immediatelypreceding the dividend payment or distribution date, shall be subject to a 35% income tax withholding as a sole and final payment, except for thosedistributed to shareholders resident in countries benefited from treaties for the avoidance of double taxation, which will be subject to a minor tax rate.Additionally, on September 20, 2013, Law No. 26,893 was enacted, establishing changes to the Income Tax Law, and determining, among other things,an obligation respecting such tax as a single and final payment of 10% on dividends paid in cash or in kind (except in shares) to foreign beneficiariesand individuals residing in Argentina, in addition to the 35% retention mentioned above. The dispositions of this Law came in force on September 23,2013, date of its publication in the Official Gazette.Personal assets tax – Substitute responsibleIndividuals and foreign entities, as well as their undistributed estates, regardless of whether they are domiciled or located in Argentina or abroad, aresubject to personal assets tax of 0.5% of the value of any shares or ADSs issued by Argentine entities, held at December 31 of each year. The tax islevied on the Argentine issuers of such shares or ADSs, such as YPF, which must pay this tax in substitution of the relevant shareholders, and is basedon the equity value (following the equity method), or the book value of the shares derived from the latest financial statements at December 31 of eachyear. Pursuant to the Personal Assets Tax Law, YPF is entitled to seek reimbursement of such paid tax from the applicable shareholders, using themethod YPF considers appropriate.Royalties and withholding systems for hydrocarbon exportsA 12% royalty is payable on the estimated value at the wellhead of crude oil production and the commercialized natural gas volumes. The estimatedvalue is calculated based upon the approximate sale price of the crude oil and gas produced, less the costs of transportation and storage. To calculateroyalties, the Company has considered price agreements according to crude oil buying and selling operations obtained in the market for certainqualities of such product, and has applied these prices, net of the discounts mentioned above, according to regulations of Law No. 17,319 and itsamendments. In addition, and pursuant to the extension of the original terms of exploitation concessions, the Company has agreed to pay anextraordinary Production Royalty and in some cases a royalty of 10% is payable over the production of unconventional hydrocarbons (see Note 11).Royalty expense and the extraordinary production royalties are accounted for as a production cost.Law No. 25,561 on Public Emergency and Exchange System Reform (“Public emergency law”), issued in January 2002, established duties forhydrocarbon exports for a five-year period. In January 2007, Law No. 26,217 extended this export withholding system for an additional five-yearperiod and also established specifically that this regime is also applicable to exports from “Tierra del Fuego province”, which were previouslyexempted. In addition, Law No. 26,732 published in the Official Gazette in December 2011 extended for an additional 5 years the mentioned regime.On November 16, 2007, the Ministry of Economy and Production (“MEP”) published Resolution No. 394/2007, modifying the withholding regime onexports of crude oil and other refined products. In addition, the Resolution No. 1/2013, published on January 3, 2013 and the Resolution No. 803/2014published on October 21, 2014 from the Ministry of Economy and Public Finance, modified the reference and floor prices.Resolution No. 1,077/2014 dated on December 29, 2014 repealed Resolution No. 394/2007 and amended and established a new withholding systembased on the International Price of crude oil (“IP”), calculated on the basis of the “Brent value” applicable to the export month minus eight dollars perbarrel F-25Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents(US$ 8.0 per barrel). The new regime establishes a general nominal rate of 1% while IP is below US$ 71 per barrel. Additionally, the Resolutionestablishes an increasing variable rate for export of crude oil while IP is above US$ 71 per barrel; therefore, the producer will collect a maximal value ofabout US$ 70 per exported barrel, depending on the quality of crude oil sold. Likewise, the Resolution establishes a variable increasing withholdingrates for exports of diesel, gasoline, lubricants and other petroleum derivatives when IP exceeds US$ 71 per barrel by using formulas allowing theproducer to collect a portion of such higher price.Furthermore, in March 2008, Resolution No. 127/2008 of the MEP increased the natural gas export withholding rate to 100% of the highest price fromany natural gas import contract. This resolution has also established a variable withholding system applicable to liquefied petroleum gas, similar to theone established by the Resolution No. 394/2007.1.b.17) Shareholders’ equity accountsShareholders’ equity accounts have been valued in accordance with accounting principles in effect as of the transition date. The accountingtransactions that affect shareholders’ equity accounts were accounted for in accordance with the decisions taken by the Shareholders’ meetings, andlegal standards or regulations.Subscribed capital stock and adjustments to contributionsConsists of the shareholders’ contributions represented by shares and includes the outstanding shares at face value net of treasury shares mentioned inthe following paragraph “Treasury shares and adjustment to treasury shares”. The subscribed capital account has remained at its historical value andthe adjustment required previous Argentine GAAP to state this account in constant Argentine pesos is disclosed in the “Adjustments to contributions”account.The adjustment to contributions cannot be distributed in cash or in kind, but is allowed its capitalization by issuing shares. Also, this item may be usedto compensate accumulated losses, considering the absorption order stated in the paragraph “Retained earnings”.Treasury shares and adjustments to treasury sharesCorresponds to the reclassification of the nominal value and the corresponding adjustment in constant peso (Adjustment to Contributions) of sharesissued and repurchased by YPF in market transactions, as is required by the CNVs regulations in force.Share-based benefit plansCorresponds to the balance related to the share-based benefit plans as mentioned in Note 1.b.10.iii).Acquisition cost of repurchased sharesCorresponds to the cost incurred in the acquisition of the shares that YPF holds as treasury shares (see Note 4).Considering the CNV regulations RG 562, the distribution of retained earnings is restricted by the balance of this account.Issuance premiumsCorresponds to the difference between the amount of subscription of the capital increase and the corresponding face value of the shares issued.Share trading premiumCorresponds to the difference between accrued amount in relation to the shared-based benefit plan and acquisition cost of the shares settled during theyear in relation with the mentioned plan.Considering the debit balance of the premium, distribution of retained earnings is restricted by the balance of this premium. F-26Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsLegal reserveIn accordance with the provisions of Law No. 19,550, YPF has to appropriate to the legal reserve no less than 5% of the algebraic sum of net income,prior year adjustments, transfers from other comprehensive income to retained earnings and accumulated losses from previous years, until such reservereaches 20% of the subscribed capital plus adjustment to contributions. As of December 31, 2014, the legal reserve has been fully integratedamounting 2,007.Reserve for future dividendsCorresponds to the allocation made by the YPF’s Shareholders’ meeting, whereby a specific amount is transferred to the reserve for future dividends.Reserve for investments and reserve for purchase of treasury sharesCorresponds to the allocation made by the YPF’s Shareholders’ meeting, whereby a specific amount is being assigned to be used in future investmentsand in the purchase of YPF’s shares to meet the obligations arising from share-based benefit plan described in Note 4.Initial IFRS adjustment reserveCorresponds to the initial adjustment in the transition to IFRS application, which was approved by the Shareholders’ meeting of April 30, 2013, inaccordance with the General Resolution No. 609 of the CNV.Such reserve cannot be used in distributions in cash or in kind to the shareholders or owners of YPF and may only be reversed for capitalization orabsorption of an eventual negative balance on the “Retained earnings” account according the aforementioned Resolution.Other comprehensive incomeIncludes income and expenses recognized directly in equity accounts and the transfer of such items from equity accounts to the income statement ofthe year or to retained earnings, as defined by IFRS.Retained earningsIncludes accumulated gains or losses without a specific appropriation that being positive can be distributed upon the decision of the Shareholders’meeting, while not subject to legal restrictions. Additionally, it includes the net income of previous years that was not distributed, the amountstransferred from other comprehensive income and adjustments to income of previous years produced by the application of new accounting standards.Additionally, pursuant to the regulations on the CNV, when the net balance of other comprehensive income account is positive, it shall not bedistributed, capitalized nor used to compensate accumulated losses, and when the net balance of these results at the end of a year is negative, arestriction on the distribution of retained earnings for the same amount will be imposed.Non-controlling interestCorresponds to the interest in the net assets acquired and net income of MetroGAS (30%) and YPF Tecnología (49%), representing the rights on sharesthat are not owned by YPF.1.b.18) Business combinationsBusiness combinations are accounted for by applying the acquisition method when YPF takes effective control over the acquired company.YPF recognizes in its financial statements the identifiable assets acquired, the liabilities assumed, any non-controlling interest and, goodwill, if any, inaccordance with IFRS 3.The acquisition cost is measured as the sum of the consideration transferred, measured at fair value at their acquisition date and the amount of any non-controlling interest in the acquired entity. YPF will measure the non-controlling interest in the acquired entity at fair value or at the non-controllinginterest’s proportionate share of the acquired entity’s identifiable net assets. F-27Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIf the business combination is achieved in stages, YPF shall remeasure its previously held equity interest in the acquired entity at its acquisition datefair value and recognize a gain or loss in the statement of comprehensive income.The goodwill cost is measured as the excess of the consideration transferred over the identifiable assets acquired and liabilities assumed net by YPF. Ifthis consideration is lower than the fair value of the assets identifiable and liabilities assumed, the difference is recognized in the statement ofcomprehensive income.1.b.19) New standards issuedThe standards, interpretations and related amendments published by the IASB and endorsed by the FACPCE and the CNV that are being applied by theCompany, are the following:IFRIC 21 “Levies”In May 2013, IASB issued the IFRIC Interpretation 21, “Levies”, which is effective for fiscal years beginning on or after January 1, 2014, withearly application permitted.IFRIC 21 addresses the accounting for a liability to pay a levy imposed by governments on entities in accordance with legislation.IAS 36 “Impairment of assets”In May 2013, the IASB issued an amendment to IAS 36, “Impairment of assets”, which is effective for fiscal years beginning on or afterJanuary 1, 2014, with early application permitted.The amendment to IAS 36 changes disclosures requirements regarding the determination of impairment of assets.The adoption of the standards and interpretations or amendments mentioned in the previous paragraphs did not have a significant impact on thefinancial statements.In addition to IFRS 9 “Financial Instruments”, IFRS 10 “Consolidated Financial Statements”, IFRS 11 “Joint Arrangements”, and IFRS 12 “Disclosureof Interests in Other Entities”, as well as the amendments to IAS 27, “Separate financial statements” and IAS 28, “Investments in Associated and Jointventures” which have been early applied as of the date of transition, the Company has not applied early any other standard or interpretation permittedby the IASB.The standards and interpretations or amendments of them, published by the IASB and adopted or in process to be adopted by the Federation ofProfessional Councils in Economic Sciences and the CNV, that are not in force because their effective date is subsequent to December 31, 2014 andthat are not applied in advance to the effective date by the Company are the following:IFRS 9 “Financial Instruments”In July 2014, IASB introduced an amendment to supersede IAS 39. The standard includes the requirements for classification and measurement,impairment and hedge accounting of financial instruments. It is effective for fiscal years beginning on or after January 1, 2018 with earlyapplication permitted.IAS 19 “Employee Benefits”In November 2013, IASB issued an amendment to IAS 19, to simplify the accounting on employees’ contribution or third party to the definedbenefit plans, allowing recognition of the aforementioned contribution as a reduction in the service cost in the period in which the relatedservice was rendered rather than recognizing it at the service period.In September 2014, as part of their annual cycle of improvements to IFRS, IASB introduced an amendment clarifying that high-quality corporatebond used to estimate the discount rate for post-employment benefits should be denominated in the same currency as benefits payable. F-28Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAnnual improvements cycle to IFRSOn September 2014, IASB issued two documents with amendments to IFRS which are effective for fiscal years beginning on or after July 1, 2016,with early application permitted.IAS 16 “Property, Plant and Equipment” and IAS 38 “Intangible Assets”In May 2014, IASB amended IAS 16 and IAS 38 clarifying the depreciation and amortization accepted methods. It is effective for fiscal yearsbeginning on or after 2016.IFRS 11 “Joint Arrangements”In May 2014, IASB amended IFRS 11 in order to establish that acquisitions of participations in joint operations whose activities constitute abusiness as defined by IFRS 3, apply the accounting principles set out in this standard. It is effective for fiscal years beginning on or afterJanuary 1, 2016, with the early application permitted.IFRS 15 “Revenue from contracts with customers”In May 2014, IASB issued IFRS 15 which will supersede the application of IAS 11,18 and IFRIC 13, 15, 18 and SIC 31, beginning on or after2017, with early application permitted.IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Venture”In September 2014, IASB modified IFRS 10 and IAS 28 to clarify that in transactions involving a subsidiary, the degree of profit or loss to berecognized in the financial statements depends on if the subsidiary sold or contributed constitute or not a business according to IFRS 3. It isapplicable to the fiscal years beginning in 2016 or thereafter, with early application permitted.The Company is analysing the impact of the adoption of these amendments and new standards.1.c) Accounting Estimates and JudgmentsThe preparation of financial statements in accordance with IFRS requires Management to make assumptions and estimates that affect the amounts of theassets and liabilities recognized, the presentation of contingent assets and liabilities at the end of each year and the income and expenses recognized duringthe year. Future results may differ depending on the estimates made by Management.The items in the financial statements and areas which require the highest degree of judgment and estimates in the preparation of the financial statements are:(1) crude oil and natural gas reserves; (2) provisions for litigation and other contingencies; (3) impairment test of assets (see Note 1.b.9), (4) provisions forenvironmental liabilities and hydrocarbon wells abandonment obligations (see Note 1.b.6, paragraph iv), and (5) the calculation of income tax and deferredincome tax.Crude oil and natural gas reservesEstimating crude oil and gas reserves is an integral part of the Company’s decision-making process. The volume of crude oil and gas reserves is used tocalculate the depreciation using unit of production ratio and to assess the impairment of the capitalized costs related to the exploration and production assets(see Notes 1.b.8 and 1.b.9).The company prepares its estimates of crude oil and gas reserves in accordance with the rules and regulations established for the crude oil and natural gasindustry by the U.S. Securities and Exchange Commission (“SEC”).Provisions for litigation and other contingenciesThe final costs arising from litigation and other contingencies, and the perspective given to each issue by the Management may vary from their estimates dueto different interpretations of laws, contracts, opinions and final assessments of the amount of the claims. Changes in the facts or circumstances related tothese types of contingencies can have, as a consequence, a significant effect on the amount of the provisions for litigation and other contingencies recordedor the perspective given by the Management. F-29Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsProvisions for environmental costsGiven the nature of its operations, YPF is subject to various provincial and national laws and regulations relating to the protection of the environment. Theselaws and regulations may, among other things, impose liability on companies for the cost of pollution clean-up and environmental damages resulting fromoperations. YPF management believes that the Company’s operations are in substantial compliance with Argentine laws and regulations currently in forcerelating to the protection of the environment as such laws have historically been interpreted and enforced.The Company periodically conducts new studies to increase its knowledge of the environmental situation in certain geographic areas where it operates inorder to establish the status, cause and remedy of a given environmental issue and, depending on its years of existence, analyze the Argentine Government’spossible responsibility for any environmental issue existing prior to December 31, 1990. The Company cannot estimate what additional costs, if any, will berequired until such studies are completed and evaluated; however, provisional remedial or other measures may be required.In addition to the hydrocarbon wells abandonment legal obligation for 18,463 as of December 31, 2014, the Company has accrued 2,414 corresponding toenvironmental remediation which evaluations and/or remediation works are probable and can be reasonably estimated, based on the Company’s existingremediation program. Legislative changes, on individual costs and/or technologies may cause a re-evaluation of the estimates. The Company cannot predictwhat environmental legislation or regulation will be enacted in the future or how future laws or regulations will be administered. In the long-term, thesepotential changes and ongoing studies could materially affect the Company’s future results of operations.Additionally, certain environmental contingencies in the United States of America were assumed by Tierra Solutions Inc. and Maxus Energy Corporation,indirect controlled companies through YPF Holdings Inc. The detail of these contingencies is disclosed in Note 3.Income tax and deferred income tax assets and liabilitiesThe proper assessment of income tax expenses depends on several factors, including interpretations related to tax treatment for transactions and/or events thatare not expressly provided for by current tax law, as well as estimates of the timing and realization of deferred income taxes. The actual collection andpayment of income tax expenses may differ from these estimates due to, among others, changes in applicable tax regulations and/or their interpretations, aswell as unanticipated future transactions impacting the Company’s tax balances.1.d) Financial Risk ManagementThe Company’s activities involve various types of financial risks: market, liquidity and credit. The Company maintains an organizational structure andsystems that allow the identification, measurement and control of the risks to which it is exposed.In addition, the table below details the classes of financial instruments of the Company classified in accordance to IFRS 9: 2014 2013 2012 Financial Assets At amortized cost Cash and equivalents (1) 8,223 8,691 3,870 Other receivables and advances (1) 3,096 4,018 1,392 Trade receivables (1) 12,190 7,468 4,059 At fair value through profit or loss Cash and equivalents (2) 1,535 2,022 877 Financial Liabilities At amortized cost Accounts payable (1) 30,843 20,655 13,014 Loans (3) 49,305 31,890 17,104 Provisions (1) 718 485 416 (1)Fair value does not differ significantly from their book value.(2)Corresponds to investments in mutual funds with price quotation. The fair value was determined based on unadjusted quoted prices (Level 1) in themarkets where those financial instruments trade. The net gains (losses) for the years ended December 31, 2014, 2013 and 2012 for these instruments aredisclosed as “Interest on assets” in the Statements of Comprehensive Income.(3)Their fair value, considering unadjusted quoted prices (Level 1) for Negotiable Obligations and interest rates offered to the Company (Level 3) for theother financial loans, at the end of the year, as appropriate, amounted to 53,108, 33,784 and 17,238 as of December 31, 2014, 2013 and 2012,respectively. F-30Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsMarket RiskThe market risk to which the Company is exposed is the possibility that the valuation of the Company’s financial assets or financial liabilities as well ascertain expected cash flows may be adversely affected by changes in interest rates, exchange rates or certain other price variables.The following is a description of these risks as well as a detail of the extent to which the Company is exposed and a sensitivity analysis of possible changesin each of the relevant market variables.Exchange Rate RiskThe value of financial assets and liabilities denominated in a currency different from the Company’s functional currency is subject to variations resultingfrom fluctuations in exchange rates. Since YPF’s functional currency is the U.S. dollar, the currency that generates the greatest exposure is the Argentine peso,the Argentine legal currency. The Company does not use derivatives as a hedge against exchange rate fluctuations. Otherwise, according to the Company’sfunctional currency, and considering the conversion process to presentation currency, the fluctuations in the exchange rate related to the value of financialassets and liabilities in pesos does not have any effect in Shareholders’ equity.The following table provides a breakdown of the effect a variation of 10% in the prevailing exchange rates on the Company’s net income, taking intoconsideration the exposure of financial assets and liabilities denominated in pesos as of December 31, 2014: Appreciation (+) / depreciation (-)of exchange rate of peso againstdollar December 31, 2014 Impact on net income before income tax corresponding to financialassets and liabilities +10%-10% 1,492(1,492 ) Interest Rate RiskThe Company is exposed to the risk associated with fluctuations in the interest rates which depend on the currency and maturity date of its loans or of thecurrency it has invested in financial assets.The Company’s short-term financial liabilities as of December 31, 2014 include negotiable obligations, pre-financing of exports and imports’ financingarrangements, local bank credit lines and financial loans with local and international financial institutions. Long-term financial liabilities include negotiableobligations and financial loans with local and international financial institutions. Approximately 65% (32,185) of the total of the financial loans of theCompany is denominated in U.S. dollars and the rest in Argentine pesos, as of December 31, 2014. These loans are basically used for working capital andinvestments. Financial assets mainly include, in addition to trade receivable which have low exposure to interest rate risk, bank deposits, fixed-interestdeposits and investments in mutual funds such as “money market” or short-term fixed interest rate instruments.Historically, the strategy for hedging interest rates is based on the fragmentation of financial counterparts, the diversification of the types of loans taken and,essentially, the maturities of such loans, taking into consideration the different levels of interest along the yield curve in pesos or U.S. dollars, and the amountof the loans based on future expectations and the timing of the future investment outlays to be financed.The Company does not usually use derivative financial instruments to hedge the risks associated with interest rates. Changes in interest rates may affect theinterest income or expenses derived from financial assets and liabilities tied to a variable interest rate. Additionally, the fair value of financial assets andliabilities that accrue interests based on fixed interest rates may also be affected.The table below provides information about the financial assets and liabilities as of December 31, 2014 that accrues interest considering the applicable rate: December 31, 2014 Financial Assets(1) Financial Liabilities(2) Fixed interest rate 1,067 32,256 Variable interest rate 1,960 17,049 Total 3,027 49,305 (1)Includes only short-term investments. Does not include trade receivables which mostly do not accrue interest.(2)Includes only financial loans. Does not include accounts payable which mostly do not accrue interest. F-31Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe portion of liabilities which accrues variable interest rate is mainly exposed to the fluctuations in LIBOR and BADLAR. Approximately 13,558 accruesvariable interest of BADLAR plus a maximum spread of 4.75% and 3,287 accrues variable interest of LIBOR plus a spread between 4% and 7.5%.Additionally 204 accrues annual interest at a rate of 20% plus the proportion of the increase in crude oil and natural gas production of the Company with anannual cap of 26%.The table below shows the estimated impact on the consolidated comprehensive income that an increase or decrease of 100 basis points in the interest ratewould have. Increase (+) / decrease (-) in theinterest rates (basis points) For the year endedDecember 31, 2014 Impact on the net income after income tax +100-100 (103103) Other Price RisksThe Company is not significantly exposed to commodity price risks, as a result, among other reasons, of the existing regulatory, economic and governmentpolicies, which determines that local prices charged for gasoline, diesel and other fuels are not affected in the short-term by fluctuations in the price of suchproducts in international and regional markets.Additionally, the Company is reached by certain regulations that affect the determination of export prices received by the Company, such as those mentionedin Note 1.b.16 and 11.c, which consequently limits the effects of short-term price volatility in the international market.As of December 31, 2014, 2013 and 2012, the Company has not used derivative financial instruments to hedge risks related to fluctuations in commodityprices.Liquidity RiskLiquidity risk is associated with the possibility of a mismatch between the need of funds (related, for example, to operating and financing expenses,investments, debt payments and dividends) and the sources of funds (such as net income, disinvestments and credit-line agreements by financial institutions).As mentioned in previous paragraphs, YPF pretends to align the maturity profile of its financial debt to be related to its ability to generate enough cash flowsfor its payment, as well as to finance the projected expenditures for each year. As of December 31, 2014 the availability of liquidity reached 22,058,considering cash for 6,731, other liquid financial assets for 3,027, available credit lines with banks for 3,800, and an available credit line from the NationalTreasury of 8,500 (matured in February 2015). Additionally, YPF has the ability to issue debt under the negotiable obligations global program originallyapproved by the Shareholders meeting in 2008 expanded in September 2012, in April 2013 (see Note 2.i) and in February 2015 (see Note 15).After the process which concluded with the change of shareholders mentioned in Note 4, the Company is still focused in structuring more efficiently thestructure of maturity of its debt, in order to facilitate the daily operations and to allow the proper financing of planned investments.The table below sets forth the maturity dates of the Company’s financial liabilities as of December 31, 2014: December 31, 2014 Maturity date 0 - 1year 1 - 2years 2 - 3years 3 - 4years 4 - 5years More than5 years Total Financial Liabilities Accounts payable (1) 30,404 418 — — — 21 30,843 Loans 13,275 8,619 4,341 8,784 2,830 11,456 49,305 Provisions 718 — — — — — 718 (1)The amounts disclosed are the contractual, undiscounted cash flows associated to the financial liabilities given that they do not differ significantlyfrom their face values.Most of the Company’s financial debt contains usual covenants for contracts of this nature. With respect to a significant portion of the financial loans, as ofDecember 31, 2014, the Company has agreed, among other things and subject to certain exceptions, not to establish liens or charges on assets. Additionally,approximately 33% of the outstanding financial debt as of December 31, 2014 is subject to financial covenants related to the leverage ratio and debt servicecoverage ratio of the Company. F-32Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsA portion of the Company’s financial debt provides that certain changes in the Company’s control and/or nationalization may constitute an event of default.Moreover, the Company’s financial debt also contains cross-default provisions and/or cross acceleration provisions that could cause all of the financial debtto be accelerated if the debt having changes in control and/or nationalization events provisions is defaulted. As of the issuance date of these financialstatements, the Company has obtained formal waivers from all the financial creditors in relation to its outstanding debt subject to the mentioned terms at themoment in which the change in control occurred mentioned in Note 4. Additionally and related to the outstanding debt of YPF subsidiaries, GASA andMetroGAS, see Note 2.i) of these consolidated financial statements.Credit RiskCredit risk is defined as the possibility of a third party not complying with its contractual obligations, thus negatively affecting results of operations of theCompany.Credit risk in the Company is measured and controlled on an individual customer basis. The Company has its own systems to conduct a permanentevaluation of credit performance of all of its debtors and customers, and the determination of risk limits with respect to customers, in line with best practicesusing for such end internal customer records and external data sources.Financial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash and equivalents, trade receivables andother receivables and advances. The Company invests excess cash primarily in high liquid investments with financial institutions with a strong credit ratingboth in Argentina and abroad. In the normal course of business, the Company provides credit based on ongoing credit evaluations to its customers andcertain related parties. Additionally, the Company accounts for credit losses in the other comprehensive income statement, based on specific informationregarding its clients. As of the date of these consolidated financial statements, the Company’s customer portfolio is diversified.The allowances for doubtful accounts are measured by the following criteria: –The aging of the receivable; –The analysis of the customer’s capacity to return the credit granted, also taking into consideration special situations such as the existence of avoluntary reorganization petition, bankruptcy and arrears, guarantees, among others.The maximum exposure to credit risk of the Company as of December 31, 2014 based on the type of its financial instruments and without excluding theamounts covered by guarantees and other arrangements mentioned below, is set forth below: Maximum exposure asof December 31, 2014 Cash and equivalents 9,758 Other financial assets 15,286 Following is the breakdown of the financial assets past due as of December 31, 2014. Current tradereceivable Other current receivablesand advances Less than three months past due 343 269 Between three and six months past due 125 32 More than six months past due 1,987 226 2,455 527 At such date, the provision for doubtful trade receivables amounted to 873 and the provisions for other doubtful receivables amounted to 28. Theseallowances are the Company’s best estimate of the losses incurred in relation with accounts receivables.Guarantee PolicyAs collateral of the credit limits granted to customers, YPF has several types of guarantees received from them. In the service stations and distributors market,where generally long-term relationships with customers are established, mortgages prevail. For foreign customers prevail the joint and several bonds fromtheir parent companies. In the industrial and transport market, bank guarantees prevail. With a lower presence, YPF also has obtained other guarantees ascredit insurances, surety bonds, guarantee customer – supplier, car pledges, etc. F-33Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF has effective guarantees granted by third parties for a total amount of 3,676, 2,131 and 1,965 as of December 31, 2014, 2013 and 2012, respectively.During the year ended December 31, 2014, YPF executed guarantees received for an amount of 1. As of December 31, 2013 and 2012, YPF executedguarantees received for an amount of 4 and 2, respectively.2. ANALYSIS OF THE MAIN ACCOUNTS OF THE CONSOLIDATED FINANCIAL STATEMENTSDetails regarding the significant accounts included in the consolidated financial statements are as follows:Consolidated Balance Sheet as of December 31, 2014 and Comparative Information2.a) Cash and equivalents: 2014 2013 2012 Cash and bank account balances 6,731 4,533 950 Short-term investments 1,492 4,158 2,920 Financial assets at fair value through profit or loss 1,535 2,022 877 9,758 10,713 4,747 2.b) Trade receivables: 2014 2013 2012 Noncurrent Current Noncurrent Current Noncurrent Current Accounts receivable and related parties(1) 26 13,037 60 8,066 20 4,538 Provision for doubtful trade receivables (7) (866) (6) (652) (5) (494) 19 12,171 54 7,414 15 4,044 (1)See Note 6 for additional information about related parties.Changes in the provision for doubtful trade receivables 2014 2013 2012 Noncurrent Current Noncurrent Current Noncurrent Current Amount at beginning of year 6 652 5 494 — 454 Increases charged to expenses — 210 — 191 — 56 Decreases charged to income — (41) — (73) — (25) Amounts incurred — (4) — — — (2) Translation differences 1 49 1 40 — 16 Reclassifications and others — — — — 5 (5) Amount at end of year 7 866 6 652 5 494 2.c) Other receivables and advances: 2014 2013 2012 Noncurrent Current Noncurrent Current Noncurrent Current Trade — 664 — 377 — 223 Tax credit, export rebates and production incentives 130 1,066 22 1,233 10 750 Trust contributions - Obra Sur 56 22 67 34 83 17 Loans to clients and balances with Related parties(1) 231 53 517 81 385 77 Collateral deposits 528 435 397 253 7 193 Prepaid expenses 39 451 11 490 8 239 Advances and loans to employees 7 299 3 166 — 106 Advances to suppliers and custom agents(2) — 2,224 — 1,062 — 542 Receivables with partners in Joint Operations 612 764 1,852(3) 595(3) 600 129 Insurance receivables (Note 11.b) — 1,068 — 1,956 — — Miscellaneous 95 227 62 357 69 455 1,698 7,273 2,931 6,604 1,162 2,731 Provision for other doubtful accounts — (102) — (98) — (96) Provision for valuation of other receivables to their estimated realizable value (7) (1) (4) — (1) — 1,691 7,170 2,927 6,506 1,161 2,635 (1)See Note 6 for additional information about related parties.(2)Includes among others, advances to customs agents for the payment of taxes and import rights related to the imports of fuels and other products.(3)Includes the receivables related to the investment agreement with Chevron Corporation (see Note 11.c). F-34Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents2.d) Inventories: 2014 2013 2012 Refined products 7,720 5,713 4,316 Crude oil and natural gas 4,187 3,451 1,813 Products in process 99 115 106 Construction works in progress 271 107 230 Raw materials and packaging materials 724 495 457 13,001(1) 9,881(1) 6,922(1) (1)As of December 31, 2014, 2013 and 2012, the net realizable value of the inventories does not differ, significantly, from their cost.2.e) Investments in companies: 2014 2013 2012 Investments in companies (Exhibit I) 3,189 2,136 1,926 Provision for reduction in value of investments in companies (12) (12) (12) 3,177 2,124 1,914 2.f) Evolution of intangible assets: Main account 2014 Cost Amounts atbeginningof year Increases Translationeffect Net decreases,reclassificationsand transfers Amounts atthe endof year Service concessions 3,917 572 1,212 6 5,707 Exploration rights 801 3,033 399 (2,258) 1,975 Other intangibles 1,879 129 594 5 2,607 Total 2014 6,597 3,734(1) 2,205 (2,247)(1)(2) 10,289 Total 2013 4,443 624 1,547 (17) 6,597 Total 2012 3,724 145 571 3 4,443 Main account 2014 2013 2012 Amortization Accumulatedat beginningof year Net decreases,reclassificationsand transfers Depreciationrate Increases Translationeffect Accumulatedat the endof year Net bookvalue12-31 Net bookvalue12-31 Net bookvalue12-31 Service concessions 2,551 — 4-5% 135 789 3,475 2,232 1,366 930 Exploration rights 8 (39) — 179 2 150 1,825 793 402 Other intangibles 1,592 1 7-33% 155 523 2,271 336 287 160 Total 2014 4,151 (38) 469 1,314 5,896 4,393 Total 2013 2,951 (24) 197 1,027 4,151 2,446 Total 2012 2,424 (4) 152 379 2,951 1,492 (1)Includes 2,784 of increases corresponding to YSUR Group in Argentina at acquisition date and 1,538 of the decrease of assets by the assignment ofareas to Pluspetrol S.A. (see Note 13).(2)Includes 682 reclassified to Mineral property, wells and related equipment of fixed assets.The Company does not have intangible assets with indefinite useful lives as of December 31, 2014, 2013 and 2012.Service concessions: the Argentine Hydrocarbons Law permits the executive branch of the Argentine government to award 35-year concessions for thetransportation of oil, gas and petroleum products following submission of competitive bids. The term of a transportation concession may be extended for anadditional ten-year term. Pursuant to Law No. 26,197, provincial governments have the same powers. Holders of production concessions are entitled toreceive a transportation concession for the oil, gas and petroleum products that they produce. The holder of a transportation concession has the right to: –transport oil, gas and petroleum products; and –construct and operate oil, gas and products pipelines, storage facilities, pump stations, compressor plants, roads, railways and other facilities andequipment necessary for the efficient operation of a pipeline system. F-35Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe holder of a transportation concession is obligated to transport hydrocarbons for third parties on a non-discriminatory basis for a fee. This obligation,however, applies to producers of oil or gas only to the extent that the concession holder has surplus capacity available and is expressly subordinated to thetransportation requirements of the holder of the concession. Transportation tariffs are subject to approval by the Argentine Secretariat of Energy for oilpipelines and petroleum products and by the National Gas Regulatory Authority (Ente Nacional Regulador del Gas or “ENARGAS”) for gas pipelines. Uponexpiration of a transportation concession, the pipelines and related facilities automatically revert to the Argentine State without payment to the holder.The Privatization Law granted YPF a 35-year transportation concession with respect to the pipelines operated by Yacimientos Petrolíferos Fiscales S.A. at thetime. The main pipelines related to such transport concessions are: –La Plata / Dock Sud –Puerto Rosales / La Plata –Monte Cristo / San Lorenzo –Puesto Hernández / Luján de Cuyo –Luján de Cuyo / Villa MercedesManagement considers that the assets referred to above meet the criteria set forth by IFRIC 12, and should be therefore recognized as intangible assets.2.g) Composition and evolution of fixed assets: 2014 2013 2012 Net book value of fixed assets 157,243 93,662 57,103 Provision for obsolescence of materials and equipment (313) (166) (132) 156,930 93,496 56,971 2014 Cost Main account Amounts atbeginning ofyear Increases Translationeffect Net decreases,reclassificationsand transfers Amounts atthe endof year Land and buildings 6,965 13 1,996 110 9,084 Mineral property, wells and related equipment 179,877 9,248 56,540 19,711 265,376 Refinery equipment and petrochemical plants 29,267 13 9,171 3,630 42,081 Transportation equipment 1,466 119 431 144 2,160 Materials and equipment in warehouse 5,576 8,013 1,571 (6,919) 8,241 Drilling and work in progress 19,840 38,531 6,275 (19,595) 45,051 Exploratory drilling in progress(3) 927 2,264 231 (1,641) 1,781 Furniture, fixtures and installations 2,267 82 690 275 3,314 Selling equipment 4,084 — 1,284 152 5,520 Infrastructure for natural gas distribution 2,722 169 1 (4) 2,888 Electric power generation facilities 1,542 20 — 5 1,567 Other property 4,070 141 1,112 13 5,336 Total 2014 258,603 58,613(4)(5)(10) 79,302 (4,119)(6) 392,399 Total 2013 170,843 39,220(8)(9)(10) 59,121 (10,581)(7) 258,603 Total 2012 135,618 16,209(10) 20,282 (1,266)(6) 170,843 F-36Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2014 2013 2012 Depreciation Main account Accumulatedat beginningof year Net decreases,reclassificationsand transfers Depreciationrate Increases Translationeffect Accumulatedat the endof year Net bookvalue Net bookvalue Net bookvalue Land and buildings 2,804 — 2% 161 814 3,779 5,305 4,161 2,906 Mineral property, wells andrelated equipment 133,672 (348) (1) 17,057 41,789 192,170 73,206(2) 46,205(2) 28,007(2) Refinery equipment andpetrochemical plants 17,611 (7) 4-5% 1,751 5,487 24,842 17,239 11,656 5,845 Transportation equipment 1,022 (21) 4-20% 152 302 1,455 705 444 321 Materials and equipment inwarehouse — — — — — — 8,241 5,576 3,375 Drilling and work inprogress — — — — — — 45,051 19,840 13,658 Exploratory drilling inprogress(3) — — — — — — 1,781 927 955 Furniture, fixtures andinstallations 1,990 (4) 10% 235 596 2,817 497 277 249 Selling equipment 3,034 — 10% 239 942 4,215 1,305 1,050 708 Infrastructure for natural gasdistribution 1,107 (10) 2-5% 87 2 1,186 1,702 1,615 — Electric power generationfacilities 1,060 — 5-7% 110 1 1,171 396 482 — Other property 2,641 (2) 10% 144 738 3,521 1,815 1,429 1,079 Total 2014 164,941 (392)(6) 19,936 50,671 235,156 157,243 Total 2013 113,740 (1,530)(7) 13,830(8)(9) 38,901 164,941 93,662 Total 2012 91,973 (84)(6) 8,129 13,722 113,740 57,103 (1)Depreciation has been calculated according to the unit of production method (Note 1.b.6).(2)Includes 6,343, 3,748 and 2,800 of mineral property as of December 31, 2014, 2013 and 2012, respectively.(3)As of December 31, 2014, there are 55 exploratory wells in progress. During year ended on such date, 56 wells were drilled, 32 wells were charged toexploratory expenses and 24 were transferred to proved properties which are included in the account Mineral property, wells and related equipment.(4)Includes 858, 210, 39 and 866 of increases corresponding to Puesto Hernandez, Lajas, La Ventana and Bajada Añelo–Amarga Chica joint operations,respectively, on the additional interest acquisition date.(5)Includes 5,469 of increases corresponding to YSUR Group in Argentina on the acquisition date (see Note 13).(6)Includes 32 and 4 of net book value charged to fixed assets provisions for the years ended December 31, 2014 and 2012, respectively.(7)Includes, among others, the write-down of the assets of Coke A unit as a consequence of the incident in La Plata refinery on April 2013, as a result ofthe storm that took place in that city (see also Note 11.b) and 6,708 from the decrease of assets related to the investment project agreement (see alsoNote 11.c).(8)Includes 3,137 and 1,352 of increases and accumulated depreciation, respectively, corresponding to GASA on the acquisition date (see Note 13).(9)Includes 1,878 and 1,242 of increases and accumulated depreciation, respectively, corresponding to YPF Energía Eléctrica at the split-off date (seeNote 13).(10)Includes (268), 4,357 and (276) corresponding to hydrocarbon wells abandonment costs for the years ended December 31, 2014, 2013 and 2012,respectively.As described in Note 1.b.6, YPF capitalizes the financial cost as a part of the cost of the assets. For the years ended on December 31, 2014, 2013 and 2012 theannual average rate of capitalization were 12.29%, 12.03% and 8.55% and the capitalized amount were 574, 605 and 340, respectively, for the years abovementioned.Set forth below is the evolution of the provision for obsolescence of materials and equipment for the years ended on December 31, 2014, 2013 and 2012: 2014 2013 2012 Amount at beginning of year 166 132 123 Increase charged to expenses 133 16 22 Decreases charged to income (4) — (23) Amounts incurred (32) — (4) Translation differences 50 18 14 Amount at end of year 313 166 132 F-37Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsSet forth below is the evolution of the exploratory wells in evaluation stage for the years ended on December 31, 2014, 2013 and 2012: 2014 2013 2012 Amount at beginning of year 710 815 160 Additions pending the determination of proved reserves 921 424 683 Decreases charged to exploration expenses (336) (255) (35) Decrease of assets assignment (336) — — Reclassifications to mineral property, wells and related equipment with proved reserves (188) (481) (63) Translation difference 222 207 70 Amount at end of year 993 710 815 The following table shows exploratory wells capitalized for a period longer than a year and the number of projects related to such costs as of December 31,2014: Amount Number ofprojects Number ofwells Between 1 and 5 years 113 2 3 2.h) Accounts payable: 2014 2013 2012 Noncurrent Current Noncurrent Current Noncurrent Current Trade and related parties(1) 66 28,331 153 18,553 35 11,503 Investments in companies with negative shareholders’ equity — 2 — 127 — 4 Extension of Concessions (see Note 11.c) 332 884 275 1,036 104 936 Miscellaneous 168 1,189 42 596 23 413 566 30,406 470 20,312 162 12,856 (1)For more information about related parties, see additionally Note 6.2.i) Loans: Interest rate (1) Principalmaturity 2014 2013 2012 Noncurrent Current Noncurrent Current Noncurrent Current Negotiable Obligations(2) 0.10 – 26.00% 2015-2028 33,330 3,586 20,474 4,296 9,216 725 Other financial debts 2.00 – 26.00% 2015-2019 2,700(3)(4) 9,689(3)(4) 2,602 4,518 2,884 4,279 36,030 13,275 23,076 8,814 12,100 5,004 (1)Annual interest rate as of December 31, 2014.(2)Disclosed net of 252, 137 and 450, corresponding to YPF’s outstanding Negotiable Obligations repurchased through open market transactions as ofDecember 31, 2014, 2013 and 2012, respectively.(3)Includes approximately 8,392 corresponding to loans agreed in U.S. dollars, which accrue interest at rates between 2% and 7.25%.(4)Includes 1,702 corresponding to loans granted by Banco Nación Argentina, denominated in argentine pesos of which 315 accrue fixed interest rate of15% until December 2015 and then accrue variable interest of BADLAR plus a spread of 4 percentage points and 167 accrue variable interest ofBADLAR plus a spread of 4 percentage points with a maximum lending interest rate of the overall portfolio of Banco Nación and 1,220 accrue fixedinterest rate of 22% corresponding to overdrafts. See additionally Note 6. F-38Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDetails regarding the Negotiable Obligations of the Company are as follows: (in millions) Book value Issuance 2014 2013 2012 Month Year Principalvalue Class Interest rate(3) Principalmaturity Noncurrent Current Noncurrent Current Noncurrent Current - YPF: - 1998 US$15(1)(6) — Fixed 10.00% 2028 62 2 534 10 40 1 March 2010 US$70(2)(6) Class III — — — — — — — — 347 September 2012 $100(2)(7) Class VI — — — — — — — — 101 September 2012 $200(2)(6) Class VII — — — — — — 202 200 2 September 2012 $1,200(2)(4)(6) Class VIII BADLAR plus 4% 24.02% 2015 — 809 800 413 1,200 11 October 2012 US$130(2)(5)(6) Class IX — — — — — — 853 636 7 October andDecember 2012 US$552(2)(4)(5)(6) Class X Fixed 6.25% 2016 4,690 59 3,587 45 2,702 34 November andDecember 2012 $2,110(2)(4)(6) Class XI BADLAR plus 4.25% 24.72% 2017 2,110 70 2,110 64 2,110 56 December 2012 $150(2)(6) Class XII — — — — — — — — 151 December andMarch 2012/3 $2,828(2)(4)(6) Class XIII BADLAR plus 4.75% 24.70% 2018 2,828 23 2,828 22 2,328 15 March 2013 $300(2)(6) Class XIV — — — — — — 304 — — March 2013 US$230(2)(5)(6) Class XV — — — — — — 1,497 — — May 2013 $300(2)(6) Class XVI — — — — — — 303 — — April 2013 $2,250(2)(4)(6) Class XVII BADLAR plus 2.25% 22.99% 2020 2,250 89 2,250 83 — — April 2013 US$61(2)(5)(6) Class XVIII Fixed 0.1% 2015 — 502 397 — — — April 2013 US$89(2)(5)(6) Class XIX Fixed 1.29% 2017 757 2 579 1 — — June 2013 $1,265(2)(4)(6) Class XX BADLAR plus 2.25% 22.22% 2020 1,265 11 1,265 10 — — July 2013 $100(2)(6) Class XXI — — — — — — 101 — — July 2013 US$92(2)(5)(6) Class XXII Fixed 3.50% 2020 515 107 510 89 — — October 2013 US$150(2) Class XXIV LIBOR plus 7.50% 7.73% 2018 825 311 860 125 — — October 2013 $300(2)(6) Class XXV BADLAR plus 3.24% 24.10% 2015 — 314 300 13 — — December 2013 US$587(2) Class XXVI Fixed 8.875% 2018 4,899 16 3,251 10 — — December 2013 $150(2)(6) Class XXVII — — — — — — 151 — — March 2014 $500(2)(6) Class XXIX BADLAR 20.09% 2020 500 7 — — — — March 2014 $379(2)(6) Class XXX BADLAR plus 3.50% 23.47% 2015 — 384 — — — — April 2014 US$1,000(2) Class XXVIII Fixed 8.75% 2024 8,501 180 — — — — June 2014 $201(2)(6) Class XXXI Variable(7) 26.00% 2015 — 205 — — — — June 2014 $465(2) Class XXXII BADLAR plus 3.20% 23.27% 2016 155 316 — — — — June 2014 US$66(2)(5) Class XXXIII Fixed 2.00% 2017 563 1 — — — — September 2014 $1,000(2) Class XXXIV BADLAR plus 0.10% 20.16% 2024 1,000 54 — — — — September 2014 $750(2)(4) Class XXXV BADLAR plus 3.50% 23.56% 2019 750 47 — — — — - MetroGAS: January 2013 US$177 Serie A-L Fixed 8.875% 2018 1,186 1 840 — — — January 2013 US$13 Serie A-U Fixed 8.875% 2018 120 — 91 — — — - GASA: March 2013 US$57 Serie A-L Fixed 8.875% 2015 347 76 262 — — — March 2013 US$1(8) Serie A-U Fixed 8.875% 2016 7 — 10 — — — 33,330 3,586 20,474 4,296 9,216 725 (1)Corresponds to the 1997 M.T.N. Program for US$1,000 million.(2)Corresponds to the 2008 M.T.N. Program for US$5,000 million.(3)Interest rate as of December 31, 2014.(4)The ANSES and/or the Argentine Hydrocarbons Fund have participated in the primary subscription of these negotiable obligations, which may at thediscretion of the respective holders, be subsequently traded in the securities market where these negotiable obligations are authorized to be traded.(5)The payment currency of these Negotiable Obligations is the Argentine Peso at the Exchange rate applicable under the terms of the series issued.(6)As of the date of issuance of these financial statements, the Company has fully complied with the use of proceeds disclosed in the pricing supplements.(7)Accrue an annual variable interest rate equivalent to the sum of a floor interest rate of 20% plus a spread related to YPF’s total hydrocarbonsproduction (natural gas, oil-condensate and gasoline), according to the information of the National Secretariat of Energy with a maximum interest rateof 26%.(8)The expiration date of the original capital is December 2015, with the possibility of being extended to December 2016, if certain conditions arefulfilled. See GASA section below.For additional information about covenants assumed by the Company and maturity of loans see Note 1.d) Financial risk management. –YPF’s Negotiable ObligationsThe Shareholder’s meeting held on January 8, 2008, approved a Notes Program for an amount up to US$ 1,000 million. Subsequently the amount of theprogram was extended by the corresponding approval of the Shareholders’ meeting, totalizing a maximum nominal amount outstanding of US$ 5,000 millionas of December 31, 2014 and US$ 8,000 million as of February 26, 2015, date of issuance of these financial statements (see Note 15), or its equivalent in othercurrencies. The funds from this Program may be used for any of the alternatives provided in art. 3 of Law No. 23,576 of negotiable obligations and itsSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.supplementary rules. F-39Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents–Negotiable Obligations of MetroGAS S.A. and Gas Argentino S.A. – Debt Restructuring: • MetroGAS:In compliance with the preventive agreement between MetroGAS and its creditors, in relation with MetroGAS voluntary reorganization petition, onJanuary 11, 2013 new negotiable obligations were issued by MetroGAS (the “new negotiable obligations of MetroGAS”) which were granted in exchange tothe financial and non-financial creditors verified and declared acceptable.On February 1 and February 13, 2013 MetroGAS presented to the Court the documentation that demonstrates the fulfillment of the debt exchange and theissuance of the new negotiable obligations of MetroGAS in order to obtain the removal of the general prohibition and obtain the legal declaration of theaccomplishment of the preventive agreement under the terms and conditions of art. 59 of the Bankruptcy law.The issuance of the new negotiable obligations of MetroGAS was approved by the CNV on December 26, 2012, within the framework of the GlobalNegotiable Obligation Issuance Program of MetroGAS for a nominal value of up to US$ 600 million.MetroGAS issued the new negotiable obligations to be exchanged for existing negotiable obligations: • Series A-L for an amount of US$ 163,003,452. • Series B-L for an amount of US$ 122,000,000.and in exchange of non-financial debt of MetroGAS negotiable obligations: • Series A-U for an amount of US$ 16,518,450. • Series B-U for an amount of US$ 13,031,550.From the date of issuance, all MetroGAS obligations under the terms of the Previous Negotiable Obligations and the previous non-financial debt wereterminated and all rights, interests and benefits stipulated therein were annulled and canceled. Consequently, the previous Negotiable Obligation and theprevious non-financial debt were extinguished and no longer constitute MetroGAS enforceable obligations. In this order, the debt exchange was accountedfor as a debt extinguishment following the guidelines of IFRS 9. The result, before tax effect, of the restructuring of the outstanding debt obligations ofMetroGAS was recognized by that company during the three months ended on March 31, 2013. Since this result was recognized by MetroGAS prior to theYPF’s acquisition, the effect arising thereof has been considered in the initial accounting of the acquisition of MetroGAS (see Note 13).The principal value of the Class A New Negotiable Obligations of MetroGAS shall be fully redeemed at its maturity on December 31, 2018 in a singlepayment. The Class A New Negotiable Obligations of MetroGAS will accrue an annual nominal interest rate of 8.875%. The Class A New NegotiableObligations will accrue an annual nominal interest rate of 8.875% over outstanding Negotiable Obligations, from date of issue until the date of cancellationwhich shall be calculated and paid in accordance with its terms and conditions. The Class B New Negotiable Obligations would only had accrued interestover the amount of capital corresponding to the Class B New Negotiable Obligations if a triggering event had occurred (which includes the anticipatedmaturity in case of an event of default under the terms of the new issued negotiable obligations) before the Deadline and since such triggering event occurred.This interest also had being accrued at an annual nominal interest rate of 8.875% from the date of the triggering event and until the date of cancellationwhich had been computed and paid in accordance with its terms and conditions. Interest on the Series AL and AU will be paid every six months on June 30and December 31 of each year, although MetroGAS has exercised the option to capitalize 100% of the interest accrued between the date of issuance andJune 30, 2013 and 50% of the interest accrued between July 1, 2013 and June 30, 2014.Consequently, after the initial issuance aforementioned, MetroGAS has issued Negotiable Obligations of late verification: • Series A-U for an amount of US$ 5,087,459 • Series B-U for an amount of US$ 4,013,541 F-40Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsand Negotiable Obligations of capitalization • Series A-L additionally for an amount of US$ 7,033,000 • Series A-U additionally for an amount of US$ 742,500Additionally, in accordance with the terms and conditions of issuance of the New Negotiable obligations of MetroGAS, it and its subsidiaries, must complywith certain restrictions relating to indebtedness, restricted payments (including dividends), liens, among others. • GASA:In compliance with the preventive agreement between GASA and its creditors, in relation with the voluntary reorganization petition of GASA, on March 15,2013 GASA proceeded to exchange the existing negotiable obligations held by its financial creditors and the credits of nonfinancial creditors verified anddeclared acceptable by the New Negotiable obligations.GASA issued new negotiable obligations (the “new negotiable obligations of GASA”) to be delivered in exchange for previous existing negotiableobligations: • Series A-L for an amount of US$ 50,760,000. • Series B-L for an amount of US$ 67,510,800.and in exchange for the financial debt of GASA Previous Negotiable Obligations: • Series A-U for an amount of US$ 1,306,528. • Series B-U for an amount of US$ 1,737,690.The issuance of the new negotiable obligations of GASA AL and BL series were approved by the CNV on February 5, 2013.From the date of issuance, all GASA obligations under the terms of the previous negotiable obligations and the previous financial debt were terminated andall rights, interests and benefits stipulated therein were annulled and canceled. Consequently, the Previous Negotiable obligations and the previous financialdebt were extinguished and no longer constitute an enforceable obligation for GASA. The debt exchange was accounted for as an extinguishment of debtfollowing the guidelines of IFRS 9. The result before tax effect of the debt restructuring of GASA was recognized in the statement of income during the threemonths ended on March 31, 2013. Since this result was recognized by GASA prior to YPF’s acquisition, the effect arising thereof has been considered in theinitial accounting of the acquisition of GASA (see Note 13).The principal value of the Class A new negotiable obligations of GASA will be fully redeemed at its maturity on December 31, 2015 in a single payment. IfGASA pays the total accrued non-capitalized interest to that date and the capital corresponding that would have been capitalized in accordance with theterms of issuance up to that date, then the maturity of the new negotiable obligations of GASA will be on December 31, 2016. The Class A new negotiableobligations of GASA will accrue an annual nominal interest of 8.875%. The Class B new negotiable obligations of GASA, maturing on 2015, will only accrueinterest if there is a triggering event (which includes the anticipated maturity in case of an event of default under the terms of the negotiable obligationsissued) occurs before the Deadline, and if the triggering event has not occur, the Class B new negotiable obligations of GASA will be automatically canceledand will no longer constitute enforceable obligations for GASA. Interest will be paid every six months on June 15 and December 15 of each year, GASA willhave the option to capitalize 100% of the interest accrued between the date of issuance and December 15, 2015. GASA has exercised this option for theaccrued interest from the date of issuance to December 15, 2014.Subsequent to the issuance mentioned, GASA has issued additional Negotiable Obligations: • Class A-L for an amount of US$ 8,491,085and Negotiable Obligations of interest capitalization: • Class A-U for an amount of US$ 215,532Additionally, in accordance with the terms and conditions of issuance of the new negotiable obligations, GASA and its subsidiaries, must comply withcertain restrictions relating to indebtedness, restricted payments (including dividends), liens, among others. F-41Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents2.j) Provisions: Provisionfor pensions Provision for pendinglawsuits andcontingencies Provision forenvironmental liabilities Provision forhydrocarbon wellsabandonmentobligations Noncurrent Current Noncurrent Current Noncurrent Current Noncurrent Current Amount as of December 31, 2013 168 22 5,020 159 764 926 13,220 289 Increases charged to expenses 11 — 3,367 24 1,066 — 1,366 3 Decreases charged to income (27) — (465) (82) — — — — Increase from subsidiaries acquisition — — 20 — 21 2 724 14 Decrease from payments (14) (11) (5) (1,126) — (621) (61) (136) Translation differences 67 5 930 23 175 81 2,772 48 Increase from joint operation interest acquisition — — — — — — 339 153 Reclassifications and others (11) 11 (1,853) 1,853 (757) 757 (273)(1) 5(1) Amount as of December 31, 2014 194 27 7,014 851 1,269 1,145 18,087 376 Provisionfor pensions Provision for pendinglawsuits andcontingencies Provision forenvironmentalliabilities Provision forhydrocarbon wellsabandonmentobligations Noncurrent Current Noncurrent Current Noncurrent Current Noncurrent Current Amount as of December 31, 2012 136 16 2,892 122 677 489 6,958 193 Increases charged to expenses 3 — 1,877 29 208 551 719 — Decreases charged to income — — (90) (41) — — — — Decrease from payments — (16) — (160) — (432) — (105) Translation differences 46 5 579 9 138 59 1,355 29 Reclassifications and others (17) 17 (238) 200 (259) 259 4,188(1) 172(1) Amount as of December 31, 2013 168 22 5,020 159 764 926 13,220 289 Provisionfor pensions Provision for pendinglawsuits andcontingencies Provision forenvironmentalliabilities Provision forhydrocarbon wellsabandonmentobligations Noncurrent Current Noncurrent Current Noncurrent Current Noncurrent Current Amount as of December 31, 2011 143 14 2,167 118 567 581 6,329 252 Increases charged to expenses 5 — 1,058 15 707 — 477 5 Decreases charged to income — — (31) (4) (24) — — — Decrease from payments — (11) — (519) — (735) — (141) Translation differences (1) 2 210 — 53 17 489 16 Reclassifications and others (11) 11 (512) 512 (626) 626 (337)(1) 61(1) Amount as of December 31, 2012 136 16 2,892 122 677 489 6,958 193 (1)Includes (268), 4,357 and (276) from abandonment obligation costs which has counterpart in fixed assets for the years ended on December 31, 2014,2013 and 2012, respectively.2.k) Revenues, cost of sales, expenses and other (expense) income, net:For the years ended December 31, 2014, 2013 and 2012Revenues 2014 2013 2012 Sales(1) 147,020 92,978 68,817 Revenues from construction contracts 419 312 684 Turnover tax (5,497) (3,177) (2,327) 141,942 90,113 67,174 (1)Includes revenues related to the natural gas additional injection stimulus program created by Resolution 1/2013 of the Planning and StrategicCoordination Commission of the National Plan of Hydrocarbons Investment (see Note 11.c).Cost of sales 2014 2013 2012 Inventories at beginning of year 9,881 6,922 6,006 Purchases for the year 35,951 25,846 17,974 Production costs 68,840 42,980 32,374 Translation effect 2,821 2,227 835 Inventories at end of year (13,001) (9,881) (6,922) Cost of sales 104,492 68,094 50,267 Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. F-42Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExpenses 2014 2013 2012 Productioncosts Administrativeexpenses Sellingexpenses Explorationexpenses Total Total Total Salaries and social security taxes 5,341 1,602(2) 911 177 8,031 5,906 4,488 Fees and compensation for services 554 1,150(2) 226 10 1,940 1,361 1,075 Other personnel expenses 1,622 226 94 44 1,986 1,370 997 Taxes, charges and contributions 2,260 92 3,308 — 5,660(1) 3,893(1) 2,680(1) Royalties and easements 9,503 — 18 23 9,544 5,871 4,469 Insurance 705 22 65 — 792 592 255 Rental of real estate and equipment 2,630 24 296 — 2,950 1,956 1,481 Survey expenses — — — 251 251 77 32 Depreciation of fixed assets 19,201 282 453 — 19,936 11,236 8,129 Amortization of intangible assets 140 134 16 179 469 197 152 Industrial inputs, consumable materials and supplies 3,415 38 61 8 3,522 2,143 1,561 Operation services and other service contracts 5,297 178 432 1 5,908 3,043 2,937 Preservation, repair and maintenance 11,322 200 271 19 11,812 7,959 5,922 Contractual commitments 52 — — — 52 174 212 Unproductive exploratory drillings — — — 1,265 1,265 514 316 Transportation, products and charges 3,874 6 3,001 — 6,881 4,805 3,878 Provision for doubtful trade receivables — — 169 — 169 118 31 Publicity and advertising expenses(3) — 451 259 — 710 265 182 Fuel, gas, energy and miscellaneous 2,924 125 534 57 3,640 2,586 2,053 Total 2014 68,840 4,530 10,114 2,034 85,518 Total 2013 42,980 2,686 7,571 829 54,066 Total 2012 32,374 2,232 5,662 582 40,850 (1)Include approximately 1,775, 1,757 and 1,307 corresponding to hydrocarbon export withholdings for years ended December 31, 2014, 2013 and 2012,respectively.(2)Includes 121 of Directors and Statutory Auditor’s fees. On April 30, 2014 the General Ordinary and Extraordinary Shareholder’s meeting of YPFdecided to approve as honorary in advance for such fees the sum of approximately 123 for the year 2014.(3)Includes costs of social sustainability actions, trade agreements with automotive companies, sports sponsorships (motorsports and the Argentinenational soccer team), events and grand openings, commercial and institutional presence at fairs and exhibitions, marketing activities and industrialsignage and images in our network of service stations, the launch in 2014 of a new premium gasoline (Infinia) and the relaunch of the Serviclub loyaltyprogram (awards, cards, customer care centers, etc.), among others.The expense recognized in the statement of comprehensive income related to research and development activities during the years ended December 31, 2014,2013 and 2012 amounted to 215, 83 and 58, respectively.Other (expense) income, net 2014 2013 2012 Environmental remediation from YPF Holdings Inc. (214) (201) (278) Lawsuits and contingencies (2,034) (1,069) (437) Insurance (Note 11.b) — 1,479 — Revenue extension of concessions “La Ventana” and “Magallanes” (Note 5) 428 — — Miscellaneous 790 18 187 (1,030) 227 (528) 3. PROVISIONS FOR PENDING LAWSUITS, CLAIMS AND ENVIRONMENTAL LIABILITIESThe Company is party to a number of labor, commercial, civil, tax, criminal, environmental and administrative proceedings that, either alone or incombination with other proceedings, could, if resolved in whole or in part adversely against it, result in the imposition of material costs, fines, judgments orother losses. While the Company believes that such risks have been provisioned appropriately based on the opinions and advice of our external legaladvisors and in accordance with applicable accounting standards, certain loss contingencies, are subject to change as new information develops and results ofthe presented evidence is obtain, among others. It is possible that losses resulting from such risks, if proceedings are decided in whole or in part adversely tothe Company, could significantly exceed the recorded provisions.As of December 31, 2014, the Company has accrued pending lawsuits, claims and contingencies which are probable and can be reasonably estimated,amounting to 7,865. The most significant pending lawsuits and contingencies accrued are described in the following paragraphs. F-43Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAdditionally, YPF is subject to various provincial and national laws and regulations relating to the protection of the environment. These laws and regulationsmay, among other things, impose liability on companies for the cost of pollution clean-up and environmental damages resulting from operations.Management believes that the Company’s operations are in substantial compliance with Argentine laws and regulations currently in force relating to theprotection of the environment as such laws have historically been interpreted and enforced.However, the Company is periodically conducting new studies to increase its knowledge concerning the environmental situation in certain geographic areaswhere the Company operates in order to establish their status, causes and necessary remediation and, based on the aging of the environmental issue, toanalyze the possible responsibility of Argentine Government, in accordance with the contingencies assumed by the Argentine Government for liabilitiesexisting as of December 31, 1990. Until these studies are completed and evaluated, the Company cannot estimate what additional costs, if any, will berequired. However, it is possible that other works, including provisional remedial measures, may be required.Pending lawsuits: In the normal course of its business, the Company has been sued in numerous labor, civil and commercial actions and lawsuits.Management, in consultation with the external legal advisors, has recorded a provision considering its best estimation, based on the information available asof the date of the issuance of these consolidated financial statements, including counsel fees and judicial expenses.Liabilities and contingencies assumed by the Argentine Government: The YPF Privatization Law provided for the assumption by the Argentine Governmentof certain liabilities of the predecessor as of December 31, 1990. In certain lawsuits related to events or acts that took place before December 31, 1990, YPFhas been required to advance the payment established in certain judicial decisions. YPF has the right to be reimbursed for these payments by the ArgentineGovernment pursuant to the above-mentioned indemnity.Natural gas market: Pursuant to Resolution No. 265/2004 of the Secretariat of Energy, the Argentine Government created a program of useful curtailment ofnatural gas exports and their associated transportation service. Such program was initially implemented by means of Regulation No. 27/2004 of the Under-Secretariat of Fuels, which was subsequently substituted by the Program of Rationalization of Gas Exports and Use of Transportation Capacity (the“Program”) approved by Resolution No. 659/2004 of the Secretariat of Energy. Additionally, Resolution No. 752/2005 of the Secretariat of Energy providedthat industrial users and thermal generators (which according to this resolution will have to request volumes of gas directly from the producers) could alsoacquire the natural gas from the cutbacks on natural gas exports through the Permanent Additional Injections mechanism created by this Resolution. Bymeans of the Program and/or the Permanent Additional Injection, the Argentine Government requires natural gas exporting producers to deliver additionalvolumes to the domestic market in order to satisfy natural gas demand of certain consumers of the Argentine market (“Additional Injection Requirements”).Such additional volumes are not contractually committed by YPF, who is thus forced to affect natural gas exports, which execution has been conditioned.The mechanisms established by the Resolutions No. 659/2004 and 752/2005 have been adapted by the Secretariat of Energy Resolution No. 599/2007,modifying the conditions for the imposition of the requirements, depending on whether the producers have signed or not the proposed agreement, ratified bysuch resolution, between the Secretariat of Energy and the Producers. Also, through Resolution No. 1410/2010 of the National Gas Regulatory Authority(“ENARGAS”) approved the procedure which sets new rules for natural gas dispatch applicable to all participants in the natural gas industry, imposing newand more severe regulations to the producers’ availability of natural gas (“Procedimiento para Solicitudes, Confirmaciones y Control de Gas”). Additionally,the Argentine Government, through instructions made using different procedures, has ordered limitations over natural gas exports (in conjunction with theProgram and the Permanent Additional Injection, named the “Export Administration”). On January 5, 2012, the Official Gazette published Resolution of theSecretariat of Energy No. 172 which temporarily extends the rules and criteria established by Resolution No. 599/07, until new legislation replaces theResolution previously mentioned. This Resolution was appealed on February 17, 2012 by filing a motion for reconsideration with the Secretariat of Energy.As a result of the resolution mentioned before, in several occasions since 2004, YPF has been forced to suspend, either totally or partially, its natural gasdeliveries to some of its export clients, with whom YPF has undertaken firm commitments to deliver natural gas.YPF has challenged the Program, the Permanent Additional Injection and the Additional Injection Requirements, established by Resolution of the Secretariatof Energy No. 599/2007, 172/2011 and Resolution ENARGAS No. 1,410/2010, as arbitrary and illegitimate, and has invoked vis-à-vis the relevant F-44Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsclients that the Export Administration constitute a fortuitous case or force majeure event (act of authority) that releases YPF from any liability and/or penaltyfor the failure to deliver the contractual volumes. These clients have rejected the force majeure argument invoked by YPF, and some of them have demandedthe payment of indemnifications and/or penalties for the failure to comply with firm supply commitments, and/or reserved their rights to future claims in suchrespect (the “Claims”).Among them, on June 25, 2008, AES Uruguaiana Emprendimientos S.A. (“AESU”) claimed damages in a total amount of US$ 28.1 million for natural gas“deliver or pay” penalties for cutbacks accumulated from September 16, 2007 through June 25, 2008, and also claimed an additional amount of US$2.7 million for natural gas “deliver or pay” penalties for cutbacks accumulated from January 18, 2006 until December 1, 2006. YPF has rejected both claims.On September 15, 2008, AESU notified YPF the interruption of the fulfillment of its commitments alleging delay and breach of YPF obligations. YPF hasrejected the arguments of this notification. On December 4, 2008, YPF notified that having ceased the force majeure conditions, pursuant to the contract inforce, it would suspend its delivery commitments, due to the repeated breaches of AESU obligations. AESU has rejected this notification. On December 30,2008, AESU rejected YPF’s right to suspend its natural gas deliveries. On March 20, 2009 AESU formally notified the termination of the contract. On April 6,2009, YPF promoted an arbitration process at the International Chamber of Commerce (“ICC”) against AESU, Companhía do Gas do Estado do Río Grandedo Sul (“Sulgás”) and Transportadora de Gas del Mercosur S.A. (“TGM”). On the same date YPF was notified by the ICC of an arbitration process initiated byAESU and Sulgás against YPF in which they claim, among other matters considered inadmissible by YPF, consequential loss, AESU’s plant dismantling costsand the payment of “deliver or pay” penalties mentioned above, all of which totaled approximately US$ 1,052 million.Additionally, YPF was notified of the arbitration process brought by TGM at the ICC, claiming YPF the payment of approximately US$ 10 million plusinterest up to the date of effective payment, in connection with the payment of invoices related to the Transportation Gas Contract entered into in September1998 between YPF and TGM, associated with the aforementioned exportation of natural gas contract signed with AESU. On April 8, 2009 YPF requested thatthis claim be rejected and counterclaimed for the termination of the natural gas transportation contract based on its termination rights upon the terminationby AESU and Sulgás of the related natural gas export contract. In turn, YPF had initiated an arbitration process at the ICC against TGM, among others. YPFreceived the reply to the complaint from TGM, who requested the full rejection of YPF claims and deduced counterclaim against YPF asking the ArbitrationTribunal to condemn YPF to compensate TGM for all present and future damages suffered by TGM due to the extinction of the Transportation Gas Contractand the Memorandum of Agreement dated on October 2, 1998 by which YPF undertook to pay irrevocable non-capital contributions to TGM in return for theUruguayana Project pipeline expansion; and to condemn AESU-Sulgás -in the case the Arbitration Tribunal finds that the termination of the Gas Contractoccurred due to the failure of AESU or Sulgás- jointly and severally to indemnify all damages caused by such termination to TGM. Additionally, on July 10,2009 TGM increased the amount of its claim to US$ 17 million and claimed an additional amount of approximately US$ 366 million for loss of profits, bothconsidered inappropriate by YPF, and thus, rejected in its answer to such additional claim.On April 6, 2011, the Arbitration Tribunal appointed in “YPF vs. AESU” arbitration decided to sustain YPF’s motion, and determined the consolidation of allthe related arbitrations (“AESU vs. YPF”, “TGM vs. YPF” and “YPF vs. AESU”) in “YPF vs. AESU” arbitration. Consequently, AESU and TGM desisted fromand abandoned their respective arbitrations, and all the matters claimed in the three proceedings are to be solved in “YPF vs. AESU” arbitration. On April 19and 24, 2012, AESU and Sulgás presented new evidence claiming their admission in the arbitration process. YPF and TGM made their observations about theevidence on April 27, 2012. On May 1, 2012, the Arbitration Tribunal denied the admission of such evidence and ruled that the evidence would be acceptedif the Tribunal considered it necessary.On May 24, 2013 YPF was notified of the partial award decreed by a majority in the ICC Arbitration “YPF vs. AESU and TGM” whereby YPF was deemedresponsible for the termination in 2009 of natural gas export and transportation contracts signed with AESU and TGM. Such award only decides on theliability of the parties, leaving the determination of the damages that could exist subject to the subsequent proceedings before the same Tribunal. Moreover,the Tribunal rejected the admissibility of “deliver or pay” claims asserted by Sulgás and AESU for the years 2007 and 2008 for a value of US$ 28 million andfor the year 2006 for US$ 2.4 million. F-45Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn May 31, 2013 YPF filed with the Arbitration Tribunal a writ of Nullity, in addition to making several presentations in order to safeguard its rights. Againstthe rejection of the writ of nullity, on August 5, 2013 YPF filed a complaint appeal with the Argentinian Court in Commercial matters. On October 24, 2013,the Argentinian Court in Commercial matters declared its incompetency and submitted the file to the Federal Contentious Administrative Court. OnDecember 16, the acting prosecutor issued an opinion supporting the jurisdiction of the court.Besides, on October 17, 2013 the Arbitration Tribunal decided to resume the arbitration and set a procedural schedule for the damages stage, which shall bedeveloped along 2014 for which the reports of the experts proposed by the parties occurred.On December 27, 2013, the Federal Court of Appeals hearing Administrative Litigation matters was moved to grant the reconsideration motion from denialon appeal, then sustaining the appeal for procedural violations and declaring that the grant thereof shall have stay effects in connection with the arbitrationprocess. In addition, the court was moved to grant, until the appeal for procedural violations is finally admitted, a restrictive injunction to prevent thedevelopment of the arbitration process while a decision on the reconsideration motion from denial on appeal and on the appeal for procedural violations filedby YPF is pending. On October 7, 2014, the Federal Court of Appeals hearing Administrative Litigation matters, besides its jurisdiction in the application ofthe writ of nullity, ordered the suspension of the court calendar related to the second stage of its arbitration process until a final court decision was renderedon the writ of nullity filed by YPF against the arbitral award on adjudication of liability. On October 8, 2014, the Arbitration Tribunal was served with noticeof the decision rendered by the said Federal Court of Appeals and on October 31, 2014, the Arbitration Tribunal determined to suspend the arbitrationprocess until February 2, 2015. On November 5, 2014, YPF was notified of the extraordinary appeal filed by TGM against the resolution of suspension of thecourt schedule issued by the mentioned Court of Appeals. YPF answered such appeal on November 19, 2014; and on December 30, 2014, the Court ofAppeals dismissed the extraordinary appeal filed by TGM. On the other hand, AESU filed a motion to the Uruguayan courts demanding the nullity of theArbitration Tribunal’s decision ordering the suspension of the arbitration proceedings and a restrictive injunction to prevent YPF from interrupting thedevelopment of the arbitration. AESU is trying to notify the various decisions rendered by the Uruguayan courts through letters rogatory and YPF hasobjected to such notification and also before the Argentine courts involved therein on the grounds of formal defects in such intended notification and alsoarguing that Uruguayan courts have no competence to deal with matters of this kind. As of the date the motion raised by YPF has not been decided by theArgentine courts while the Court of Appeals has decided to notify Uruguayan courts the decisions rendered in the appeal for nullity filed by YPF.On January 10, 2014, YPF was served with the complaint for damages filed by AESU with the Arbitration Tribunal claiming a total amount of US$815.5 million and also with the complaint for damages filed by TGM with the Arbitration Tribunal claiming a total amount of US$ 362.6 million. OnApril 25, 2014, YPF filed a reply to the complaint for damages with the Arbitration Tribunal rejecting the alleged sums claimed by TGM and AESU based onthe fact that the said amounts are disproportionate due to errors in the technical valuations attached. On July 8, 2014, TGM filed an answer to the reply withthe Arbitration Tribunal, which was in turn responded to by YPF on September 23, 2014 by filing a second answer thereto.Despite having brought the action mentioned, considering the information available to date, the estimated time remaining until the end of the proceedings,the outcomes of the additional evidence presented in the continuation of the dispute and the provisions of the arbitral award, the Company has accrued itsbest estimate with respect to the amount of the claims.Furthermore, there are certain claims in relation with payments of natural gas transportation contracts associated with exports of such hydrocarbon.Consequently, one of the parties, Transportadora de Gas del Norte S.A. (“TGN”), commenced mediation proceedings in order to determine the merits of suchclaims. The mediation proceedings did not result in an agreement and YPF was notified of the lawsuit filed against it, in which TGN is claiming the paymentof unpaid invoices, according to their arguments, while reserving the right to claim for damages, which were claimed in a note addressed to YPF duringNovember 2011. Additionally, the plaintiff notified YPF that it was terminating the contract invoking YPF’s fault, basing its decision on the alleged lack ofpayment of transportation fees, reserving the right to claim for damages. After that, TGN filed the lawsuit claiming for damages mentioned above. The totalamount claimed by TGN amounts to approximately US$ 207 million as of the date of these consolidated financial statements. YPF has answered thementioned claims, rejecting them based in the legal impossibility for TGN to render the F-46Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentstransportation service and in the termination of the transportation contract determined by YPF and notified with a complaint initiated before ENARGAS. Onthe trial for the collection of bills, on September 2011, YPF was notified of the resolution of the Court of Appeals rejecting YPF’s claims and declaring thatENARGAS is not the appropriate forum to decide on the matter and giving jurisdiction to the Civil and Commercial Federal courts to decide on the claim forthe payment of unpaid invoices mentioned above.Regarding the previously mentioned issue, on April 8, 2009, YPF had filed a complaint against TGN with ENARGAS, seeking the termination of the naturalgas transportation contract with TGN in connection with the natural gas export contract entered with AESU and other parties. The termination of the contractwith that company is based on: (a) the impossibility for YPF to receive the service and for TGN to render the transportation service, due to (i) the terminationof the natural gas contract with Sulgás/AESU and (ii) the legal impossibility of assigning the transportation contract to other shippers because of theregulations in effect, (b) the legal impossibility for TGN to render the transportation service on a firm basis because of certain changes in law in effect since2004, and (c) the “Teoría de la Imprevisión” available under Argentine law, when extraordinary events render a party’s obligations excessively burdensome.On April 3, 2013 the complaint for damages brought by TGN was notified whereby TGN claimed YPF the amount of US$ 142 million, plus interests and legalfees for the termination of the transportation contract, and notified that YPF shall have 30 days to file and answer thereto. On May 31, 2013 YPF answered theclaim requesting the dismissal thereof. On April 3, 2014 the evidence production period commenced for a 40-days lapse, and the court notified the partiesthat they shall submit a copy of evidence offered by them to create exhibit binder. As of the date of issuance of these consolidated financial statements,evidence offered by the parties is being produced.In addition, Nación Fideicomisos S.A. (NAFISA) had initiated a claim against YPF in relation to payments of applicable fees for natural gas transportationservices to Uruguaiana corresponding to the transportation invoices claimed by TGN. A mediation hearing finished without arriving to an agreement,concluding the pre-trial stage. Additionally, on January 12, 2012 and following a mediation process which ended without any agreement, NAFISA filed acomplaint against YPF, under article 66 of Law No. 24,076, before ENARGAS, claiming the payment of certain transportation charges in an approximateamount of 339. On February 8, 2012, YPF answered the claim raising ENARGAS’ lack of jurisdiction (as the Company did in the proceeding against TGN),the accumulation in the “TGN vs. YPF” trial and rejecting the claim based on the theory of legal impossibility. On the same date, was also submitted in thetrial “TGN vs. YPF” similar order of accumulation. On April 12, 2012, ENARGAS resolved in favor of NAFISA. On May 12, 2012 YPF filed an appeal againstsuch resolution to the National Court of Appeals in the Federal Contentious Administrative. On November 11, 2013, such court dismissed the direct appealfiled by YPF. In turn, on November 19, 2013 YPF submitted an ordinary appeal before the National Supreme Court of Justice and on November 27, anextraordinary appeal was lodged, also before the Supreme Court. The ordinary appeal was granted and YPF timely filed the grounds of such appeal. YPF’sManagement has accrued its best estimate with respect to the claims mentioned above.As of December 31, 2014, the Company has accrued costs for penalties associated with the failure to deliver the contractual volumes of natural gas in theexport and domestic markets which are probable and can be reasonably estimated.Tax claims:The Company has received several claims from the Administración Federal de Ingresos Públicos (“AFIP”) and from provincial and municipal fiscalauthorities, which are not individually significant, and which have been accrued based on the best information available as of the date of the issuance ofthese financial statements.La Plata and Quilmes environmental claims:La Plata: In relation with the operation of the refinery that YPF has in La Plata, there are certain claims for compensation of individual damages purportedlycaused by the operation of the La Plata refinery and the environmental remediation of the channels adjacent to the mentioned refinery. During 2006, YPFsubmitted a presentation before the Environmental Secretariat of the Province of Buenos Aires which put forward for consideration the performance of a studyfor the characterization of environmental associated risks. As previously mentioned, YPF has the right of indemnity for events and claims prior to January 1,1991, according to Law No. 24,145 and Decree No. 546/1993. Besides, there are certain claims that could result in the requirement to make additionalinvestments connected with the operations of La Plata refinery. F-47Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn January 25, 2011, YPF entered into an agreement with the environmental agency of the Government of the Province of Buenos Aires (OrganismoProvincial para el Desarrollo Sostenible (“OPDS”)), within the scope of the Remediation, Liability and Environmental Risk Control Program, created byResolution No. 88/10 of the OPDS. Pursuant to the agreement, the parties agreed to jointly perform an eight-year work program in the channels adjacent tothe La Plata refinery, including characterization and risk assessment studies of the sediments. The agreement provides that, in the case that a requiredremediation action is identified as a result of the risk assessment studies, the different alternatives and available techniques will be considered, as well as thesteps needed for the implementation. Dating studies will also be performed pursuant to the agreement, in order to determine responsibilities of the ArgentineGovernment in accordance with its obligation to hold YPF harmless in accordance with the article 9 of the Privatization Law No. 24,145. YPF hasprovisioned the estimated cost of the characterization and risk assessment studies mentioned above. The cost of the remediation actions, if required, will berecorded in those situations where the loss is probable and can be reasonably estimated.Quilmes: Citizens which allege to be residents of Quilmes, Province of Buenos Aires, have filed a lawsuit in which they have requested remediation ofenvironmental damages and also the payment of 47 plus interests as a compensation for supposedly personal damages. They base their claim mainly on a fuelleak in the pipeline running from La Plata to Dock Sud, currently operated by YPF, which occurred in 1988 as a result of an illicit detected at that time, beingat that moment YPF a state-owned company. Fuel would have emerged and became perceptible on November 2002, which resulted in remediation works thatare being performed by the Company in the affected area, supervised by the environmental authority of the Province of Buenos Aires. The ArgentineGovernment has denied any responsibility to indemnify YPF for this matter, and the Company has sued the Argentine Government to obtain a declaration ofinvalidity of such decision. The suit is still pending. On November 25, 2009, the proceedings were transferred to the Federal Court on Civil and CommercialMatters No. 3, Secretariat No. 6 in Buenos Aires City and on March 4, 2010, YPF answered the complaint and requested the citation of the ArgentineGovernment. On December 18, 2014 the Argentine Government was cited, by notification of the demand and its extensions, by letter to the Ministry ofFederal Planning. In addition to the aforementioned, the Company has other 26 judicial claims against it with total claims amounting to approximately 19.Additionally, YPF is aware of the existence of other out of court claims which are based on similar allegations.Other claims and environmental liabilities:In relation to environmental obligations, and in addition to the hydrocarbon wells abandonment legal obligations for 18,463 as of December 31, 2014, theCompany has accrued 2,414 corresponding to environmental remediation, which evaluations and/or remediation works are probable and can also bereasonably estimated, based on the Company’s existing remediation program. Legislative changes, on individual costs and/or technologies may cause a re-evaluation of the estimates. The Company cannot predict what environmental legislation or regulation will be enacted in the future or how future laws orregulations will be administered. In the long-term, this potential changes and ongoing studies could materially affect future results of operations.Environmental liabilities of YPF Holdings Inc.1. IntroductionLaws and regulations relating to health and environmental quality in the United States of America affect nearly all the operations of YPF Holdings Inc.(hereinafter mentioned as “YPF Holdings Inc.” or “YPF Holdings”). These laws and regulations set various standards regulating certain aspects of health andenvironmental quality, provide for penalties and other liabilities for the violation of such standards and establish in certain circumstances remedialobligations.YPF Holdings Inc. believes that its policies and procedures in the area of pollution control, product safety and occupational health are adequate to preventreasonable risk of environmental and other damage, and of resulting financial liability, in connection with its business. Some risk of environmental and otherdamage is, however, inherent in particular operations of YPF Holdings Inc. and, as discussed below, Maxus Energy Corporation (“Maxus”) and TierraSolutions Inc. (“TS”), both controlled by YPF Holdings Inc., could have certain potential liabilities associated with operations of Maxus’ former chemicalsubsidiary. F-48Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsYPF Holdings Inc. cannot predict what environmental legislation or regulations will be enacted in the future or how existing or future laws or regulations willbe administered or enforced. Compliance with more stringent law regulations, as well as more vigorous enforcement policies of the regulatory agencies, couldin the future require material expenditures by YPF Holdings Inc. for the installation and operation of systems and equipment for remedial measures, possibledredging requirements, among other things. Also, certain laws allow for recovery of natural resource damages from responsible parties and ordering theimplementation of interim remedies to abate an imminent and substantial endangerment to the environment. Potential expenditures for any such actionscannot be reasonably estimated.In the following discussion, references to YPF Holdings Inc. include, as appropriate and solely for the purpose of this information, references to Maxus andTS.In connection with the sale of Maxus’ former chemical subsidiary, Diamond Shamrock Chemicals Company (“Chemicals”) to Occidental PetroleumCorporation (“Occidental”) in 1986, Maxus agreed to indemnify Chemicals and Occidental from and against certain liabilities relating to the business oractivities of Chemicals prior to September 4, 1986 (the “selling date”), including environmental liabilities relating to chemical plants and waste disposalsites used by Chemicals prior to the selling date.YPF Holdings Inc.’s management believes it has adequately provisioned for all environmental contingencies, which are probable and can be reasonablyestimated; however, changes in circumstances, including new information or new requirements of governmental entities, could result in changes, includingadditions, to such provisions in the future. The most significant contingencies are described in the following paragraphs.2. Environmental Issues relating to Lister site and Passaic River2.1 Environmental administrative Issues relating to the lower 8 miles of the Passaic River • Newark, New JerseyA consent decree, previously agreed upon by the U.S. Environmental Protection Agency (“EPA”), the New Jersey Department of Environmental Protectionand Energy (“DEP”) and Occidental, as successor to Chemicals, was entered in 1990 by the United States District Court of New Jersey and requiresimplementation of a remedial action plan at Chemical’s former Newark, New Jersey agricultural chemicals plant. The interim remedial plan has beencompleted and paid for by TS. This project is in the operation and maintenance phase. • Passaic River, New JerseyMaxus, complying with its contractual obligation to act on behalf of Occidental, negotiated an agreement with the EPA (the “1994 AOC”) under which TShas conducted testing and studies near the Newark plant site, adjacent to the Passaic River. While some work remains, the work under the 1994 AOC wassubstantially subsumed by reason of an administrative arrangement dated 2007 (the “2007 AOC”) with about 70 companies (including Occidental and TS).Under the 2007 AOC, the lower 17 miles of the Passaic River, from the mouth at Newark Bay to Dundee Dam, should be subjected to a RemedialInvestigation / Feasibility Study (“RI/FS”). Participants of the 2007 AOC are discussing the possibility of conducting additional remedial works with theEPA. The entities that have agreed to fund the RI/FS have negotiated an interim allocation of RI/FS costs among themselves based on a number ofconsiderations. This group is called the Cooperative Parties Group (the “CPG”). The 2007 AOC is being coordinated with a joint federal, state, local andprivate sector cooperative effort designated as the Lower Passaic River Restoration Project (“PRRP”). On May 29, 2012, Occidental, Maxus and TS withdrewfrom the CPG under protest and reserving all their rights. A description of the circumstances of such decision can be found below in the paragraph titled“Passaic River - Mile 10.9 - Removal Action”. However, Occidental continues to be a member of the 2007 AOC and its withdrawal from the CPG does notchange its obligations under the 2007 AOC. The RI/FS concerning the 2007 AOC is expected to be completed by the first or second quarter of 2015 togetherwith the filing with the EPA by the CPG of a preliminary report containing its recommendation as to preferred remediation. EPA will have to assess suchrecommendation and then render an opinion in this connection. This process may take from 12 to 18 months. After an agreement is reached by the CPG andthe EPA on preferred remediation, the report will be published for public opinion, which will be considered for the purpose of issuing a Record of Decision orfinal decision on remediation.The EPA’s findings of fact in the 2007 AOC (which amended the 1994 AOC) indicate that combined sewer overflow/storm water outfall discharges are anongoing source of hazardous substances to the Lower F-49Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsPassaic River Study Area. For this reason, during the first half of 2011, Maxus and TS signed with the EPA, on behalf of Occidental, an AdministrativeSettlement Agreement and Order on Consent for Combined Sewer Overflow/Storm Water Outfall Investigation (“CSO AOC”), which became effective inSeptember 2011. Besides providing for a study of combined sewer overflows in the Passaic River, the CSO AOC confirms that there will be no furtherobligations to be performed under the 1994 AOC. In the second half of 2014, TS submitted to the EPA its report (thus completing phase 1) and still expectsthe EPA’s comments on the proposed work plan. TS estimates that the total cost to implement the CSO AOC is approximately US$ 5 million and will takeapproximately 2 years to be completed once EPA authorizes phase 2 (the work plan).In 2003, the DEP issued Directive No. 1 to Occidental and Maxus and certain of their respective related entities as well as other third parties. Directive No. 1seeks to address natural resource damages allegedly resulting from almost 200 years of historic industrial and commercial development along a portion of thePassaic River and a part of its watershed. Directive No. 1 asserts that the named entities are jointly and severally liable for the alleged natural resourcedamages without regard to fault. The DEP has asserted jurisdiction in this matter even though all or part of the lower Passaic River is subject to the PRRP.Directive No. 1 calls for the following actions: interim compensatory restoration, injury identification, injury quantification and value determination. Maxusand TS responded to Directive No. 1 setting forth good faith defenses. Settlement discussions between the DEP and the named entities have been held;however, no agreement has been reached or is assured.In 2004, the EPA and Occidental entered into an administrative order on consent (the “2004 AOC”) pursuant to which TS (on behalf of Occidental) hasagreed to conduct testing and studies to characterize contaminated sediment and biota and evaluate remedial alternatives in the Newark Bay and a portion ofthe Hackensack, the Arthur Kill and Kill van Kull rivers. The initial field work on this study, which includes testing in the Newark Bay, has beensubstantially completed. Discussions with the EPA regarding additional work that might be required are underway. EPA has issued General Notice Letters toa series of additional parties concerning the contamination of Newark Bay and the work being performed by TS under the 2004 AOC. TS proposed to theother parties that, for the third stage of the RI/FS undertaken in Newark Bay, the costs be allocated on a per capita basis. The parties have not agreed to TS’sproposal. However, YPF Holdings lacks sufficient information to determine additional costs, if any, it might have with respect to this matter once the finalscope of the third stage is approved, as well as the proposed distribution mentioned above.In December 2005, the DEP issued a directive to TS, Maxus and Occidental directing said parties to pay the State of New Jersey’s cost of developing a SourceControl Dredge Plan focused on allegedly dioxin-contaminated sediment in the lower six-mile portion of the Passaic River. The development of this plan wasestimated by the DEP to cost approximately US$ 2 million. The DEP has advised the recipients that (a) it is engaged in discussions with the EPA regardingthe subject matter of the directive, and (b) they are not required to respond to the directive until otherwise notified.In August 2007, the National Oceanic Atmospheric Administration (“NOAA”) sent a letter to a number of entities it alleged have a liability for naturalresources damages, including TS and Occidental, requesting that the group enters into an agreement to conduct a cooperative assessment of natural resourcesdamages in the Passaic River and Newark Bay. In November 2008, TS and Occidental entered into an agreement with the NOAA to fund a portion of the costsit has incurred and to conduct certain assessment activities during 2009. Approximately 20 other PRRP members have also entered into similar agreements.In November 2009, TS declined to extend this agreement.During June 2008, the EPA, Occidental, and TS entered into an AOC (“Removal AOC from 2008”), pursuant to which TS (on behalf of Occidental) willundertake a removal action of sediment from the Passaic River in the vicinity of the former Diamond Alkali facility. This action results in the removal ofapproximately 200,000 cubic yards of sediment, which will be carried out in two different phases. The first phase, which commenced in July 2011,encompasses the removal of 40,000 cubic yards (30,600 cubic meters) of sediments and was substantially completed in the fourth quarter of 2012. The EPAconducted a site inspection in January 2013, and TS received written confirmation of completion in March 2013. The second phase involves the removal ofapproximately 160,000 cubic yards (122,400 cubic meters) of sediment. This second phase will start after according with EPA certain development’s aspectsrelated to it. Pursuant to the Removal AOC from 2008, the EPA has required the provision of financial assurance for the execution of the removal work whichcould increase or decrease over time if the anticipated cost of completing the removal work contemplated by the Removal AOC from 2008 changes. Duringthe sediment removal action, contaminants which may have come from sources other than the former Diamond Alkali plant will necessarily be removed. F-50Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents2.2 Feasibility Study for the environmental remediation of the lower 8 miles of the Passaic River • First draft - Year 2007On June 2007, EPA released a draft Focused Feasibility Study (the “FFS 2007”). The FFS 2007 outlines several alternatives for remedial action in the lowereight miles of the Passaic River. These alternatives range from no action, which would result in comparatively little cost, to extensive dredging and capping.TS, in conjunction with the other parties working under the CPG, submitted comments over legal and technical defects of the FFS 2007 to EPA. As a result ofall the comments received, EPA withdrew FFS 2007 in order to modify it and give more consideration to comments. On November 14, 2013 at a CommunityAdvisory Group (“CAG”) meeting, the EPA described the alternatives considered in the FFS 2007, that consisted of four alternatives: (i) no action; (ii) deepdredging of 9.7 million cubic yards during 12 years (cost: US$ 1.4 billion to US$ 3.5 billion, depending in part on whether the dredged sediment is disposedof in a contained aquatic disposal facility on the floor of Newark Bay (“CAD”) or at an off-site disposal facility); (iii) capping and dredging of 4.3 millioncubic yards during 6 years (cost: US$ 1 billion to US$ 1.8 billion, depending in part on whether there is a CAD or off-site disposal; (iv) focused capping anddredging of 0.9 million cubic yards during 3 years (the alternative proposed by the CPG). The EPA indicated that it had discarded alternative (iv) and that itwas currently in favor of alternative (iii). • Second draft - Year 2014On April 11, 2014, the EPA published a new FFS draft (“FFS 2014”). The EPA submitted this draft for consideration for a period of public comments startingon April 21, 2014, after two extensions, the process ended on August 20, 2014.The FFS 2014 contains the four remediation alternatives analysed by the EPA, as well as the estimation of the cost of each alternative which consist of: (i) noaction, (ii) deep dredging of 9.7 million cubic yard capping (cost estimated by EPA: US$ 1.34 billion to US$ 3.24 billion, depending on the possibility ofdisposing dredged sediments in a contained subaquatic disposal facility on the floor of Newark Bay (“CAD”) or at an off-site disposal facility, or localdecontamination and beneficial use); (iii) capping and dredging of 4.3 million cubic yards and placing of an engineering cap (a physical barrier mainly builtwith sand and stone) (cost estimated by EPA: US$ 1 billion to US$ 1.73 billion, depending on the existence of a CAD or an off-site disposal facility, or localdecontamination and beneficial use); and (iv) focused dredging and filling of 1 millon cubic yard (cost estimated by the EPA: US$ 0.4 billion toUS$ 0.6 billion, depending on the existence of a CAD or off-site disposal facility, or local decontamination and beneficial use). The alternative favored byEPA at the time of issuance of FFS 2014 was the third one, considering the disposal of removed material at an off-site disposal facility, with a currentestimated value of US$ 1.73 billion (estimated at a 7% annual rate).On August 20, 2014, Maxus and TS, on behalf of Occidental, submitted their comments on FFS 2014 to EPA. The main arguments offered by Maxus, TS andOccidental in the comments about the FFS were as follows: • The FFS is not a legally authorized process to select the type and size of the remediation proposed by the EPA for the 8 miles of the lower PassaicRiver. • The FFS is based on a flawed site design. • The FFS overstates the issues of human health and ecological risk. • The proposed plan is not executable and not economically reasonable in cost-benefit terms. • Processes in Region 2 of the EPA present lack public transparency. • The inclusion in the remediation plan of dredging for navigational purposes is not covered by the regulation.In addition to the comments received from Maxus and TS, EPA also received comments from about 400 other companies, institutions, government agencies,non-governmental and private organizations, including the CPG, Amtrak (federal railway company), NJ Transit, United States Army Corps of Engineers,Passaic Valley Sewerage Commission, yacht clubs, public officials, and others. F-51Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn parallel to the revision of FFS 2014, Maxus and TS have been working on a preliminary project called In-ECO, an ecological and sustainable alternative ofbioremediation as a substitute to the remediation chosen by EPA in its FFS 2014. Maxus and TS submitted In-ECO to EPA in May 2014, EPA providedcomments in September and Maxus and TS submitted a revision in November 2014.Currently, EPA is considering these comments and will issue a response before EPA makes its final decision on the remedial plan for the area, which willprobably be published in a “Record of Decision” sometime in 2015 or 2016. • ConclusionBased on the information available to the Company at the time of issuance of these financial statements, and also considering the uncertainties related to thedifferent remedial alternatives and those that may be incorporated in the final proposal and their associated costs, the outcome of the discoveries and/orevidence that may be produced, the amounts previously incurred by YPF Holdings Inc. in remedial activities in the area covered by FFS, the various partiesinvolved therein, and consequently the uncertainties related to the potential allocation of the removal costs, and the opinion of external legal advisors, it isnot possible to reasonably estimate a loss or range of a loss on the mentioned matters, and therefore YPF Holdings has not recorded a provision for thesematters.2.3 Environmental administrative Issues concerning to the lower 17 miles of the Passaic River • Passaic River Mile 10.9 Removal ActionIn February 2012, the EPA issued to the Cooperating Parties Group (“CPG”), of which TS then was a member, a draft Administrative Settlement Agreementand order on Consent (“AOC RM 10.9”) for Removal Action and Pilot Studies to address high levels of contamination of 2, 3, 7, 8 TCDD, PCBs, mercury andother contaminants of concern in the vicinity of the Passaic River’s mile 10.9, comprised of a sediment formation (“mud flat”) of approximately 8.9 acres.This proposed AOC RM 10.9 ordered that approximately 16,000 cubic yards of sediments be removed and that pilot scale studies be conducted to evaluateex situ decontamination beneficial reuse technologies, innovative capping technologies, and in situ stabilization technologies for consideration andpotential selection as components of the remedial action to be evaluated in the 2007 AOC and the FFS and selected in one or more subsequent records ofdecision. On June 18, 2012, the EPA announced that it had signed an AOC for RM 10.9 with 70 Settling Parties. Occidental, Maxus and TS refused to signthis AOC since they failed to agree with the other parts of the CPG regarding the way of assigning the estimated cost of the removal action. On June 25, 2012,EPA addressed to Occidental the order, pursuant to section 106 of CERCLA, to participate and cooperate with the CPG members who had signed the AOCRM 10.9. Occidental sent to the CPG and EPA its notice of intent to comply with such order on July 23, 2012 followed by its good faith offer on July 27,2012 to provide the use of TS’s dewatering facility. On August 10, 2012, the CPG rejected Occidental’s good faith offer and, on September 7, 2012, the CPGstated that it has alternative plans for handling sediment to be excavated at RM 10.9 and, therefore, has no use for the existing dewatering facility. EPA, byletter of September 26, 2012, advised that it will be necessary for EPA and Occidental to discuss other options for Occidental to participate and cooperate inthe RM 10.9 removal action, as required by its Unilateral Administrative Order. On September 18, 2012, the EPA advised the Passaic River CAG that thebench scale studies of the treatment technologies did not sufficiently lower concentrations of the chemicals to justify the cost, so the RM 10.9 sediments willbe removed offsite for disposal. Therefore, the EPA notified OCC, Maxus and TS that other options would be discussed in order to determine how to complywith the Unilateral Administrative Order, which ends in a petition to constitute a financial guarantee. TS, on behalf of Occidental, worked during the firstfour-month period in 2014 to prepare a proposal for the EPA in connection with RM 10.9. In March 2014, TS sent a work schedule to conduct certain studies,which were conditionally accepted by the EPA. The fieldwork for this research was undertaken in August and an additional field investigation was initiatedin December 2014 and is expected to be completed during the first quarter of 2015. EPA extended the deadline for the fulfillment of the financial guaranteeto March 2014 and then extended the deadline indefinitely. • Feasibility Study for the lower 17 miles of the Passaic RiverNotwithstanding what is discussed above, the lower 17 mile section of the Passaic River, from the mouth at Newark Bay to the Dundee Dam, is the subject ofthe Remedial Investigation/Feasibility Study contemplated in AOC 2007, with completion was expected for 2015, after which EPA will choose a remediationaction that will be made public in order to receive comments. F-52Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn February 2015, the CPG submitted a draft report concerning the lower 17 miles portion of the Passaic River to the EPA. The draft report summarizeshistorical information and data collected as part of the investigation within the remediation framework. The draft report will be reviewed by EPA within 60 to180 days of the submission.2.4 Trial for the Passaic RiverOn the other hand, and in relation to the alleged contamination related to dioxin and other “hazardous substances” discharged from Chemicals’ formerNewark plant and the contamination of the lower stretch of the Passaic River, Newark Bay, other nearby waterways and surrounding areas in December 2005the DEP sued YPF Holdings, TS, Maxus and several companies, besides Occidental. The DEP sought remediation of natural resources damaged and punitivedamages and other matters. The defendants made responsive pleadings and filings. In March 2008, the Court denied motions to dismiss by Occidental, TSand Maxus. The DEP filed its Second Amended Complaint in April 2008. YPF filed a motion to dismiss for lack of personal jurisdiction. The motionmentioned previously was denied in August 2008, and the denial was confirmed by the Court of Appeal. Notwithstanding, the Court denied to plaintiffs’motion to bar third party practice and allowed defendants to file third-party complaints. Third-party claims against approximately 300 companies andgovernmental entities (including certain municipalities) which could have responsibility in connection with the claim were filed in February 2009. DEP filedits Third Amended Complaint in August 2010, adding Maxus International Energy Company and YPF International S.A. as additional named defendants.Anticipating this considerable expansion of the number of parties in the litigation, the Court appointed a Special Master to assist the court in theadministration of discovery. In September 2010, Governmental entities of the State of New Jersey and a number of third-party defendants filed their dismissalmotions and Maxus and TS filed their responses. In October 2010, a number of public third-party defendants filed a motion to sever and stay and the DEPjoined their motion, which would allow the DEP to proceed against the direct defendants. However, the judge has ruled against this motion in November2010. Third-party defendants have also brought motions to dismiss, which have been rejected by the assistant judge in January 2011. Some of the mentionedthird-parties appealed the decision, but the judge denied such appeal in March 2011. In May 2011, the judge issued Case Management Order No. XVII (CMOXVII), which contained the Trial Plan for the case. This Trial Plan divides the case into two phases, each with its own mini-trials. In phase one would bedetermined liability and phase two will determine damages. Following the issuance of CMO XVII, the State of New Jersey and Occidental filed motions forpartial summary judgment. The State filed two motions: the first one against Occidental and Maxus on liability under the Spill Act, and against TS onliability under the Spill Act. In addition, Occidental filed a motion for partial summary judgment that Maxus owes a duty of contractual indemnity toOccidental for liabilities under the Spill Act. In July and August 2011, the judge ruled that, although the discharge of hazardous substances by Chemicals hasbeen proved, liability allegation cannot be made if the nexus between any discharge and the alleged damage is not established. Additionally, the Court ruledthat TS has Spill Act liability to the State based merely on its current ownership of the Lister Avenue site; and that Maxus has an obligation under the 1986Stock Purchase Agreement to indemnify Occidental for any Spill Act liability arising from contaminants discharged on the Lister Avenue site. The SpecialMaster called for and held a settlement conference in November 2011 between the State of New Jersey, on the one hand, and Repsol S.A., YPF and Maxus, onthe other hand to discuss the parties’ respective positions, but no agreement was reached.In February 2012, plaintiffs and Occidental filed motions for partial summary judgment, seeking summary adjudication that Maxus has liability under theSpill Act of New Jersey. In the first quarter of 2012 Maxus, Occidental and plaintiffs submitted their respective briefs. Oral arguments were heard on May 15and 16, 2012. The Judge held that Maxus and TS have direct liability for the contamination generated into the Passaic River. However, volume, toxicity andcost of the contamination were not verified (these issues will be determined in a later phase of the trial). Maxus and TS have the right to appeal such decision.On September 11, 2012 the Court issued the track VIII order. The track VIII order governs the process by which the Court would conduct the discovery andtrial of the State’s damages against Occidental, Maxus and TS (caused by the Diamond Alkali Lister Avenue plant). Under the order, the trial for the firstphase of track VIII was scheduled to commence in July 2013. However, this schedule has been changed by the following occurrence. F-53Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn September 21, 2012, Judge Lombardi (trial judge) granted the State’s application for an Order to Show Cause to Stay all proceedings against third partydefendants who entered into a Memorandum of Understanding (“MOU”) with the State to discuss settlement of the claims against the third party defendants.On September 27, 2012, Occidental filed its Amended Cross-Claims and the following day, the State filed its fourth Amended Complaint. The principalchanges to the State’s pleading concern the State’s allegations against YPF and Repsol, all of which Occidental has adopted in its cross-claims. In particular,there were three new allegations against Repsol involving asset stripping from Maxus and also from YPF based on the Argentine Government’s MosconiReport. On October 25, 2012, the parties to the litigation agreed to a Consent Order, subject to approval by Judge Lombardi, which, in part, extended thedeadline for YPF to respond to the State’s and Occidental’s new pleadings by December 31, 2012, extends fact deposition discovery until April 26, 2013,extends expert discovery until September 30, 2013, and sets trial on the merits for certain allegations for February 24, 2014, date on which it losteffectiveness as it was replaced by subsequent court orders.During the fourth quarter of 2012 and the first quarter of 2013, YPF, YPF Holdings, Maxus and TS together with certain other direct defendants in thelitigation, have engaged in on-going mediation and negotiation seeking the possibility of a settlement with the State of New Jersey. During this time, theCourt has stayed the litigation. On March 26, 2013, the State advised the Court that a proposed settlement between the State and certain third partydefendants had been approved by the requisite threshold number of private and public third party defendants. YPF, YPF Holdings, Maxus and TS approvedin Boards of Directors the authorization to sign the settlement agreement (the “Agreement”) above mentioned. The proposal of the Agreement, which did notimply endorsement of facts or rights and that it is presented only with conciliatory purposes, was subject to an approval process, publication, comment periodand court approval. According to the terms of the Agreement, the state of New Jersey would agree to solve certain claims related with environmentalliabilities within a geographic area of the Passaic River, New Jersey, United States of America, initiated against YPF and certain subsidiaries, recognizing toYPF and other participants in the litigation, a limited liability of US$ 400 million, if they are found responsible. In return, Maxus would make cash paymentof US$ 65 million at the time of approval of the Agreement.In September 2013, Judge Lombardi published its Case Management order XVIII (“CMO 18”), which provides a schedule for approval of the settlementagreement. Pursuant to the CMO 18, the court heard oral arguments on December 12, 2013, after which, Judge Lombardi ruled the rejecting of Occidental’sclaims and approved the settlement agreement. On January 24, 2014, Occidental appealed the approval of the settlement agreement. Notwithstanding, onFebruary 10, 2014, in compliance with the settlement agreement, Maxus made a deposit of US$ 65 million in an escrow account. Occidental appealed JudgeLombardi’s decision approving the settlement agreement, which was dismissed. Later, on April 11, 2014 Occidental notified the parties that it would not seekan additional revision of Judge Lombardi’s decision approving the settlement agreement.Likewise, on June 23, 2014, lawyers of the State of New Jersey reported that Occidental and the State of New Jersey reached an understanding about thegeneral terms and conditions for a settlement agreement that would end the Track VIII proceedings; and on August 20, 2014 they reported that an agreementhad been reached on the text of such settlement agreement.On July 22, 2014, the Court issued the following:(a) Case Management Order No. XXIII to conduct the proceedings, establishing a schedule for the first phase of Track IV (related to claims by Occidentalalleging “alter ego” between Maxus and its shareholders, and the transfer of assets to YPF and Repsol).(b) a court Order for the process of approval of the agreement between the State of New Jersey and Occidental, which established a schedule for the approvalof the agreement between Occidental and the State of New Jersey.On December 16, 2014, the Court approved the Settlement Agreement whereby the State of New Jersey agreed to settle all claims against Occidental relatedto the environmental liabilities within a specific geographical area of the Passaic River, New Jersey, United States of America, in consideration for thepayment of US$ 190 million in three installments, the last payable on June 15, 2015; and a sum amounting up to US$ 400 million if the State of New Jerseyhad to pay its percentage for future remedial actions.On January 5, 2015, Maxus Energy Corporation (“Maxus”), a subsidiary of YPF S.A., received a letter from Occidental requesting Maxus to indemnifyOccidental for all the payments that Occidental agreed to pay to F-54Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsthe State. Formerly, in 2011 the Court held that Maxus had the contractual obligation to indemnify and hold Occidental harmless from any liability under theNew Jersey Spill Compensation and Control Act resulting from contaminants dumped in or from the Lister Avenue site owned by a company bought byOccidental, and with which it merged in 1986. Maxus holds that both the existence and the amount of such obligation to indemnify Occidental for thepayments made to the State under the settlement agreement are pending issues that must wait for the Court decision on the Passaic River case.In addition, on July 31, 2014 Occidental submitted its third amendment to the complaint, in replacement of the second amendment submitted in September2012. YPF, Repsol and Maxus filed motions to limit Occidental’s third amended complaint arguing that the claims incorporated in the third amendment werenot included in the second. Occidental answered that the third amendment incorporates new facts, but not new claims. On October 28, 2014 Judge Lombardirejected Occidental’s arguments.On November 12, 2014, the District Court issued a new schedule (Case Management Order XXV) with the due dates for the discovery and litigation processesin order to decide on the so-called Track III proceedings (contamination liability allocation between Maxus and Occidental) and Track IV proceedings(claims by Occidental against YPF’s for alter ego and fraudulent transfer). According to this new schedule, the following events occurred:a) Motion to dismissThe purpose of this motion was to determine if the asset transference claim was barred by statute of limitations. On January 13, 2015 the Special Masterissued an Opinion (the “Opinion”) recommended that the Judge to dismiss most of the claims against YPF. The Opinion recommended the dismissal of allexcept three of Occidental’s claims against YPF on the basis that they are barred by statute of limitations. Remaining claims refer to: (1) contractual non-compliance of the Stock Purchase Agreement (including the alter ego claims) between Maxus and Occidental; (2) contractual indemnity under the StockPurchase Agreement between Maxus and Occidental, and (3) common contingencies (statutory contribution) undertaken by the defendants within theframework of the transaction agreements. On January 29, 2015 Judge Lombardi fully approved the Opinion. Occidental did not appeal the decision by JudgeLombardi within the established 20-day period, but reserved such right to appeal at the end of the main process.b) Answer to the ComplaintOn February 14, 2015: YPF, Repsol and Maxus/TS filed their answers to Occidental’s complaintc) Motion for Summary JudgementThe purpose of this motion is to decide liability-related issues between Maxus and Occidental. As a consequence of the incorporation of Occidental’s newlawyers, the terms to decide on this motion are subject to agreement between the parties and the approval by the Special Master.d) Trial for Track IV proceedingsThe trial to decide on Track IV would begin in December 2015. However, this date may be modified by the appointment of new Occidental lawyers in thecase.2.5. ConclusionAs at December 31, 2014, an accrual for all matters related to the “Environmental Issues relating to Lister site and Passaic River” was recorded for a totalamount of 1,843 comprising the cost of studies, the most reasonable estimation of expenses that YPF Holdings Inc. may incur for remedial activities, takinginto account the impossibility of reasonably estimating a loss or loss range related to the eventual aforementioned FFS costs, considering the studiesperformed by TS, and the estimated costs corresponding to the Removal Agreement from 2008, as well as other matters related to Passaic River and NewarkBay. This includes the aforementioned associated legal matters. However, other potentially works may be required, including remedial measures additional toor different from those taken into account. Additionally, the development of new information, the imposition of penalties or remedial actions, or the outcomeof negotiations related to the mentioned matters differing from the scenarios assessed by YPF Holdings may result in a need by this company to incur inadditional costs higher than the current allowance amount accrued.Considering the information available to YPF Holdings Inc. as of the date of issuance of these financial statements; the results of studies and testing phase; aswell as the potential liability of the other parties F-55Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsinvolved in this issue and the possible allocation of the removal costs; and considering the opinion of our internal and external legal advisors, themanagement of the Company has not accrued additional amounts than the mentioned above and that could emerge as a result of the conclusion of theaforementioned issues and consequently to be reasonably estimated.3. Other Environmental Administrative Issues unrelated to “Passaic River” • Hudson County, New JerseyUntil 1972, Chemicals operated a chromite ore processing plant at Kearny, New Jersey (“Kearny Plant”). According to the DEP, wastes from these oreprocessing operations were used as fill material at a number of sites in and near Hudson County. DEP has identified over 200 sites in Hudson and EssexCounties alleged to contain chromite ore processing residue either from the Kearny Plant or from plants operated by two other chromium manufacturers.The DEP, TS and Occidental, as successor to Chemicals, signed an administrative consent order with the DEP in 1990 for investigation and remediation workat 40 chromite ore sites in Hudson and Essex Counties alleged to be impacted by the Kearny Plant operations.TS, on behalf of Occidental, is presently performing the work and funding Occidental’s share of the cost of investigation and remediation of these sites. Inaddition, financial assurance has been provided in the amount of US$ 20 million for performance of the work. The ultimate cost of remediation is uncertain.TS submitted its remedial investigation reports to the DEP in 2001, and the DEP continues to review the report.Additionally, in May 2005, the DEP took two actions in connection with the chrome sites in Hudson and Essex Counties. First, the DEP issued a directive toMaxus, Occidental and two other chromium manufacturers directing them to arrange for the cleanup of chromite ore residue at three sites in New Jersey Cityand the conduct of a study by paying the DEP a total of US$ 20 million. While YPF Holdings Inc. believes that Maxus is improperly named and there is littleor no evidence that Chemicals’ chromite ore residue was sent to any of these sites, the DEP claims these companies are jointly and severally liable withoutregard to fault. Second, the State of New Jersey filed a lawsuit against Occidental and two other entities seeking, among other things, cleanup of various siteswhere chromite ore processing residue is allegedly located, recovery of past costs incurred by the state at such sites (including in excess of US$ 2 millionallegedly spent for investigations and studies) and, with respect to certain costs at 18 sites, treble damages. The DEP claims that the defendants are jointlyand severally liable, without regard to fault, for much of the damages alleged. In February 2008, the parties reached an agreement in principle, for which TS,on behalf of Occidental, agreed to pay US$ 5 million and perform remediation works in three sites, with a total cost of approximately US$ 2 million, subjectto the terms of a Consent Judgment between and among DEP, Occidental and two other parties, which was published in the New Jersey Register in June 2011,and became final and effective as of September 2011. Pursuant to the Consent Judgment, the US$ 5 million payment was made in October 2011 and a masterschedule was delivered to DEP for the remediation during a ten-year period, of the three orphan sites plus the remaining chromite ore sites (approximately 26sites) under the Kearny ACO. DEP indicated that it could not approve a ten-year term; consequently, Maxus submitted a revised eight-year schedule whichwas approved by DEP on March 24, 2013.On behalf of Occidental, Maxus granted a financial guarantee in an amount of US$ 20 million for the performance of this work. Currently, TS is performingthe work in accordance with the Master Plan, where the outstanding activities are the onset and completion of extensions work at six sites, theimplementation of the planning phase of the remedial action for a minimum of eight sites, and the preparation and/or presentation of the remedial work planintended to start them in about six sites.In November 2005, several environmental groups sent a notice of intent to sue the owners of the properties adjacent to the former Kearny Plant (the “adjacentproperty”), including among others TS, under the Resource Conservation and Recovery Act. The stated purpose of the lawsuit, if filed, would be to requirethe noticed parties to carry out measures to abate alleged endangerments to health and the environment emanating from the Adjacent Property. The partieshave entered into an agreement that addresses the concerns of the environmental groups, and these groups have agreed, not to file suit. After the originalagreement expired, the parties entered into a new Standstill Agreement, effective since March 7, 2013. F-56Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAs of December 31, 2014, there are approximately 362 accrued in connection with the foregoing chrome-related matters. The study of the levels of chromiumhas not been finalized, and the DEP is still reviewing the proposed actions. The cost of addressing these chrome-related matters could increase dependingupon the final soil actions, the DEP’s response to TS’s reports and other developments. • Painesville, OhioIn connection with the Chemical’s operation until 1976 of one chromite ore processing plant (“Chrome Plant”), the Ohio Environmental Protection Agency(“OEPA”) ordered to conduct a RI/FS at the former Painesville’s Plant area. OEPA has divided the Painesville Work Site into 20 operable units, includingoperable units related to groundwater. TS has agreed to participate in the RI/FS as required by the OEPA. TS submitted the remedial investigation report tothe OEPA, which was finalized in 2003. TS will submit required feasibility reports separately. In addition, the OEPA has approved certain work, including theremediation of specific operable units within the former Painesville Works area and work associated with the development plans discussed below (the“Remediation Work”). The Remediation Work has begun. As the OEPA approves additional projects related to investigation, remediation, or operation andmaintenance activities for each operable unit within the Site, additional amounts will need to be provisioned.Over fifteen years ago, the former Painesville Works Site was proposed for listing on the national Priority List under the Comprehensive EnvironmentalResponse, Compensation and Liability Act of 1980, as amended (“CERCLA”); however, the EPA has stated that the site will not be listed so long as it issatisfactorily addressed pursuant to the Director’s Order and OEPA’s programs. As of the date of issuance of these consolidated financial statements, the sitehas not been listed. As of December 31, 2014, YPF Holdings Inc. has accrued a total of 117 for its estimated share of the cost to perform the RI/FS, theremediation work and other operation and maintenance activities at this site. The scope and nature of any further investigation or remediation that may berequired cannot be determined at this time; however, as the RI/FS progresses, YPF-Holdings-Inc. will continuously assess the condition of the Painesville’splants works site and make any required changes, including additions, to its provision as may be necessary. • Other sites - Greens BayouPursuant to settlement agreements with the Port of Houston Authority and other parties, TS and Maxus are participating (on behalf of Chemicals) in theremediation of property required Chemicals’ former Greens Bayou facility where DDT and certain other chemicals were manufactured. Additionally, in 2007the parties have reached an agreement with the Federal and State Natural Resources Trustees concerning natural resources damages. In 2008, the FinalDamage Assessment and Restoration Plan/Environmental Assessment were approved, specifying the restoration projects to be implemented. During the firstsemester of 2011, TS negotiated, on behalf of Occidental, a draft Consent Decree with governmental agencies of the United States and Texas addressingnatural resource damages at the Greens Bayou Site. The Consent Decree was signed by the parties in January 2013 and notice of approval of the ProposedConsent Agreement was published in the Official Gazette on January 29, 2013. After the publication of the notice a period of 30 days is opened forcomments. Under the agreement, it is agreed to reimburse certain costs incurred by the afore mentioned governmental agencies and conducting tworestoration projects for a total amount of US$ 0.8 million. Although the primary work was largely finished in 2009, some follow-up activities and operationand maintenance remain pending. As of December 31, 2014, YPF Holdings Inc. has accrued 36 for its estimated share of remediation activities associatedwith Greens Bayou facility. • Milwaukee Solvay SiteIn June 2005, the EPA designated Maxus as PRP (Potential Responsible Party) at the Milwaukee Solvay Coke & Gas site in Milwaukee, Wisconsin. The basisfor this designation is Maxus alleged status as the successor to Pickands Mather & Co. and Milwaukee Solvay Coke Co., companies that the EPA has assertedare former owners or operators of such site.In November 2006, five PRPs, including Maxus, signed a joint agreement of participation and defense that establishes the allocation of costs for making aRI/FS. Under the agreement Maxus is responsible for a significant part.In 2007, Maxus signed with four other parties potentially involved, an AOC to conduct RI/FS about contamination in the soil, groundwater, as well as in theKinnickinnic River sediments. F-57Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOn April 25, 2012 EPA made a proposal concerning the scope of future investigations of sediments, which was rejected by the PRP group.On June 6, 2012 the PPR Group submitted a proposed Field Sampling Plan (FSP) that included detailed plans for the remaining upland investigation and aphased approach to the sediment investigation. In July 2012, EPA responded to the FSP requiring expanded sediment sampling as part of the next phase ofthe investigation and additional evaluation for the possible presence of distinct coal and coke layers on parts of the upland portion of the Site. In December2012, EPA approved the PRP Group’s revised FSP, and the PRP Group commenced upland and sediment investigation activities. The estimated cost ofimplementing the field work associated with the FSP is approximately US$ 0.8 million.In February 2014, the PRP Group submitted to EPA and the Wisconsin Department of Natural Resources a preliminary study of basic assessment of risk tohuman health, a preliminary study of ecological risk assessment of upland and an ecological risk assessment of aquatic life. Currently, they are conductingsediment research activities as approved in the FSP.YPF Holdings Inc. has accrued 5 as of December 31, 2014 for its estimated share of the costs of the RI/FS. The main outstanding issue lies in determining theextent of the studies of sediments in the river that may be required. YPF Holdings Inc. lacks sufficient information to determine additional costs, if any; itmight have in respect of this site. • Other sites - Black Leaf Chemical SiteIn September 2011, Occidental and Exxon Mobil received a liability notice from EPA under the ruling known as 104(e) for the site called Black LeafChemical located at Louisville, Kentucky. Occidental requested that Maxus undertake the defense of this matter by virtue of the indemnity established in theStock Purchase Agreement of 1986. Maxus accepted the defense, reserving its rights with respect to the case and without acknowledging any responsability.In March 2013, EPA requested Maxus on behalf of Occidental, and Exxon Mobil to perform specific remedial tasks and to reimburse EPA and the localregulatory authority certain past costs (estimated between US$ 3 and US$ 5 million). Investigation work began in September 2014, and should be finished inthe fourth quarter of 2015. However, despite the fact that as at December 31, 2014 no agreement exists between the potentially liable parties, the share ofOccidental/Maxus is expected to be minor. • Tuscaloosa SiteThe Company has completed the remediation activities at this site. YPF Holdings Inc. has accrued 31 for these matters as at December 31, 2014. • Malone Services SiteMaxus has agreed to defend Occidental, as successor to Chemicals, in respect of the Malone Services Company Superfund site in Galveston County, Texas.This site is a former waste disposal site where Chemicals is alleged to have sent waste products prior to September 1986. The potentially responsible parties,including Maxus on behalf of Occidental, formed a PRP Group to finance and perform an AOC RI/FS. The RI/FS has been completed and the EPA hasselected a Final Remedy, the EPA Superfund Division Director signed the Record of Decision on September 20, 2009. The PRP Group signed a ConsentDecree in the second quarter of 2012 which became effective in July, 2012. During 2012, 2013 and 2014 the PRP Group continued with the design, planningand remediation phase. As of December 31, 2014 YPF Holdings has accrued 3 in connection with its obligations for this matter. • Other third party sitesChemicals has also been designated as a PRP with respect to a number of third party sites where hazardous substances from Chemicals’ plant operationsallegedly were disposed or have come to be located. At several of these, Chemicals has no known relationship. Although PRPs are typically jointly andseverally liable for the cost of investigations, cleanups and other response costs, each has the right of contribution from other PRPs and, as a practical matter,cost sharing by PRPs is usually effected by agreement among them. As of December 31, 2014, YPF Holdings Inc. has accrued approximately 31 in connectionwith its estimated share of costs related to certain sites and the ultimate cost of other sites cannot be estimated at the present time. F-58Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents• Black Lung Benefits Act LiabilitiesThe Black Lung Benefits Act provides monetary and medical benefits to miners disabled with a lung disease, and also provides benefits to the dependents ofdeceased miners if black lung disease caused or contributed to the miner’s death. As a result of the operations of its coal-mining subsidiaries, YPF HoldingsInc. is required to provide insurance of this benefit to former employees and their dependents. As of December 31, 2014, YPF Holdings Inc. has accrued 33 inconnection with its estimate of these obligations.4. Other legal proceedings • Sale Taxes - TexasIn 2001, the Texas State Controller assessed Maxus approximately US$ 1 million in Texas state sales taxes for the period of September 1, 1995 throughDecember 31, 1998, plus penalty and interest.In August 2004, the administrative law judge issued a decision affirming approximately US$ 1 million of such assessment, plus penalty and interest. YPFHoldings Inc. believes the decision is erroneous, but has paid the revised tax assessment, penalty and interest (a total of approximately US$ 2 million) underprotest. Maxus filed a suit in Texas state court in December 2004 challenging the administrative decision. The matter will be reviewed by a trial de novo inthe court action, additionally, settlement negotiations are ongoing. • Occidental’s claim for past events - TexasIn 2002, Occidental sued Maxus and TS in state court in Dallas, Texas seeking a declaration that Maxus and TS have the obligation under the agreementpursuant to which Maxus sold Chemicals to Occidental to defend and indemnify Occidental from and against certain historical obligations of Chemicals,notwithstanding the fact that said agreement contains a twelve-year cut-off for defense and indemnity obligations with respect to most litigation. TS wasdismissed as a party, and the matter was tried in May 2006. The trial court decided that the twelve-year cut-off period did not apply and entered judgmentagainst Maxus. This decision was affirmed by the Court of Appeals in February 2008. Maxus has petitioned the Supreme Court of Texas for review. Thislawsuit was denied. This decision will require Maxus to accept responsibility of various matters which it has refused indemnification since 1998 which couldresult in the incurrence of costs in addition to YPF Holdings Inc.’s current provisions for this matter. Maxus has paid approximately US$ 17 million toOccidental. In March 2012, Maxus paid to Occidental US$ 0.6 million covering Occidental’s costs for 2010 and 2011, and in September 2012 Maxus paid toOccidental an additional US$ 31 thousand for Occidental’s costs for the first semester of 2012. Maxus anticipates that Occidental’s costs in the future underthe Dallas case will not exceed those incurred in the first semester of 2012. Most of the claims that had been rejected by Maxus based on the twelve-year cut-off period, were related to “Agent Orange”. All pending Agent Orange litigation was dismissed in December 2009, and although it is possible that furtherclaims may be filed by unknown parties in the future, no further significant liability is anticipated. Additionally, the remaining claims received and refusedconsist primarily of claims of potential personal injury from exposure to vinyl chloride monomer (“VCM”), and other chemicals, although they are notexpected to result in significant liability. However, the declaratory judgment includes liability for claims arising in the future, if any, related to this matters,which are currently unknown as of the date of issuance of these consolidated financial statements, and if such claims arise, they could result in additionalliabilities for Maxus. As of December 31, 2014, YPF Holdings Inc. has accrued approximately 3 in respect to these matters. • Turtle BayouIn March 2005, Maxus agreed to defend Occidental, as successor to Chemicals, in respect of an action seeking the contribution of costs incurred inconnection with the remediation of the Turtle Bayou waste disposal site in Liberty County, Texas. The plaintiffs alleged that certain wastes attributable toChemicals found their way to the Turtle Bayou site. Trial for this matter was bifurcated, and in the liability phase Occidental and other parties were foundseverally, and not jointly, liable for waste products disposed of at this site. Trial in the allocation phase of this matter was completed in the second quarter of2007, and following post judgment motions, the court entered a decision setting Occidental’s liability at 15.96% of the past and future costs to be incurredby one of the plaintiffs. Maxus appealed this matter. In June 2010, the Court of Appeals ruled that the District Court had committed errors in the admission ofcertain documents, and remanded the case to the District Court for further proceedings. Maxus took the position that the F-59Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsexclusion of the evidence should reduce Occidental’s allocation by as much as 50%. The District Court issued its Amended Findings of Fact and Conclusionsof Law in January 2011, requiring Maxus to pay, on behalf of Occidental, 15.86% of the past and future costs to be incurred by one of the plaintiffs. Onbehalf of Occidental, Maxus presented an appeal in the first semester of 2011. The U.S. Court of Appeals for the Fifth Circuit affirmed the District Court’sruling in March 2012. Maxus paid to the plaintiff, on behalf of Occidental, US$ 2 million in June 2012 covering past costs and $0.9 million in November2012 to cover the costs incurred by El Paso in 2007-2011. The obligation to pay some future costs is still pending. As of December 31, 2014, YPF HoldingsInc. has accrued 8 in respect of this matter.Ruby Mhire: In May 2008, Ruby Mhire and others (“Mhire”) brought suit against Maxus and other third parties, alleging that various parties including apredecessor of Maxus had contaminated certain property in Cameron Parish, Louisiana, during oil and gas activities on the property. Maxus’ predecessoroperated on the property from 1969 to 1989. The Mhire plaintiffs have demanded remediation and other compensation from approximately US$ 159 millionto US$ 210 million basing themselves on plaintiff’s experts study. During June 2012, the parties in the case held a court-ordered mediation. Maxus filedappropriate answers to the complaints. On June 22, 2012, the parties to the case held a mediation requested by the Court to discuss a settlement. In thismediation, two of the five defendants reached an agreement with the plaintiffs. Plaintiffs did not attain a termination agreement with the three remainingdefendants (Maxus, Chevron and El Paso). In the fourth quarter of 2012 both the discovery process and the depositions were intensified. In December 2012,Maxus filed an appeal with the intention to obtain a change of forum, alleging that its due process rights would be adversely affected if the case was heard inCameron. The Court had contemplated a hearing in February 2013 and a trial in March 2013. However, the Court suspended litigation in order to allow forthe negotiation of an out-of-court settlement agreement between the parties. On June 2013, Maxus signed an agreement with its plaintiffs, in which Maxushas to make installment payments over three years, and is required to remediate the site. As of December 31, 2014, YPF Holdings Inc. has accruedapproximately 34 in respect to these matters.On July 31, 2013, the Court of Judicial District No. 38 of Cameron, Louisiana State accepted the Resolution Agreement after receiving the notification of NoObjection from the Department of Natural Resources, Office of Conservation on July 8, 2013. In August 2013, under the Settlement Agreement, Maxus madethe initial payment of US$ 2 million and in December 2013 and June 2014 Maxus made payments of US$ 3 million each time.YPF Holdings Inc., including its subsidiaries, is a party to various other lawsuits and environmental situations, the outcomes of which are not expected tohave a material adverse effect on YPF’s financial condition or its future results of operations. YPF Holdings Inc. provisioned legal contingences andenvironmental situations that are probable and can be reasonably estimated.4. CAPITAL STOCKThe Company’s subscribed capital as of December 31, 2014, is 3,933 and is represented by 393,312,793 shares of common stock and divided into fourclasses of shares (A, B, C and D), with a par value of Argentine pesos 10 and one vote per share. These shares are fully subscribed, paid-in and authorized forstock exchange listing.As of December 31, 2014, there are 3,764 Class A outstanding shares. As long as any Class A share remains outstanding, the affirmative vote of ArgentineGovernment is required for: 1) mergers, 2) acquisitions of more than 50% of YPF shares in an agreed or hostile bid, 3) transfers of all the YPF’s production andexploration rights, 4) the voluntary dissolution of YPF or 5) change of corporate and/or tax address outside the Argentine Republic. Items 3) and 4) will alsorequire prior approval by the Argentine Congress.Until the enforcement of Law No. 26,741 detailed in the next paragraphs, Repsol S.A. (“Repsol”) had a participation in the Company, directly and indirectly,of approximately 57.43% shareholding while Petersen Energía S.A. (“PESA”) and its affiliates exercised significant influence through a 25.46% shareholdingof YPF’s capital stock.Law No. 26,741 enacted on May 4, 2012, changed YPF’s shareholding structure. The mentioned Law declared as national public interest and subject toexpropriation the Class D Shares of YPF owned by Repsol, its controlled or controlling entities, representing the 51% of YPF’s equity. According to Law26,741, achieving self-sufficiency in the supply of hydrocarbons as well as in the exploitation, industrialization, transportation and sale of hydrocarbons, isthereby declared of national public interest F-60Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsand a priority for Argentina, with the goal of guaranteeing socially equitable economic development, the creation of jobs, the increase of the competitivenessof various economic sectors and the equitable and sustainable growth of the provinces and regions. The shares subject to expropriation will be distributed asfollows: 51% for the Argentine federal government and 49% for certain Argentine Provinces.According to reports by Repsol to the BCBA dated May 7, 2014, Repsol sold to Morgan Stanley & Co. LLC and 11.86% of the capital stock of YPF,represented by 46,648,538 ordinary shares Class D, ceasing to be a shareholder of the company after such transaction.On April 30, 2014, a General Ordinary and Extraordinary Shareholders’ meeting was held, which has approved the financial statements of YPF for the yearended December 31, 2013 and additionally decided the following in relation with the distribution of earnings of fiscal year ended as of December 31, 2013:(i) appropriate the amount of 200 to a reserve for future acquisition of YPF shares under the “performance and bonus program” mentioned in the Director’sreport of the financial statements for the year ended December 31, 2013 giving to the Board of Directors the opportunity to acquire shares when it considers itconvenient and to comply with the commitments assumed and to be assumed in relation with the mentioned program; (ii) to appropriate the amount of 4,460to constitute a reserve for investment in accordance with the article 70, third paragraph of the Law No. 19,550 of Argentine Corporations as amended; and(iii) the appropriation to a reserve for future dividends in an amount of 465, empowering the Board of Directors to determine the opportunity of paymentwhich should not exceed the ending of the present fiscal year. On June 11, 2014, the Board of Directors decided to pay a dividend of Ps. 1.18 per share for theamount of 464 which was available for shareholders on July 10, 2014.During the years ended 2014 and 2013, YPF has repurchased 634,204 and 1,232,362 shares for a total amount of 200 and 120, respectively, and has settled563,754 and 479,174 shares to the beneficiaries of the Share-Based Benefit Plan, respectively, in order to fulfill the Share-Based Benefit Plans mentioned inNote 1.b.10.iii). The cost of such repurchases is accounted in equity in the “Acquisition cost of treasury shares” account, while the nominal value and theadjustment due to the monetary restatement effect pursuant Previous Argentine GAAP have been reclassified from Subscribed Capital and Adjustments toContributions accounts to “Treasury shares” and “Adjustment to treasury shares”, respectively.5. INVESTMENTS IN COMPANIES AND JOINT VENTURES AND OTHER AGREEMENTSThe following table shows in aggregate, considering that none of the companies are individually material, the amount of investments in affiliated companiesand joint ventures as of December 31, 2014, 2013 and 2012: 2014 2013 2012 Amount of investments in affiliated companies valued using the equity method 739 213 603 Amount of investments valued at cost 18 14 12 Sub-Total participations in affiliated companies and others 757 227 615 Amount of investments in joint ventures valued using the equity method 2,432 1,909 1,311 Sub-Total participations in joint ventures 2,432 1,909 1,311 Provision for reduction in value of holdings in companies (12) (12) (12) 3,177 2,124 1,914 As mentioned in Note 1.b.5 and in Exhibit I, the investments in companies with negative shareholders’ equity are disclosed in “Account payable”. F-61Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe main changes that affected the amount of the investments previously mentioned, during the years ended on December 31, 2014, 2013 and 2012, are thefollowing: 2014 2013 2012 Amount at the beginning of year 2,124 1,914 2,013 Acquisitions and contributions 448 153 — Income from investments valued using the equity method 558 353 114 Dividends distributed (299) (280) (388) Translation difference 470 470 167 Reclassification of investments in companies with negative shareholders’ equity (125) 123 4 Other 1 (609)(1) 4 Amount at the end of year 3,177 2,124 1,914 (1)Among others, includes movements generated in relation with the spin-off of Pluspetrol Energy S.A.Exhibit I.b) provides information of investments in companies.The following table shows the main magnitudes of income/(expenses) from the investments in companies, calculated according to the equity method, for theyears ended on December 31, 2014, 2013 and 2012 (see Exhibit I). YPF has made adjustments, where applicable, to the amounts reported by such companiesin order to conform the accounting principles used by such companies to those used by YPF: Affiliated companies Joint ventures 2014 2013 2012 2014 2013 2012 Net income 234 63(1) 14 324 290 100 Other comprehensive income 18 120 5 452 350 162 Comprehensive income for the year 252 183 19 776 640 262 (1)Includes 156 corresponding to the comprehensive income generated in business combinations with GASA and YPF Energía Eléctrica (see Note 13).Additionally, as mentioned in Note 1.a), the Company participates as of December 31, 2014, in Joint Operations which give to the Company a percentagecontractually established over the rights of the assets and obligations that emerge from the contracts. Interest in such Joint Operations have been consolidatedline by line on the basis of the mentioned interest over the assets, liabilities, income and expenses related to each contract. Interest in Joint Operations havebeen calculated based upon the latest available financial statements as of the end of each year, taking into consideration significant subsequent events andtransactions as well as information available to the Company’s Management. Exhibit II includes a detail of the most significant Joint Operations in which theCompany participates, indicating the nature of its operations.The exploration and production joint operations and other agreements in which YPF participates allocate the hydrocarbon production to each partner basedon the ownership interest, consequently such hydrocarbons are commercialized directly by the partners recognizing each of them the correspondingeconomic effects.The assets and liabilities as of December 31, 2014, 2013 and 2012, and expenses for the three years then ended of the Joint Operations and other agreementsare as follows: 2014 2013 2012 Noncurrent assets 21,275 9,472 7,136 Current assets 1,233 661 551 Total assets 22,508 10,133 7,687 Noncurrent liabilities 2,897 2,342 1,661 Current liabilities 4,404 1,247 1,048 Total liabilities 7,301 3,589 2,709 2014 2013 2012 Production cost 8,523 4,647 3,858 Exploration expenses 672 43 281 F-62Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsTransactions in joint operation contracts: –On January 31, 2014, YPF acquired Petrobras Argentina S.A.’s 38.45% interest in the joint operation contract Puesto Hernández signed between bothcompanies for the exploitation of the Puesto Hernández area (the “Area”). The Area is an exploitation concession located in the Provinces of Neuquénand Mendoza. YPF is the holder of the concession until 2027, which is operated under the aforementioned joint operation contract which expires onJune 30, 2016 and will be early terminated. Now YPF owns 100% interest in the Area, and has become the operator. Puesto Hernández currentlyproduces approximately 10,000 barrels per day of light crude oil (Medanito quality). The transaction was completed for the amount of US$ 40.7million. By becoming the operator of the Area, YPF will be able to accelerate its investments plans to optimize the Area’s production potential until2027. The amount paid was mainly classified as fixed assets. –On February 7, 2014, YPF acquired Potasio Rio Colorado S.A.’s 50% interest in the joint operation contract, Segment 5 Loma La Lata – Sierra Barrosa(known as “Lajas” formation) signed by YPF and Potasio Rio Colorado S.A. for the exploitation of the Lajas formation concession area (the “Area”).The Area is an exploitation concession, located in the Province of Neuquén. YPF is the holder of the concession which expires in 2027. Exploitation ofthe Area was conducted under the aforementioned joint operation contract. The terms of the joint operation contract provided that it would expireupon the earlier of the expiration of the concession or the early termination of any agreement or contract that granted the right to continue exploitingthe Area. As a result of the termination of the joint operation contract YPF will own 100% interest in the Area. The consideration for the transaction wasUS$ 25 million. The amount paid was mainly classified as fixed assets. –YPF and Sinopec Argentina Exploration and Production, Inc., Sucursal Argentina (“SINOPEC”), are part in a Joint Operating Agreement (“JOA”) in thearea “La Ventana”, located in the basin of Cuyo in the Province of Mendoza, whose original due date was December 31, 2016. YPF is the exclusiveowner of such exploitation concession whose due date was November 14, 2017, and through executive order of the Province of MendozaNo. 1,465/2011 the original due date was extended for 10 years more, to November 14, 2027, the new concession due date. On September 1, 2014(“effective date”) YPF and SINOPEC extended the JOA’s due date in relation with the Concession for the Exploitation of Hydrocarbons in the area “LaVentana”, until December 31, 2026. The extension of the Concession and the JOA involve the continuity of the participation of the parties in the rightsand commitments that emerge from the Concession and that, as of the effective date, YPF’s percentage of participation increased by an additional 10%,reaching 70%. The consideration for the transaction was US$ 44 million, an amount that SINOPEC will pay to YPF for the extension of the Concession.Additionally, the transaction generated an income of 369, which has been charged to “Other (expense) income, net”, in the statement of comprehensiveincome. –On December 5, 2014, an agreement has been signed between the Province of Neuquén, Gas y Petróleo del Neuquén S.A., YPF S.A. and YSUR EnergíaArgentina S.R.L. in which the restructuring of the Joint Operating Agreement has been arranged related to “La Amarga Chica” and “Bajada de Añelo”non-conventional hydrocarbons exploitation concession in which YPF and YSUR will hold the following interests: (i) La Amarga Chica, YPF S:A.100% (ii) Bajada de Añelo: YPF S.A. 85% and YSUR Energía Argentina S.R.L. 15%. As compensation for the aforementioned restructuring (a), YPFS.A. has made a US$41 million payment to the Neuquén Province, US$ 12 million for and on behalf of YSUR Energía Argentina S.R.L. and (b) YPFand YSUR granted in favor of the Province of Neuquén, who thereby contributed to Gas y Petróleo de Neuquén S.A, the totality of YPF and YSUR’sinterests in the following areas: (i) Puesto Cortadera; (ii) Loma Negra NI; (iii) Cutral Co Sur; (iv) Neuquén del Medio; (v) Collon Cura Bloque I;(vi) Bajo Baguales. These transferences shall have effect from January 1, 2015.6. BALANCES AND TRANSACTIONS WITH RELATED PARTIESThe Company enters into operations and transactions with related parties according to general market conditions, which are part of the normal operation ofthe Company with respect to their purpose and conditions.The information detailed in the tables below shows the balances with joint ventures and affiliated companies as of December 31, 2014, 2013 and 2012 andtransactions with the mentioned parties for the years ended December 31, 2014, 2013 and 2012. Additionally, the transactions held with the entities of the F-63Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsRepsol Group are included until the date the conditions required to be considered as related parties were met. 2014 2013 2012 Tradereceivables Otherreceivables Accountspayable Tradereceivables Other receivables Accountspayable Tradereceivables Other receivables Accountspayable Current Current Current Current Current NonCurrent Current Current Current NonCurrent Current Joint ventures: Profertil S.A. 56 3 16 23 2 — 34 29 6 — 37 Compañía Mega S.A.(“Mega”) 528 7 40 489 7 — 28 422 5 — 19 Refinería del Norte S.A.(“Refinor”) 145 — 11 79 15 — 4 61 23 — 6 Bizoy S.A. 4 — — — 12 — — — — — — 733 10 67 591 36 — 66 512 34 — 62 Affiliated companies:Central Dock Sud S.A. 89 — — 109 5 484 2 89 4 350 8 Pluspetrol Energy S.A.(1) — — — — — — — 76 — — 2 Metrogas S.A.(1) — — — — — — — 104 — — — Oleoductos del Valle S.A. — — 33 — — — 8 — — — 6 Terminales MarítimasPatagónicas S.A. — — 28 — — — 19 — — — 11 Oleoducto Trasandino(Argentina) S.A. — — 2 — — — 1 — — — 2 Gasoducto del Pacífico(Argentina) S.A. — 6 7 — — — 13 — — — 6 Oiltanking Ebytem S.A. — — 25 — — — 20 — — — 15 89 6 95 109 5 484 63 269 4 350 50 Repsol Group — — — — — — — 1 — — — — — — — — — — 1 — — — 822 16 162 700 41 484 129 782 38 350 112 2014 2013 2012 Revenues Purchasesand Services Revenues Purchasesand Services Interest andfees gained(lossed), net Revenues Purchases andServices (recoveriesof expenses), net Interest andfees gained(lossed), net Joint ventures: Profertil S.A. 304 409 132 277 — 119 273 — Mega 2,485 178 1,786 325 — 1,696 166 — Refinor 859 62 561 76 — 495 125 — Bizoy S.A. 13 — 24 — — — — — 3,661 649 2,503 678 — 2,310 564 — Affiliated companies:Central Dock Sud S.A. 222 — 179 70 17 168 33 3 Pluspetrol Energy S.A.(1) — — 142 54 — 102 27 — Metrogas S.A.(1) — — 17 — — 126 — — Oleoductos del Valle S.A. — 181 — 61 — — 51 — Terminales MarítimasPatagónicas S.A. 1 190 1 139 — — 78 — Oleoducto Trasandino(Argentina) S.A. — 17 — 12 — — 8 — Gasoducto del Pacífico(Argentina) S.A. — 85 — 60 — — 36 — Oiltanking Ebytem S.A. — 147 — 102 — — 101 — 223 620 339 498 17 396 334 3 Main shareholders and otherrelated parties under theircontrol:Repsol — — — — — 8 2 — Repsol YPF Gas S.A. — — — — — 78 1 — Repsol Exploración S.A. — — — — — 1 — — Repsol Tesorería y GestiónFinanciera S.A. — — — — — — 366 (5) Repsol Butano S.A. — — — — — — — (1) Others — — — 1 — 7 19 (4) — — — 1 — 94 388 (10) 3,884 1,269 2,842 1,177 17 2,800 1,286 (7) (1)Includes balances and operations until take over or spin-off date (see Note 13).Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Additionally, in the normal course of business, and taking into consideration that YPF is the main oil and gas company in Argentina, its client/suppliers’portfolio encompasses both private sector entities as well as national, provincial and municipal public sector entities. As required by IAS 24 “Related partydisclosures”, among the major transactions above mentioned the most important are the provision of fuel oil to CAMMESA, which is destined to thermalpower plants, and the purchases of energy to the mentioned company by YPF, and electric energy sales to CAMMESA and fuel oil purchase by YPF EnergíaEléctrica (the operations of sale and purchase for the year ended on December 31, 2014 amounted to 7,816 and 1,121, respectively, and for the year endedDecember 31, 2013 amounted to 2,930 and 792, respectively, and for the year ended December 31, 2012, amounted to 1,993 and 454, respectively, while thenet balance as of December 31, 2014, 2013 and 2012 was a receivable of 1,010, 455 and 96, respectively); the regasification service provided to ENARSA inthe regasification projects of GNL in Escobar and Bahía Blanca and the purchase of natural gas to ENARSA, imported by the mentioned company fromBolivia and crude oil (the operations for the year ended December 31, 2014, amounted to 1,507 and 476, respectively, for the year ended December 31, 2013amounted to 1,015 and 1,107, respectively, and for the year ended December 31, 2012 amounted to 1,371 and 895, respectively, while the net balance as ofDecember 31, 2014, 2013 and 2012 was a receivable of 192, 430 and 356, respectively); the provision of jet fuel to F-64Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A. (the operations for the year ended December 31, 2014, 2013 and 2012, amounted to2,676, 1,495 and 777, while the balance as of December 31, 2014, 2013 and 2012 was a receivable of 183, 104 and 61, respectively), the benefits of theincentive scheme for the Additional Injection of natural gas, among others, (see “Gas agreement” in Note 11.c) with the Department of Federal PlanningInvestment and Services (the operations for the year ended December 31, 2014, 2013 and 2012, amounted to 7,762, 4,289 and 82, respectively, while the netbalance as of such dates was a receivable of 3,390, 1,787 and 82, respectively) and the compensation for providing gas oil to public transport of passengers ata differential price with the Argentine Secretariat of Domestic Commerce (the operations for the year ended December 31, 2014 and 2013, amounted to 3,763and 2,208, while the net balance as of that date was a receivable of 244 and 116, respectively). Such transactions are generally based on medium-termagreements and are provided according to general market or regulatory conditions, as applicable. Additionally, the Company has entered into certainfinancing and insurance transactions with entities related to the national public sector, as defined in IAS 24. Such transactions consist of certain financialtransactions that are described in Note 2.i) of these consolidated financial statements, and transactions with Nación Seguros S.A. related to certain insurancepolicies contracts, and in connection therewith, to the reimbursement from the insurance coverage for the incident occurred in Refinería La Plata in April,2013 (for further detail see Note 11.b).Furthermore, in relation to the investment agreement signed between YPF and Chevron subsidiaries; YPF has an indirect non-controlling interest inCompañía de Hidrocarburo No Convencional S.R.L (“CHNC”) with which YPF carries out transactions in connection with the above mentioned investmentagreement (for further detail see Note 11.c).The table below discloses the compensation for the Company’s key management personnel, including members of the Board of Directors and vice presidents(managers with executive functions appointed by the Board of Directors), for the years ended December 31, 2014, 2013 and 2012: 2014(1) 2013(1) 2012(1) Short-term employee benefits 169 96 86 Share-based benefits 48 29 — Post-retirement benefits 4 3 2 Termination benefits — — 8 Other long-term benefits — — 3 221 128 99 (1)Includes the compensation for YPF’s key management personnel which developed their functions during the mentioned years.7. BENEFIT PLANS AND OTHER OBLIGATIONSFollowing is disclosed the information about pension plans and other obligations of YPF Holdings Inc. The last actuarial evaluation for the plans mentionedabove was made as of December 31, 2014.Defined-benefit obligations 2014 2013 2012 Net present value of obligations 221 190 152 Fair value of assets — — — Deferred actuarial losses — — — Recognized net liabilities 221 190 152 Changes in the fair value of the defined-benefit obligations 2014 2013 2012 Liabilities at the beginning of the year 190 152 157 Translation differences 81 57 21 Service costs — — — Interest costs 5 3 5 Actuarial gains (25) (6) (18) Benefits paid, settlements and amendments (30) (16) (13) Liabilities at the end of the year 221 190 152 F-65Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsChanges in the fair value of the plan assets 2014 2013 2012 Fair value of assets at the beginning of the year — — — Employer and employees contributions 30 16 13 Benefits paid and settlements (30) (16) (13) Fair value of assets at the end of the year — — — Amounts recognized in the Statement of Comprehensive Income (Loss) Income 2014 2013 2012 Service costs — — — Interest costs (5) (3) (5) Gains (Losses) on settlements and amendments — — — Total recognized as expense of the year (5) (3) (5) Amounts recognized in Other Comprehensive Income (Loss) Income 2014 2013 2012 Actuarial gains net 25 6 18 Total recognized in Other Comprehensive Income 25 6 18 Actuarial assumptions 2014 2013 2012Discount rate 5% 3.25 – 3.9% 2.5 – 3.0%Expected return on assets N/A N/A N/AExpected increase on salaries N/A N/A N/AExpected employer’s contributions and estimated future benefit payments for the outstanding plans are: Expected employer’s contributions during 2014 20 Estimated future benefit payments are as follows: 2015 19 2016 18 2017 18 2018 16 2019 – 2075 64 The weighted average duration used in the estimation of future payments was between 6.5 and 7.3.The Company has performed a sensitivity analysis related to variations of 1% in the discount rate and in the trend of medical costs for the mentioned plans,without having, such changes, a significant effect in the liability recognized or net income for the year ended December 31, 2014.For additional information about other existing benefit plans, see Note 1.b.10).8. OPERATING LEASESAs of December 31, 2014, the principal contracts related to operating leases include: • Leasing of production equipment used in fields and equipment for natural gas compression, whose contracts have an average duration of 3 yearswith an option to renew for an additional year and for which contingent payments are calculated based on a rate per unit of use (pesos perhour/day of use). F-66Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Leasing of vessels and barges for the transportation of hydrocarbons, whose contracts have an average duration of 5 years and for whichcontingent payments are calculated based on a rate per unit of use (pesos per hour/day of use). • Leasing of land for the installation and operation of service stations, whose contracts have an average duration of approximately 10 years and forwhich contingent payments are calculated based on a rate per unit of estimated sales of fuel.Expenses recognized for the years ended December 31, 2014, 2013 and 2012, related to operating leases amounted to approximately 5,438, 3,520 and 2,540,respectively, corresponding 1,737, 1,493 and 939 to minimum payments, and 3,701, 2,027 and 1,601 to contingent payments, which have been recorded inthe “Rental of real estate and equipment” and “Operation services and other service contracts” accounts.As of December 31, 2014, the estimated future payments related to these contracts are: Within 1year From 1 to 5years Over 6years Estimated future payments 6,622 8,766 175 9. EARNINGS PER SHAREAs of the date of issuance of these financial statements, YPF has not issued equity instruments that give rise to potential ordinary shares (considering theCompany’s intention of setting the share based benefit plans through treasury shares purchase), as a result, the calculation of diluted earnings per sharecoincides with the basic earnings per share.The following table shows the net income and the number of shares that have been used for the calculation of the basic earnings per share: 2014 2013 2012 Net income 9,002 5,125 3,902 Average number of shares outstanding 392,136,465 392,789,433 393,312,793 Basic and diluted earnings per share (pesos) 22.95 13.05 9.92 Basic and diluted earnings per share are calculated as shown in Note 1.b.14.10. INCOME TAXThe calculation of the income tax expense accrued for the years ended December 31, 2014, 2013 and 2012 is as follows: 2014 2013 2012 Current income tax (7,323) (2,844) (2,720) Deferred income tax (5,900) (6,425) (1,943) (13,223) (9,269) (4,663) The reconciliation of pre-tax income included in the consolidated statement of comprehensive income, at the statutory tax rate, to the income tax asdisclosed in the consolidated statements of comprehensive income for the years ended December 31, 2014, 2013 and 2012, respectively, is as follows: 2014 2013 2012 Net income before income tax 22,072 14,348 8,565 Statutory tax rate 35% 35% 35% Statutory tax rate applied to net income before income tax (7,725) (5,022) (2,998) Effect of the valuation of fixed assets and intangible assets measured in functionalcurrency (10,064) (7,186) (2,327) Translation differences 5,872 4,008 1,213 Effect of the valuation of inventories measured in functional currency (1,156) (807) (303) Income from investments in companies 195 124 40 Non-taxable income - Law No. 19,640 (Tierra del Fuego) (2) 7 25 Tax loss carry forwards — (103) (172) Miscellaneous (343) (290) (141) Income tax expense (13,223) (9,269) (4,663) F-67Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe Company did not recognize deferred income tax assets amounting to 3,511, 978 and 2,523 as of December 31, 2014, 2013 and 2012, respectively, fromwhich 1,953, 559 and 441 corresponds to taxable temporary differences not recoverable and 1,558, 419 and 2,082 corresponds to tax loss carry forwards froma foreign subsidiary, since they do not meet the recognition criteria set forth under IFRS. From the tax loss carry forwards above mentioned, as ofDecember 31, 2014, 1,525 will expire between the years 2017 and 2031 and 33 have an indefinite due date.The composition of the Company’s deferred income tax assets and liabilities as of December 31, 2014, 2013 and 2012, is as follows: 2014 2013 2012 Deferred tax assets Nondeductible provisions and other liabilities 2,479 1,723 1,055 Tax loss and other tax credits 222 45 45 Miscellaneous 17 115 54 Total deferred tax assets 2,718 1,883 1,154 Deferred tax liabilitiesFixed assets (19,250) (11,659) (5,125) Miscellaneous (2,172) (1,649) (666) Total deferred tax liabilities (21,422) (13,308) (5,791) Net deferred tax liability (18,704)(1) (11,425) (4,637) (1)Includes (1,241) arising from the business combination as detailed in Note 13 and (138) related to translation effect.As of December 31, 2014, 2013 and 2012, 244, 34 and 48, respectively, had been classified as deferred income tax assets and 18,948, 11,459 and 4,685,respectively, as deferred income tax liabilities arising from the deferred income tax net balance of each individual company that are consolidated in theseconsolidated financial statements.As of December 31, 2014, 2013 and 2012, the causes that generated charges in “Other comprehensive income” did not generate temporary differences subjectto income tax.11. CONTINGENT LIABILITIES, CONTINGENT ASSETS, CONTRACTUAL COMMITMENTS, MAIN REGULATIONS AND OTHERSa) Contingent liabilitiesThe Company has the following contingencies and claims, individually significant, that the Company’s management, in consultation with itsexternal counsels, believes have possible outcome. Based on the information available to the Company, including the amount of time remainingbefore trial among others, the results of discovery and the judgment of internal and external counsel, the Company is unable to estimate thereasonably possible loss or range of loss on certain matters referred to below: –Asociación Superficiarios de la Patagonia (“ASSUPA”): In August 2003, ASSUPA sued 18 companies operating exploitationconcessions and exploration permits in the Neuquén Basin, YPF being one of them, claiming the remediation of the generalenvironmental damage purportedly caused in the execution of such activities, and subsidiary constitution of an environmentalrestoration fund and the implementation of measures to prevent environmental damages in the future. The plaintiff requested that theArgentine Government, the Federal Environmental Council (“Consejo Federal de Medio Ambiente”), the provinces of Buenos Aires, LaPampa, Neuquén, Río Negro and Mendoza and the Ombudsman of the Nation be summoned. It requested, as a preliminary injunction,that the defendants refrain from carrying out activities affecting the environment. Both the Ombudsman’s summon as well as therequested preliminary injunction were rejected by the CSJN. YPF has answered the demand requesting its rejection, opposing failure ofthe plaintiff and requiring the summon of the Argentine Government, due to its obligation to indemnify YPF for events and claimsprevious to January 1, 1991, according to Law No. 24,145 and Decree No. 546/1993. The CSJN gave the plaintiffs a term to correct thedefects of the complaint. On August 26, 2008, the CSJN decided that such defects had already been corrected and on February 23, 2009,ordered that certain provinces, the Argentine Government F-68Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents and the Federal Environmental Council be summoned. Therefore, pending issues were deferred until all third parties impleaded appearbefore the court. As of the date of issuance of these consolidated financial statements, the provinces of Río Negro, Buenos Aires,Neuquén, Mendoza, and the Argentine government have made their presentations, which are not available to the Company yet. Theprovinces of Neuquén and La Pampa have claimed lack of jurisdiction, which has been answered by the plaintiff, and the claim ispending resolution. On December 13, 2011, the Supreme Court suspended the proceeding for 60 days and ordered YPF and the plaintiffto present a schedule of the meetings that would take place during such suspension, authorizing the participation of the remainingparties and third parties. ASSUPA reported the interruption of the negotiations in the claim and the CSJN declared finalize the 60 daysperiod of suspension property ordered.On December 30, 2014 the Supreme Court issued two interlocutory judgments. By the first, it supported the claim of the Provinces ofNeuquen and La Pampa, and declared that all environmental damages related to local and provincial situations were outside the scope ofhis original competence, and that only “inter-jurisdictional situations” (such as the Colorado River basin) would fall under his venue.By the second judgment, the Court rejected the petition filed by ASSUPA to incorporate Repsol and the directors who served in YPFuntil April 2012 as a necessary third party. The Court also rejected precautionary measures and other proceedings related to such request.In addition, it should be highlighted that the Company learned about other three court complaints filed by ASSUPA against: (i)Concessionaire companies in the San Jorge Gulf basin areas: The complaint has not yet been forwarded to YPF. However,YPF has been notified about an information request. Currently, the court has ordered the suspension of procedural terms; (ii)Concessionaire companies in the Austral basin areas: In this case, a highly summarized action has been ordered. Although ithas been ordered to forward the complaint, YPF has not yet been notified. A precautionary measure has also been ordered toinform different entities about the existence of the trial and the defendants may provide certain information, a decisionalready appealed by YPF. (iii)Concessionaire companies in the Northwest basin areas: On December 1, 2014, the Company was notified about thecomplaint. Currently, terms to answer are suspended at the Company’s request. –Dock Sud environmental claims: A group of neighbours of Dock Sud, Province of Buenos Aires, have sued 44 companies, among whichYPF is included, the Argentine Government, the Province of Buenos Aires, the City of Buenos Aires and 14 municipalities, before theCSJN, seeking the remediation and the indemnification of the environmental collective damage produced in the basin of the Matanzaand Riachuelo rivers. Additionally, another group of neighbours of the Dock Sud area, have filed two other environmental lawsuits, oneof them desisted in relation to YPF, claiming several companies located in that area, among which YPF is included, the Province ofBuenos Aires and several municipalities, for the remediation and the indemnification of the environmental collective damage of theDock Sud area and for the individual damage they claim to have suffered. At the moment, it is not possible to reasonably estimate theoutcome of these claims, as long as, if applicable, the corresponding legal fees and expenses that might result. YPF has the right ofindemnity by the Argentine Government for events and claims previous to January 1, 1991, according to Law No. 24,145 and DecreeNo. 546/1993.By means of sentence dated July 8, 2008, the CSJN: (i)Determined that the Basin Authority (Law No. 26,168) (“ACUMAR”) should be in charge of the execution of the program ofenvironmental remediation of the basin, being the Argentine Government, the Province of Buenos Aires and the City of BuenosAires responsible of its development; delegated in the Federal Court of First Instance of Quilmes the knowledge of all the mattersconcerning the execution of the remediation and reparation; declared that all the litigations related to the execution of theremediation plan will accumulate and will proceed before this court and established that this process produces that other collectiveactions that F-69Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents have for object the environmental remediation of the basin be dismissed (“littispendentia”). YPF has been notified of certainresolutions issued by ACUMAR, by virtue of which YPF has been requested to present an Industrial Reconversion Program, inconnection with certain installations of YPF. The Program has been presented although the Resolutions had been appealed by theCompany; (ii)Decided that the proceedings related to the determination of the responsibilities derived from past behaviours for the reparation ofthe environmental damage will continue before the CSJN. –Environmental claims in La Plata: YPF is aware of an action that has not been served yet, in which the plaintiff requests the clean-up ofthe channel adjacent to the La Plata refinery, the Río Santiago, and other sectors near the coast line, and, if such remediation is notpossible, an indemnification of 500 or an amount to be determined from the evidence produced in discovery. The claim partiallyoverlaps with the requests made by a group of neighbours of La Plata refinery on June 29, 1999, described in Note 3 of “La Plata andQuilmes environmental claims”. Accordingly, YPF considers that if it is served in this proceeding or any other proceeding related to thesame subject matters, the cases should be consolidated to the extent that the claims overlap.With respect to claims not consolidated, for the time being, it is not possible to reasonably estimate the monetary outcome, as long as, ifapplicable, estimate the corresponding legal fees and expenses that might result. Additionally, YPF believes that most damages allegedby the plaintiff, if proved, might be attributable to events that occurred prior to YPF’s privatization and would therefore be theresponsibility of the Argentine Government in accordance with the Privatization Law concerning YPF.In addition to the information mentioned above, YPF has entered into an agreement with the OPDS in connection with the claims of thechannels adjacent to the La Plata refinery, which is described in Note 3 - “La Plata and Quilmes environmental claims”. –Other environmental claims in Quilmes: YPF has been notified of a complaint filed by neighbours of Quilmes city, province of BuenosAires, claiming approximately 353 for compensation for personal damages. Considering the phase of the trial, the evidence available tothe date, and the preliminary judgment of internal and external legal advisors, YPF is unable to reasonably estimate the possible loss orrange of loss related to this complaint. –National Antitrust Protection Board: On November 17, 2003, Antitrust Board requested explanations, within the framework of anofficial investigation pursuant to Article 29 of Law No. 25,156 of Antitrust Protection, from a group of almost thirty natural gasproduction companies, YPF among them, with respect to the following items: (i) the inclusion of clauses purportedly restraining trade innatural gas purchase/sale contracts; and (ii) observations on gas imports from Bolivia, in particular (a) old expired contract signed byYPF, when it was state-owned, and YPFB (the Bolivian state-owned oil company), under which YPF allegedly sold Bolivian gas inArgentina at prices below the purchase price; and (b) the unsuccessful attempts in 2001 by Duke and Distribuidora de Gas del Centro toimport gas into Argentina from Bolivia. On January 12, 2004, YPF submitted explanations in accordance with article 29 of the AntitrustLaw, contending that no antitrust violations had been committed and that there had been no price discrimination between natural gassales in the Argentine market and the export market. On January 20, 2006, YPF received a notification of resolution dated December 2,2005, whereby the Antitrust Board (i) rejected the “non bis in idem” petition filed by YPF, on the grounds that ENARGAS was notempowered to resolve the issue when ENARGAS Resolution No. 1,289 was enacted; and (ii) ordered that the opening of the proceedingsbe undertaken pursuant to the provisions of Section 30 of the Antitrust Law. On January 15, 2007, the Antitrust Board charged YPF andeight other producers with violations of the Antitrust Law. YPF has contested the complaint on the basis that no violation of the law tookplace and that the charges are barred by the applicable statute of limitations and has presented evidence in support of its position. OnJune 22, 2007, YPF presented to the Antitrust Board, without acknowledging any conduct in violation of the Antitrust Law, acommitment consistent with article 36 of the Antitrust Law, requiring to the Antitrust Board to approve the commitment, to suspend theinvestigation and to file the proceedings. On December 14, 2007, the Antitrust Board decided to transfer the motion to the Court ofAppeals as a consequence of the appeal presented by YPF against the rejection of the application of the statute of limitations. F-70Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsIn addition, on January 11, 2012, the Argentine Secretariat of Transportation filed with the CNDC a complaint against five oil companies(including YPF), for alleged abuse of a dominant position regarding bulk sales of diesel fuel to public bus transportation companies. Thealleged conduct consists of selling bulk diesel fuel to public bus transportation companies at prices higher than the price charged inservice stations. According to the provisions of Article 29 of the Antitrust Law, YPF has submitted appropriate explanations to theCNDC, questioning certain formal aspects of the complaint, and arguing that YPF has adjusted its behaviour at all times with currentregulations and that it did not set any discrimination or abuse in determining prices.In addition, YPF is subject to other claims before the Antitrust Board which are related to alleged price discrimination in sale of fuels.Upon the opinion of Management and its legal advisors, such claims have been considered as possible contingencies. –Users and Consumers’ Association claim: The “Users and Consumers Association” (Unión de Usuarios y Consumidores) claimedoriginally against Repsol YPF (then extending its claim to YPF) the reimbursement of the overprice allegedly charged to bottled LPGconsumers between 1993 and 2001. The claim is for an unspecified sum, amounting to 91 in the period 1993 to 1997 (this sum, broughtup-to-date would be approximately 584), together with an undetermined amount for the period 1997 to 2001. The Company claimed theapplication of the statute of limitations (as well as other defences) since, at the date of the extension of the claim, the two-year limit hadalready elapsed. The evidence production period commenced and the evidence is now being produced. –Agreement with Repsol S.A. and others:Law No. 26,741 of Hydrocarbon Sovereignty, declared of public utility and subject to expropriation the 51% of the shares of YPF, owneddirectly or indirectly by Repsol S.A., its main shareholders and its subsidiaries. Further, the mentioned law established the temporaryoccupation of the shares reached by it, following the procedures set forth in Law No. 21,499. On February 25, 2014, the Government ofthe Argentine Republic and Repsol S.A. (“Repsol”) achieved an agreement (here in after, the “Agreement”) in relation to theexpropriation compensation of 200,589,525 YPF’s Class “D” shares in conformity with Law No. 26,741, under the framework of LawNo. 21,499 of Expropriation. In conformity with such law the Ministry of the Economy and Finance of the Nation signed the documentwhereby Repsol agrees to accept a payment of US$ 5,000 million in sovereign bonds as compensation for the expropriation. TheAgreement involves the withdrawal of judicial and arbitral claims filed by Repsol – including the ones against YPF – and a waiver forfurther claims. On February 27, 2014, YPF and Repsol executed an arrangement (the “Arrangement”) whereby, mainly, the partiesreciprocally withdraw, subject to certain exclusions, all present and future actions and/or claims based on causes occurring prior to theArrangement derived from the declaration of public interest and subjection to expropriation of the YPF’s shares, owned by Repsol,pursuant to Law No. 26,741, the intervention, temporary takeover of public utility declared shares and management of YPF.Likewise, the parties have agreed to withdraw reciprocal actions and claims with respect to third parties and/or pursued by them, and togrant a series of mutual indemnities subject to certain conditions.The Arrangement will be enforced on the day following to the date on which Repsol notifies YPF that the Agreement signed betweenRepsol and the Government of the Argentine Republic has been enforced.On March 28, 2014 the Stockholders’ general meeting of Repsol approved the Agreement.Meanwhile, through the enactment of Law No. 26,932 was declared fulfilled the objective of Articles 7, 11 and 12 of Law No. 26,741,and Article 12 of Law No. 21,499, and consequently, it was confirmed the Agreement.Law No. 26,932 was enacted by the National Executive Branch, through the issuance of Decree No. 600/2014 (BO 04/28/2014).Finally, on May 8, 2014, YPF was notified of the enforcement of the Agreement. F-71Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsAdditionally, the Company has received other labour, civil and commercial claims and several claims from the AFIP and from provincial andmunicipal fiscal authorities, not individually significant, which have not been accrued since Management, based on the evidence available as of thedate of issuance of these consolidated financial statements, has assessed them to be possible contingencies.b) Contingent assetsOn April 2, 2013, the facilities of YPF in the La Plata refinery were hit by a severe and unprecedented storm, which caused a fire andconsequently affected the Coke A and Topping C units in the refinery. These incidents temporarily affected the crude processing capacity of therefinery, which had to be stopped entirely. Seven days after the event, the processing capacity was restored to about 100 mbbl/d through thecommissioning of two distillation units (Topping IV and Topping D). Coke A unit is out of service permanently and Topping C unit waslaunched back in late May, after a technical and human effort of great relevance. As a consequence, YPF continues with the settlement process ofthe incident, with the insurance company.Based on the documentation provided to the insurance adjuster appointed by reinsurers, and after their analysis, in November 2013 YPFrequested an advanced payment on account of the total compensation that will result from this process of US$ 300 million (US$ 227 million formaterial damage and US$ 73 million for consequential loss). This advance was accepted, recognized and paid by the reinsurers and,consequently, was recorded in YPF’s statement of comprehensive income for the year ended on December, 31, 2013. Likewise, YPF continueswith the settlement process of the claim. For some subsequent periods, presentations to the insurers had been submitted. Consequently a secondpartial payment of US$ 130 million has been requested, this payment was received during the third quarter of 2014. The loss of profit coverageperiod for this incident will continue until January 16, 2015.As of December 31, 2014, in accordance with accounting standards, the Company has recorded an income of 2,041, that were included in thestatement of Comprehensive income, under the captions “revenues” and “Cost of sales”, depending on the nature of the claimed concept. –On March 21, 2014 a fire incident damaged the facilities of Oil Treatment Plant of Cerro Divisadero in Mendoza, belonging to the NorthMendoza business, located 59 kilometres south from Malargüe city (“The Plant”). In the mentioned facilities crude oil production from the fixedassets located in North Malargüe and South Malargüe was treated. As a consequence of the incident the facilities were almost completelyunusable with the corresponding production loss.The incident was reported to the corresponding insurers and reinsurers and at the present time YPF is in the process of evaluation of the costs ofrebuilding the Plant as well as the loss of production.On next months the Plant reconstruction project will be finished, after analysis of technologies options of visualization and conceptualizationphases was performed.c) Contractual commitments, main regulations and others: –Agreements of extension of concessions • Neuquén: On December 28, 2000, through Decree No. 1,252/2000, the Argentine Federal Executive Branch (the “FederalExecutive”) extended for an additional term of 10 years (until November 2027) the concession for the exploitation of Loma LaLata – Sierra Barrosa area granted to YPF. The extension was granted under the terms and conditions of the Extension Agreementexecuted between the Argentine Government, the Province of Neuquén and YPF on December 5, 2000. Under this agreement, YPFpaid US$ 300 million to the Argentine Government for the extension of the concession mentioned above, which were recorded in“Fixed Assets” on the balance sheet and committed, among other things, to define a disbursement and investment program of US$8,000 million in the Province of Neuquén from 2000 to 2017 and to pay to the Province of Neuquén 5% of the net cash flowsarising out of the concession during each year of the extension term. The previously mentioned commitments have been affectedby the changes in economic rules established by Public Emergency Law.Additionally, in 2008 and 2009, YPF entered into a series of agreements with the Province of Neuquén, to extend for tenadditional years the term of the production concessions on several areas located in that province, which, as result of the abovementioned agreement, will expire F-72Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsbetween 2026 and 2027. As a condition for the extension of these concessions YPF undertook the following commitments, amongothers, upon the execution of the agreements: i) to make to the Province total initial payments of US$ 204 million; ii) to pay incash to the Province an “Extraordinary Production Royalty” of 3% of the production of the areas involved. In addition, the partiesagreed to make adjustments of up to an additional 3% in the event of an extraordinary income according to the mechanisms andreference values established in each signed agreement and iii) to carry out exploration activities in the remaining exploration areasand make certain investments and expenditures in the production concessions that are the purpose of the agreements in a totalamount of US$ 3,512 million until the expiring date of the concessions.On July 24, 2013, in order to make feasible the implementation of a non-conventional hydrocarbons project, YPF and the Provinceof Neuquén signed an Agreement under which the Province of Neuquén agreed to (i) separate from the Loma La Lata – SierraBarrosa exploitation concession a surface area of 327.5 km2; (ii) incorporate such separated surface area into the surface area of theLoma Campana exploitation concession, forming a surface area of 395 km2 and (iii) extend the Loma Campana exploitationconcession for a term of 22 years starting from the date of its expiration (until November 11, 2048). The commitments made by theCompany are as follows: i) payment of US$ 20 million in consideration for the effect that the separation of surface from the AreaLoma La Lata - Loma Campana has on the conventional production, payable within 15 days of the legislative ratification of theAgreement; (ii) payment of US$ 45 million on the Corporate Social Responsibility concept, payable during the years2013/2014/2015; (iii) payment of 5% on the investment project profits after taxes, applicable as from December 2027; (iv) 50%reduction, as from August 2012, of the subsidy applicable to the price of natural gas for the Methanol Plant according to the termsof the Commitment Act of 1998 signed between the Company and the Province of Neuquén; (v) the Company undertakes to makean investment of US$ 1 billion within a period of 18 months beginning on July 16, 2013; and vi) YPF commits to prioritize therecruitment of labor, suppliers and services based in Neuquén. The Province of Neuquén also agrees: i) not to apply ExtraordinaryIncome (Windfall Profits) or Extraordinary Production Taxes and to maintain a 12% rate for hydrocarbon royalties; (ii) to apply aTurnover Tax rate not higher than 3% to the revenue generated in the Loma Campana concession; and (iii) to set the total sum ofUS$ 1,240 million as the tax base for Stamps Tax purposes. The Agreement was approved by Decree No. 1,208/13 and LawNo. 2,867. • Mendoza: In April 2011, YPF entered into an agreement with the province of Mendoza to extend for 10 years the term of certainexploitation concessions (among which is “La Ventana”), and the transportation concessions located in the province, from theexpiration of the original terms of the grant.By signing the memorandum of agreement, YPF assumed certain commitments within which includes: (i) to make initial paymentsto the province of Mendoza in an aggregate amount of approximately US$ 135 million, on the date specified in the agreement;(ii) to pay the province of Mendoza an “Extraordinary Production Royalty” of 3% of the production of the areas included in theagreement. In addition, the parties agreed to make additional adjustments in the event of extraordinary income due to lower exportduties or a higher monthly average price of crude oil and/or natural gas according to a mechanism and reference values establishedin the Memorandum of Agreement; (iii) to carry out exploration activities and make certain investments and expenditures in atotal amount of US$ 4,113 million until the expiration of the extended term, as stipulated in the agreement; and; (iv) to makepayments equal to 0.3% of the annual amount paid as “Extraordinary Production Royalty” in order to fund the purchase ofequipment and finance training activities, logistics and operational expenses in certain government agencies of the province ofMendoza specified in the agreement, among others. • Santa Cruz: During November, 2012, YPF entered into an agreement with the province of Santa Cruz to extend for 25 years theterm of certain exploitation concessions, from the expiration of their original terms.By signing the memorandum of agreement, YPF assumed certain commitments within which include: (i) to make initial paymentsto the province of Santa Cruz in an aggregate amount of approximately of US$ 200 million, on the date specified in the agreement;(ii) to pay the province of Santa Cruz a Production Royalty of 12% plus an additional of 3% over the production of F-73Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsconventional hydrocarbons; (iii) to pay the province of Santa Cruz a Production Royalty of 10% over the production ofunconventional hydrocarbons; (iv) make certain investments on the exploitation concessions, as stipulated in the agreement;(v) carry out exploration activities in the remaining exploration areas; (vi) to contribute with social infrastructure investmentswithin the province of Santa Cruz in an amount equivalent to 20% of the amount of the extension royalty; (vii) define andprioritize a remediation plan of environmental liabilities with reasonable technical criteria and the extent of remediation taskswithin the term of the concessions. • Salta: On October 23, 2012, YPF entered into an agreement with the province of Salta to extend for 10 years the original term ofcertain exploitation concessions from the expiration of their original terms. YPF and associated signatory companies (TecpetrolS.A., Petrobras Argentina S.A., Compañía General de Combustibles S.A. and Ledesma SAAI) by signing the Memorandum ofAgreement took, among others, the following commitments: (i) conducting in area Aguaragüe, on the dates indicated in theagreement and during the first two years, the following investments: a minimum amount in development plans, involving thedrilling of development wells (at least 3) and expansion of production facilities and treatment of hydrocarbons of US$ 36 million,(ii) YPF and each of the associated signatory companies will recognize for the province a special extraordinary contribution equalto 25% of the amount corresponding to royalties of 12% referred to in art. 59 and 62 of Law 17,319, (iii) YPF and each of theassociated signatory companies will recognize for the province an additional payment to the special extraordinary contribution,only when conditions of extraordinary income are verified in the marketing of oil crude production and natural gas from theconcessions, under price increase obtained by each party, from the sum of US$ 90/bbl in the case of crude oil production and thesum equivalent to 70% of import gas prices, (iv) YPF and each of the associated signatory companies will pay to the province, andin the proportion that corresponds to each one, a one-time sum of US$ 5 million in the concept of bonus extension, (v) YPF and theassociated signatory companies undertake to make investments for a minimum amount of US$ 30 million in additional explorationwork to be implemented in the concessions. • Chubut – Concessions El Tordillo – La Tapera and Puesto Quiroga: On October 2, 2013, the Province of Chubut published thelaw for the approval of the Agreement to Extend the Exploitation Concessions El Tordillo, La Tapera and Puesto Quiroga, locatedin the Province of Chubut. YPF holds 12.196% of the concessions, while Petrobras Argentina S.A. holds 35.67% and TECPETROLS.A. holds the remaining 52.133%. The Concessions were extended for a 30 year period counted as from the year 2017. The mainterms and conditions agreed by the Province of Chubut comprise the commitment of the companies belonging to the JV to makethe following payments and contributions: (i) paying US$ 18 million as Historical Remediation Bonus (ii) paying a CompensationBonus amounting to a fixed 4% over the production of gas and oil since 2013 (this is calculated as an additional royalty);(iii) covering expenses and investments related to the protection and conservation of the environment; (iv) maintaining aminimum amount of equipment for drilling and work-overs in operation; (v) after the first ten years of extension, PETROMINERAwill acquire a 10% interest in the exploitation Concessions. • Chubut - Restinga Alí, Sarmiento, Campamento Central – Cañadón Perdido, Manantiales Behr and El Trébol – Escalante: OnDecember 26, 2013, YPF and the Province of Chubut signed an Agreement for the extension of the original term of theConcessions for the Exploitation of Restinga Alí, Sarmiento, Campamento Central – Cañadón Perdido, Manantiales Behr and ElTrébol. The Extension Agreement was ratified by the Legislature of the Province of Chubut on January 17, 2014, and by theCompany’s Board on February 24, 2014; thus complying with the conditions precedent established in the Extension Agreement.The following are the main terms and conditions agreed with the Province of Chubut: YPF holds 100% of the exploitationconcessions, except for the concession Campamento Central – Cañadón Perdido, where ENAP SIPETROL S.A. holds 50%. A 30-year extension was established for the terms of the exploitation concessions that expire in the years 2017 (Campamento Central –Cañadón Perdido and El Trébol – Escalante), 2015 (Restinga Alí) and 2016 (Manantiales Behr).YPF undertook, among others, the following obligations: (i) to pay a Historical Compensation Bonus of US$ 30 million; (ii) to payto the Province of Chubut the Hydrocarbons Compensation Bonus amounting to 3% of the oil and gas production (calculated asan additional royalty); (iii) to F-74Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsmeet a minimum level of investment; (iv) to maintain a minimum amount of equipment for drilling and work-over under hire andin operation; and (v) to assign to PETROMINERA S.E. 41% of YPF’s interest in the exploitation concessions of El Tordillo, LaTapera and Puesto Quiroga (amounting to 5% of the total concessions) and in the related Joint operations. • Tierra del Fuego: the Company has negotiated with the Executive Office of the province of Tierra del Fuego the terms in order toextend their concessions in such province, having signed, on December 18, 2013, the Agreement of Extension of concessions ofTierra del Fuego (until November 14, 2027), Los Chorrillos (until April 18, 2026) and Lago Fuego (until November 6, 2027). OnOctober 10, 2014, Act No. 998 and Act No. 997 approving the extension agreements were enacted. • Rio Negro: In December 2014, YPF, YSUR Energía Argentina S.R.L., YSUR Petrolera Argentina S.A. entered into a RenegotiationAgreement with the Province of Rio Negro to extending for 10 years the original term of the following exploitation concessions asfrom maturity of their original granting terms: (i) “EL MEDANITO”, “BARRANCA DE LOS LOROS”, “SEÑAL PICADA-PUNTABARDA”, “BAJO DEL PICHE” where YPF holds 100%, up to November 14, 2027; (ii) “LOS CALDENES” where YPF holds 100%,up to September 19, 2036; (iii) “ESTACION FERNANDEZ ORO”, where YSUR Energía Argentina SRL holds 100%, up toAugust 16, 2026; and (iv) “EL SANTIAGUEÑO” where YSUR Petrolera Argentina S.A. holds 100%, up to September 6, 2025.The Renegotiation Agreement was confirmed by the legislature of the Province of Rio Negro by the issuance of Provincial LawNo. 5027 dated December 30, 2014. The companies signing the Renegotiation Agreement assumed the following commitments,among others: (i) payment of US$ 46,000,000 as Fixed Bonus, (ii) contributions to social development and institutionalstrengthening amounting US$ 9,200,000, (iii) supplementary contributions equivalent to 3% of the monthly oil production, and3% of the monthly gas production, (iv) annual contributions for training, research and development, (v) compliance with aminimal development and investment plan, (vi) investment for the execution of environmental remediation plans. –Agreements of project investments • On July 16, 2013, the Company and subsidiaries of Chevron Corporation (“Chevron”) signed an Investment Project Agreement(“the Agreement”) with the objective of the joint exploitation of unconventional hydrocarbons in the province of Neuquén. TheAgreement contemplates an expenditure, subject to certain conditions, of US$ 1,240 million by Chevron for the first phase of workto develop about 20 km2 (the “pilot project”) (4,942 acres) of the 395 km2 (97,607 acres) corresponding to the area dedicated tothe project, located in the aforementioned province and includes Loma La Lata Norte and Loma Campana area. This first pilotproject includes the drilling of more than 100 wells.During September 2013, and upon the fulfillment of certain precedent conditions (among which is the granting of an extension ofthe Loma Campana concession maturity until 2048 and the unitization of that area with the sub-area Loma La Lata Norte),Chevron made the initial payment of US$ 300 million.On December 10, 2013, the Company and some of its subsidiaries and subsidiaries of Chevron Corporation successfully completedthe pending documents for the closing of the Investment Project Agreement, which enables the disbursement by Chevron of US$940 million, in addition to the US$ 300 million that such company has already disbursed.For such purposes, the Company and Chevron made the necessary contracts for the assignment in favor of Compañía deHidrocarburo No Convencional S.R.L. (“CHNC”) of 50% of the exploitation concession Loma Campana (“LC”), andsupplementary agreements including the contract for the organization of the Joint Operation (“JO”) and the Joint OperatingAgreement (“JOA”) for the operation of LC, where YPF shall participate as area operator.The Company indirectly holds 100% of the capital stock of CHNC, but under the existing contractual arrangements, it does notmake financial or operative decisions relevant to CHNC and does not fund its activities either. Therefore, the Company is notexposed to any risk or rewards due to its interest in CHNC. Thus, as required by IFRS, the Company has valued its interest inCHNC at cost, which is not significant, and has not recorded any profit or loss for such interest for the year ended December 31,2014. F-75Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDuring the years 2014 and 2013, YPF and CHNC have made transactions, among which it is possible to highlight the purchases ofgas and crude oil by YPF for 2,311 and 50, respectively. These transactions will be completed under the general and regulatorymarket conditions. The net balance as of December 31, 2014, is a liability in favor of CHNC of 837, while the net balance as ofDecember 31, 2013, was a receivable in favor of YPF S.A. of 1,616.Considering the rights that Chevron could exercise in the future over CHNC -to access to the 50% of the concession andsupplementary rights- and as a guarantee for such rights and other obligations under the Investment Project Agreement, a pledgeover the shares of a YPF’s affiliate, which is an indirect holder of YPF’s interest in CHNC, has been made in favor of Chevron.In this context, and considering that YPF is the LC Area Operator, the parties have made a Project Obligations, Indemnities andGuarantee Agreement, by virtue of which the Company makes certain representations and guarantees in relation to the InvestmentProject Agreement. This guarantee on the operation and management of the Project does not include the project’s performance orreturn on investment, both at the exclusive risk of Chevron.Finally, other supplementary agreements and documents related to the Investment Project Agreement have been signed, including:(a) the agreement for the allocation of certain benefits deriving from Executive Order No. 929/2013 from YPF to CHNC; (b) termsand conditions for YPF’s acquisition of natural gas and crude oil pertaining to CHNC for 50% of the interest in the LC area; and(c) certain agreements for the technical assistance of Chevron to YPF.During April 2014, YPF and certain of its subsidiaries and subsidiaries of Chevron, have successfully completed the second phaseof the Project Investment Agreement and Chevron has confirmed its decision to continue with the investment project inunconventional hydrocarbons in the Loma Campana area, thereby commencing the third phase of such project. The duration ofthis third phase will encompass the life of the project, until the expiration of the Loma Campana concession. At the present time,there are 18 drilling equipments operating in the above mentioned area and more than 7 thousand daily barrels of oil equivalent tothe percentage of participation extracted.During April 2014, YPF and Chevron have signed a new Project Investment Agreement with the objective of the joint explorationof unconventional hydrocarbons in the Province of Neuquén, within the area Chihuido de la Sierra Negra Sudeste – Narambuena.The investment will be undertaken exclusively by, and at the sole risk of, Chevron. The investment will be disbursed in two stages.Depending on the results of the exploratory activities, both companies expect to continue with the implementation of a pilotproject and the subsequent total development of the above mentioned area, with a disbursement in investments of 50 % each. • On September 23, 2013, the Company, Dow Europe Holding B.V. and PBB Polisur S.A., (hereinafter, collectively, “Dow”) signedan agreement (the “Agreement”), which contemplates an expenditure by both parties of up to US$ 188 million which will bedirected towards the joint exploitation of an unconventional gas pilot project in the Province of Neuquén, in the area of “ElOrejano” of which Dow will provide up to US$ 120 million by means of a financing agreement convertible into a participation inthe project, which contemplates a first phase of work during which 16 wells will be drilled. As of December 31, 2014, 12 wells havebeen drilled, 8 of which are concluded.If Dow exercises the conversion option, YPF would contribute 50% of its participation in the “El Orejano” area, which comprises atotal area of 45 km2 (11,090 acres) in the Province of Neuquén and a 50% interest in a joint venture to be formed for theexploitation of this area.If Dow does not exercise the option, the parties have agreed on the repayment conditions of the financing agreement, over a termof five years.As of December 31, 2014 the Company has received the first payment of the aforementioned transaction, amounting to US$90 million, which has been recorded in the “Loans” account in the Company’s Balance Sheet. F-76Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • On November 6, 2013, the Company and Petrolera Pampa S.A. (hereinafter “Petrolera Pampa”) signed an investment agreementunder which Petrolera Pampa undertakes to invest US$ 151.5 million in exchange for 50% of the interest in the production ofhydrocarbons in the area of Rincón del Mangrullo in the Province of Neuquén, pertaining to the formation “FormaciónMulichinco” (hereinafter the “Area”), where YPF shall be area operator.During this first stage (which shall be completed in a 12-month term), Petrolera Pampa has undertaken to invest US$ 81.5 millionfor the drilling of 17 wells and the acquisition and analysis of about 40 km2 of 3D seismic data. Moreover, the Company shallmake an additional equal investment for the drilling of 17 more wells, from which it will be entitled to 50% of the production.As of December 31, 2014, 17 wells have been drilled, 14 of which are concluded, in relation to the first stage of the undertakingassumed by Petrolera Pampa.The second phase of investments contemplates an investment of US$ 70 million to drill 15 wells.As of December 31, 2014, 1 well has been drilled, which has not been concluded, in relation to the second stage of the undertakingassumed by Petrolera Pampa.Once the two stages have been completed, the Parties may make the necessary investments for the future development of the Area,in accordance with their respective interest (50% each). • On August 28, 2014, the Company has signed an Agreement with Petronas (E&P) Overseas Ventures Sdn. Bhd, (hereinafter,“Petronas”) whereby YPF and Petronas agreed on the main terms and conditions to jointly develop a shale oil pilot project in threeannual phases involving a jointly investment of up to US$550 million plus VAT in the La Amarga Chica area, province ofNeuquén. Petronas will invest US$475 million and YPF will invest US$75 million.YPF will be the operator of the area and will assign a 50% share in the concession to Petronas E&P Argentina S.A. (hereinafter“PEPASA”).Dated December 10, 2014 the Company and PEPASA, a Petronas affiliate, entered into an Investment Project Agreement for thejoint exploitation of unconventional hydrocarbons in La Amarga Chica area in the Province of Neuquén. The agreementestablishes an exclusive period for the negotiation and execution of a series of final contracts which effective date will besubordinated to the compliance with a series of conditions precedent to be fulfilled before March 31, 2015, in order to startactivities at the pilot project “La Amarga Chica” during year 2015. The Agreement also provides that both companies will assessthe expansion of the strategic association to other exploration areas with potential for unconventional resources.Likewise, the Parties signed the following supplementary agreements to the Investment Agreement: (a) Assignment Agreement forthe assignment of 50% of the concession on the La Amarga Chica area; (b) Joint Venture formation contract (JV); (c) JointOperating Agreement; (d) Assignment Guarantee Agreement; (e) First Option Agreement for purchase of crude oil; and(f) Assignment of Rights on Hydrocarbon Export Agreement.Additionally, Petronas has granted a payment guarantee for certain financial obligations assumed by PEPASA under theInvestment Agreement.The pilot phase will commence upon execution of the final documents and upon compliance with certain conditions precedent, tobe fulfilled before March 31, 2015. Once contributions of each annual phase are made, PEPASA would be entitled to opt-out of thejoint development agreement upon surrender of its participation in the concession and the settlement of liabilities as of the date ofopt-out (without access to the 50% of the net production value of drilled wells until exercise of the opt-out options).Upon full compliance with the parties’ commitments, each party will contribute 50% to the work schedule and cost budget basedon project documentation.The Investment Agreement provides that during the three phases of the Pilot Plan a 3D seismic acquisition and processing programwill be completed, covering the whole concession area, 35 wells will be drilled with the Vaca Muerta formation as objective(including vertical and horizontal wells), and a series of surface installations will be built with the purpose of evacuating the areaproduction. F-77Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents • Dated October 8, 2014, YPF Ecuador S.A. (a corporation organized on July 15, 2014 and indirectly controlled by YPF throughEleran Inversiones 2011 S.A.U.) and Petroamazonas EP (an Ecuadorian state own oil company) signed an Agreement for theprovision of specific integrated services, performance of production optimization activities, improved recovery activities andexploration activities in Campo Yuralpa, located in Block 21, in the Amazonian province of Napo, Ecuador. Likewise, YPF S.A.issued a corporate guarantee in favor of YPF Ecuador S.A. to guarantee compliance with the agreement. The corporate guaranteeamounts to a maximum value of US$ 172 million. • Dated October 10, 2014, the Ministry of Energy of the Province of Mendoza, by Resolution 68/2014, authorizes Energía AndinaS.A. (a subsidiary corporation) to assign unto YPF all rights and obligations arising from the exploration permits in the ZampalNorte, Ñacuñan, Pampa del Sebo and San Rafael areas, equivalent to 80% of the total share therein. –Contractual commitments: The Company has signed contracts by means of which it has committed to buy certain products and services,and to sell natural gas, liquefied petroleum gas and other products. Some of the mentioned contracts include penalty clauses thatstipulate compensations for a breach of the obligation to receive, deliver or transport the product object of the contract. The anticipatedestimated losses for contracts in progress, if any, considering the compensations mentioned above, have been charged to the income ofthe year in which they were identified.In this order, the Company has renegotiated certain natural gas export contracts, and has agreed, between others, to limit compensationsonly in case of interruptions and/or suspension of deliveries from any cause, except physical force majeure. Also, the Company hasagreed to make investments and export gas to temporarily import certain final products. As of the date of issuance of these financialstatements, the Company is fulfilling the agreed commitments mentioned above. To the extent that the Company does not comply withsuch agreements, we could be subject to significant claims, subject to the defences that the Company might have.The Company under certain trade agreements has undertaken the obligation with third parties to buy goods and services (such asliquefied petroleum gas, electricity, gas, oil, steam) that as of December 31, 2014 amounted to about 33,953. In addition, it hasexploratory, investment and expense commitments until the termination of some of its concessions for 105,858 as of December 31, 2014,including commitments for the extension of concessions mentioned in subsequent paragraphs. –Natural gas regulatory requirements: In addition to the regulations that affect the natural gas market mentioned in “Natural gas market”(Note 3), on June 14, 2007, Resolution No. 599/2007 of the Secretariat of Energy was published in the Official Gazette (the“Resolution”). This Resolution approved an agreement with natural gas producers regarding the natural gas supply to the domesticmarket during the period 2007 through 2011 (the “Agreement 2007-2011”). The purpose of this Agreement 2007-2011 is to guaranteethe normal supply of the natural gas domestic market during the period 2007 through 2011, considering the domestic market demandregistered during 2006 plus the growth of residential and small commercial customer’s consumption (the “Priority Demand”). Accordingto the Resolution, the producers that have signed the Agreement 2007-2011 commit to supply a part of the Priority Demand according tocertain percentage determined for each producer based upon its share of production for the 36 months period prior to April 2004. In caseof shortage to supply Priority Demand, natural gas exports of producers that did not sign the Agreement 2007-2011 will be the first to becalled upon in order to satisfy such mentioned shortage. The Agreement 2007-2011 also establishes terms of effectiveness and pricingprovisions for the Priority Demand consumption. Considering that the Resolution anticipates the continuity of the regulatorymechanisms that affect the exports, YPF has appealed the Resolution and has expressly stated that the execution of the Agreement 2007-2011 does not mean any recognition by YPF of the validity of that Resolution. On June 22, 2007, the National Direction ofHydrocarbons notified that the Agreement 2007-2011 reached the sufficient level of subscription. On January 5, 2012, the OfficialGazette published Resolution of the Secretariat of Energy No. 172 which temporarily extends the rules and criteria established byResolution No. 599/07, until new legislation replaces the Resolution previously mentioned. This Resolution was appealed onFebruary 17, 2012 by filing a motion for reconsideration with the Secretariat of Energy.Additionally, on October 4, 2010, the Official Gazette published ENARGAS Resolution No. 1410/2010 that approves the procedurewhich sets new rules for natural gas dispatch applicable to F-78Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsall participants in the natural gas industry, imposing new and more severe regulations to the producers’ availability of natural gas(“Procedimiento para Solicitudes, Confirmaciones y Control de Gas”). By virtue of these procedures, distributors remain able to requestall the natural gas necessary to cover the Priority Demand even in the case of natural gas volumes that exceed those that the Secretariat ofEnergy would have allocated by virtue of the Agreement ratified by the Resolution No. 599/07. Producers are obligated to confirm allthe natural gas requested by distributors to supply the Priority Demand. The producers’ shares in such volumes follow the allocationcriterion established by the Agreement 2007-2011. It is not possible to predict the estimated demand of the Argentine market that mustbe satisfied by the producers, whether or not the producer signed the Agreement 2007-2011. Once the Priority Demand has beensupplied, the volumes requested by the rest of the segments must be confirmed, leaving the exports last in order of priority. In case theprogramming do not yield sustainable results, with respect to the objective of maintaining the equilibrium and preserving the operationof the transportation and distribution systems, the necessary reprogramming and redirections will take place. In case the producer’sconfirmations are of a lower volume than requested, the transporters will be in charge of making confirmations adequate by redirectingnatural gas until the volume required by distributors according to Priority Demand is completed. This greater volume will have to bewithdrawn from the confirmations made by that producer to other clients. If the producer would not have confirmed natural gas to otherclients from the same basin, the lacking volume will be requested to the rest of the natural gas producers. Therefore, this procedureimposes a supply obligation that is jointly liable for all producers in case any producer supplies natural gas in a deficient way. YPF haschallenged the validity of Resolution No. 1,410/2010.On November 27, 2008 through Executive Decree No. 2067/08, a trust fund was created to finance imports of natural gas for its injectionin the national gas pipeline system when necessary to satisfy the domestic demand. The trust fund is financed through the followingmechanisms: (i) diverse tariff charges paid by users of transportation services and regularly distributed, gas consumers receiving gasdirectly from producers, and companies processing natural gas; (ii) special credit programs that may be agreed upon with national orinternational organizations; and (iii) specific contributions assessed by the Secretariat of Energy on the participants in the natural gasindustry. This Decree has been object of diverse judiciary claims, and judges from all over the country have issued precautionarymeasures for suspension of its effects, grounded on the violation of the principle of legality on tax matters. On November 8, 2009,ENARGAS published Resolution No. 1982/11 that adjusted the tariff charges established by Executive Decree No. 2067/08 to be paidby users as from December 1, 2011. On November 24, 2011, ENARGAS passed Resolution No. 1991/11, enlarging the number of usersobliged to pay tariff charges, including residential services, natural gas processing, industrial premises and electric power plants, amongothers; this has affected the operations of the Company, and has had a significant impact on our joint subsidiary companies, all of whichhave filed appeals against the mentioned resolution. In particular, the application of the mentioned tariff charge produces such asignificant impact on Mega’s operations that, unless favourably resolution is obtained, might pose serious difficulties for Mega tocontinue with its activities. The present Financial Statements do not contemplate the adjustments that might result should the companybe unable to continue its activities.For its part, YPF has challenged these Resolutions and rejected the charge invoice made by Nación Fideicomiso. On April 13, 2012, YPFobtained a precautionary measure related to El Portón processing plant, suspending the effects of these resolutions in relation to thatplant until a decision on the administrative appeals filed by YPF had been reached. In November 2012, Law 26,784 was passed whichgranted legal hierarchy, since such date, to the decisions enacted by the Executive Power and ENARGAS, in relation to the charge. DatedDecember 11, 2014 the National Supreme Court of Justice pronounced the “Alliance” judgment, deciding that the charge created bydecree 2067/2008 is a tariff charge and not a tax, and thus is not subjected to the principle of tax legality. However, the Court left openthe possibility of eventual claims or defenses in cases different from the claims raised in the “Alliance” judgment.On April 7, 2014 the Secretariat of Energy published Resolution No. 226/2014, fixing new wellhead prices per basin for the sale of gas tothe Residential and Commercial full service segment and Natural Gas Stations that in a period of two months/one month: (i) shows ahigher than 20% saving compared to the same period of two months/one month from previous year; and (ii) shows a saving between 5%and 20% compared to the same period of two months/one month from previous year. F-79Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsLikewise, new prices per basin are fixed for full service users in the Camuzzi Gas del Sur geographic area, in view of the climateconditions prevailing in the Southern geographic area of our country. –Liquid hydrocarbons regulatory requirements: Resolution No. 1,679/04 of the Secretariat of Energy reinstalled the registry of diesel andcrude oil export transactions created by Executive Decree No. 645/02, and mandated that producers, sellers, refining companies and anyother market agent that wishes to export diesel or crude oil to register such transaction and to demonstrate that domestic demand hasbeen satisfied and that they have offered the product to be exported to the domestic market. In addition, Resolution No. 1,338/06 of theSecretariat of Energy added other petroleum products to the registration regime created by Executive Decree No. 645/02, includinggasoline, fuel oil and its derivatives, diesel, aviation fuel, asphalts, certain petrochemicals, certain lubricants, coke and petrochemicalderivatives. Resolution No. 715/07 of the Secretariat of Energy empowered the National Refining and Marketing Director to determinethe amounts of diesel to be imported by each company, in specific periods of the year, to compensate exports of products included underthe regime of Resolution No. 1,679/04; the fulfilment of this obligation to import diesel is necessary to obtain authorization to exportthe products included under Decree No. 645/02. In addition, certain regulations establish that exports are subordinated to the supply ofthe domestic market. In this way, Resolution No. 25/2006 of the Secretariat of Domestic Commerce, issued on October 11, 2006, imposeson each Argentine refining and/or retail company the obligation to supply all reasonable diesel fuel demand, by supplying certainminimum volumes (which at least should be volumes supplied the year before plus the positive correlation between diesel demand andGDP accumulated from the month reference). The mentioned commercialization should be done without altering or affecting the normaloperation of the diesel market.Additionally, Rule No.168/04 requires companies intending to export LPG to first obtain an authorization from the Secretariat of Energy,by demonstrating that local demand was satisfied or that an offer to sell LPG to local demand has been made and rejected.In January 2008, the Secretariat of Domestic Commerce issued Resolution No.14/2008, whereby the refining companies were instructedto optimize their production in order to obtain maximum volumes according to their capacity.On January 26, 2012, the Secretariat of Domestic Commerce issued Resolution No. 6/2012 whereby (i) YPF and other four oil companieswere required to sell diesel oil to public bus transportation companies at a price not higher than the retail price charged on its servicestation located, in general terms, nearest to the place of delivery of diesel fuel to each such transportation company, while maintainingboth historic volumes and delivery conditions; and (ii) it created a price monitoring scheme of both the retail and the bulk markets to beimplemented by the CNDC. YPF has appealed that resolution. On February 16, 2012, YPF filed with the CNDC an appeal againstResolution No. 6/2012, for submission to the Civil and Commercial Federal Court of Appeals of Buenos Aires city. Meanwhile, onMarch 2, 2012, YPF has challenged this Resolution and requested a preliminary injunction against its validity. YPF’s preliminaryinjunction has been granted and the effects of the Resolution No. 6/2012 have been temporarily suspended, until the appeal is judiciallysolved. Against that preliminary injection, the Argentinian Federal Government presented an extraordinary federal appeal, which has notyet been served to YPF.On March 13, 2012, YPF was notified of Resolution No. 17/2012, issued by the Argentine Secretariat of Domestic Commerce, pursuantto which YPF, Shell Compañía Argentina de Petróleo, S.A. and ESSO Petrolera Argentina S.R.L were ordered to supply jet fuel fordomestic and international air transport at a price net of taxes not to exceed 2.7% of the price net of taxes of medium octane gasoline (notpremium) offered at its closest service station to the relevant airport, while maintaining its existing supply logistics and its usual supplyquantities. The abovementioned resolution benefits companies owning aircraft that operate in the field of commercial passenger orcommercial passenger and cargo aviation which are registered under the Argentine National Aircraft Registry. According to a laterclarification from the Secretary of Domestic Commerce, the beneficiaries of the measure adopted by this resolution are the followingcompanies: Aerolíneas Argentinas, Andes Líneas Aéreas S.A., Austral – Cielos del Sur, LAN Argentina S.A. and Sol S.A. Líneas Aéreas. Inaddition, in said resolution, the Argentine Secretariat of Domestic Commerce indicated that it considered convenient to implement aprice surveillance system to be implemented by the CNDC. YPF has challenged such resolution, which will be reviewed by a court. TheCivil and F-80Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCommercial Federal Court granted the appeal filed by YPF with suspensive effect, consequently the effects of Resolution No. 17/2012were suspended until the legality or illegality of the Resolution is solved. Subsequently, the Argentinian Federal Government filed afederal extraordinary appeal, and YPF answered it. To date, the court granted the extraordinary appeal but has not yet been submitted tothe supreme court.On August 31, 2012, YPF was notified of the judgement of the mentioned Court, which declared the nullity of Resolution No. 17/2012,based on the lack of jurisdiction of the Argentine Secretariat of Domestic Commerce to issue a measure of that nature.Decree No. 1,189/2012 of the National Executive Power, dated July 17, 2012, established that the jurisdictions and entities of theNational public Sector included in section 8, subsection a) of Law No. 24,156 (National Administration, formed by the centraladministration and the decentralized agencies including the social insurance institutions) must contract with YPF the provision of fuelsand lubricants for the fleet of official cars, boats and aircrafts, except in those cases which have the prior authorization of the Chief of theCabinet of Ministers. –Regulatory requirements established by Decree No. 1,277/2012: On July 25, 2012, the executive decree of Law No. 26,741, DecreeNo. 1,277/2012, was published, creating the “Regulation of the Hydrocarbons Sovereignty Regime in the Argentine Republic”. Amongother matters, the mentioned decree establishes: the creation of the National Plan of Investment in Hydrocarbons; the creation of theCommission for Planning and Coordination of the Strategy for the National Plan of Investment in Hydrocarbons (the “Commission”),which will elaborate on an annual basis, within the framework of the National Hydrocarbon Policy, the National Plan of Investment inHydrocarbons; the National Registry of Investments in Hydrocarbons in which the companies undertaking activities of exploration,exploitation, refining, transport and commercialization of hydrocarbons and fuels will have to register; and the obligation for theregistered companies to provide their Plan of Investments every year before September 30, including a detail of quantitative informationin relation to the activities of exploration, exploitation, refining, transport and commercialization of hydrocarbons and fuels according toeach company. Additionally, the mentioned companies will have to provide their plans in relation to the maintenance and increase ofhydrocarbons reserves, including: a) an investment in exploration plan; b) an investment plan in primary hydrocarbons reserves recoverytechniques; and c) an investment plan in secondary hydrocarbons reserves recovery techniques, which will be analyzed by theCommission; the Commission will adopt the promotion and coordination measures that may consider necessary for the development ofnew refineries in the National Territory, that may allow the growth in the local processing capacity in accordance with the aims andrequirements of the National Plan of Investment in Hydrocarbons; in relation to prices, and accordingly to the Decree, for the purpose ofgranting reasonable commercial prices, the Commission will determine the criteria that shall govern the operations in the domesticmarket. In addition, the Commission will publish reference prices of each of the components of the costs and the reference prices for thesale of hydrocarbons and fuels, which will allow to cover the production costs attributable to the activity and to reach a reasonablemargin of profit. Not complying with the dispositions included in the Decree and supplementary rules may result in the followingpenalties: fine, admonition, suspension or deregistration from the registry included in section 50 of Law No. 17,319; the nullity orexpiration of the concessions or permits. Moreover, the mentioned Decree abrogates the dispositions of the Decrees No. 1,055/89,1,212/89 and 1,589/89 (the “Deregulation Decrees”) which set, among other matters, the right to the free disposition of hydrocarbonproduction. –Other regulatory requirements: During 2005, the Secretariat of Energy by means of Resolution No. 785/2005 modified by ResolutionNo. 266/2008 of the Ministry of Federal Planning, Public Investment and Services, created the National Program of Hydrocarbons and itsderivatives Warehousing Aerial Tank Loss Control, measure aimed at reducing and correcting environmental pollution caused byhydrocarbons and its derivatives warehousing-aerial tanks. The Company has begun to develop and implement a technical andenvironmental audit plan as required by the resolution. –Refining and Petroleum Plus Programs: Decree No. 2,014/2008 of the Department of Federal Planning, Public Investment and Servicesof November 25, 2008, created the “Refining Plus” and the “Petroleum Plus” programs to encourage (a) the production of diesel fuel andgasoline and (b) the production of crude oil and the increase of reserves through new investments in exploration and F-81Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents production. The programs entitle refining companies that undertake the construction of a new refinery or the expansion of their refiningand/or conversion capacity and production companies that increase their production and reserves within the scope of the program toreceive export duty credits to be applied to exports withholdings. In order to be eligible for the benefits of both programs, companies’plans must be approved by the Argentine Secretariat of Energy.During February 2012, by Note No. 707/2012, supplemented by Note No. 800/2012, both issued by the Secretariat of Energy, YPF wasnotified that the benefits granted under the “Refining and Petroleum Plus” programs had been temporarily suspended. The effects of thesuspension also apply to benefits accrued and not yet redeemed by YPF at the time of the issuance of the Notes. The reasons alleged forsuch suspension are that the programs had been created in a context where domestic prices were lower than prevailing prices and that theobjectives of those programs had already been achieved. On March 16, 2012, YPF has challenged this temporary suspension. –Repatriation of foreign exchange: During October, 2011, Decree No. 1,722/2011 was published and became effective as from such date.The mentioned decree provides that total export collections from operations by producers of crude oil or its derivatives, natural gas andliquefied gas, and companies which aim to develop mining projects, must be liquidated in the single and free-exchange market inaccordance with the provisions of Article No. 1 of Decree No. 2,581 of April 10, 1964 (see Decree No. 929/2013 below). –Investment Promotion Regime for the Exploitation of Hydrocarbons - Decree No. 929/2013: the Decree No. 929/2013 provides thecreation of an Investment Promotion Regime for the Exploitation of Hydrocarbons (the “Promotional Regime”), both conventional andunconventional, which will apply throughout the territory of the Republic of Argentina. Companies submitting “Investment Projects forthe Exploitation of Hydrocarbons” (the “Project”) with the Commission, for its approval and inclusion in the Promotion Regime, musthold exploration permits and/or exploitation concessions granted by the Federal Government and/or the Provinces. If the company doesnot hold exploration permits and/or exploitation concessions, it must operate associated with a company that does hold such permit orconcession rights, be duly registered at the “National Register of Hydrocarbons Investments” created by Federal Decree No. 1,277/2012,have submitted the “Annual Investment Plan” established by Federal Decree No. 1,277/2012 and the Project must involve theperformance of a direct investment in foreign currency for an amount not lower than US$ 1 billion, calculated at the time of submissionof the Project and to be invested during the first five years of the Project (this amount was amended by the subsequent Law No. 27,007.See below). The beneficiaries of the Promotion Regime shall enjoy in terms of Law No. 17,319 the following benefits: (i) from the 5thyear of the start-up of their respective ‘Investment Projects for the Exploitation of Hydrocarbons’, the right to freely market abroad the20% of the oil and gas produced in their Projects, at 0% export tax rate, (ii) the right to maintain abroad all the foreign currency proceedsof the aforementioned oil and gas exports, provided that, as a result of the relevant investment project, at least US$ 1 billion aretransferred to the Argentine financial market; (iii) in periods in which domestic production of hydrocarbons is insufficient to coverdomestic needs, the beneficiaries shall, from the 5th year of the start-up of their respective projects, be entitled to obtain, in relation to the20% of oil and gas production that cannot be exported, a price not lower than the reference export price.Additionally, the Decree creates the figure of the “Concession for the Unconventional Exploitation of Hydrocarbons”, which involvesthe extraction of liquid and/or gaseous hydrocarbon by unconventional stimulation techniques applied in fields located in geologicalformations of shale or slate rocks (shale gas or shale oil), tight sands (tight sands, tight gas, tight oil), coal seams (coal bed methane)and/or characterized, in general, by the presence of low-permeability rocks. The Decree recognizes that, in accordance with theprovisions of Law No. 17,319, the companies that holds exploration and/or exploitation concessions, which were included in thePromotional Regime, will have the right to request a “Concession for the Unconventional Exploitation of Hydrocarbons”. Also theholders of a “Concession for the Unconventional Exploitation of Hydrocarbons”, may request the consolidation of an adjacent area heldby the same title holders as a single “Concession for the Unconventional Exploitation” insofar they can establish the geologicalcontinuity of the adjacent areas. –Natural Gas Agreement: On December 2012, YPF and other gas producing companies of Argentina agreed with the Planning andStrategic Coordination Commission of the National Plan of F-82Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents Hydrocarbon Investments (the “Commission”) to establish an incentive scheme for the Additional Injection (all gas injected by thecompanies above certain threshold) of natural gas. On February 14, 2013 Resolution No. 1/2013 of the Commission was published in theOfficial Gazette. This Resolution formally creates the “Natural Gas Additional Injection Stimulus Program”. Under this regulation, gasproducing companies were invited to file Projects for increasing Total Natural Gas Injection (“the projects”) to the Commission, in orderto receive an Increased Price of 7.5 US$/MBTU for all gas injected above certain threshold (Additional Injection). The Projects shallcomply with minimum requirements established in Resolution No. 1/2013, and will be subject to approval consideration by theCommission. The Projects have a maximum term of five (5) years, renewable at the request of the beneficiary, and subject to the decisionof the Commission. If the beneficiary company, for certain month, does not reach the compromised production increase of its project,approved by the Commission, it will have to compensate its failure to achieve the minimum total injection committed in such Project.Resolution No. 60/2013, regulated by Resolution No. 83/2013, established a similar program for the companies that failed to complywith the requirements of Resolution No. 1/2013 and those that had failed to register in time under such Resolution. The price to be paidunder the program established in Resolution No. 60/2013 varies between 4 US$/MBtu and 7.5 US$/MBtu, according to the highestproduction curve reached by the beneficiary company under the program. –Price Information Regime: By Resolution No. 29/2014, the Secretariat of Commerce approved a Price Information Regime whereby allcompanies producing supplies and final goods with total annual sales in the domestic market exceeding the amount of 183 during 2013must submit to the Secretariat a monthly report of current prices of all their products.The same obligation falls upon all companies distributing and/or marketing supplies and final goods with total annual sales in thedomestic market exceeding the amount of 250 in the same year.Likewise, Provision No. 6/2014 of the Under-Secretariat of Domestic Commerce created the Price Information Regime InformationSystem (“SIRIP”) that will be available at the web site http://www.mecon.gov.ar/comercio interior. –New Hydrocarbon Act:Dated October 31, 2014 the Argentine Republic Official Gazette published the text of Law No. 27,007, amending the Hydrocarbon LawNo. 17,319. The most relevant aspects of the new law are as follows: • As regards exploration permits, it distinguishes between those with conventional and unconventional objectives, and betweenexplorations in the continental shelf and in territorial waters, establishing the respective terms for each type. • As regards concessions, three types of concessions are provided, namely, conventional exploitation, unconventional exploitation,and exploitation in the continental shelf and territorial waters, establishing the respective terms for each type. • The terms for hydrocarbon transportation concessions were adjusted in order to comply with the exploitation concessions terms. • As regards royalties, a maximum of 12% is established, which may reach 18% in the case of granted extensions, where the law alsoestablishes the payment of an extension bond for a maximum amount equal to the amount resulting from multiplying theremaining proven reserves at the end of effective term of the concession by 2% of the average basin price applicable to therespective hydrocarbons over the 2 years preceding the time on which the extension was granted. • The extension of the Investment Promotion Regime for the Exploitation of Hydrocarbons (Decree No. 929/2013) is established forprojects representing a direct investment in foreign currency of at least 250 million dollars, increasing the benefits for other type ofprojects. • Reversion and transfer of hydrocarbon exploitation permits and concessions in national offshore areas is established when noassociation contracts subscribed with ENARSA to the National Secretariat of Energy exist. F-83Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents –Principal rules applicable to MetroGAS activities:The natural gas distribution system is regulated by Law No. 24,076 (the “Gas Act”) that, together with Decree No. 1.738/92, issued by theExecutive Power, others regulatory decrees, the specific bidding rules (“Pliego”), the Transfer Agreement and the License, establishes theRegulatory Framework for MetroGAS’ business. Under the License, MetroGAS is entitled to render the public service of gas distributionfor a term of 35 years (for which MetroGAS may require- upon expiration - its extension for an additional 10-year term, subject toENARGAS evaluation and approval).The License, the Transfer Agreement and the regulations issued pursuant to the Gas Act establish requirements regarding the quality ofservice, capital investment, restrictions on transfer and encumbrance on assets, cross-ownership restrictions among producers, transportersand distributors, and MetroGAS stock transfer.The Gas Act and the License created ENARGAS as regulatory entity to administer and enforce the Gas Act and the applicableregulations. In this order, the tariffs for the gas distribution service were established by the License and are regulated by ENARGAS. ThePublic Emergency Law enacted in 2002 decreed the suspension of the periodical revision of the tariff regime established in the License.On March 26, 2014, within the framework of the process for renegotiating public services contracts provided by Law No. 25,561 andsupplementary regulations, MetroGAS signed a Letter of Understanding with the Public Services Contracts Renegotiation and AnalysisUnit (the “UNIREN”) whereby a provisional tariff regime is established for the collection of higher revenues than those collected underENARGAS Resolution No. I/2407 issued on December 27, 2012 which, in turn, had implemented a fixed amount per bill, differentiatedby type of customer; such revenues had to be deposited in a trust created for the performance of the works. In addition MetroGAS expectsto reach a consensus with the Federal Government through the UNIREN on the modality, terms and timing of the Memorandum ofAgreement for the Comprehensive Contract Renegotiation, in order to restore MetroGAS’ economic and financial situation. The newTemporary Agreement, ratified by National Executive Order No. 445/2014 establishes an interim tariff regime effective as from April 1,2014, consisting in the readjustment of tariffs and prices and with due regard to the necessary guidelines for service continuity andcommon criteria with the other distribution licensees. The aforementioned new Temporary Agreement also provides for a cost monitoringmechanism based on an exploitation cost and investment structure, as well as price indexes reflecting such costs which, under givenpremises, triggers a revision procedure whereby ENARGAS will evaluate the actual extent of variation in the Licensee’s exploitationcosts and investments, and decide if the distribution tariff needs to be adjusted.On March 27, 2014, the National Government also announced a scheme for readjustment of subsidies. Thus, on March 31, 2014 theSecretary of Energy of the Nation issued Resolution SE No. 226/14 establishing the need to fix new prices for natural gas and a schemeseeking rational consumption, encouraging gas savings for a responsible use of this natural resource. Within this framework, new gasprices were established for residential users for each production basin and user category, and these new prices are to be applied based onthe consumptions recorded in the same month/two-month period of the previous year.In consideration of the above, the real impact on MetroGAS revenue levels and on costs will depend on a variable beyond its control:how users will reduce gas consumption, which will not only depend on the individual actions taken to achieve such reduction but alsodue to climate variables effects between the compared periods. An injunction has been filed against both distributors and the FederalGovernment in different jurisdictions against rate increase. Regarding MetroGAS, an injunction filed by the Avellaneda Cityombudsman, has suspended the rate increase for that city. The aforementioned injunction has been withdrawn by the plaintiff and to thedate, MetroGAS has not been notified of any other claims for this purpose.In addition, on September 17, 2014 Law No. 26,993 on Conflict Resolution in Consumption Relationships was enacted, partiallyamending Law No. 24,240, the Consumer Defense Law. The new law establishes its own rules to regulate the administrative and judiciaryclaims procedure grounded on the protection of the user and/or consumer rights. According to the amount and object of the claim, itestablished a Prior Settlement System in Consumption Relationships for claims not exceeding the value equivalent to 55 minimum,vital, and mobile salaries (“SMVM”) and an audit in F-84Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsConsumption Relationships for damage liability claims provided in Chapter X, Title I of Law No. 24,240, not exceeding a valueequivalent to 15 SMVM. Finally, Law No. 26,993 established the creation of a special venue which, through its own procedural claims,will deal with the claims on non-compliance with Law No. 24,240 not exceeding a value equivalent to 55 SMVM.MetroGas estimates that in the upcoming year the financial situation will gradually recover through the complete implementation of theLetter of Understanding signed on March 26, 2014 with UNIREN, particularly regarding transfer of the tax ruling changes to distributiontariffs, except income tax, with resolution pending, and recognition in distribution tariffs of the higher operation costs resulting from theimplementation of the cost monitoring mechanism provided for in the mentioned Letter of Understanding. Additionally, a consensuswith the National Government is intended to be reached through UNIREN in reference to the modalities, terms and opportunity of theexecution of the Letter of Understanding for the Integral Contractual Renegotiation, in order to reestablish the economical-financialsituation of MetroGAS.However, if the conditions prevailing as of the date of these financial statements are maintained, the situation will continuedeteriorating; therefore, MetroGAS is analysing a series of measures to mitigate the impact of the financial situation, including, amongothers: to submit the claims referring to tariff increases (including transfer to municipal charge tariffs) to the Argentine authorities; to tryto keep a strict cash management and expense control; to request additional capital contributions from shareholders; to modify paymentconditions with the main suppliers and to obtain funding from third parties.As of the date of issuance of these financial statements it is not possible to anticipate the outcome of the tariff renegotiation process or todetermine its final implications on the operations and outcomes of MetroGAS. The aforementioned circumstances generate uncertaintyabout the capacity of GASA to comply with the payment of principal of its financial debt upon maturity (December 31, 2016). However,these financial statements do not include any eventual adjustment or reclassification, if any, that might be required is the aforementionedsituation of uncertainty is not overcome. –Regulatory Framework of the Electric Power Industry in the Argentine Republic:Legal Framework: Law No. 24,065, passed in 1992 and governed by Executive Order No. 1,398/92, has established the current basicregulatory framework for the electricity sector (the “Regulatory Framework”). This Regulatory Framework is supplemented by theregulations of the National Secretariat of Energy (“SE”) for the generation and marketing of electric power, including the Resolution ofthe former Secretariat of Electric Energy No. 61/92, “Procedures for the Scheduling of Operations, Load Dispatch and Price Calculation”,with its supplementary and amending regulations.The National Electricity Regulation Agency (“Ente Nacional Regulador de la Electricidad”, “ENRE”) is the agency that regulates,oversees and controls the electric power industry and, in such capacity, it is responsible for the enforcement of Law No. 24,065.The technical dispatch, operation and economic organization of the Argentine Interconnection System (“Sistema Argentino deInterconexion”, “SADI”) and the Wholesale Electricity Market (“Mercado Eléctrico Mayorista”, “MEM”) is under the responsibility ofCAMMESA. CAMMESA also acts as a collection agency for all MEM agents.It is possible to underscore the following main supplementary and amending resolutions of the sector, taking into consideration thepower generation business of YPF Energía Eléctrica S.A.: • SE Resolution No. 146/2003: this resolution established the framework within which generators may request funding for major orextraordinary maintenance works with the goal of maintaining their units available. This funding may be repaid with the futureprofits of the generation business, and it may also be repaid in advance. Against this backdrop, YPF Energía Eléctrica, as thesuccessor of the operations of the Power Plants of Tucumán and San Miguel de Tucumán, has requested funding for its plan for themaintenance and availability improvement of the plants in Tucumán, and has offered its Sale Settlements with No Expiration Dateto Define (“Liquidaciones de Venta sin Fecha de Vencimiento a Definir”, “LVFVD”) for the advanced repayment of the fundedamounts. • SE Resolution No. 406/2003: this resolution established the mechanism to set collection priorities among various remunerativeitems of the power generation plants. This set priorities for the collection of items related to variable costs and the collection of thepower made available to the F-85Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents system, and finally, of amounts related to generation margins for the sales made in the Spot market as per the curve of contractswith Large Users registered between May and August 2004. LVFVDs were issued for the last ones and for such cases in whichCAMMESA did not have a certain repayment date. • 2008-2011 Generators Agreement: On November 25, 2010, the SE and the main electricity generator companies signed the“Agreement for the Management and Operation of Projects, Increase of Power Generation Availability and Adjustment ofRemuneration for 2008-2011 Generation” (hereinafter, the “Generators Agreement”). This Generators Agreement was aimed atestablishing the framework, conditions and undertakings that the parties should make to continue with the MEM adjustmentprocess, to enable the entry of new generation to cover the increase in the demand for energy and power in such market, todetermine a mechanism for the repayment of the consolidated debts of generators incurred between January 1, 2008, andDecember 31, 2011, and the acknowledgment of global remuneration for MEM Generator Agents adhering to the GeneratorsAgreement. The Generators Agreement envisaged an increase in the remuneration for the “Power Made Available” by the adheringpower generators and in the maximum values recognized for variable maintenance costs and other costs other than fuels. As perthis agreement, YPF Energía Eléctrica, as the successor company in the operation of the plants in “Complejo de Generación ElBracho”, has credits with CAMMESA. • SE Resolution No. 95/2013: this resolution establishes a new remuneration scheme based on the items described below andclassified in terms of size and type of generation technology used. The defined remunerative items pertain to: a) remuneration forfixed costs; b) remuneration for variable costs other than fuel; c) direct additional remuneration; and d) indirect additionalremuneration, which shall be allocated to a trust for the development of electric power infrastructure works. It is necessary to acceptthe terms and conditions of the resolution to access such remunerations. YPF Energía Eléctrica has adhered to this system inAugust 9, 2013, back-dated to February 1, 2013. Among other matters governed by this resolution, it shall be stressed that itestablished that until the SE decides otherwise, generators and large users shall refrain from making new contracts and/or renewingexisting contracts (except for contracts under the framework of SE Resolution No. 1,281/2006 “Energy Plus” and SE ResolutionNo. 220/2007, among others) as of the entry into force of the resolution. Furthermore, it establishes that as from the date oftermination of existing contracts, large users shall begin to make their power purchases through the agency in charge of dispatch(CAMMESA). Similarly, it establishes that fuel supply contracts shall only be acknowledged as long as they are in force, and nonew contracts may be made and existing contracts may not be renewed as from their termination dates. • SE Resolution No. 529/2014: this resolution replaces the remuneration scheme established by SE Resolution No. 95/2013,increasing the tariff schedule of the 4 remunerative concepts included by that resolution. In relation to the Fixed Costs establishesan increase related to the availability of each Generator Agent. Also incorporates a new remuneration scheme of the Non RecurrentMaintenance, which aims to the funding of mayor maintenance subject to the SE approval. This resolution will be applicable toeconomic transactions from February 2014 for generators that had adhered to SE Resolution No. 95/2013. –New CNV Regulatory Framework: Through Resolution No. 622/2013 dated September 5, 2013, the Argentine Securities Commission (ComisiónNacional de Valores – “CNV”) approved the Regulations (N.T. 2013) applicable to companies subject to this agency control, as provided for by theCapital Market Act No. 26,831, and Regulatory Decree No. 1,023 dated August 1, 2013. This Resolution superseded the former CNV Regulations (N.T.2001 as amended) and the General Resolutions No. 615/2013 and No. 621/2013, as from the effective date of the Regulations (N.T. 2013).12. CONSOLIDATED BUSINESS SEGMENT INFORMATIONThe different segments in which the Company is organized have in consideration the different activities from which the Company obtains income and incursexpenses. The mentioned organizational structure is based on the way in which the highest authority in the operational decision-making process analyzes themain financial and operating magnitudes while making decisions about resource allocation and performance assessment also considering the Company’sbusiness strategy. F-86Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe reporting segment structure, taking into account the criteria established by IFRS 8, is as follows: the exploration and production, including contractualpurchases of natural gas and purchase of crude oil arising from service contracts and concession obligations, as well as crude oil and natural gas intersegmentsales (“Exploration and Production”); the refining, transport, purchase of crude oil and natural gas to third parties and intersegment sales, and marketing ofcrude oil, natural gas, refined products, petrochemicals, electric power generation and natural gas distribution (“Downstream”); and other activities, notfalling into these categories, are classified under “Corporate and Other”, principally including corporate administrative expenses and assets, constructionactivities, the environmental remediation and other legal costs according to the controlled company YPF Holdings (see Note 3).Sales between business segments were made at internal transfer prices established by the Company, which generally seek to approximate to market prices.Operating income (loss) and assets for each segment have been determined after intersegment adjustments. Explorationand Production Downstream Corporateand Other ConsolidationAdjustments Total For the year ended December 31, 2014 Revenues from sales 8,853 132,254 835 — 141,942 Revenues from intersegment sales 61,844 1,489 5,212 (68,545)(1) — Revenues 70,697 133,743 6,047 (68,545) 141,942 Operating income (loss) 12,353 10,978 (3,343) (246) 19,742 Income (loss) on investments in companies (10) 568 — — 558 Depreciation of fixed assets 17,180 2,445 311 — 19,936 Acquisitions of fixed assets(2) 41,371 8,392 1,408 — 51,171 Assets 126,228 68,509 16,356 (2,539) 208,554 For the year ended December 31, 2013Revenues from sales 3,851 85,624 638 — 90,113 Revenues from intersegment sales 38,846 1,147 2,285 (42,278)(1) — Revenues 42,697 86,771 2,923 (42,278) 90,113 Operating income (loss) 6,324 6,721 (1,522) (363) 11,160 Income (loss) on investments in companies (93) 446 — — 353 Depreciation of fixed assets (3) 9,591 1,452 193 — 11,236 Acquisitions of fixed assets (3) 28,849 4,903 453 — 34,205 Assets 70,775 51,336 15,161 (1,677) 135,595 For the year ended December 31, 2012Revenues from sales 1,135 65,047 992 — 67,174 Revenues from intersegment sales 30,179 1,069 1,243 (32,491)(1) — Revenues 31,314 66,116 2,235 (32,491) 67,174 Operating income (loss) 5,730 4,095 (2,492) 570 7,903 Income on investments in companies — 114 — — 114 Depreciation of fixed assets 6,878 1,065 186 — 8,129 Acquisitions of fixed assets 11,835 4,232 142 — 16,209 Assets 41,980 30,901 8,031 (963) 79,949 (1)Correspond to the elimination of income between segments of the group YPF.(2)Investments in fixed assets net of increases corresponding to YSUR Group at acquisition date (see Note 13) and Puesto Hernández, Lajas, La ventanaand Bajada Añelo-Amarga Chica joint operations contract at acquisition date of the additional interest.(3)Investments and depreciations of fixed assets net of increases corresponding to GASA at acquisition date and YPF Energía Eléctrica at spin-off date(see Note 13).The distribution of revenues by geographic area, according to the markets for which they are intended, for the years ended on December 31, 2014, 2013 and2012, and fixed assets by geographic area as of December 31, 2014, 2013 and 2012 are as follows: Revenues Fixed assets 2014 2013 2012 2014 2013 2012 Argentina 126,539 78,070 59,428 156,415 93,255 56,779 Mercosur and associated parties 8,298 6,461 3,894 38 20 24 Rest of América 4,753 4,022 2,812 477 221 168 Europe 2,352 1,560 1,040 — — — Total 141,942 90,113 67,174 156,930 93,496 56,971 As of December 31, 2014 no external client represents 10% or more of the Company’s revenue from its ordinary activities. F-87Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents13. BUSINESS COMBINATIONS –GASAAs mentioned in Note 1.a), during May 2013, the Company, through its subsidiary YPF Inversora Energética S.A. took control of GASA (controllingcompany of MetroGAS), by acquiring shares representing a 54.67% interest in GASA. Prior to this acquisition, the Company through its interest in YPFInversora Energética S.A. owned 45.33% of the capital of GASA.The main characteristics of the transaction, as well as information to enable users of the financial statements to assess the nature and financial effects ofthe business combination resulting from the aforementioned operation, as IFRS requires are described below. Name and descriptionof the acquired entity:GASA is the parent company of MetroGAS, company awarded with the license for the distribution of natural gasin the City of Buenos Aires and southern suburbs of Buenos Aires Province. GASA owns 70% equity interest of MetroGAS by holding all of the class “A” representing a stake of 51% incapital, and class “B” shares representing a stake of 19% in capital. MetroGAS provides distribution services to approximately 2.2 million customers within its service area (city ofBuenos Aires and eleven municipalities in the south of Buenos Aires). The acquisition date, thepercentage acquired andprimary reasons for theacquisition:YPF has fulfilled with the obligations arising from the purchase agreement, which corresponded to the payment ofthe balance of the purchase price, during May 2013. As a result of the transaction (which includes sharesrepresenting 54.67% stake in GASA), YPF controls 100% of GASA. As described in Resolution No. 1/2566 D from Enargas, the operation is expected to result in a substantial benefitto customers of the distribution company as a consequence of applying to MetroGAS a responsible management,not only in economic and financial matters, but also taking social principles upon which the welfare of currentand future generations. The acquisition-date fair valueof the total considerationtransferred and the acquisition-date fair value of each mainasset:The price of the above operation (acquisition of shares representing 54.67% stake in GASA) was US$ 9.7 million,which implies a total value for the 100% of the participation in GASA of approximately US$ 17.7 million, whichapproximates the fair value of the net assets and liabilities of the acquired company. Below are the fair values of the main assets and liabilities of the acquired company (values at 100% interest) atacquisition date, which have been incorporated into YPF’s balance sheet as of the acquisition date: Cash and equivalents 143 Trade receivables 318 Other receivables and other assets 23 Fixed assets 1,788 Provisions 104 Loans 879 Accounts payables 461 Social security and other taxes payables 102 Deferred income tax liabilities 328 Income tax liability 12 Additionally, non-controlling interest amounted to 178 as of the date of acquisition, corresponding to the 30%interest in MetroGAS, a company controlled by GASA. Prior to the transaction, the carrying value of the interest in GASA amounted to zero. As a consequence of theacquisition, remeasurement of shares in GASA to fair value generated a gain of approximately 136, which hasbeen recorded in the second quarter of 2013 under “Income on investments in companies” account in thecomprehensive income statement of YPF for the year ended December 31, 2013. Income and expenses fromordinary activities of GASAsince the acquisition dateincluded in the financialstatements of the YPF for theyear 2013: Revenues 1,363 Cost of sales (1,044) Gross profit 319 Other operating expenses (266) Operating income 53 Financial income (expense), net (326) Income tax 139 Net loss for the year (134) F-88Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents Income and expenses fromordinary activities of GASAsince the beginning 2013 anduntil December 31, 2013: Revenues 1,848 Cost of sales (1,425) Gross profit 423 Other operating expenses (394) Operating income 29 Financial income (expense), net 721(1) Income tax (253) Net income for the year 497 (1)Includes the gain as a result of debt restructuring of MetroGAS and GASA prior to the acquisition date (see Note 2.i) for a total amount of 1,141. –YPF Energía Eléctrica S.A.On June 4, 2013, YPF, Pluspetrol Resources Corporation B.V. (“PPRC”) and Pluspetrol Energy S.A. (“PPE”) signed an agreement to carry out a spin offPPE, without dissolving it, and allocate part of their assets to create a new spun off company.This spin off was done with effective date on August 1, 2013 and as a consequence, YPF Energía Eléctrica S.A. was created (spun off company), onwhich YPF directly or indirectly holds 100% interest and YPF withdrew its participation in PPE.As a result of the spin off, YPF Energía Eléctrica S.A. maintained the electric generation business, previously operated by PPE, and a 27% interest inRamos Consortium.The main characteristics of the transaction, as well as information to enable users of the financial statements to assess the nature and financial effects ofthe business combination resulting from the aforementioned operation as IFRS requires, are described below. Name and description of theparent company:Pluspetrol Energy S.A. On July 31, 2013, YPF had 45% interest on its capital. Name and description of thespun off company:YPF Energía Eléctrica S.A. The main goal of this company is the electric generation business operating twopower plants in the province of Tucuman, plus a 27% interest in the Ramos Consortium dedicated to theExploration and Production of Hydrocarbons. The spin off date:July 31, 2013 Fair value of the considerationtransferred and fair value of themain assets of the acquisition:The fair value of the net assets and liabilities transferred to the company’s spin off process, amounted to 485.Below are the main items: Trade receivables 65 Fixed assets 638 Accounts payables 77 Loans 52 Social security and other taxes payables 50 Deferred income tax liabilities 35 Other Liabilities 4 Prior to the transaction, the carrying amount of the investment in PPE was 350 and YPF maintained a 115translation difference reserve in relation with the mentioned investment. As a consequence of the spin-off, thefair value of the assets and liabilities emerging from the spin-off of Pluspetrol Energy S.A. generated a gain ofapproximately 20, that was recorded in the second semester of 2013 under the “Income on investments incompanies” account in the comprehensive income statement of the Company for the year ended December 31,2013. Income and expenses fromordinary activities of YPFEnergía Eléctrica since theacquisition date included in thefinancial statements of theCompany for the year endedDecember 31, 2013: Revenues 266 Cost of sales (162) Gross profit 104 Other operating expenses 8 Operating income 112 Financial income (expense), net (16) Income tax (28) Net income for the year 68 F-89Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents–YSUR:As mentioned in Note 1.a), on February 12, 2014, YPF and its subsidiary YPF Europe BV (“YPF Europe”, constituted in January, 2014) accepted anoffer made by Apache Overseas Inc. and Apache International Finance II S.a.r.l. (collectively, “Apache Group”) for the acquisition of 100% of Apache’sinterest in controlled companies which are the owners of assets located in the Argentine Republic, and the acquisition of certain intercompany loansowed by the acquired companies to the Apache Group companies. The price agreed upon by the parties was US$ 786 million, which was canceledthrough by an initial deposit of US$ 50 million held on February 12, 2014, and the remaining balance was paid on March 13, 2014, date from whichYPF has taken control of the mentioned companies (the “acquisition date”). Together with the assets and liabilities incorporated by these companies,local market debt was assumed for US$ 31 million.As of result of the previously described transaction, YPF acquired the following equity interests: (i) 100% of the capital stock of Apache CanadaArgentina Investment S.à.r.I. and 100% of the capital stock of Apache Canada Argentina Holdings S.à.r.I.; (ii) 100% of the capital stock of ApacheArgentina Corporation, through which it will control 65.28% of Apache Petrolera Argentina S.A., and (iii) 34.72% of Apache Petrolera Argentina S.A.Since YPF has acquired 100% of the interest, there is no non-controlling interest recorded.As of the date of acquisition these companies controlled directly or indirectly assets in the provinces of Neuquen, Tierra del Fuego and Río Negro, witha total production of approximately 49,100 oil equivalent barrels per day and had an important infrastructure of pipelines and facilities and around 350employees. In addition, certain assets have potential for exploration and development in the Vaca Muerta formation.The fair value of the main identified assets and liabilities of the companies acquired (100% interest values and after consolidation adjustments), whichhave been incorporated in the Company’s balance sheet as of the date of acquisition is disclosed below: Cash and equivalents 95 Assets held for sale 1,538 Inventories 55 Trade receivables 520 Other receivables and other assets 213 Intangible assets – Exploration rights 1,246 Fixed assets 5,469 Provisions 781 Deferred income tax liabilities 1,241 Loans 110 Accounts payables 639 Social security and other taxes payables 134 Income tax liability 24 Below is detailed the information related with revenues, costs and expenses of the acquired companies required by IFRS: Since the acquisition date up toDecember 31, 2014 Since the beginning of the year up toDecember 31, 2014 Revenues 3,370 4,099 Cost of sales (2,960) (3,601) Gross profit 410 498 Other operating expenses (232) (282) Operating income 178 216 Financial income (expense), net (78) (95) Income tax 560 681 Net income for the period 660 802 Additionally, YPF and Apache Energía Argentina S.R.L. has entered into a transfer of assets agreement with Pluspetrol S.A. (“Pluspetrol”) whereby itwill transfer, in exchange for US$ 217 million, an interest that belongs to Apache Energía Argentina S.R.L. (a subsidiary of Apache Canada ArgentinaHoldings S.à.r.l.), in three concessions and four joint operation contracts, as well as an interest of YPF in a joint operation contract. The aforementionedinterests correspond to assets located in the Province of Neuquén, with the objective of jointly exploring and developing the Vaca Muerta formation.The mentioned transaction has been approved by the regulatory authority during November, 2014. F-90Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsDuring October, 2014, the registered names of some companies have changed as follows: Apache Energía Argentina S.R.L. to YSUR Energía ArgentinaS.R.L.; Apache Natural Resources Petrolera Argentina S.R.L. to YSUR Recursos Naturales S.R.L.; Apache Petrolera Argentina S.A. to YSUR PetroleraArgentina S.A.; Apache Argentina Corporation to YSUR Argentina Corporation; Apache Canada Argentina Investment S.à.r.l. to YSUR ArgentinaInvestment S.à.r.l.; and Apache Canada Argentina Holdings S.à.r.l. to YSUR Argentina Holdings S.à.r.l. As of the date of issuance of these financialstatements, with the exception of YSUR Energía Argentina S.R.L. the aforementioned changes are in process of registration in the General Inspectorateof Justice (“IGJ”).14. SUBSEQUENT EVENTSDated February 3, 2015 the Argentine Republic Official Gazette published the text of Resolution No. 14/2015 passed by the Commission for Planning andCoordination of the Strategy for the National Plan of Investment in Hydrocarbons that created the Crude Oil Production Promotion Program under whichbeneficiary companies are awarded an economic compensation, payable in pesos, for an amount equivalent to up to three U.S. dollars per barrel for the totalproduction of each beneficiary company, provided that its quarterly production of crude oil is higher or equal to the production taken as basis for suchprogram. Basis production is defined as the total production of crude oil by beneficiary companies corresponding to the fourth quarter of 2014, expressed inbarrels per day. The beneficiary companies that have met the demands of all refineries authorized to operate in the country and direct part of their productionto the foreign market may receive an additional economic compensation of two or three U.S. dollars for each barrel of exported crude oil, depending on thelevel of exported volume achieved.On February 5, 2015 the General Shareholder’s Meeting of YPF approved an increase of the amount of the Global Medium - Term Notes Program of theCompany for US$ 3,000 million, for a total maximum nominal outstanding amount at any time of the Program of US$ 8,000 million or its equivalent in othercurrencies.In February 2015, the Company issued Additional Negotiable Obligations of Class XXVI and XXVIII for an amount of US$ 175 million and US$ 325 million,respectively. The Additional Class XXVI shall accrue interest at an annual nominal fixed rate of 8.875% with the principal amount falling due in 2018. TheAdditional Class XXVIII shall accrue interest at an annual nominal fixed rate of 8.75% and the principal maturing expires between 2022 and 2024.Likewise, Negotiable Obligations Class XXXVI and XXXVII were issued for an amount of 950 million and 250 million, respectively. Class XXXVI shallaccrue interest at a variable interest rate, with the principal amount maturing in 2020. Class XXXVII shall accrue an annual nominal fixed interest rate of25.75% for the first twelve months, and thereafter shall be variable, with the repayment of principal expiring in 2017.As of the date of the issuance of these consolidated financial statements, there are no other significant subsequent events that require adjustments ordisclosure in the financial statements of the Company as of December 31, 2014, which were not already considered in such consolidated financial statementsaccording to IFRS.The consolidated financial statements as of December 31, 2014, presented for regulatory purposes before the CNV, have been approved by the Board ofDirectors’ meeting and authorized to be issued on February 26, 2015, and will be considered by the next annual shareholders’ meeting. These consolidatedfinancial statements, which comprise those presented before the CNV on February 26, 2015, and an update of Note 14 – “Subsequent events” and theinclusion of Note 15 – “Supplemental information on oil and gas producing activities”, have been approved by Management on March 30, 2015.15. SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED)The following information is presented in accordance with ASC No. 932 “Extractive Activities – Oil and Gas”, as amended by ASU 2010 – 03 “Oil and GasReserves. Estimation and Disclosures”, issued by FASB in January 2010. F-91Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsOil and gas reservesProved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonablecertainty to be economically producible (from a given date forward, from known reservoirs, and under existing economic conditions, operating methods andgovernment regulations) prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonablycertain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must havecommenced or the operator must be reasonably certain that it will commence the project within reasonable time. In some cases, substantial investments innew wells and related facilities may be required to recover proved reserves.Information on net proved reserves as of December 31, 2014, 2013 and 2012 was calculated in accordance with the SEC rules and FASB’s ASC 932, asamended. Accordingly, crude oil prices used to determine reserves were calculated at the beginning of each month, for crude oils of different qualityproduced by the Company. The Company considered the realized prices for crude oil in the domestic market taking into account the effect of exports taxes asin effect as of each of the corresponding years (until 2016, in accordance with Law No. 26,732). For the years beyond the mentioned periods, the Companyconsidered the unweighted average price of the first-day-of-the-month for each month within the twelve-month period ended December 31, 2014, 2013 and2012, respectively, which refers to the WTI prices adjusted by each different quality produced by the Company. Additionally, since there are no benchmarkmarket natural gas prices available in Argentina, the Company used average realized gas prices during the year to determine its gas reserves.Notwithstanding the foregoing, commodity prices declined significantly in the fourth quarter of 2014. See “Item 3. Key Information—Risk Factors—RisksRelating to the Argentine Oil and Gas Business and Our Business— Our oil and natural gas reserves are estimates, and —Risks Relating to the Argentine Oiland Gas Business and Our Business— Our reserves and production are likely to decline.”Net reserves are defined as that portion of the gross reserves attributable to the interest of YPF after deducting interests owned by third parties. In determiningnet reserves, the Company excludes from its reported reserves royalties due to others, whether payable in cash or in kind, where the royalty owner has a directinterest in the underlying production and is able to make lifting and sales arrangements independently. By contrast, to the extent that royalty paymentsrequired to be made to a third party, whether payable in cash or in kind, are a financial obligation, or are substantially equivalent to a production or severancetax, the related reserves are not excluded from the reported reserves despite the fact that such payments are referred to as “royalties” under local rules. Thesame methodology is followed in reporting our production amounts.Gas reserves exclude the gaseous equivalent of liquids expected to be removed from the gas on concessions and leases, at field facilities and at gas processingplants. These liquids are included in net proved reserves of natural gas liquids.Technology used in establishing proved reserves additions in 2014YPF’s estimated proved reserves are based on estimates generated through the integration of available and appropriate data, utilizing well-establishedtechnologies that have been demonstrated in the field to yield repeatable and consistent results. Data used in these integrated assessments includeinformation obtained directly from the subsurface via wellbore, such as well logs, reservoir core samples, fluid samples, static and dynamic pressureinformation, production test data, and surveillance and performance information. The data utilized also include subsurface information obtained throughindirect measurements, including high quality 2-D and 3-D-seismic data, calibrated with available well control. Where applicable, geological outcropsinformation was also utilized. The tools used to interpret and integrate all these data included both proprietary and commercial software for reservoirmodeling, simulation and data analysis. In some circumstances, where appropriate analog reservoir models are available, reservoir parameters from theseanalog models were used to increase the reliability of our reserves estimates. F-92Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsChanges in YPF’s Estimated Net Proved ReservesThe table below sets forth information regarding changes in YPF’s net proved reserves during 2014, 2013 and 2012, by hydrocarbon product. 2014 2013 2012 Oil and Condensate Worldwide Argentina OtherForeign Worldwide Argentina OtherForeign Worldwide Argentina Otherforeign (Millions of barrels) Consolidated Entities At January 1, 552 551 1 521 520 1 511 510 1 Developed 422 421 1 397 397 * 379 378 1 Undeveloped 130 130 — 124 123 * 133 133 — Revisions of previous estimates (1) 74 73 1 83 83 * 69 68 1 Extensions and discoveries 40 40 — 26 26 — 17 17 — Improved recovery 16 16 — 11 11 — 6 6 — Purchase of minerals in place 17 17 — 1 1 — — — — Sale of minerals in place (9) (9) — (5) (5) — — — — Production for the year (2) (89) (89) (*) (84) (84) (*) (83) (82) (1) At December 31, (3) 601 600 1 552 551 1 521 520 1 Developed 447 446 1 422 421 1 397 397 * Undeveloped 154 154 — 130 130 — 124 123 * Equity-Accounted EntitiesAt January 1, — — — * * — * * — Developed — — — * * — * * — Undeveloped — — — — — — — — — Revisions of previous estimates (1) — — — — — — — — — Extensions and discoveries — — — — — — — — — Improved recovery — — — — — — — — — Purchase of minerals in place — — — — — — — — — Sale of minerals in place — — — (*) (*) — — — — Production for the year (2) — — — (*) (*) — — — — At December 31, (3) — — — — — — * * — Developed — — — — — — * * — Undeveloped — — — — — — — — — F-93Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2014 2013 2012 Oil and Condensate Worldwide Argentina OtherForeign Worldwide Argentina OtherForeign Worldwide Argentina Otherforeign (Millions of barrels) Consolidated and Equity-AccountedEntities At January 1, Developed 422 421 1 397 397 * 379 378 1 Undeveloped 130 130 — 124 123 * 132 132 — Total 552 551 1 521 520 1 511 510 1 At December 31,Developed 447 446 1 422 421 1 397 397 * Undeveloped 154 154 — 130 130 — 124 123 * Total 601 600 1 552 551 1 521 520 1 *Not material (less than 1)(1)Revisions in estimates of reserves are performed at least once a year. Revision of oil and gas reserves is considered prospectively in the calculation ofdepreciation.(2)Crude oil production for the years 2014, 2013 and 2012 includes an estimated approximately 13, 12 and 11 mmbbl, respectively, in respect of royaltypayments which are a financial obligation, or are substantially equivalent to a production or similar tax. Equity-accounted entities production of crudeoil in respect of royalty payments which are a financial obligation, or are substantially equivalent to a production or similar tax, is not material.(3)Proved crude oil reserves of consolidated entities as of December 31, 2014, 2013 and 2012 include an estimated approximately 91, 82 and 75 mmbbl,respectively, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to a production orsimilar tax. Proved crude oil reserves of equity–accounted entities in respect of royalty payments which are a financial obligation, or are substantiallyequivalent to a production or similar tax, are not material. 2014 2013 2012 Natural Gas Liquids Worldwide Argentina OtherForeign Worldwide Argentina OtherForeign Worldwide Argentina OtherForeign (Millions of barrels) Consolidated Entities At January 1, 76 76 — 69 69 — 73 73 — Developed 55 55 — 56 56 — 58 58 — Undeveloped 21 21 — 13 13 — 14 14 — Revisions of previous estimates (1) 2 2 — 22 22 — 13 13 — Extensions and discoveries 13 13 — 3 3 — 1 1 — Improved recovery — — — * * — — — — Purchase of minerals in place * * — 1 1 — — — — Sale of minerals in place (*) (*) — (2) (2) — — — — Production for the year (2) (18) (18) — (18) (18) — (17) (17) — At December 31, (3) 73 73 — 76 76 — 69 69 — Developed 53 53 — 55 55 — 56 56 — Undeveloped 20 20 — 21 21 — 13 13 — Equity–accounted EntitiesAt January 1, — — — 1 1 — 1 1 — Developed — — — 1 1 — 1 1 — Undeveloped — — — — — — — — — Revisions of previous estimates (1) — — — — — — — — — Extensions and discoveries — — — — — — — — — Improved recovery — — — — — — — — — Purchase of minerals in place — — — — — — — — — Sale of minerals in place(4) — — — (1) (1) — — — — Production for the year (2) — — — (*) (*) — — — — At December 31, (3) — — — — — — 1 1 — Developed — — — — — — 1 1 — Undeveloped — — — — — — — — — F-94Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2014 2013 2012 Natural Gas Liquids Worldwide Argentina OtherForeign Worldwide Argentina OtherForeign Worldwide Argentina OtherForeign (Millions of barrels) Consolidated and Equity-AccountedEntities At January 1, Developed 55 55 — 57 57 — 59 59 — Undeveloped 21 21 — 13 13 — 14 14 — Total 76 76 — 70 70 — 74 74 — At December 31,Developed 53 53 — 55 55 — 57 57 — Undeveloped 20 20 — 21 21 — 13 13 — Total 73 73 — 76 76 — 70 70 — *Not material (less than 1)(1)Revisions in estimates of reserves are performed at least once a year. Revision of oil and gas reserves is considered prospectively in the calculation ofdepreciation.(2)Natural gas liquids production for the years 2014, 2013 and 2012 includes an estimated approximately 2, 3 and 2 mmbbl, respectively in respect ofroyalty payments which are a financial obligation, or are substantially equivalent to a production or similar tax. Equity-accounted entities productionof natural gas liquids in respect of royalty payments which are a financial obligation, or are substantially equivalent to a production or similar tax, isnot material.(3)Proved natural gas liquids reserves of consolidated entities as of December 31, 2014, 2013 and 2012 include an estimated approximately 11, 11 and 10mmbbl, respectively, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to aproduction or similar tax. Proved natural gas liquids reserves of equity–accounted entities in respect of royalty payments which are a financialobligation, or are substantially equivalent to a production or similar tax, are not material.(4)In 2013, approximately 1 mmbbl was transferred to Consolidated Entities as a result of YPF Energía Eléctrica working interest on Ramos Field. Theserights were previously owned by former Pluspetrol Energy and thus disclosed under Equity-accounted Entities reserves. F-95Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2014 2013 2012 Natural gas Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign (Billions of standard cubic feet) Consolidated entities At January 1, 2,558 2,555 3 2,186 2,183 3 2,362 2,360 2 Developed 1,938 1,935 3 1,810 1,807 3 1,760 1,758 2 Undeveloped 620 620 — 376 376 — 602 602 (*) Revisions of previous estimates (1) 444 441 3 565 564 1 220 219 1 Extensions and discoveries 421 421 — 179 179 — 31 31 — Improved recovery 1 1 — 2 2 — 4 4 — Purchase of minerals in place 315 315 — 73 73 — — — — Sale of minerals in place (176) (176) — (10) (10) — — — — Production for the year (2) (547) (546) (1) (437) (436) (1) (432) (431) (1) At December 31, (3) (4) 3,016 3,011 5 2,558 2,555 3 2,186 2,183 3 Developed 2,267 2,262 5 1,938 1,935 3 1,810 1,807 3 Undeveloped 749 749 — 620 620 — 376 376 — Equity-accounted entitiesAt January 1, — — — 36 36 — 38 38 — Developed — — — 36 36 — 38 38 — Undeveloped — — — — — — — — — Revisions of previous estimates (1) — — — — — — 8 8 — Extensions and discoveries — — — — — — — — — Improved recovery — — — — — — — — — Purchase of minerals in place — — — — — — — — — Sale of minerals in place (5) — — — (31) (31) — — — — Production for the year (2) — — — (5) (5) — (10) (10) — At December 31, (3) — — — — — — 36 36 — Developed — — — — — — 36 36 — Undeveloped — — — — — — — — — 2014 2013 2012 Natural gas Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign (Billions of standard cubic feet) Consolidated andEquity-accounted entities At January 1, Developed 1,938 1,935 3 1,846 1,844 2 1,797 1,795 2 Undeveloped 620 620 — 376 376 — 602 602 — Total 2,558 2,555 3 2,222 2,220 2 2,399 2,397 2 At December 31,Developed 2,267 2,262 5 1,938 1,935 3 1,846 1,844 2 Undeveloped 749 749 — 620 620 — 376 376 — Total 3,016 3,011 5 2,558 2,555 3 2,222 2,220 2 *Not material (less than 1)(1)Revisions in estimates of reserves are performed at least once a year. Revision of natural gas reserves is considered prospectively in the calculation ofdepreciation.(2)Natural gas production for the years 2014, 2013 and 2012 includes an estimated approximately 60, 47 and 48 bcf, respectively, in respect of royaltypayments which are a financial obligation, or are substantially equivalent to a production or similar tax. Equity-accounted entities production ofnatural gas in respect of royalty payments which are a financial obligation, or are substantially equivalent to a production or similar tax, is not material.(3)Proved natural gas reserves of consolidated entities as of December 31, 2014, 2013 and 2012 include an estimated approximately 324, 285, and 252bcf, respectively, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to a production orsimilar tax. Proved natural gas reserves of equity-accounted entities in respect of royalty payments which are a financial obligation, or are substantiallyequivalent to a production or similar tax, are not material.(4)Proved natural gas reserves of consolidated entities and Equity accounted entities as of December 31, 2014, 2013 and 2012 include an estimated ofapproximately 554, 376 and 293 bcf, respectively, which is consumed as fuel at the field.(5)In 2013 approximately 31 bcf were transferred to Consolidated Entities as a result of YPF Energía Eléctrica working interest on Ramos Field. Theserights were previously owned by former Pluspetrol Energy and thus disclosed under Equity-accounted Entities reserves. F-96Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents 2014 2013 2012 Oil equivalent (1) Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign (Millions of barrels of oil-equivalent) Consolidated entities At January 1, 1,083 1,082 1 979 978 1 1,005 1,004 1 Developed 822 821 1 776 775 1 751 750 1 Undeveloped 261 261 — 203 203 — 254 254 — Revisions of previous estimates (2) 155 154 2 206 205 1 121 120 1 Extensions and discoveries 129 129 — 61 61 — 24 24 — Improved recovery 17 17 — 11 11 — 7 7 — Purchase of minerals in place 74 74 — 15 15 — — — — Sale of minerals in place (42) (42) — (9) (9) — — — — Production for the year (3) (204) (204) (*) (180) (179) (*) (178) (177) (1) At December 31, (4) 1,212 1,210 2 1,083 1,082 1 979 978 1 Developed 905 903 2 822 821 1 776 775 1 Undeveloped 307 307 — 261 261 — 203 203 — Equity-accounted entitiesAt January 1, — — — 8 8 — 8 8 — Developed — — — 8 8 — 8 8 — Undeveloped — — — — — — — — — Revisions of previous estimates (2) — — — — — — 2 2 — Extensions and discoveries — — — — — — — — — Improved recovery — — — — — — — — — Purchase of minerals in place — — — — — — — — — Sale of minerals in place (5) — — — (7) (7) — — — — Production for the year (3) — — — (1) (1) — (2) (2) — At December 31, (4) — — — — — — 8 8 — Developed — — — — — — 8 8 — Undeveloped — — — — — — — — — 2014 2013 2012 Oil equivalent (1) Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign (Millions of barrels of oil-equivalent) Consolidated and Equity-accounted entities At January 1, Developed 822 821 1 783 782 1 759 758 1 Undeveloped 261 261 — 203 203 — 254 254 — Total 1,083 1,082 1 987 986 1 1,013 1,012 1 At December 31,Developed 905 903 2 822 821 1 783 782 1 Undeveloped 307 307 — 261 261 — 203 203 — Total 1,212 1,210 2 1,083 1,082 1 987 986 1 *Not material (less than 1)(1)Volumes of natural gas have been converted to barrels of oil-equivalent at 5,615 cubic feet per barrel.(2)Revisions in estimates of reserves are performed at least once a year. Revision of crude oil, natural gas liquids and natural gas reserves are consideredprospectively in the calculation of depreciation.(3)Barrel of oil-equivalent production of consolidated entities for the years 2014 , 2013 and 2012 includes an estimated approximately 27, 23 and 22mmboe, respectively, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to aproduction or similar tax. Barrel of oil-equivalent production of equity-accounted entities in respect of royalty payments which are a financialobligation, or are substantially equivalent to a production or similar tax, are not material. F-97Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents(4)Proved oil-equivalent reserves of consolidated entities as of December 31, 2014, 2013 and 2012 include an estimated approximately 160, 144 and 130mmboe, respectively, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to aproduction or similar tax. Proved oil-equivalent reserves of equity-accounted entities in respect of royalty payments which are a financial obligation,or are substantially equivalent to a production or similar tax, are not material.(5)Approximately 6.5 mmboe were transferred to Consolidated Entities as a result of YPF Energía Eléctrica working interest on Ramos Field. These rightswere previously owned by former Pluspetrol Energy and thus disclosed under Equity-accounted Entities reserves. F-98Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsThe paragraphs below explain in further detail the most significant changes in our proved reserves during 2014, 2013 and 2012.Changes in our estimated proved reserves during 2014a) Revisions of previous estimatesDuring 2014, the Company’s proved reserves were revised upwards by 74 million barrels (“mmbbl”) of crude oil, 2 million barrels (“mmbbl”) of natural gasliquids, and 444 billion cubic feet (“bcf”) of natural gas.The main revisions to proved reserves have been due to the following: –The term of concession contracts was extended for several operated and non-operated fields located in Rio Negro and Tierra del Fuegoprovinces. As a result, approximately 75 mmboe of proved reserves (25.3 mmbbl of crude oil, 1.8 mmbbl of NGL and 268.7 bcf of natural gas)were added. Fields included in this contract are: Tierra del Fuego, Los Chorrillos, Lago Fuego, Estación Fernandez Oro, Señal Picada, ElMedanito, Punta Barda, Bajo del Piche and El Santiagueño. –Existing development plans were revised and new development plans were finalized for recently acquired fields through the acquisition of theApache Group assets in the Neuquina and Austral Basins. As a result, a total of 29 mmboe of proved undeveloped reserves (5.2 mmbbl of crudeoil, 1.1 mmbbl of NGL and 126.4 bcf of natural gas) were added mainly in the Estación Fernández Oro gas field. –In the Golfo San Jorge Basin, a net volume of 7.0 mmboe of proved developed reserves (7.9 mmbbl of crude oil and a decrease of 4.6 bcf ofnatural gas) was added as a result of better than expected production and revised production forecasts. The main contributors to this increasewere the Los Perales (6.4 mmboe), Barranca Baya (3.7 mmboe) and Zona Central-Bella Vista Este (1.8 mmboe) fields, while the Seco León (adecrease of 2.3 mmboe) and Cañadón Yatel (a decrease of 1.0 mmboe) fields performed lower than expected. –In the Neuquina Basin, 23.8 mmboe of proved reserves (10.9 mmbbl of crude oil and 73 bcf of natural gas) were added as a result of fieldsperforming above forecast. The contributors to the increase were the Chihuido La Salina (4.1 mmboe), Puesto Hernandez (3.9 mmboe), ChihuidoSierra Negra (3.0 mmboe), Lindero Atravesado (2.8 mmboe), Aguada Pichana (2.5 mmboe), and Loma La Lata Central (2.1 mmboe). The decreasewas from the Loma La Lata Norte (a decrease of 1.9 mmboe). –A total of 9.2 mmboe of proved reserves (6.1 mmbbl of crude oil and 17.7 bcf of natural gas) was added due to feasibility studies performed toinclude new projects to the field development plans, mainly in the Volcan Auca Mahuida (1.9 mmboe), Aguada Toledo-Sierra Barrosa (1.9mmboe), Seco León (1.7 mmboe) and Los Perales (1.5 mmboe) fields. –Net results from certain new wells were lower than expected, resulting in a 6.0 mmboe reduction of proved reserves (reductions of 2.2 mmbbl ofcrude oil, 2.0 mmbbl of NGL and 10.1 bcf of natural gas). The main reductions were in the Rincón del Mangrullo, Loma La Lata Central,Manantiales Behr, Vizcacheras and Cañadón Yatel fields.b) Extensions and discoveriesWells drilled in unproved reserve areas added approximately 129 mmboe of proved reserves (40 mmbbl of crude oil, 13 mmbbl of NGL and 421 bcf of naturalgas). –A total of approximately 32.3 mmboe of proved reserves (1.2 mmbbl of crude oil, 6.9 mmbbl of NGL and 135.7 bcf of natural gas) were added asa result of wells drilled and scheduled to be drilled in the Rincón del Mangrullo area, Mulichinco Tight Gas formation. –Drilling activities and development plans in the Aguada Toledo-Sierra Barrosa field resulted in a total addition of approximately 27.9 mmboe ofproved reserves (1.2 mmbbl of crude oil and 149.9 bcf of natural gas). Main contributions came from the Lajas Tight Gas formation (22.8mmboe) and the Lotena formation (2.8 mmboe). F-99Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents –A total of 23.4 mmboe (11.8 mmbbl of crude oil, 5.6 mmbbl of NGL and 33.3 bcf of natural gas) of unconventional proved reserves were addedas a result of wells drilled in areas with unproved reserves and additional well locations scheduled to be drilled in Loma La Lata Norte (Loma LaLata fields in the Vaca Muerta formation). –In the Golfo San Jorge Basin, 17.9 mmboe of proved reserves (13.3 mmboe of crude oil and 26.2 bcf of natural gas) were added as a result of newextension wells drilled and new locations added to the development plan. The main contributors were the Manantiales Behr, Barranca Baya,Cañadón Yatel and Restinga Ali fields.c) Improved recoveryA total of approximately 17 mmboe of proved reserves were added mainly due to new projects and positive production response, including: –In the San Jorge Basin, 15.7 mmbbl of secondary recovery reserves of crude oil were added as a result of new projects and improved productionresponse of existing projects. The main additions were from the Manantiales Behr, El Trebol, Escalante, Barranca Baya and Los Perales fields. –In the Neuquina Basin, in the Puesto Hernandez field, proved undeveloped secondary recovery reserves were reduced by 4.5 mmbbl of crude oil,due to changes in workover and drilling scheduled activities in accordance with a new project strategy. –This was partially offset by a total of 3.3 mmbbl of proved reserves of crude oil added as a result of production response in the CNQ7 andCNQ7A secondary recovery projects.d) Sales and acquisitions –During 2014, additional gas and oil fields were acquired in the Neuquina Basin (13 fields) and the Austral Basin (2 fields). See Note 13 to theAudited Consolidated Financial Statements. As a result, 69.3 mmboe of proved reserves were added (13.8 mmbbl of crude oil, 0.6 mmbbl of NGLand 308 bcf of natural gas), most of which are from operated fields. –On November 17, 2014, we entered into an agreement to extend the joint venture contract with ENAP Sipetrol Argentina S.A. in the Magallanesarea, until the concession contract expires which was previously extended (portion located in Santa Cruz) exclusively by us during 2012. Thisresulted in a 28.9 mmboe reduction (reductions of 3.9 mmbbl of crude oil and 140.0 bcf of natural gas) of proved reserves in this area becauseYPF’s working interest in these fields was reduced.Changes in our estimated proved reserves during 2013a) Revisions of previous estimatesDuring 2013, the Company’s proved reserves were revised upwards by 106 mmbbl of crude oil, condensate, and NGL, and 564 bcf of natural gas.The main revisions to proved reserves have been due to the following: –The term of concession contracts was extended for several operated and non-operated fields located in Chubut Province. Because of this,approximately 43 mmbbl of proved crude oil reserves and 15 bcf of proved natural gas reserves were added in the Manantiales Behr, El Trebol,Escalante, Zona Central - Bella Vista, Cañadón Perdido, El Tordillo, La Tapera and Sarmiento fields. –In the Magallanes field, approximately 36 mmboe (9 mmbbl of crude oil and 150 bcf of natural gas) of proved developed reserves were added asa result of better than expected production and revised expected production until the expiration of the concession contract. –A total of 8 mmbbl of liquids and 84 bcf of natural gas proved developed reserves were added in Loma La Lata Central (southern part of Loma LaLata field), mainly because of new projects, revision of existing projects, and a higher than forecasted production performance. F-100Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contents –In the Golfo San Jorge Basin, Los Perales and Seco León fields, 12 mmboe of proved developed reserves (10.6 mmbbl of crude oil and 8.2 bcf ofnatural gas) were added because of an improved production performance. –A total of 9 mmbbl of liquids and 122 bcf of gas proved reserves were added in the El Porton, Chihuido de la Salina, Chihuido de la Salina Surand Filo Morado fields in relation with production response, workovers activity and project revision in accordance with updated field response. –In the Rincón del Mangrullo field approximately 6 mmbbl of liquids proved reserves, and 74 bcf of mainly proved undeveloped natural gasreserves were added because of additional drilling activity planned for 2014. –The Chihuido de la Sierra Negra field added approximately 7 mmbbl of crude oil and 3 bcf of natural gas proved developed reserves due tobetter than expected production performance. –Production rates did not behave as expected in the Aguada Pichana, Puesto Hernández, Aguada Toledo - Sierra Barrosa and Barrancas fields.Proved developed reserves were reduced by 8.8 mmboe based on this new information. –New wells drilled during 2013 in several operated areas did not perform as expected. Because of this, proved reserves were reduced by 6 mmbblof NGL and 4 bcf of natural gas mainly in the Barranca Baya, Loma La Lata Norte, Loma Campana, Cerro Fortunoso, and Vizcacheras fields.b) Extensions and discoveriesWells drilled in unproved reserve areas added approximately 61 mmboe of proved reserves (179 bcf of natural gas and 29 mmbbl of crude oil). –A total of approximately 27.5 mmboe of proved reserves were added as a result of wells drilled and scheduled to be drilled during 2014 in theAguada Toledo - Sierra Barrosa field. The main contributions came from the Lajas Tight Gas formation (15.9 mmboe) and the Lotena formation(7.9 mmboe). –Unconventional proved developed oil reserves for a total of 10.6 mmboe were added as a consequence of 57 new wells drilled in unprovedreserve and resource areas of the Loma La Lata Norte (Loma La Lata fields) in the Vaca Muerta formation. –In the Loma Campana field, unconventional proved developed oil reserves for a total of 4.0 mmboe were added related to 22 new wells drilled inunproved reserves and resources areas. –In the Golfo San Jorge Basin, extensions drilled in the Seco León field (25 new wells) allowed the addition of approximately 2.8 mmboe ofproved reserves, mainly crude oil. –Also in the Golfo San Jorge Basin, 37 new extension wells drilled in the Barranca Baya field added 2.6 mmboe of mainly crude oil reserves.c) Improved recoveryA total of approximately 11.5 mmboe of proved oil reserves have been added due to positive production response, new production and injection wells, andfrom workovers, performed as part of the improved recovery projects, including: –In the Neuquina Basin, Aguada Toledo - Sierra Barrosa field, approximately 6.3 mmboe of oil reserves were added as a result of new scheduledsecondary recovery projects, extension projects, and new wells drilled in the area. –In the San Jorge Basin, Manantiales Behr and El Trebol fields, 3.4 mmboe of secondary recovery reserves were added as a result of recoveryfactor improvements based on new drilling and project optimization. –In the Neuquina Basin in Cerro Fortunoso field, proved undeveloped reserves were reduced by approximately 3.7 mmboe because of observedchanges in the behavior of a secondary recovery pilot project. F-101Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsd) Sales and acquisitions –The acquisition of a 23% working interest in the Aguarague and San Antonio Sur fields of the Noroeste Basin resulted in the addition ofapproximately 8.9 mmboe of proved reserves. YPF’s working interest in this field is currently 53%. –The execution of a contract for a joint venture project for the development and operation of the Loma Campana and Loma La Lata Norte (Northof Loma La Lata) fields resulted in an 8.8 mmboe reduction in proved reserves of Vaca Muerta and Quintuco formations. As part of thisagreement, YPF’s working interest in these fields changed from 100% to 50%. –Approximately 6.5 mmboe were transferred to Consolidated Entities as a result of YPF Energía Eléctrica’s working interest in the Ramos field.These rights were previously owned by Pluspetrol Energy and are thus disclosed under Equity-Accounted Entities reserves.Changes in our estimated proved reserves during 2012a) Revisions of previous estimates:During 2012, the Company’s proved reserves were revised upwards by 82 mmbbl of crude oil, condensate and NGL and 220 bcf of natural gas.The main revisions to proved reserves have been due to the following: –Negotiation of the extension of exploitation concessions in the provinces of Santa Cruz, Salta and Tierra del Fuego (See Note 11.b) resulted in79 mmbbl of crude oil, condensate and NGL and 231 bcf of gas were additions to proved reserves during 2012. –Crude oil, condensate and NGL production performed better than expected during 2012, resulting in approximately 27 mmbbl additions toproved developed reserves. The main additions to crude oil, condensate and NGL reserves were from the Aguada Pichana, Chihuido de la SierraNegra, Puesto Hernández, Seco León, Los Perales and Lomas del Cuy fields. –In the Vizcacheras, Tierra del Fuego and Barrancas areas, a total of approximately 7 mmbbl of oil were discounted from proved developedreserves due to poor production results. –A total of approximately 121 bcf were added as proved developed natural gas reserves as a result of better than expected productionperformance. This increase was mainly based on additions from the Aguada Pichana, Loma La Lata, Ramos, Aguada Toledo – Sierra Barrosa andPaso Bardas Norte fields. –A reduction of 25 mmboe of unconventional Vaca Muerta reservoir as a result of incorporating new information according to the behavior of theproject, while it continues to execute the pilot project. –Due to revision of development projects studies, approximately 12 mmboe of proved undeveloped reserves were discounted, mainly in theLotena formation, Loma La Lata field. –Approximately 6 mmboe of proved reserves were added mainly in the Cañadón Yatel, Volcan Auca Mahuida and Las Manadas fields as aconsequence of the addition of new development project studies to our plan. –An addition of approximately 3 mmboe of proved reserves were achieved as a result of successful workover activities performed in some areas,mainly in the Chihuido La Salina Sur, Volcan Auca Mahuida and Los Perales fields. –Results of some of our development wells were below expectations in certain areas, resulting in a downward revision of approximately 4 mmboeof proved reserves, mainly in Loma La Lata, Seco León, Manantiales Behr and Barranca Baya fields. F-102Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of Contentsb) Improved recoveryA total of approximately 7 mmbbl of proved oil reserves have been added due to positive production response, new production and injection wells, and fromworkovers, performed as part of the improved recovery projects mainly in Aguada Toledo - Sierra Barrosa, CNQ 7A and Chihuido de la Sierra Negra fields.c) Extensions and discoveriesWells drilled in unproved reserve areas added approximately 24 mmboe of proved reserves (31 bcf of natural gas and 18 mmbbl of oil). –In Vizcacheras field approximately 7 mmboe of proved reserves were added as a result of drilled wells and development projects associated withexploratory well ViO.x-2. –In Loma La Lata field, 24 new wells drilled in unproved reserves area contributed approximately 2.5 mmbbl of crude oil, condensate and NGLand 4.4 bcf of gas of proved reserves mainly from the Vaca Muerta and Quintuco formations. –In Aguada Pichana field similar activity carried out drilling 10 new wells in an unproved reserves area accounted for approximately 7 bcf ofproved reserves additions related to extensions and discoveries. –As a result of the drilling activity in unproved reserve areas approximately 5 mmboe of proved oil reserves were added in the Manantiales Behr(approximately 1.4 mmboe), Aguada Toledo - Sierra Barrosa (approximately 2 mmboe), Lindero Atravesado (approximately 1 mmboe), BarrancaBaya (approximately 1.2 mmboe) and Cañadón Yatel (approximately 1.1 mmboe) fields.Capitalized costsThe following tables set forth capitalized costs, along with the related accumulated depreciation and allowances as of December 31, 2014, 2013 and 2012: 2014 2013 2012 Consolidated capitalized costs Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Proved oil and gas properties Mineral property, wells and related equipment 260,759 2,763 263,522 177,058 1,869 178,927 119,579 1,291 120,870 Support equipment and facilities 11,037 — 11,037 7,601 — 7,601 5,437 — 5,437 Drilling and work in progress 26,903 — 26,903 8,998 — 8,998 5,739 — 5,739 Unproved oil and gas properties 3,587 84 3,671 4,577 83 4,660 3,833 78 3,911 Total capitalized costs 302,286 2,847 305,133 198,234 1,952 200,186 134,588 1,369 135,957 Accumulated depreciation and valuation allowances (192,010) (2,308) (194,318) (133,558) (1,676) (135,234) (93,316) (1,142) (94,458) Net capitalized costs 110,276 539 110,815 64,676 276 64,952 41,272 227 41,499 2014 2013 2012 Company’s share in equity methodinvestees’ capitalized costs Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Proved oil and gas properties Mineral property, wells and related equipment — — — — — — 278 — 278 Support equipment and facilities — — — — — — — — — Drilling and work in progress — — — — — — — — — Unproved oil and gas properties — — — — — — — — — Total capitalized costs — — — — — — 278 — 278 Accumulated depreciation and valuationallowances — — — — — — (212) — (212) Net capitalized costs — — — — — — 66 — 66 F-103Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsCosts incurredThe following tables set forth the costs incurred for oil and gas producing activities during the years ended December 31, 2014, 2013 and 2012: 2014 2013 2012 Consolidated costs incurred Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Acquisition of unproved properties 2,784 — 2,784 — — — — — — Acquisition of proved properties 5,719 — 5,719 78 — 78 — — — Exploration costs 3,170 189 3,359 1,626 57 1,683 1,644 237 1,881 Development costs 37,615 182 37,797 26,160 15 26,175 9,073 106 9,179 Total costs incurred 49,288 371 49,659 27,864 72 27,936 10,717 343 11,060 2014 2013 2012 Company’s share in equity methodinvestees’ capitalized costs Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Exploration costs — — — — — — — — — Development costs — — — — — — 3 — 3 Total costs incurred — — — — — — 3 — 3 Results of operations from oil and gas producing activitiesThe following tables include only the revenues and expenses directly associated with oil and gas producing activities. It does not include any allocation ofthe interest costs or corporate overhead and, therefore, is not necessarily indicative of the contribution to net earnings of the oil and gas operations.Differences between these tables and the amounts shown in Note 12, “Consolidated Business Segment Information”, for the exploration and productionbusiness unit, relate to additional operations that do not arise from those properties held by the Company. 2014 2013 2012 Consolidated results of operations Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Net sales to unaffiliated parties 6,823 361 7,184 2,751 276 3,027 4,437 243 4,680 Net intersegment sales 62,093 — 62,093 38,908 — 38,908 27,053 — 27,053 Total net revenues 68,916 361 69,277 41,659 276 41,935 31,490 243 31,733 Production costs (37,193) (81) (37,274) (24,938) (55) (24,993) (18,904) (54) (18,958) Exploration expenses (1,712) (173) (1,885) (770) (59) (829) (298) (284) (582) Depreciation and expense for valuation allowances (17,067) (113) (17,180) (9,464) (135) (9,599) (6,789) (105) (6,894) Other (1,296) 48 (1,248) (715) — (715) (475) — (475) Pre-tax income from producing activities 11,648 42 11,690 5,772 27 5,799 5,024 (200) 4,824 Income tax expense (3,777) (38) (3,815) (1,997) (22) (2,019) (1,752) — (1,752) Results of oil and gas producing activities 7,871 4 7,875 3,775 5 3,780 3,272 (200) 3,072 2014 2013 2012 Company’s share in equity methodinvestees’ capitalized costs Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Net sales to unaffiliated parties — — — — — — 96 — 96 Net intersegment sales — — — — — — 31 — 31 Total net revenues — — — — — — 127 — 127 Production costs — — — — — — (56) — (56) Depreciation and expense for valuation allowances — — — — — — (27) — (27) Pre-tax income from producing activities — — — — — — 44 — 44 Income tax expense — — — — — — (15) — (15) Results of oil and gas producing activities — — — — — — 29 — 29 F-104Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsStandardized measure of discounted future net cash flowsThe standardized measure is calculated as the excess of future cash inflows from proved reserves less future costs of producing and developing the reserves,future income taxes and a discount factor. Future cash inflows represent the revenues that would be received from production of year-end proved reservequantities assuming the future production would be sold at the prices used for reserves estimates as of year-end (the “average price”). Accordingly, crude oilprices used to determine reserves were calculated at the beginning of each month, for crude oils of different quality produced by the Company. The Companyconsidered the realized prices for crude oil in the domestic market taking into account the effect of exports taxes as were enforced by the enacted laws as ofeach of the corresponding years (until 2016 in accordance with Law No. 26,732). For the years beyond the mentioned periods, the Company considered theunweighted average price of the first-day-of-the-month price for each month within the twelve-month period ended December 31, 2014, 2013 and 2012,respectively, which refers to the WTI prices adjusted by each different quality produced by the Company. Additionally, since there are no benchmark marketnatural gas prices available in Argentina, the Company used average realized gas prices during the years ended December 31, 2014, 2013 and 2012 todetermine its gas reserves.Future production costs include the estimated expenditures related to production of the proved reserves plus any production taxes without consideration offuture inflation. Future development costs include the estimated costs of drilling development wells and installation of production facilities, plus the netcosts associated with dismantling and abandonment of wells, assuming year-end costs continue without consideration of future inflation. Future income taxeswere determined by applying statutory rates to future cash inflows less future production costs and less tax depreciation of the properties involved. Thepresent value was determined by applying a discount rate of 10% per year to the annual future net cash flows.The future cash inflows and outflows in foreign currency have been remeasured at the selling exchange rate of Argentine pesos 8.55, 6.52 and 4.90 to US$ 1,as of December 31, 2014, 2013 and 2012, respectively.The standardized measure does not purport to be an estimate of the fair market value of the Company’s proved reserves. An estimate of fair value would alsotake into account, among other things, the expected recovery of reserves in excess of proved reserves, anticipated changes in future prices and costs and adiscount factor representative of the time value of money and the risks inherent in producing oil and gas. 2014 2013 2012 Consolidated standardized measureof discounted future net cash flows Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Future cash inflows (1)(2) 513,786 644 514,430 357,749 641 358,390 224,894 305 225,199 Future production costs (2) (252,073) (228) (252,301) (185,727) (151) (185,879) (118,603) (102) (118,705) Future development costs (71,617) (74) (71,691) (49,164) (180) (49,344) (27,013) (1) (27,014) Future income tax expenses (37,454) (116) (37,570) (25,403) (150) (25,553) (14,042) (65) (14,107) 10% annual discount for estimated timing of cash flows (53,403) (82) (53,485) (35,935) (54) (35,989) (24,793) (18) (24,811) Standardized measure of discounted future netcash flows 99,239 144 99,383 61,520 106 61,626 40,443 119 40,562 2014 2013 2012 Company’s share in equity methodinvestee’s standardized measure ofdiscounted future net cash flows Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Argentina Otherforeign Worldwide Future cash inflows (1)(2) — — — — — — 528 — 528 Future production costs — — — — — — (172) — (172) Future income tax expenses — — — — — — (101) — (101) 10% annual discount for estimated timing ofcash flows — — — — — — (61) — (61) Standardized measure of discounted future netcash flows — — — — — — 194 — 194 (1)For the years ended December 31, 2014, 2013 and 2012, future cash inflows are stated net of the effect of withholdings on exports until 2016 inaccordance with Law No. 26,732.(2)Does not include amounts corresponding to volumes consumed or flared in operation. F-105Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsChanges in the standardized measure of discounted future net cash flowsThe following table reflects the changes in standardized measure of discounted future net cash flows for the years ended December 31, 2014, 2013 and 2012: 2014 2013 2012 Consolidated Company’sshare inequitymethodinvestees Consolidated Company’sshare inequitymethodinvestees Consolidated Company’sshare inequitymethodinvestees Beginning of year 61,626 — 40,562 194 35,718 215 Sales and transfers, net of production costs (29,426) — (20,402) — (14,932) (120) Net change in sales and transfer prices, net of futureproduction costs (651) — 3,174 — (6,206) (32) Changes in reserves and production rates (timing) 14,588 — 21,996 — 7,378 14 Net changes for extensions, discoveries and improvedrecovery 18,423 — 6,963 — 3,967 — Net change due to purchases and sales of minerals in place 7,294 — — — — — Changes in estimated future development and abandonmentcosts (13,134) — (11,012) — (94) 9 Development costs incurred during the year that reducedfuture development costs 12,128 — 7,544 — 4,821 3 Accretion of discount 7,069 — 4,592 — 3,419 17 Net change in income taxes 2,567 — (5,284) — 1,583 58 Others 18,899 — 13,493 (194)(1) 4,908 30 End of year 99,383 — 61,626 — 40,562 194 (1)In 2013, approximately 194 were transferred to Consolidated Entities as a result of YPF Energía Eléctrica’s working interest on Ramos Field. Thesediscounted future net cash flows were previously owned by former Pluspetrol Energy and thus disclosed under Company’s share in equity methodinvestees. F-106Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExhibit IYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESCONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2014 AND COMPARATIVE INFORMATIONCONSOLIDATED COMPANIES, JOINT VENTURES AND AFFILIATED(amounts expressed in millions of Argentine pesos, except where otherwise indicated – Note 1.b.1)a) Consolidated companies(12) 2014 Information of the issuer Description of the Securities Last Financial Statements Available Name and Issuer Class FaceValue Amount Main Business Registered Address Date CapitalStock NetIncome(Loss) Equity Holding inCapitalStock Controlled companies:(12) YPF International S.A. (8) Common Bs.100 2,535,114 Investment Calle La Plata 19,Santa Cruz de laSierra, República deBolivia 12-31-14 310 (310) 12 99,99% YPF Holdings Inc. (8) Common US$0.01 810,614 Investment and finance 1330 Lake RobbinsDrive, Suite 300,The Woodlands,Texas, U.S.A. 12-31-14 6,890 (1,482) (2,172) 100,00% Operadora de Estacionesde Servicios S.A. Common $ 1 163,701,747 Commercialmanagement of YPF’sgas stations Macacha Güemes515, Buenos Aires,Argentina 12-31-14 164 358 555 99,99 % A-Evangelista S.A. Common $1 307,095,088 Engineering andconstruction services Macacha Güemes515, Buenos Aires,Argentina 12-31-14 307 134 526 100,00% YPF Servicios Petroleros S.A. Common $1 50,000 Wells perforationand/or reparationservices Macacha Güemes515, Buenos Aires,Argentina 12-31-11 — (10) 30 39 100,00% YPF Inversora EnergéticaS.A. (9) Common $1 67,608,000 Investment Macacha Güemes515, Buenos Aires,Argentina 09-30-14 68 (497) (370) 100,00% YPF Energía Eléctrica S.A. (13) Common $1 30,006,540 Exploration,development,industrialization andmarketing ofhydrocarbons, andgeneration,transportation andmarketing of electricpower Macacha Güemes515,Buenos Aires,Argentina 09-30-14 30 289 654 100,00% YPF Chile S.A. (14) Common —— 50,968,649 Lubricants and aviationfuels trading andhydrocarbons researchand exploration Villarica 322,Módulo B1,Quilicura, Santiago 12-31-14 391 (105) 502 100,00% YPF Tecnología S.A. Common $1 98,991,000 Investigation,development,production andcommercialization oftechnologies,knowledge, goods andservices. Macacha Güemes515, Buenos Aires,Argentina 12-31-14 194 68 353 51,00% YPF Europe B.V. (8) Common US$0,01 15,660,437,309 Investment and finance Prins Bernardplein200, 1097 JB,Amsterdam,Holanda — (11) — (11) — (11) — (11) 100,00% YSUR ArgentinaInvestment S.à.r.l.(8) Common US$ 1 20,000 Investment 13-15, Avenue de laLierté,L-1931,Luxemburgo 09-30-14 — (10) (1,605 ) 2,799 100,00 % YSUR ArgentinaCorporation (8) Common US$ 1 1,000,000 Investment Boundary Hall,Cricket Square P.O.Box 1111 GeorgeTown, GrandCayman, CaymanIslands KY1-1102 09-30-14 84 (376 ) — 100,00 % Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.YSUR PetroleraArgentina S.A.(8) Common $ 1 634,284,566 Exploration, extraction,exploitation, storage,transportation,industrialization andmarketing ofhydrocarbons, as wellas other operationsrelated thereto. Tucumán 1, P. 12,Buenos Aires,Argentina 12-31-14 634 (34) 365 100,00 % b) Companies valued using the equity method 2014 Information of the issuer Description of the Securities Las Financial StatementsAvailable 2013 2012 Name and Issuer Class FaceValue Amount BookValue(3) Cost(2) Main Business RegisteredAddress Date CapitalStock NetIncome(Loss) Equity HoldinginCapitalStock BookValue(3) BookValue(3) Joint Ventures: Compañía Mega S.A.(6)(8) Common $1 244,246,140 778 — Separation,fractionationandtransportationof natural gasliquids San Martín344, P. 10º,BuenosAires,Argentina 09-30-14 643 172 1,028 38.00% 408 199 Profertil S.A.(8) Common $1 391,291,320 1,231 — Production andmarketing offertilizers AliciaMoreau deJusto 740,P. 3°,BuenosAires,Argentina 09-30-14 783 353 1,311 50.00% 1,088 818 Refinería del Norte S.A. Common $1 45,803,655 423 — Refining Maipú 1, P.2º, BuenosAires,Argentina 09-30-14 92 305 883 50.00% 413 294 2,432 — 1,909 1,311 Affiliated Companies: Oleoductos delValle S.A. Common $ 10 4,072,749 99 (1) — Oiltransportationby pipeline Florida 1, P.10°, BuenosAires,Argentina 12-31-14 110 90 296 37.00 % 70 (1) 67 (1) Terminales MarítimasPatagónicas S.A. Common $ 10 476,034 71 — Oil storage andshipment Av. LeandroN. Alem1180, P.11°,BuenosAires,Argentina 09-30-14 14 49 222 33.15 % 55 58 Oiltanking EbytemS.A. (8) Common $ 10 351,167 88 — Hydrocarbontransportationand storage TerminalMarítimaPuertoRosales –Provincia deBuenosAires,Argentina 12-31-14 12 94 125 30.00 % 58 44 Gasoducto del Pacífico(Argentina) S.A. Preferred $ 1 15,579,578 14 — Gastransportationby pipeline San Martín323, P. 13º,BuenosAires,Argentina 12-31-13 156 40 232 10.00 % 16 6 Central Dock Sud S.A. Common $0.01 11,869,095,147 110 136 Electric powergeneration andbulk marketing PasajeIngenieroButty 220, P.16°, BuenosAires,Argentina 12-31-13 356 (473) (382) 10.25%(5) — (7) — (7) Inversora Dock Sud S.A. Common $1 355,270,303 336 445 Investment andfinance PasajeIngenieroButty 220, P.16°, BuenosAires,Argentina 12-31-13 241 (284) (101) 42.86% — (7) 71 Pluspetrol EnergyS.A. (15) — — — — — — — — — — — — — — 344 Oleoducto Trasandino(Argentina) S.A. Preferred $ 1 12,135,167 22 — Oiltransportationby pipeline MacachaGüemes 515,P. 3°,BuenosAires,Argentina 12-31-14 34 14 62 36.00 % 15 12 Other companies: Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Others (4) — — — — 17 126 — — — — — — — 13 13(15) 757 707 227 615 3,189 707 2,136 1,926 (1)Holding in shareholders’ equity, net of intercompany profits.(2)Cost net of cash dividends and stock redemption.(3)Holding in shareholders’ equity plus adjustments to conform to YPF accounting methods.(4)Includes Gasoducto del Pacífico (Cayman) Ltd., A&C Pipeline Holding Company, Poligás Luján S.A.C.I.,Oleoducto Transandino (Chile) S.A., Bizoy S.A., Civeny S.A. andBioceres S.A.(5)Additionally, the Company has a 29,99% indirect holding in capital stock through Inversora Dock Sud S.A.(6)As stipulated by shareholders’ agreement, joint control is held in this company by shareholders.(7)Holding in negative shareholders’ equity as of December 31, 2014, 2013 and 2012 was disclosed in “Accounts payable” after adjustments in shareholders’ equity to conform toYPF accounting methods.(8)The U.S. dollar has been defined as the functional currency of this company.(9)During 2013, YPF Inversora Energética S.A., took control of GASA. As of September 30, 2014 the Company owns directly and indirectly 100% of the capital stock of GASA,which owns 70% of the capital stock of MetroGAS (see Note 13).(10)No value is disclosed as the carrying value is less than 1.(11)The Company has been spun-off (see Note 13).(12)Additionally, YPF Services USA Corp., Compañía de Inversiones Mineras S.A., YPF Perú SAC., YPF Brasil Comercio Derivado de Petróleo Ltd., Wokler Investment S.A., YPFColombia S.A., Eleran Inversiones 2011 S.A.U., Lestery S.A., Miwen S.A., YSUR Argentina Holdings S.à.r.l. and Energía Andina S.A. have been consolidated.(13)Company created as a consequence of the spun-off of Pluspetrol Energy S.A. (see note 13).(14)The peso chileno has been defined as functional currency for this company.(15)The Company has been split (see Note 5). F-107Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExhibit IIYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESINTEREST IN JOINT OPERATIONS AND OTHER AGREEMENTSAs of December 31, 2014, the main exploration and production joint operations and other agreements in which the Company participates are the following: Name and Location Ownership Interest OperatorAcambucoSalta 22.50% Pan American Energy LLCAguada PichanaNeuquén 27.27% Total Austral S.A.AguaragüeSalta 53.00% Tecpetrol S.A.CAM-2/A SURTierra del Fuego 50.00% Enap Sipetrol Argentina S.A.Campamento Central /Cañadón PerdidoChubut 50.00% YPF S.A.Consorcio CNQ 7/ALa Pampa and Mendoza 50.00% Pluspetrol Energy S.A.El TordilloChubut 12.20% Tecpetrol S.A.La Tapera y Puesto QuirogaChubut 12.20% Tecpetrol S.A.LlancaneloMendoza 51.00% YPF S.A.MagallanesSanta Cruz, Tierra del Fuego and National ContinentalShelf 50.00% Enap Sipetrol Argentina S.A.Palmar LargoFormosa and Salta 30.00% Pluspetrol S.A.Loma CampanaNeuquén 50.00% YPF S.A.RamosSalta 42.00% Pluspetrol Energy S.A.Rincón de MangrulloNeuquén 50.00% YPF S.A.San RoqueNeuquén 34.11% Total Austral S.A.Tierra del FuegoTierra del Fuego 100.00% Petrolera L.F. Company S.R.L.Yacimiento La VentanaMendoza 70.00%(1) YPF S.A.Zampal OesteMendoza 70.00% YPF S.A.NeptuneUSA 15.00% BHPB Pet (Deepwater) Inc. (1)See Note 5. F-108Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Table of ContentsExhibit IIIYPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIESBALANCE SHEET AS OF DECEMBER 31, 2014 AND COMPARATIVE INFORMATIONMONETARY ASSETS AND LIABILITIES DENOMINATED IN CURRENCIES OTHER THAN ARGENTINE PESOSINFORMATION REQUIRED BY ARTICLE 63 OF LAW No. 19,550(amount expressed in million) Account Foreign currency and amount Exchange ratein pesosas of 12-31-14 Value in pesosas of 12-31-14 12-31-2012 12-31-2013 12-31-2014 Noncurrent Assets Trade receivables BRL — BRL — BRL 5 3.20(1) 16 Other receivables and advances US$ 80 US$ 319 US$ 73 8.45(1) 617 UYU 26 UYU — UYU — — (1) — BRL — BRL 4 BRL 6 3.20(1) 19 Total noncurrent assets 652 Current AssetsTrade receivablesUS$ 176 US$ 263 US$ 341 8.45(1) 2,881 UYU 2 UYU — UYU — — (1) — CLP 5,839 CLP 8,688 CLP 11,043 0.01(1) 110 BRL — BRL 21 BRL 24 3.20(1) 77 Other receivables and advancesUS$ 113 US$ 502 US$ 473 8.45(1) 3,997 € 3 € 3 € 3 10.26(1) 31 BRL — BRL — BRL 3 3.20 10 UYU 105 UYU 34 UYU — — (1) — BOP 6 BOP — BOP — — (1) — CLP — CLP 1,087 CLP 4,344 0.01(1) 43 Cash and equivalentsUS$ 98 US$ 649 US$ 647 8.45(1) 5,467 BOP 33 BOP — BOP — — (1) — CLP 997 CLP 189 CLP — — (1) — UYU 50 UYU 6 UYU — — (1) — BRL — BRL 4 BRL — — (1) — Total current assets 12,616 Total assets 13,268 Noncurrent LiabilitiesProvisionsUS$ 1,233 US$ 2,095 US$ 2,785 8.55(2) 23,812 Other taxes payablesUS$ — US$ 16 US$ — — (2) — Salaries and social securityUS$ 3 US$ 1 US$ — — (2) — LoansUS$ 1,087 US$ 1,980 US$ 2,861 8.55(2) 24,461 Accounts payableUS$ 5 US$ 60 US$ 55 8.55(2) 470 UYU — UYU 8 UYU — — (2) — Total noncurrent liabilities 48,743 Current LiabilitiesProvisionsUS$ 58 US$ 123 US$ 177 8.55(2) 1,513 LoansUS$ 736 US$ 985 US$ 920 8.55(2) 7,866 BRL — BRL 13 BRL 16 3.20(2) 51 Salaries and social securityUS$ 1 US$ 2 US$ 3 8.55(2) 26 UYU 9 UYU 10 UYU — — (2) — BRL — BRL 2 BRL 2 3.20(2) 6 Accounts payableUS$ 1,479 US$ 1,776 US$ 2,015 8.55(2) 17,228 € 48 € 186 € 24 10.41(2) 248 UYU 74 UYU 27 UYU — — (2) — BOP 53 BOP 23 BOP — — (2) — CLP 4,994 CLP 6,629 CLP 6,387 0.01(2) 64 BRL — BRL 6 BRL 11 3.20(2) 35 Total current liabilities 27,037 Total liabilities 75,780 (1)Buying exchange rate.(2)Selling exchange rate. F-109Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 11.1CODE OF ETHICS AND CONDUCT OF YPF S.A.Index Index 1 1. Considerations 2 2. Purpose 2 3. Scope of Application. Subject Persons. 2 4. Related Rules and Regulations 2 5. Ethics Committee and Ethics Line 3 6. Contents 3 6.1. Corporate Ethical Values 3 6.2. Code of Ethics and Conduct 3 6.2.1. Commitment to the highest ethical standards of business conduct 4 6.2.2. Equal opportunities and non-discrimination 4 6.2.3. Use and protection of assets 4 6.2.4. Conflict of interests 5 6.2.5. Gifts, courtesies and promises 5 6.2.6. Information transparency 6 6.2.7. Use of privileged information 7 6.2.8. Prohibited periods for trading YPF securities 7 6.2.9. Commitment to fair and free competition 7 6.2.10. Termination of the relationship with YPF and its subsidiaries 7 6.2.11. Anti-bribery and anti-corruption measures 8 6.3. Indicators 8 6.4. Records 8 7. Exhibits and references 8 7.1. Exhibits 8 7.2. References 8 8. Approval 9 8.1. Effective term 9 8.2. General and temporary provisions 9 8.3. History 9 8.4. Process Team 9 8.5. Publication 9 1Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.IntroductionYPF S.A. is a company widely recognized for its high quality standards relative to the values and principles it promotes. Ethics is embedded in all itsactivities, focusing not only on the results but also on how they are achieved. YPF S.A. expects integrity across the Organization and shall not tolerate theaccomplishment of goals in violation of the laws or ethical principles.This Code of Ethics and Conduct demands the commitment of all those to whom it is addressed. 1.ConsiderationsThese Regulations as well as any amendments thereto and any compliance exemption require the approval of the Board of Directors of YPF S.A. Besides, theBoard of Directors of YPF S.A. may decide to extend its scope of application to other individuals whenever required by regulations applicable to YPF S.A.The compliance of this Code of Ethics and Conduct (hereinafter the “Code of Ethics and Conduct” or the “Code”) shall be the sole and personalresponsibility of each and every Subject Person (as defined below). Upon publication of the application of this Code, no infringement based on lack ofawareness or obedience to a superior officer shall be admitted.All Subject Persons are expected to adopt a proactive attitude towards potential breaches, acting either on their own initiative or upon detection of incidentsin breach of the Code of Ethics and Conduct.Non-compliance of this Code shall result in disciplinary actions proportional to the breach involved, which may even lead to the termination of theemployment or contractual relationship, as appropriate, and give rise to the initiation of the relevant legal proceedings.This Code of Ethics and Conduct provides a wide guideline relative to the acceptable individual or corporate behavior. However, it cannot cover allpotential situations. Consequently this Code does not relieve any of the Subject Persons from the responsibility or duty to exercise their sound judgmentreflecting the values and principles outlined in this Code.These Regulations together with other internal documents and instruments support YPF S.A. commitment to good corporate governance, transparency andsocial responsibility. 2.PurposeThe purpose of this Code is to establish the general guidelines that should rule the conduct of the Subject Persons at YPF S.A. and its subsidiaries (jointly“YPF”). 3.Scope of Application. Subject Persons.These Regulations are applicable to the Directors and employees of YPF (hereinafter “the Directors and Employees”), regardless of their geographicallocation, as well as its contractors, sub-contractors, vendors and business partners carrying on business with YPF (hereinafter, jointly with the Directors andEmployees, the “Subject Persons”). 4.Related Rules and RegulationsThe contents of this Code, as well as any other related policy and internal rules are in line with the international and national laws, rules and regulationsgoverning the Company’s activity.Upon the publication of this Code, references to the specific rules and standards issued by the Company will be included in each case. 2Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.5.Ethics Committee and Ethics LineThe “Ethics Line” is a system for reporting, among other things, situations and/or acts that might constitute an actual or potential breach of this Code.YPF shall encourage the use of this Line and ensure that the good faith reports informed through it shall not be subject to reprisals affecting the employmentand/or contractual relationship and professional development of the reporting party.The “Ethics Line” shall be supervised by YPF’s Ethics Committee, which is in charge of implementing the Code of Ethics and Conduct of YPF, and assessingand establishing the actions required to address the reported situations.The Committee will be composed of five members, three of which shall serve as Internal Auditor, Legal Affairs Corporate Vice-President and HumanResources Vice-President, while the other two will be appointed by the Chairman of the Board of Directors of YPF S.A. from among the employeesdischarging functions in operative or business areas. The presence of an absolute majority of its members shall be required at Committee meetings anddecisions shall be adopted by a simple majority. Investigations shall be conducted by an Ethics and Compliance Officer reporting to the Legal Affairs Vice-Presidency.Any situation contrary to this Code informed by, or related to the behavior of the members of the Company’s Board of Directors shall be reported to the AuditCommittee. The following situations shall also be reported forthwith to the Audit Committee: i) any situation that might have an impact on the supervisionof the financial information or material events submitted to the National Securities Commission (Comisión Nacional de Valores) and the markets; and ii) anyreport related to the operation of YPF’s internal control, administrative-accounting and audit systems. 6.Contents 6.1.Corporate Ethical ValuesAll the activities undertaken by the Directors and Employees shall be based on ethical values and basic principles that guide our corporate ethical conduct.These values are:Integrity: Maintaining an irreproachable behavior aligned with rectitude and honesty. Promoting strict coherence between corporate practices and corporateethical values.Transparency: Disclosing true, proven, adequate and faithful information about our management and establishing clear internal and externalcommunications.Responsibility: Assuming responsibilities and acting accordingly, making every effort to achieve these goals.Safety: Providing optimum working conditions in terms of health and safety. Demanding high safety standards for processes, facilities and services, focusingon the protection of our employees, contractors, clients and the local environment, and conveying this principle to the entire Organization.Sustainability: Developing our activities based on the principles of environmental protection and sustainable development.Human Rights: Respecting human rights constitutes a cornerstone to develop the activities of YPF, and it is committed to safeguarding such respect.The remaining Subject Persons are bound to respect this Corporate Ethical values and to act in strict compliance thereof. 6.2.Code of Ethics and ConductThe Corporate Ethical Values constitute the basic guidelines that should inspire the behavior of Directors and Employees in the performance of their dutiesin compliance with the principles of loyalty to the Company, good faith, integrity, respect for the law and ethical values. Besides, they enable to define therules of conduct that should be observed by all Subject Persons in their professional performance.Although these regulations are not meant to cover all the potential situations that may arise in the professional sphere, it sets the minimum behavioralstandards that should guide the actions of the Subject Persons in the performance of their professional duties. 3Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6.2.1.Commitment to the highest ethical standards of business conductYPF expects all Subject Persons to conduct themselves in full compliance with the provisions of this Code, which implies: • Abiding by all municipal, provincial, national and international rules and regulations in force applicable to, and binding upon YPF, its staff andthird parties. • Complying with the general conduct guidelines laid down in this Code. • Assuming responsibilities for their acts. • Following all of YPF existing policies and procedures. • Making adequate use of YPF property, time frames, equipment and other resources.The appropriate application of this Code demands that Subject Persons are familiarized with its contents, its supplementary regulations and the relevant legalprovisions that may become applicable to the activities undertaken as a consequence of their performance in the Company or arising from their relationshipwith YPF, as appropriate.Any doubt regarding the interpretation of this Code or about how to proceed when faced with situations not specifically covered herein shall be submitted tothe Ethics Committee for its consideration and clarification.Notwithstanding any other responsibility that may arise, the violation of the guidelines and rules of conduct set forth in these Regulations by the Directorsand Employees shall be subject to the disciplinary actions established under the applicable labor legislation and/or any other applicable regulations. It mayalso result in the imposition of the penalties and other disciplinary measures specified in the documents ruling the relationship of YPF with the remainingSubject Persons. 6.2.2.Equal opportunities and non-discriminationThe Directors and Employees shall treat each other with respect and promote a comfortable, healthy and safe environment. Subject Persons shall refrain fromany type of offensive behavior or discrimination on the grounds of religious beliefs, political opinions, trade union membership, nationality, language,gender, marital status, age or disability or any other personal distinction.Under no circumstances shall Subject Persons engage in any harassment, abuse of authority, threats, pressures, psychological harassment, or any otherinsulting, aggressive and hostile behavior contributing to a climate of intimidation. 6.2.3.Use and protection of assetsSubject Persons are responsible for the protection of the resources of YPF entrusted to them for the performance of their work, as well as YPF’s assets.Assets (including YPF intangible property rights, facilities, systems, communication tools and applications) shall not be used for purposes that are notdirectly related to the work at YPF, unless an express exception is granted by YPF.Particularly, regarding assigned IT resources, Subject Persons shall refrain from using such assets for personal purposes, including but not limited to the use ofe-mail or any other form of IT communication, as well access to the Internet.YPF reserves the right to control and monitor the use of the assets assigned in accordance with the regulations in force.Subject Persons expressly acknowledge that the use of information, systems, and in particular, the Internet services shall be based on YPF’s needs and not onpersonal interests, and that the information they may generate or send by means of the tools and networks provided by YPF shall not be deemed confidential.The information produced and stored in YPF systems is deemed the property of YPF and therefore, YPF reserves the right to its access.Any information that may be deemed illegal, abusive or inadequate shall by no means be processed, downloaded, stored and/or disclosed. It is forbidden todownload, store, copy and/or disclose, by any means, information and/or contents of any kind whatsoever in violation of intellectual property laws. Also, it isforbidden to download, install, transmit and/or use software in breach of any copyright or service. 4Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6.2.4.Conflict of interestsDirectors and Employees may engage in financial and business activities other than those carried out by YPF provided they are legal and their performancedoes not generate any conflict of interests with their responsibilities as employees and/or officers of YPF.Directors and Employees shall avoid any situation that might give rise to a conflict between their personal interests and those of YPF, and will abstain fromrepresenting YPF, getting involved or influencing decisions, in any situation in which they may have a direct or indirect personal interest. They shall alwaysact in accordance with their duties, with loyalty, defending the interest of YPF, and in compliance with the applicable regulations.Furthermore, Directors and Employees may not undertake any tasks, jobs of render services to the benefit of companies in the industry or carrying onactivities that are likely to compete, directly or indirectly, with those of YPF.Directors and Employees shall: • Inform their direct or indirect ownership interest, whether held by themselves or through third parties and/or family members, in suppliercompanies, clients, competitors, contractors and/or sub-contractors of YPF. • Avoid making recommendations for YPF to engage in business activities with a company in which the employee may have a direct or indirectpersonal interest. • Refrain from granting to other companies, organizations or individuals undue advantages in any business transaction, being bound to adopt animpartial position. • Avoid getting involved in relations that might give rise to an actual or potential conflict with YPF, or that might otherwise have a negativeimpact on their own freedom of action or on the freedom of action of Director or employee of YPF. • Refrain from using YPF’s property or information by virtue of their office in the company for their own or third parties’ personal benefit or tocompete with YPF.Directors and Employees who might be affected by a conflict of interests shall report this situation to the Ethics or Audit Committee, as appropriate, beforecarrying out the transaction or closing the relevant deal, for the respective committee to assess if the impartial performance thereof could be compromised.In the event of a suspected conflict of interests, the same is to be reported to the Ethics Committee through the Ethics Line.The Ethics Committee may delegate the reports management process, ensuring that the ethics line principle of non-retaliation will be applied in order toprotect the employment and/or contractual relationship or professional development of those reporting suspected situations in good faith. 6.2.5.Gifts, courtesies and promisesDirectors and Employees shall not accept, by reason of their office, any kind of gifts, courtesies, services or favors from an individual or entity that mightaffect their objectivity or influence a commercial, professional or administrative relationship.Moreover, they shall not, directly or indirectly, make gifts or promises to any individual or entity that has or could have a commercial, professional oradministrative relationship with YPF, when these might be deemed improper in the normal course of business, and in any case, they shall be made incompliance with the law, the beneficiary’s regulations and procedures and the procedures in place at the relevant unit. The offering of gifts, incentives orbenefits of any kind with the purpose of influencing the decisions made by the beneficiary is strictly forbidden.Directors and Employees shall not request or receive personal gifts from third parties who do or intend to do business with YPF. 5Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Receipt of gifts: • Any gift with a market value in excess of USD 100 (one hundred United States Dollars) or its equivalent in local currency, or any items other thanpromotional products bearing the company’s logo or name (such as pens, watches, T-shirts with logos, small basket for Christmas, etc.) shall bereturned. • The receipt of any other kind of gift (such as trips, loans, training courses, personal courtesies, etc.) and/or promises of such gifts, shall bereported to the immediate superior who shall be responsible for the custody of the said items and taking the following steps: • Return it immediately to the third party. • If no return were possible, refer it to Fundación YPF. • All invitations received to take part in business events, conventions, conferences, commercial presentations or technical courses, shall beauthorized by the immediate superior.Delivery of gifts:Corporate or business gifts need to be previously authorized in accordance with the relevant Company’s process. They require the authorization of the areamanager when the gift’s market value exceeds USD 100 (one hundred United States Dollars) or its equivalent in local currency.Giving or receiving money in cash, cash equivalents or assets readily convertible into cash is not allowed under any circumstance. YPF and its employees areresponsible for making these criteria timely known to its clients and vendors.The provisions set forth in this paragraph shall be applicable to all the other Subject Persons. 6.2.6.Information transparencySubject Persons shall take the necessary precautions to ensure the transparent management of information.This commitment to transparent and genuine information is also applicable to the Company’s internal communication.All YPF’s transactions should be clearly and accurately reflected in its files, records and books.Subject Persons shall maintain the strictest confidentiality of any information they may become aware of and which could affect the prices of YPF securitiesor their trading process. If appropriate, YPF will be responsible for disclosing the relevant information.The rules applicable to information transparency in the stock markets are provided for in the Exhibit to this Code entitled “YPF S.A. Internal Regulations forConduct in the Securities Market”.Reserved and confidential informationYPF is aware that information is one of its key assets and that it is essential for the management of its activities. The Company has, therefore, developed aninformation security policy applicable to the Subject Persons designed to safeguard the integrity, availability and confidentiality of information by means ofits correct identification and classification in order to prevent its dissemination, loss and/or corruption. Any information owned or entrusted to YPF that is notof public nature is considered confidential.Disclosing, disseminating and using confidential information for personal or unauthorized purposes constitutes a breach of the duty of loyalty to YPF andmay give rise to liability actions and/or the application of the respective sanctions.In consideration of the above, the Subject Persons undertake the following duties: • To safeguard and refrain from disclosing the information to which they have access in the performance of their professional activities. 6Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. • No to disclose to third parties any information, technical or IT knowledge, data, study results and statistics of any kind, save upon the priorexpress and written approval of YPF in accordance with the standards and regulations in place. • The Directors and Employees shall refrain from deriving personal benefits from the use of confidential information or from the knowledge ofbusiness opportunities available thereto due to their position in YPF. • To meet the requirements relative to the access to confidential information, unless its disclosure were required by the law. • The Directors and Employees who, by reason of their position or professional activity have access to information from YPF clients, vendors,directors and/or employees, shall be responsible for its protection and appropriate use. • Not to use confidential information for fraudulent purposes. The restriction on use and non-disclosing duty shall survive the termination of theemployment, business or any other type of relationship with YPF.In case of doubt, any information shall be presumed to be confidential. 6.2.7.Use of privileged informationThe trading of YPF securities based on material non-public information, or furnishing this information to third parties is illegal and may lead to legal actions.The Subject Persons under this Code shall take the strictest care to protect the confidentiality of, and may not disclose, directly or indirectly, any relevantnon-public information, including highly sensitive information that could affect the price of YPF securities or their trading process in the markets. Anybreach of the existing policy for the management of this type of information may derive in legal actions against the person involved.The Subject Persons investing in YPF securities acknowledge being sufficiently informed about the rules that restrict their capacity to trade the same or toprovide sensitive information to third parties, as well as their duty to abide by the policies and trading abstention periods that might be applicable to thecircumstances being faced by YPF. 6.2.8.Prohibited periods for trading YPF securitiesSubject Persons who possess material non-public information of YPF relative to the Company’s financial results, i.e. privileged information, may not trade inYPF securities during the period starting fifteen (15) calendar days prior to the presentation of the Company’s (annual or quarterly) financial results andending two (2) trading days following their publication. Also, they shall abstain from trading in YPF securities if they possess any other privilegedinformation until it is made public. 6.2.9.Commitment to fair and free competitionSubject Persons shall not engage in any deceitful advertising of YPF’s business activity and shall avoid any behavior that is or could be considered anunlawful abuse or a restriction to free competition. 6.2.10.Termination of the relationship with YPF and its subsidiariesUpon termination of the Subject Persons’ relationship with YPF, they shall refrain from using any information obtained during the performance of their dutiesat YPF, including client lists and relationships.Subject Persons acknowledge and accept that any work developed for YPF, whether considered intellectual property or not, is exclusively and fully ownedby YPF. Reports, proposals, studies, programs and any other product resulting from the professional activity discharged at YPF shall remain in the possessionof YPF. Moreover the Subject Person no longer serving the Company shall not copy, reproduce or disclose the same without the written approval from YPF.Subject Persons further undertake to return all materials owned by YPF which are in their possession upon the termination of their activity at YPF. 7Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6.2.11.Anti-bribery and anti-corruption measuresSubject Persons shall not directly or indirectly make or offer any payment in cash, in kind or any other benefit to any person at the service of a public orprivate entity, political party or candidates to public offices with the intention of unlawfully procuring, gaining or maintaining a given business or any otheradvantage.Furthermore, Subject Persons shall not directly or indirectly make or offer any payment in cash, in kind or any other benefit to any person with the intentionof causing the latter to abuse its actual of presumed influence to conclude a deal or derive another advantage from a public or private entity.Likewise, they shall not directly or indirectly make or offer any payment in cash, in kind or any other benefits to any person if they are aware that all or partof the payment in cash or in kind will be offered or handed over directly or indirectly to a private or public entity, political party or candidates to publicoffices for any of the purposes mentioned in the preceding paragraphs.Subject Persons shall not make any payments in cash or deliver any items of value, regardless of their amount, to facilitate or speed up processes or to ensurethe course of a procedure or action before any judicial authority, public administration or official body in which YPF is involved for the benefit or in theinterest of YPF.In addition to the consequences of violating these Regulations provided in the specific paragraph hereof, and other consequences not related toemployment/contractual issues, Subject Persons acknowledge that the breach of the provisions of this paragraph may cause a considerable damage to thereputation and good name of YPF.In order to prevent and avoid the laundering of money from criminal or illegal activities, the Directors and Employees shall devote special attention to caseswhere there are signs of lack of integrity of the individuals or entities with whom business is carried out, as well as observing their duty to comply with theapplicable legal provisions 6.3.Indicators Indicator(KPI) Formula Frequency Responsibleofficer InternalClient RecordN/A. 6.4.Records Record Owner /ResponsibleOfficer Protection andstorage RecordingFrequency RetentionTime Form ofDispositionN/A. 7.Exhibits and referencesN.A. 7.1.ExhibitsYPF S.A. Internal Regulations for Conduct in the Securities Market. 7.2.ReferencesN.A. 8Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.8.Approval 8.1.Effective termThese Regulations shall enter into force on the seventh (7th) business day following its publication as part of YPF’s rules.Approval date by YPF’s Board of Directors: 2014, August, 7thThe undersigned undertake the responsibility to implement, supervise and update this document as necessary. 8.2.General and temporary provisionsN.A. 8.3.History Status Revision Control Quality andProcesses RemarksOriginal 0.0 N/A N/ARevision 1.0 Addition of new requirements, including those applicable at international level to companies inthe energy industry. 8.4.Process Team 8.5.Publication 9Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.EXHIBIT to the Code of Ethics and Conduct of YPF S.A.:YPF S.A. INTERNAL REGULATIONS FOR CONDUCT INTHE SECURITIES MARKETCONTENTS 1. PURPOSE 1 2. SCOPE OF APPLICATION 1 3. RULES OF CONDUCT 2 4. PRIVILEGED INFORMATION 3 5. RELEVANT INFORMATION 6 6. TRANSACTIONS IN OWN SECURITIES 7 7. MANIPULATION OF SECURITY PRICES 7 8. CONFLICT OF INTEREST 8 9. EFFECTIVE TERM 8 10. MANDATORY OBSERVANCE 8 11. BREACH 9 12. SUPERVISION 9 APPENDIX I 10 Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.1.PURPOSE 1.1.The purpose of these YPF S.A. Internal Regulations for Conduct in the Securities Market is to define the principles and framework for action in thesecurities market, for directors and employees of YPF S.A. (hereinafter, “YPF” or “the Company”), as well as its statutory auditors and external advisers. 1.2.The wording of these Regulations complies—to the extent applicable—with current regulations governing the securities markets where YPF isauthorized for public offering. 1.3.These Regulations also incorporate the best practices on the matter, in order to foster the transparency and proper operation of markets and to preserveinvestors’ legitimate interests. 2.SCOPE OF APPLICATION 2.1.Subjective Scope:Without prejudice to YPF S.A.’s obligations as a legal entity in matters pertaining to these Regulations, the following persons are bound to complywith these Regulations (hereinafter, the “Subject Persons”): a)The members of YPF’s governing body (the “Directors”). b)YPF’s employees. c)External advisers, for the purposes provided in Section 4. The term “external adviser” refers to any individual or legal entity renderingconsulting, financial, legal or any other kind of services to YPF or its subsidiaries and, therefore, with access to Privileged Information. d)Members of YPF’s supervisory committee (the “Statutory Auditors”). 1Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.2.2.Objective ScopeThese Regulations apply to the following marketable securities or financial instruments: a)Securities issued by YPF and its subsidiaries, which are traded or whose admission to trading has been requested, on Argentine or overseassecurities markets. b)The financial instruments conferring the right to purchase or sell the aforementioned securities. c)The financial instruments whose underlying assets are securities or instruments issued by YPF or its subsidiaries. d)Securities issued by other companies controlled by YPF, which are traded or whose admission to trading has been requested, on Argentine oroverseas securities markets. 3.RULES OF CONDUCT REGARDING THE PURCHASE AND SALE OF SECURITIES AND FINANCIAL INSTRUMENTS ISSUED BY YPF S.A.AND ITS SUBSIDIARIES 3.1.Initial noticeAny Subject Persons that have subscribed for, purchased or sold—whether in cash or credit—any of the securities or instruments referred to inSection 2.2 for their own account, shall notify the Vice-Presidency of Human Resources within two (2) days subsequent to such operation. The noticeshall describe the pertinent operation and specify the date, quantity and price involved.Any non-employee Directors of the Company as well as the Statutory Auditors shall address such notice to the Board of Directors’ Secretary.The External Advisers shall address the notice to the Finance Vice-Presidency.The obligation to send this notice is without prejudice to any other obligations set forth in current regulations governing the markets where thesecurities and instruments mentioned in Section 2.2 are traded. 2Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.3.2.Related PersonsAny transactions made by the following individuals/legal entities related to the Subject Persons (hereinafter referred to as “Related Persons”) shall bedeemed equivalent to the own-account trading by the Subject Persons: a)The Subject Person’s spouse. b)The Subject Person’s minor children under parental authority. c)Any legal entities controlled by the Subject Persons. d)Any other individual or legal entity acting on behalf or in the interest of Subject Persons.Prohibited trading periodThe provisions set forth in Clause 6.2.8 “Prohibited periods for trading of YPF’s securities” in the Code of Ethics and Conduct of YPF S.A. shall applyto the Subject Persons, with regard to the period of prohibition for trading in the securities or instruments referred to in Section 2.2., that is, the periodstarting fifteen (15) consecutive days prior to the Company’s reporting of its annual and quarterly financial results and ending two (2) trading daysafter their publication, when the Subject Persons are in possession of YPF’s non-public and material information about its results, i.e. PrivilegedInformation. If the Subject Persons are in possession of any other Privileged Information, they shall refrain from trading in YPF’s securities as soon asthey become acquainted with such information, until it is officially in the public domain. 4.PRIVILEGED INFORMATION 4.1.Privileged Information: Concept“Privileged Information” means any specific information about the securities and instruments mentioned in Section 2.2 which is not in the publicdomain yet.For illustrative purposes, the following is regarded as Privileged Information: • The financial results of YPF S.A. or of any Group companies, or unreleased financial statements. • Extraordinary changes in said financial results, or modifications of result estimates formerly disclosed to the public. 3Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. • Any forthcoming operations by the Company, such as capital increase, issuance of securities, or dividend distribution proposals. • Mergers, or significant acquisitions or divestments of any kind of assets. • Any events giving rise to litigation, disputes or penalties with a potential material impact on the financial statements. • Decisions by authorities prior to their becoming public knowledge. • Other similar facts, events or situations. 4.2.Loss of Privileged Information statusAny Privileged Information shall be no longer regarded as such immediately after it is made public. 4.3.ProhibitionsSubject Persons in possession of any kind of Privileged Information and who are aware or should have been aware of such Privileged Informationstatus, shall refrain from directly or indirectly engaging in the following practices, either for their own account or on behalf of third parties: a)Preparing, facilitating, participating in or performing any kind of market transaction in respect of the securities or instruments specified inSection 2.2., with reference to or based on Privileged Information, for their own benefit or for the benefit of Related Persons or third parties. b)Disclosing said Privileged Information to third parties, except in the normal course of their work, profession, position or office, subject to therequirements stated herein. c)Recommending third parties to purchase, sell or transfer the securities and instruments mentioned in Section 2.2, or causing other persons topurchase, sell, or transfer them, on the basis of Privileged Information. 4.4.Obligation to safeguard the Privileged Information a)Any persons in possession of Privileged Information have the obligation to safeguard it, without prejudice to their duty to report to andcooperate with judicial and administrative authorities under the terms stipulated in the applicable legislation. 4Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results. b)Any persons in possession of Privileged Information shall also take adequate measures to prevent the misuse or unfair use of that information. c)Furthermore, in the event of misuse or unfair use of Privileged Information, anyone aware of this fact shall immediately report it to theresponsible officer. 4.5.Actions during the evaluation or negotiation of operations regarded as Privileged Information 4.5.1.Monitoring of market pricesThe Finance Vice-Presidency shall oversee the market performance of the securities and instruments mentioned in Section 2.2., as well as the newspublished or broadcast by professional reporters of economic information and the media, and which might affect said securities and instruments duringthe evaluation or negotiation of any kind of legal or financial operation regarded as Privileged Information (hereinafter, the “operation”). 4.5.2.Public announcement in case of breach of secrecyIn the event of abnormal behavior of trading prices or volumes of the securities and instruments indicated in Section 2.2., the Finance Vice-Presidencyshall immediately report to the Board Chairman who shall, if necessary and if there are reasonable signs that such behavior is due to premature, partial,or distorted disclosure of the operation in question, take any pertinent measures to promptly issue a public statement clearly and precisely indicatingthe status of this ongoing operation or giving a preview of the information to be released in due course. 4.5.3.Safeguard measuresSubject Persons shall: a)Limit the access of Privileged Information to the strictly necessary number of persons within the organization or external advisers. b)Expressly warn the recipients of the confidential nature of such information and their prohibition to use it. c)Implement security measures for the safekeeping, filing, access, reproduction, and distribution of Privileged Information. 5Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.4.6.Compliance with securities market regulationsThe Subject Persons in possession of Privileged Information shall strictly comply with current Securities Market regulations where YPF is authorizedfor public offering, as well as with these Regulations and any other applicable provisions in effect. 5.RELEVANT INFORMATION 5.1.Relevant Information: ConceptThe term “Relevant Information” refers to every fact or situation that, in view of its significance, might materially affect the placement of securities,their trading or the conduct of the Subject Person’s business. The concept of Relevant Information equally includes any information whose knowledgemight reasonably influence an investor to acquire or transfer securities or other financial instruments, with the consequent material effect on theirtrading on a secondary market. 5.2.Duty to report Relevant InformationYPF hereby undertakes to immediately inform the market through a notice addressed to the National Securities Commission (Comisión Nacional deValores – CNV) as well as to any pertinent entities according to the markets where YPF’s securities are traded, of any Relevant Information concerningthe Company, in compliance with applicable regulations. Where appropriate, YPF’s Internal Transparency Committee—created by the Board ofDirectors and composed by the Company’s senior executives—shall take cognizance of this situation and proceed accordingly. 5.3.Content of Relevant InformationAny Relevant Information conveyed to the market shall be accurate, clear, quantified and complete, and shall not be confusing, misleading ordeceptive. 5.4.Confidential Relevant InformationWhen the Company believes that any Relevant Information should not be made public because its disclosure might impair the corporate interest, itshall immediately request the CNV to relieve the Company of its reporting obligation to investors, pursuant to the Capital Markets Law No. 26,831,the CNV’s rules and any other applicable legislation. 6Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6.TRANSACTIONS IN OWN SECURITIES 6.1.Applicable legislationThe determination and execution of specific plans for the acquisition or sale of YPF S.A.’s shares shall conform to the provisions of Law 26,831, theCNV’S Rules, the Business Companies’ Act and any other amending, supplementary or regulatory provisions on the matter and any other rulesgoverning the markets where the Company is admitted to public offering. 6.2.NoticesYPF’s Investor Relations Management – Finance Vice-Presidency shall issue the pertinent official notices about the Company’s transactions in its ownsecurities, as required by current provisions, and shall keep an adequate control and record of such transactions. 7.MANIPULATION OF SECURITY PRICES 7.1.ProhibitionSubject Persons shall refrain from preparing or conducting practices that falsify free pricing, and from those stipulated in Section 117, subsection b) ofLaw 26,831 and Section 2, Chapter III, Title XII (Listing Transparency) of CNV’s Rules (as amended in 2013), and any regulatory or supersedingprovisions thereof. 7.2.Prohibited practicesThis term encompasses practices and behaviors aimed at or allowing for the manipulation of prices or trading volume of securities, thereby altering thenormal development of the supply and demand, and any other practices capable of misleading market participants, in respect of the purchase or sale ofany listed securities, whether by means of artifices, false or inaccurate statements omitting basic facts or any act, practice or course of action withdeceptive and detrimental effects on any person operating in the market. 7Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.8.CONFLICTS OF INTEREST 8.1.Prior communicationIn order to control any potential conflicts of interest, all Subject Persons shall inform the Ethics Committee and/or the Audit Committee (in the case ofBoard members), before conducting any transaction or concluding any business, with sufficient time in advance to enable the timely implementationof adequate measures, regarding situations that might potentially, and in each specific circumstance, give rise to a conflict of interest with YPF or anysubsidiary and/or affiliate, by virtue of said Subject Persons’ activities outside YPF, or those of their relatives or acquaintances, their assets, or for anyother reason, and that might compromise their impartial performance. 8.2.Duty of abstentionThe Subject Persons shall refrain from participating in situations that might give rise to a conflict between their personal interests—and/or the interestof Related Persons—and YPF’s interests. The Subject Persons shall also abstain from participating in or exerting influence over decisions regardingsituations where a personal interest is at stake, whether directly or indirectly; in all cases, the Subject Persons shall act loyally toward YPF. 9.EFFECTIVE TERMThese Regulations shall become effective upon the entry into force of the Code of Ethics and Conduct of YPF S.A., to which these Regulations areappended. The Regulations shall be periodically reviewed and updated in order to take account of all current legal and regulatory provisions as well asthe best practices on the matter.The Vice-Presidency of Human Resources undertakes to distribute these Regulations among the Subject Persons; to this end, each Subject Person shallsign a document whose content will be identical to the model attached hereto as Appendix I. 10.MANDATORY OBSERVANCEObservance of these Regulations is mandatory for Subject Persons. 8Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.11.BREACHFailure to comply with the provisions of these Regulations shall be deemed a labor violation or contractual breach (as appropriate), whose seriousness will bedetermined in the proceedings to be pursued in accordance with current legal provisions.The foregoing shall be without prejudice to any other penalties for violation of Law 26,831, the CNV’s Rules and any other applicable provisions, as well asthe pertinent civil and/or criminal liability to which the breaching party may be subject. 12.SUPERVISIONThe performance of the obligations hereunder shall be supervised by YPF’s Ethics Committee, Audit Committee or Internal Transparency Committee, as thecase may be. 9Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.APPENDIX IStatement of acknowledgment and acceptance of YPF S.A. InternalRegulations for Conduct in the Securities Market Affirmant: (Name and Surname)C.U.I.L.[Employee’s TaxIdentification No.]: E-mail address: The undersigned hereby acknowledges and accepts YPF S.A. Internal Regulations for Conduct in the Securities Market, approved by the Board of Directorson August 7, 2014, and that he/she has received a copy of such document, undertaking to duly observe its provisions, to the extent applicable to his/herposition.Signature:Print Name:In , on this day of , 20 10Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 12.1302 CERTIFICATIONI, Miguel Galuccio, certify that:1. I have reviewed this annual report on Form 20-F of YPF S.A.;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the company as of, and for, the periods presented in this report;4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the companyand have:(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure thatmaterial information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly duringthe period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness ofthe disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annualreport that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to thecompany’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the company’s ability to record, process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control overfinancial reporting.Date: March 30, 2015. /s/ Miguel GaluccioMiguel GaluccioChief Executive OfficerSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 12.2302 CERTIFICATIONI, Daniel González, certify that:1. I have reviewed this annual report on Form 20-F of YPF S.A.;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financialcondition, results of operations and cash flows of the company as of, and for, the periods presented in this report;4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the companyand have:(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure thatmaterial information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly duringthe period in which this report is being prepared;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles;(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness ofthe disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annualreport that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to thecompany’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely toadversely affect the company’s ability to record, process, summarize and report financial information; and(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control overfinancial reporting.Date: March 30, 2015. /s/ Daniel GonzálezDaniel GonzálezChief Financial OfficerSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 13.1906 CERTIFICATIONThe certification set forth below is being submitted in connection with the Annual Report on Form 20-F for the year ended December 31, 2014 (the “report”)for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 ofChapter 63 of Title 18 of the United States Code.Miguel Galuccio, the Chief Executive Officer and Daniel González, the Chief Financial Officer of YPF S.A., each certifies that, to the best of their knowledge:1. the report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and2. the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of YPF S.A.Date: March 30, 2015. /s/ Miguel GaluccioMiguel GaluccioChief Executive Officer/s/ Daniel GonzálezDaniel GonzálezChief Financial OfficerSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 23.1DeGolyer and MacNaughton5001 Spring Valley RoadSuite 800 EastDallas, Texas 75244March 20, 2015YPF Sociedad AnónimaMacacha Güemes 515C1106BKK Buenos AiresArgentinaLadies and Gentlemen:We hereby consent to the references to DeGolyer and MacNaughton and to the inclusion of our third-party letter report dated January 14, 2015,and our three third-party letter reports dated March 3, 2015, as set forth under the sections “Item 4. Information on the Company–Exploration and ProductionOverview–Oil and Gas Reserves,” “Item 19. Exhibits,” and as Exhibit 99.1 in YPF Sociedad Anónima’s (YPF S.A.) report on Form 20-F for the year endedDecember 31, 2014, to be filed with the United States Securities and Exchange Commission (SEC).Our third-party letter reports dated March 3, 2015, contain our independent estimates of the proved crude oil, condensate, natural gas liquids,gasoline, marketable gas, and oil-equivalent reserves (i) audited as of September 30, 2014, for certain selected properties in Argentina, (ii) audited as ofDecember 31, 2014, for certain selected properties in Argentina, and (iii) estimated as of December 31, 2014, for certain selected properties in Argentina, inwhich YPF S.A. has represented that it holds interests. Our third-party letter report dated January 14, 2015, contains our independent estimates of the provedcrude oil, condensate, natural gas liquids, sales gas, and oil-equivalent reserves audited as of December 31, 2014, of certain selected properties in the UnitedStates in which YPF S.A. has represented that it holds interests. Very truly yours,/s/ DeGolyer and MacNaughtonDeGOLYER and MacNAUGHTONTexas Registered Engineering Firm F-716Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 99.1(a)DEGOLYER AND MACNAUGHTON5001 SPRING VALLEY ROADSUITE 800 EASTDALLAS, TEXAS 75244This is a digital representation of a DeGolyer and MacNaughton report.Each file contained herein is intended to be a manifestation of certain data in the subject report and as such is subject to the definitions,qualifications, explanations, conclusions, and other conditions thereof. The information and data contained in each file may be subject to misinterpretation;therefore, the signed and bound copy of this report should be considered the only authoritative source of such information. Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DeGolyer and MacNaughton5001 Spring Valley RoadSuite 800 EastDallas, Texas 75244March 3, 2015YPF Sociedad AnónimaMacacha Güemes 515Ciudad Autonóma de Buenos AiresArgentinaLadies and Gentlemen:Pursuant to your request, we have conducted a reserves audit of the net proved crude oil, condensate, natural gas liquids (NGL), gasoline, andnatural gas reserves, as of September 30, 2014, of certain properties in which YPF Sociedad Anónima (YPF S.A.) has represented that it owns an interest. Thisevaluation was completed on March 3, 2015. The reserves for these properties are termed Packages 3b and 4b. YPF S.A. has represented that these propertiesaccount for 28 percent on a net equivalent barrel basis of YPF S.A.’s net proved reserves as of September 30, 2014, that the proved undeveloped reservesestimated in this report constitute approximately 13 percent of YPF S.A.’s proved undeveloped reserves, and that the net proved reserves estimates have beenprepared in accordance with the reserves definitions of Rules 4-10(a) (1)-(32) of Regulation S–X of the Securities and Exchange Commission (SEC) of theUnited States. We have reviewed information provided to us by YPF S.A. that it represents to be YPF S.A.’s estimates of the net reserves, as of September 30,2014, for the same properties as those which we evaluated. This report was prepared in accordance with guidelines specified in Item 1202 (a)(8) of RegulationS-K and is to be used for inclusion in certain SEC filings by YPF S.A.Reserves estimates included herein are expressed as net reserves as represented by YPF S.A. Gross reserves are defined as the total estimatedpetroleum to be produced from these properties after September 30, 2014. Net reserves are defined as that portion of the gross reserves attributable to theinterests owned by YPF S.A. after deducting all interests owned by others.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.2DeGolyer and MacNaughton Estimates of oil, condensate, NGL, gasoline, and natural gas reserves should be regarded only as estimates that may change as further productionhistory and additional information become available. Not only are such reserves estimates based on that information which is currently available, but suchestimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.Data used in this audit were obtained from reviews with YPF S.A. personnel, from YPF S.A. files, from records on file with the appropriateregulatory agencies, and from public sources. In the preparation of this report we have relied, without independent verification, upon such informationfurnished by YPF S.A. with respect to property interests, production from such properties, current costs of operation and development, current prices forproduction, agreements relating to current and future operations and sale of production, and various other information and data that were accepted asrepresented. A field examination of the properties was not considered necessary for the purposes of this report.Methodology and ProceduresEstimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that arein accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled“Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007).” The method or combinationof methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basicdata, and production history.When applicable, the volumetric method was used to estimate the original oil in place (OOIP) and the original gas in place (OGIP). Structure andisopach maps were constructed to estimate reservoir volume. Electrical logs, radioactivity logs, core analyses, and other available data were used to preparethese maps as well as to estimate representative values for porosity and water saturation. When adequate data were available and when circumstancesjustified, material balance and other engineering methods were used to estimate OOIP or OGIP.Estimates of ultimate recovery were obtained after applying recovery factors to OOIP or OGIP. These recovery factors were based onconsideration of the type ofSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.3DeGolyer and MacNaughton energy inherent in the reservoirs, analyses of the petroleum, the structural positions of the properties, and the production histories. When applicable, materialbalance and other engineering methods were used to estimate recovery factors. In such cases, an analysis of reservoir performance, including production rate,reservoir pressure, and gas-oil ratio behavior, was used in the estimation of reserves.For depletion-type reservoirs or those whose performance disclosed a reliable decline in producing-rate trends or other diagnostic characteristics,reserves were estimated by the application of appropriate decline curves or other performance relationships. In the analyses of production-decline curves,reserves were estimated only to the limits of economic production or to the limit of the production licenses as appropriate.Oil and condensate reserves estimated herein are expressed in terms of 42 United States gallons per barrel. Condensate reserves are to berecovered by normal field separation.Gas reserves reported herein are expressed as marketable-gas volumes, at a temperature base of 60 degrees Fahrenheit (°F) and at a pressure baseof 14.696 pounds per square inch absolute (psia). Marketable gas is defined as the gas remaining after field separation and after deduction for flare, plantprocessing, and removal of inerts, but prior to deduction for fuel usage.Gas quantities are identified by the type of reservoir from which the gas is to be produced. Nonassociated gas is gas at initial reservoir conditionswith no crude oil present in the reservoir. Associated gas includes both gas-cap gas and solution gas. Gas-cap gas is gas at initial reservoir conditions and is incommunication with an underlying crude oil zone. Solution gas is gas dissolved in crude oil at initial reservoir conditions. Gas quantities herein includeassociated and nonassociated gas reserves.NGL and gasoline reserves estimated herein are defined as propane and butane fractions and pentane and heavier fractions, respectively, in orderto be consistent with YPF S.A.’s internal reporting standards. NGL and gasoline reserves are products of gas plant processing and low temperature separationand are expressed in terms of 42 United States gallons per barrel.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.4DeGolyer and MacNaughton Definition of ReservesPetroleum reserves estimated by YPF S.A. and by us included in this report are classified as proved. Only proved reserves have been evaluated forthis report. Reserves classifications used by YPF S.A. and by us in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) ofRegulation S–X of the SEC. Reserves are judged to be economically producible in future years from known reservoirs under existing economic and operatingconditions and assuming continuation of current regulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were estimated only to the limit of economic rates of production under existing economic and operating conditions using prices andcosts consistent with the effective date of this report, including consideration of changes in existing prices provided only by contractual arrangements butnot including escalations based upon future conditions. The petroleum reserves are classified as follows:Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineeringdata, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and underexisting economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right tooperate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are usedfor the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it willcommence the project within a reasonable time.(i) The area of the reservoir considered as proved includes:(A) The area identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, withreasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of availablegeoscience and engineering data.(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seenin a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact withreasonable certainty.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.5DeGolyer and MacNaughton (iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for anassociated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience,engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to,fluid injection) are included in the proved classification when:(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, theoperation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes thereasonable certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved fordevelopment by all necessary parties and entities, including governmental entities.(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. Theprice shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as anunweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined bycontractual arrangements, excluding escalations based upon future conditions.Developed oil and gas reserves – Developed oil and gas reserves are reserves of any category that can be expected to be recovered:(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relativelyminor compared to the cost of a new well; andSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6DeGolyer and MacNaughton (ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is bymeans not involving a well.Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from newwells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain ofproduction when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economicproducibility at greater distances.(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating thatthey are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluidinjection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects inthe same reservoir or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or by other evidence using reliabletechnology establishing reasonable certainty.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.7DeGolyer and MacNaughton Primary Economic AssumptionsThe following economic assumptions were used for estimating existing and future prices and costs, expressed in United States dollars (U.S.$):Oil, Condensate, and Gasoline PricesBased on information provided by YPF S.A., the government-regulated price of oil, condensate, and gasoline was U.S.$79.78 per barrelfor the Austral, Noroeste, and Neuquina Basins, U.S.$67.73 per barrel for the Cuyana Basin and the Chubut Province in the Golfo SanJorge Basin, and U.S.$68.73 per barrel for the Santa Cruz Province in the Golfo San Jorge Basin. According to information provided byYPF S.A., the government-regulated prices will expire at year-end 2017. YPF S.A. has represented that, after such time, the oil,condensate, and gasoline prices provided by YPF S.A. will be based on a 12-month average West Texas Intermediate price, calculated asthe unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of thereporting period, unless prices are defined by contractual arrangements. YPF S.A. supplied differentials by field to a West TexasIntermediate reference price of U.S.$99.36 per barrel and the prices were held constant thereafter.NGL PricesYPF S.A. has represented that the initial NGL price was U.S.$20.20 per barrel and was to be held constant for the lives of the propertiesunless prices were defined by contractual arrangements. YPF S.A. has represented that this price was calculated as the unweightedarithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period,unless prices are defined by contractual arrangements.Natural Gas PricesYPF S.A. has represented that the natural gas prices were U.S.$4.40 per million British thermal units (MMBtu) for the San Jorge Basin,U.S.$4.21 per MMBtu for the Neuquina and Cuyana Basins, U.S.$4.05 per MMBtu for the Noroeste Basin, and U.S.$3.15 per MMBtu forthe Austral Basin and were held constant thereafter. YPF S.A. has represented that these pricesSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.8DeGolyer and MacNaughton were calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period priorto the end of the reporting period, unless prices are defined by contractual arrangements.Operating Expenses and Capital CostsOperating expenses and capital costs, based on information provided by YPF S.A., were used in estimating future costs required tooperate the properties. In certain cases, future costs, either higher or lower than existing costs, may have been used because of anticipatedchanges in operating conditions. These costs were not escalated for inflation.While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant’s ability torecover its oil and gas reserves, we are not aware of any such governmental actions which would restrict the recovery of the September 30, 2014, estimated oiland gas reserves.YPF S.A. has represented that its estimated net proved reserves attributable to the reviewed properties are based on the definition of provedreserves of the SEC. YPF S.A. has represented that its estimates of the net proved reserves attributable to these properties, which represent 28 percent of YPFS.A.’s reserves on a netSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.9DeGolyer and MacNaughton equivalent barrel basis, are as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent(Mboe): Estimated by YPF S.A.Net Proved Reservesas of September 30, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Developed Package 3b Aguada Pichana 0.0 156.3 2,967.1 195.7 62,744.0 14,493.5 Chachahuen 1,861.9 0.0 0.0 0.0 32.3 1,867.7 Chihuido La Salina 3,878.2 0.0 4,105.3 827.1 51,641.0 18,007.6 Chihuido La Salina Sur 1,500.6 2.1 2,574.5 648.0 39,350.0 11,733.2 Chihuido Sierra Negra 32,919.2 18.1 0.0 0.0 8,056.9 34,372.2 CNQ 7 630.2 0.0 0.0 0.0 18.3 633.5 CNQ 7A (LP) 3,226.4 0.0 0.0 0.0 131.4 3,249.8 CNQ 7A (MZA) 4,057.1 0.0 0.0 0.0 83.3 4,071.9 CNQ 7A (MZLP) 10,663.5 0.0 0.0 0.0 631.3 10,775.9 Desfiladero Bayo (MZA) 10,127.6 0.0 0.0 0.0 823.5 10,274.3 Desfiladero Bayo (NQN) 3,523.4 0.0 0.0 0.0 391.0 3,593.0 El Portón (MZA) 692.0 0.0 779.5 104.5 10,227.6 3,397.5 El Portón (NQN) 1,359.8 0.0 5,184.7 776.9 73,877.5 20,478.6 Filo Morado 135.2 0.0 1,009.4 260.8 14,830.7 4,046.7 Guanaco Blanco 32.9 0.0 0.0 0.0 0.0 32.9 La Ventana 1,276.7 0.0 0.0 0.0 267.0 1,324.3 La Ventana “Grupo A” 231.4 0.0 0.0 0.0 44.0 239.2 La Ventana Central 11,799.8 0.0 426.2 0.0 1,692.3 12,527.4 La Yesera 235.3 0.0 0.0 0.0 510.9 326.3 Paso Bardas Norte (MZA) 8.2 59.1 60.9 7.6 16,216.1 3,023.8 Paso Bardas Norte (NQN) 0.0 0.0 441.9 53.7 24,201.6 4,805.8 Payún Oeste 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (MZA) 1,639.1 0.0 0.0 0.0 616.3 1,748.9 Puesto Hernández (NQN) 25,312.4 0.0 0.0 0.0 5,310.7 26,258.2 Río Negro Norte 344.8 0.0 0.0 0.0 213.0 382.7 San Roque 56.9 966.0 5,980.0 683.0 114,354.9 28,051.9 V-Cañada Dura 3,162.8 0.0 0.0 0.0 140.4 3,187.8 Vizcacheras 18,575.4 0.0 256.4 0.0 1,810.2 19,154.2 Total Package 3b 137,250.8 1,201.6 23,785.9 3,557.3 428,216.2 242,058.8 Proved DevelopedPackage 4bAcambuco 0.0 1,784.0 0.0 419.7 88,035.1 17,882.3 Aguaragüe 184.0 1,337.4 0.0 0.0 58,390.3 11,920.4 CAM 2A Sur 0.0 0.0 0.0 0.0 0.0 0.0 El Tordillo 3,314.7 0.0 0.0 0.0 1,823.6 3,639.5 La Tapera - P.Quiroga 94.5 0.0 0.0 0.0 29.9 99.8 Las Heras 3,231.8 0.0 0.0 0.0 2,707.5 3,714.0 Palmar Largo 275.6 0.0 0.0 0.0 542.8 372.3 Ramos 0.0 1,078.9 0.0 0.0 73,392.2 14,149.6 San Antonio Sur 0.0 137.3 0.0 0.0 10,701.7 2,043.2 Total Package 4b 7,100.6 4,337.6 0.0 419.7 235,623.1 53,821.1 Total Proved Developed 144,351.4 5,539.2 23,785.9 3,977.0 663,839.3 295,879.9 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.10DeGolyer and MacNaughton Estimated by YPF S.A.Net Proved Reservesas of September 30, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Undeveloped Package 3b Aguada Pichana 0.0 10.9 395.7 26.0 7,957.6 1,849.8 Chachahuen 3,211.1 0.0 0.0 0.0 41.9 3,218.6 Chihuido La Salina 200.9 0.0 640.6 82.1 7,413.9 2,244.0 Chihuido La Salina Sur 154.8 0.0 0.0 0.0 77.3 168.6 Chihuido Sierra Negra 1,235.0 0.0 0.0 0.0 1,273.7 1,461.8 CNQ 7 0.0 0.0 0.0 0.0 0.0 0.0 CNQ 7A (LP) 33.5 0.0 0.0 0.0 1.3 33.7 CNQ 7A (MZA) 255.7 0.0 0.0 0.0 10.1 257.5 CNQ 7A (MZLP) 304.2 0.0 0.0 0.0 12.0 306.3 Desfiladero Bayo (MZA) 2,338.2 0.0 0.0 0.0 165.3 2,367.6 Desfiladero Bayo (NQN) 1,405.0 0.0 0.0 0.0 129.5 1,428.1 El Portón (MZA) 69.6 0.0 737.5 93.7 7,494.3 2,235.5 El Portón (NQN) 471.4 0.0 2,572.5 326.9 26,084.7 8,016.3 Filo Morado 0.0 0.0 0.0 0.0 0.0 0.0 Guanaco Blanco 0.0 0.0 0.0 0.0 0.0 0.0 La Ventana 0.0 0.0 0.0 0.0 0.0 0.0 La Ventana “Grupo A” 0.0 0.0 0.0 0.0 0.0 0.0 La Ventana Central 683.2 0.0 23.6 0.0 98.1 724.3 La Yesera 0.0 0.0 0.0 0.0 0.0 0.0 Paso Bardas Norte (MZA) 0.0 61.0 0.0 0.0 7,187.5 1,341.1 Paso Bardas Norte (NQN) 0.0 0.0 0.0 0.0 0.0 0.0 Payún Oeste 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (MZA) 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (NQN) 1,438.1 0.0 0.0 0.0 314.9 1,494.2 Río Negro Norte 0.0 0.0 0.0 0.0 0.0 0.0 San Roque 0.0 0.0 0.0 0.0 0.0 0.0 V-Cañada Dura 0.0 0.0 0.0 0.0 0.0 0.0 Vizcacheras 1,805.4 0.0 0.0 0.0 183.1 1,838.0 Total Package 3b 13,606.1 71.9 4,369.9 528.7 58,445.2 28,985.4 Proved UndevelopedPackage 4bAcambuco 0.0 229.3 0.0 81.7 10,751.4 2,225.8 Aguaragüe 278.5 122.7 0.0 0.0 4,282.2 1,163.8 CAM 2A Sur 0.0 0.0 0.0 0.0 0.0 0.0 El Tordillo 545.8 0.0 0.0 0.0 600.6 652.8 La Tapera - P.Quiroga 35.1 0.0 0.0 0.0 11.6 37.2 Las Heras 1,655.0 0.0 0.0 0.0 2,097.0 2,028.5 Palmar Largo 0.0 0.0 0.0 0.0 0.0 0.0 Ramos 0.0 0.0 0.0 0.0 0.0 0.0 San Antonio Sur 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 4b 2,514.4 352.0 0.0 81.7 17,742.8 6,108.1 Total Proved Undeveloped 16,120.5 423.9 4,369.9 610.4 76,188.0 35,093.5 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.11DeGolyer and MacNaughton Estimated by YPF S.A.Net Proved Reservesas of September 30, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Total Proved Package 3b Aguada Pichana 0.0 167.2 3,362.8 221.7 70,701.6 16,343.3 Chachahuen 5,073.0 0.0 0.0 0.0 74.2 5,086.3 Chihuido La Salina 4,079.1 0.0 4,745.9 909.2 59,054.9 20,251.6 Chihuido La Salina Sur 1,655.4 2.1 2,574.5 648.0 39,427.3 11,901.8 Chihuido Sierra Negra 34,154.2 18.1 0.0 0.0 9,330.6 35,834.0 CNQ 7 630.2 0.0 0.0 0.0 18.3 633.5 CNQ 7A (LP) 3,259.9 0.0 0.0 0.0 132.7 3,283.5 CNQ 7A (MZA) 4,312.8 0.0 0.0 0.0 93.4 4,329.4 CNQ 7A (MZLP) 10,967.7 0.0 0.0 0.0 643.3 11,082.2 Desfiladero Bayo (MZA) 12,465.8 0.0 0.0 0.0 988.8 12,641.9 Desfiladero Bayo (NQN) 4,928.4 0.0 0.0 0.0 520.5 5,021.1 El Portón (MZA) 761.6 0.0 1,517.0 198.2 17,721.9 5,633.0 El Portón (NQN) 1,831.2 0.0 7,757.2 1,103.8 99,962.2 28,494.9 Filo Morado 135.2 0.0 1,009.4 260.8 14,830.7 4,046.7 Guanaco Blanco 32.9 0.0 0.0 0.0 0.0 32.9 La Ventana 1,276.7 0.0 0.0 0.0 267.0 1,324.3 La Ventana “Grupo A” 231.4 0.0 0.0 0.0 44.0 239.2 La Ventana Central 12,483.0 0.0 449.8 0.0 1,790.4 13,251.7 La Yesera 235.3 0.0 0.0 0.0 510.9 326.3 Paso Bardas Norte (MZA) 8.2 120.1 60.9 7.6 23,403.6 4,364.9 Paso Bardas Norte (NQN) 0.0 0.0 441.9 53.7 24,201.6 4,805.8 Payún Oeste 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (MZA) 1,639.1 0.0 0.0 0.0 616.3 1,748.9 Puesto Hernández (NQN) 26,750.5 0.0 0.0 0.0 5,625.6 27,752.4 Río Negro Norte 344.8 0.0 0.0 0.0 213.0 382.7 San Roque 56.9 966.0 5,980.0 683.0 114,354.9 28,051.9 V-Cañada Dura 3,162.8 0.0 0.0 0.0 140.4 3,187.8 Vizcacheras 20,380.8 0.0 256.4 0.0 1,993.3 20,992.2 Total Package 3b 150,856.9 1,273.5 28,155.8 4,086.0 486,661.4 271,044.2 Total ProvedPackage 4bAcambuco 0.0 2,013.3 0.0 501.4 98,786.5 20,108.1 Aguaragüe 462.5 1,460.1 0.0 0.0 62,672.5 13,084.2 CAM 2A Sur 0.0 0.0 0.0 0.0 0.0 0.0 El Tordillo 3,860.5 0.0 0.0 0.0 2,424.2 4,292.3 La Tapera - P.Quiroga 129.6 0.0 0.0 0.0 41.5 137.0 Las Heras 4,886.8 0.0 0.0 0.0 4,804.5 5,742.5 Palmar Largo 275.6 0.0 0.0 0.0 542.8 372.3 Ramos 0.0 1,078.9 0.0 0.0 73,392.2 14,149.6 San Antonio Sur 0.0 137.3 0.0 0.0 10,701.7 2,043.2 Total Package 4b 9,615.0 4,689.6 0.0 501.4 253,365.9 59,929.2 Total Proved 160,471.9 5,963.1 28,155.8 4,587.4 740,027.3 330,973.4 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.12DeGolyer and MacNaughton Our estimates of YPF S.A.’s net proved reserves attributable to the reviewed properties are based on the definition of proved reserves of the SECand are as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent (Mboe): Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of September 30, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Developed Package 3b Aguada Pichana 0.0 157.1 2,986.6 189.7 61,415.5 14,271.2 Chachahuen 1,862.4 0.0 0.0 0.0 37.1 1,869.0 Chihuido La Salina 3,444.7 0.0 3,759.8 822.3 54,926.4 17,808.9 Chihuido La Salina Sur 1,393.8 0.0 2,403.1 596.1 40,694.2 11,640.4 Chihuido Sierra Negra 31,316.9 0.0 0.0 0.0 13,595.8 33,738.2 CNQ 7 618.4 0.0 0.0 0.0 59.0 628.9 CNQ 7A (LP) 3,422.8 0.0 0.0 0.0 112.5 3,442.8 CNQ 7A (MZA) 3,621.5 0.0 0.0 0.0 1,214.7 3,837.8 CNQ 7A (MZLP) 10,760.2 0.0 0.0 0.0 3,686.9 11,416.8 Desfiladero Bayo (MZA) 9,711.0 0.0 0.0 0.0 4,096.2 10,440.5 Desfiladero Bayo (NQN) 3,149.3 0.0 0.0 0.0 712.3 3,276.2 El Portón (MZA) 609.2 0.0 729.4 96.5 10,224.3 3,256.0 El Portón (NQN) 1,299.0 0.0 4,680.6 739.1 69,844.0 19,157.5 Filo Morado 143.8 0.0 895.7 259.8 14,834.6 3,941.3 Guanaco Blanco 32.3 0.0 0.0 0.0 0.0 32.3 La Ventana 1,215.1 0.0 0.0 0.0 348.5 1,277.2 La Ventana “Grupo A” 231.9 0.0 0.0 0.0 64.3 243.4 La Ventana Central 11,475.7 0.0 0.0 0.0 2,709.4 11,958.2 La Yesera 235.3 0.0 0.0 0.0 510.9 326.3 Paso Bardas Norte (MZA) 0.4 47.8 51.5 7.6 16,048.4 2,965.4 Paso Bardas Norte (NQN) 0.0 0.0 454.8 67.2 23,892.5 4,777.1 Payún Oeste 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (MZA) 1,635.4 0.0 0.0 0.0 394.8 1,705.7 Puesto Hernández (NQN) 24,143.7 0.0 0.0 0.0 5,015.7 25,037.0 Río Negro Norte 342.1 0.0 0.0 0.0 155.6 369.8 San Roque 16.2 900.4 5,654.0 628.4 106,358.8 26,140.9 V-Cañada Dura 3,062.6 0.0 33.3 0.0 220.4 3,135.2 Vizcacheras 18,157.3 0.0 516.1 0.0 3,409.3 19,280.6 Total Package 3b 131,901.0 1,105.3 22,164.9 3,406.7 434,582.1 235,974.6 Proved DevelopedPackage 4bAcambuco 0.0 1,830.6 0.0 434.2 93,586.9 18,932.1 Aguaragüe 153.2 1,285.4 0.0 0.0 60,261.7 12,170.9 CAM 2A Sur 0.0 0.0 0.0 0.0 0.0 0.0 El Tordillo 3,554.8 0.0 0.0 0.0 2,211.0 3,948.6 La Tapera - P.Quiroga 96.3 0.0 0.0 0.0 34.7 102.5 Las Heras 3,686.5 0.0 0.0 0.0 1,587.4 3,969.2 Palmar Largo 260.0 0.0 0.0 0.0 506.2 350.2 Ramos 0.0 1,088.2 0.0 0.0 71,909.7 13,894.9 San Antonio Sur 0.0 138.0 0.0 0.0 10,408.4 1,991.7 Total Package 4b 7,750.8 4,342.2 0.0 434.2 240,506.0 55,360.1 Total Proved Developed 139,651.8 5,447.5 22,164.9 3,840.9 675,088.1 291,334.7 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.13DeGolyer and MacNaughton Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of September 30, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Undeveloped Package 3b Aguada Pichana 0.0 11.5 432.8 28.5 8,654.8 2,014.2 Chachahuen 3,211.0 0.0 0.0 0.0 153.3 3,238.3 Chihuido La Salina 165.3 0.0 679.1 74.5 7,370.2 2,231.5 Chihuido La Salina Sur 154.8 0.0 0.0 0.0 77.3 168.6 Chihuido Sierra Negra 1,557.5 0.0 0.0 0.0 778.7 1,696.2 CNQ 7 0.0 0.0 0.0 0.0 0.0 0.0 CNQ 7A (LP) 34.6 0.0 0.0 0.0 1.8 34.9 CNQ 7A (MZA) 254.8 0.0 0.0 0.0 3.6 255.4 CNQ 7A (MZLP) 301.9 0.0 0.0 0.0 12.4 304.1 Desfiladero Bayo (MZA) 2,343.0 0.0 0.0 0.0 768.8 2,479.9 Desfiladero Bayo (NQN) 1,406.4 0.0 0.0 0.0 282.5 1,456.7 El Portón (MZA) 69.6 0.0 569.5 82.5 7,493.8 2,056.2 El Portón (NQN) 471.7 0.0 2,414.0 266.6 26,078.8 7,796.8 Filo Morado 0.0 0.0 0.0 0.0 0.0 0.0 Guanaco Blanco 0.0 0.0 0.0 0.0 0.0 0.0 La Ventana 0.0 0.0 0.0 0.0 0.0 0.0 La Ventana “Grupo A” 0.0 0.0 0.0 0.0 0.0 0.0 La Ventana Central 785.3 0.0 0.0 0.0 0.0 785.3 La Yesera 0.0 0.0 0.0 0.0 0.0 0.0 Paso Bardas Norte (MZA) 0.0 60.9 0.0 0.0 7,186.5 1,340.8 Paso Bardas Norte (NQN) 0.0 0.0 0.0 0.0 0.0 0.0 Payún Oeste 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (MZA) 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (NQN) 1,438.1 0.0 0.0 0.0 298.8 1,491.3 Río Negro Norte 0.0 0.0 0.0 0.0 0.0 0.0 San Roque 0.0 0.0 0.0 0.0 0.0 0.0 V-Cañada Dura 0.0 0.0 0.0 0.0 0.0 0.0 Vizcacheras 1,728.2 0.0 0.0 0.0 307.6 1,783.0 Total Package 3b 13,922.2 72.4 4,095.4 452.1 59,468.9 29,133.2 Proved UndevelopedPackage 4bAcambuco 0.0 236.7 0.0 50.4 10,872.9 2,223.5 Aguaragüe 123.7 0.0 0.0 0.0 29.4 128.9 CAM 2A Sur 0.0 0.0 0.0 0.0 0.0 0.0 El Tordillo 524.8 0.0 0.0 0.0 326.3 582.9 La Tapera - P.Quiroga 25.0 0.0 0.0 0.0 14.0 27.5 Las Heras 1,684.0 0.0 0.0 0.0 1,319.7 1,919.0 Palmar Largo 0.0 0.0 0.0 0.0 0.0 0.0 Ramos 0.0 0.0 0.0 0.0 0.0 0.0 San Antonio Sur 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 4b 2,357.5 236.7 0.0 50.4 12,562.3 4,881.8 Total Proved Undeveloped 16,279.7 309.1 4,095.4 502.5 72,031.2 34,015.0 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.14DeGolyer and MacNaughton Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of September 30, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Total Proved Package 3b Aguada Pichana 0.0 168.6 3,419.4 218.2 70,070.3 16,285.4 Chachahuen 5,073.4 0.0 0.0 0.0 190.4 5,107.3 Chihuido La Salina 3,610.0 0.0 4,438.9 896.8 62,296.6 20,040.4 Chihuido La Salina Sur 1,548.6 0.0 2,403.1 596.1 40,771.5 11,809.0 Chihuido Sierra Negra 32,874.4 0.0 0.0 0.0 14,374.5 35,434.4 CNQ 7 618.4 0.0 0.0 0.0 59.0 628.9 CNQ 7A (LP) 3,457.4 0.0 0.0 0.0 114.3 3,477.7 CNQ 7A (MZA) 3,876.3 0.0 0.0 0.0 1,218.3 4,093.2 CNQ 7A (MZLP) 11,062.1 0.0 0.0 0.0 3,699.3 11,720.9 Desfiladero Bayo (MZA) 12,054.0 0.0 0.0 0.0 4,865.0 12,920.4 Desfiladero Bayo (NQN) 4,555.7 0.0 0.0 0.0 994.8 4,732.9 El Portón (MZA) 678.8 0.0 1,298.9 179.0 17,718.1 5,312.2 El Portón (NQN) 1,770.7 0.0 7,094.6 1,005.7 95,922.8 26,954.3 Filo Morado 143.8 0.0 895.7 259.8 14,834.6 3,941.3 Guanaco Blanco 32.3 0.0 0.0 0.0 0.0 32.3 La Ventana 1,215.1 0.0 0.0 0.0 348.5 1,277.2 La Ventana “Grupo A” 231.9 0.0 0.0 0.0 64.3 243.4 La Ventana Central 12,261.0 0.0 0.0 0.0 2,709.4 12,743.5 La Yesera 235.3 0.0 0.0 0.0 510.9 326.3 Paso Bardas Norte (MZA) 0.4 108.7 51.5 7.6 23,234.9 4,306.2 Paso Bardas Norte (NQN) 0.0 0.0 454.8 67.2 23,892.5 4,777.1 Payún Oeste 0.0 0.0 0.0 0.0 0.0 0.0 Puesto Hernández (MZA) 1,635.4 0.0 0.0 0.0 394.8 1,705.7 Puesto Hernández (NQN) 25,581.8 0.0 0.0 0.0 5,314.5 26,528.3 Río Negro Norte 342.1 0.0 0.0 0.0 155.6 369.8 San Roque 16.2 900.4 5,654.0 628.4 106,358.8 26,140.9 V-Cañada Dura 3,062.6 0.0 33.3 0.0 220.4 3,135.2 Vizcacheras 19,885.5 0.0 516.1 0.0 3,716.9 21,063.6 Total Package 3b 145,823.2 1,177.7 26,260.3 3,858.8 494,051.0 265,107.8 Total ProvedPackage 4bAcambuco 0.0 2,067.3 0.0 484.6 104,459.8 21,155.6 Aguaragüe 276.9 1,285.4 0.0 0.0 60,291.1 12,299.8 CAM 2A Sur 0.0 0.0 0.0 0.0 0.0 0.0 El Tordillo 4,079.6 0.0 0.0 0.0 2,537.3 4,531.5 La Tapera - P.Quiroga 121.3 0.0 0.0 0.0 48.7 130.0 Las Heras 5,370.5 0.0 0.0 0.0 2,907.1 5,888.2 Palmar Largo 260.0 0.0 0.0 0.0 506.2 350.2 Ramos 0.0 1,088.2 0.0 0.0 71,909.7 13,894.9 San Antonio Sur 0.0 138.0 0.0 0.0 10,408.4 1,991.7 Total Package 4b 10,108.3 4,578.9 0.0 484.6 253,068.3 60,241.9 Total Proved 155,931.5 5,756.6 26,260.3 4,343.4 747,119.3 325,349.7 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.15DeGolyer and MacNaughton In our opinion, the information relating to estimated proved reserves of oil, condensate, natural gas liquids, and gas contained in this report hasbeen prepared in accordance with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and 932-235-50-9 of the Accounting Standards Update 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (January 2010) of the Financial Accounting StandardsBoard and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8), and 1203(a) of Regulation S–K of the Securitiesand Exchange Commission; provided, however, that estimates of proved developed and proved undeveloped reserves are not presented at the beginning ofthe year.To the extent the above-enumerated rules, regulations, and statements require determinations of an accounting or legal nature, we, as engineers,are necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefor.In comparing the detailed net proved reserves estimates prepared by us and by YPF S.A., we have found differences, both positive and negative,resulting in an aggregate difference of less than 1 percent when compared on the basis of net equivalent barrels. It is our opinion that the net proved reservesestimates prepared by YPF S.A. on the properties reviewed by us and referred to above, when compared on the basis of net equivalent barrels, in aggregate, donot differ materially from those prepared by us.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.16DeGolyer and MacNaughton DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting servicesthroughout the world since 1936. DeGolyer and MacNaughton does not have any financial interest, including stock ownership, in YPF S.A. Our fees were notcontingent on the results of our evaluation. This letter report has been prepared at the request of YPF S.A. DeGolyer and MacNaughton has used allassumptions, data, procedures, and methods that it considers necessary and appropriate to prepare this report. Submitted,/s/ DeGolyer and MacNaughtonDeGOLYER and MacNAUGHTONTexas Registered Engineering Firm F-716/s/ R.M. Shuck, P.E.[SEAL]R. M. Shuck, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DeGolyer and MacNaughton CERTIFICATE of QUALIFICATIONI, R. M. Shuck, Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., herebycertify: 1.That I am a Senior Vice President with DeGolyer and MacNaughton, which company did prepare the letter report addressed to YPF S.A. datedMarch 3, 2015, and that I, as Senior Vice President, was responsible for the preparation of this letter report. 2.That I attended the University of Houston, and that I graduated with a Bachelor of Science degree in Chemical Engineering in the year 1977;that I am a Registered Professional Engineer in the State of Texas; that I am a member of the Society of Petroleum Engineers; and that I have inexcess of 37 years of experience in oil and gas reservoir studies and evaluations. /s/ R.M. Shuck, P.E.[SEAL]R. M. Shuck, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 99.1(b)DEGOLYER AND MACNAUGHTON5001 SPRING VALLEY ROADSUITE 800 EASTDALLAS, TEXAS 75244This is a digital representation of a DeGolyer and MacNaughton report.Each file contained herein is intended to be a manifestation of certain data in the subject report and as such is subject to the definitions,qualifications, explanations, conclusions, and other conditions thereof. The information and data contained in each file may be subject to misinterpretation;therefore, the signed and bound copy of this report should be considered the only authoritative source of such information. Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DeGolyer and MacNaughton5001 Spring Valley RoadSuite 800 EastDallas, Texas 75244March 3, 2015YPF Sociedad AnónimaMacacha Güemes 515Ciudad Autonóma de Buenos AiresArgentinaLadies and Gentlemen:Pursuant to your request, we have conducted a reserves audit of the net proved crude oil, condensate, natural gas liquids (NGL), gasoline, andnatural gas reserves, as of December 31, 2014, of certain properties in which YPF Sociedad Anónima (YPF S.A.) has represented that it owns an interest. Thisevaluation was completed on March 3, 2015. The reserves for these properties are termed Packages 3a and 4a. YPF S.A. has represented that these propertiesaccount for 5 percent on a net equivalent barrel basis of YPF S.A.’s net proved reserves as of December 31, 2014, that the proved undeveloped reservesestimated in this report constitute approximately 1 percent of YPF S.A.’s proved undeveloped reserves, and that the net proved reserves estimates have beenprepared in accordance with the reserves definitions of Rules 4-10(a) (1)-(32) of Regulation S–X of the Securities and Exchange Commission (SEC) of theUnited States. We have reviewed information provided to us by YPF S.A. that it represents to be YPF S.A.’s estimates of the net reserves, as of December 31,2014, for the same properties as those which we evaluated. This report was prepared in accordance with guidelines specified in Item 1202 (a)(8) of RegulationS-K and is to be used for inclusion in certain SEC filings by YPF S.A.Reserves estimates included herein are expressed as net reserves as represented by YPF S.A. Gross reserves are defined as the total estimatedpetroleum to be produced from these properties after December 31, 2014. Net reserves are defined as that portion of the gross reserves attributable to theinterests owned by YPF S.A. after deducting all interests owned by others.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.2DeGolyer and MacNaughton Estimates of oil, condensate, NGL, gasoline, and natural gas reserves should be regarded only as estimates that may change as further productionhistory and additional information become available. Not only are such reserves estimates based on that information which is currently available, but suchestimates are also subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.Data used in this audit were obtained from reviews with YPF S.A. personnel, from YPF S.A. files, from records on file with the appropriateregulatory agencies, and from public sources. In the preparation of this report we have relied, without independent verification, upon such informationfurnished by YPF S.A. with respect to property interests, production from such properties, current costs of operation and development, current prices forproduction, agreements relating to current and future operations and sale of production, and various other information and data that were accepted asrepresented. A field examination of the properties was not considered necessary for the purposes of this report.Methodology and ProceduresEstimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that arein accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled“Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007).” The method or combinationof methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basicdata, and production history.When applicable, the volumetric method was used to estimate the original oil in place (OOIP) and the original gas in place (OGIP). Structure andisopach maps were constructed to estimate reservoir volume. Electrical logs, radioactivity logs, core analyses, and other available data were used to preparethese maps as well as to estimate representative values for porosity and water saturation. When adequate data were available and when circumstancesjustified, material balance and other engineering methods were used to estimate OOIP or OGIP.Estimates of ultimate recovery were obtained after applying recovery factors to OOIP or OGIP. These recovery factors were based onconsideration of the type ofSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.3DeGolyer and MacNaughton energy inherent in the reservoirs, analyses of the petroleum, the structural positions of the properties, and the production histories. When applicable, materialbalance and other engineering methods were used to estimate recovery factors. In such cases, an analysis of reservoir performance, including production rate,reservoir pressure, and gas-oil ratio behavior, was used in the estimation of reserves.For depletion-type reservoirs or those whose performance disclosed a reliable decline in producing-rate trends or other diagnostic characteristics,reserves were estimated by the application of appropriate decline curves or other performance relationships. In the analyses of production-decline curves,reserves were estimated only to the limits of economic production or to the limit of the production licenses as appropriate.Oil and condensate reserves estimated herein are expressed in terms of 42 United States gallons per barrel. Condensate reserves are to berecovered by normal field separation.Gas reserves reported herein are expressed as marketable-gas volumes, at a temperature base of 60 degrees Fahrenheit (°F) and at a pressure baseof 14.696 pounds per square inch absolute (psia). Marketable gas is defined as the gas remaining after field separation and after deduction for flare, plantprocessing, and removal of inerts, but prior to deduction for fuel usage.Gas quantities are identified by the type of reservoir from which the gas is to be produced. Nonassociated gas is gas at initial reservoir conditionswith no crude oil present in the reservoir. Associated gas includes both gas-cap gas and solution gas. Gas-cap gas is gas at initial reservoir conditions and is incommunication with an underlying crude oil zone. Solution gas is gas dissolved in crude oil at initial reservoir conditions. Gas quantities herein includeassociated and nonassociated gas reserves.NGL and gasoline reserves estimated herein are defined as propane and butane fractions and pentane and heavier fractions, respectively, in orderto be consistent with YPF S.A.’s internal reporting standards. NGL and gasoline reserves are products of gas plant processing and low temperature separationand are expressed in terms of 42 United States gallons per barrel.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.4DeGolyer and MacNaughton Definition of ReservesPetroleum reserves estimated by YPF S.A. and by us included in this report are classified as proved. Only proved reserves have been evaluated forthis report. Reserves classifications used by YPF S.A. and by us in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) ofRegulation S–X of the SEC. Reserves are judged to be economically producible in future years from known reservoirs under existing economic and operatingconditions and assuming continuation of current regulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were estimated only to the limit of economic rates of production under existing economic and operating conditions using prices andcosts consistent with the effective date of this report, including consideration of changes in existing prices provided only by contractual arrangements butnot including escalations based upon future conditions. The petroleum reserves are classified as follows:Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineeringdata, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and underexisting economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right tooperate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are usedfor the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it willcommence the project within a reasonable time.(i) The area of the reservoir considered as proved includes:(A) The area identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, withreasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of availablegeoscience and engineering data.(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seenin a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact withreasonable certainty.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.5DeGolyer and MacNaughton (iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for anassociated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience,engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to,fluid injection) are included in the proved classification when:(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, theoperation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes thereasonable certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved fordevelopment by all necessary parties and entities, including governmental entities.(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. Theprice shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as anunweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined bycontractual arrangements, excluding escalations based upon future conditions.Developed oil and gas reserves – Developed oil and gas reserves are reserves of any category that can be expected to be recovered:(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relativelyminor compared to the cost of a new well; andSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6DeGolyer and MacNaughton (ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is bymeans not involving a well.Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from newwells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain ofproduction when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economicproducibility at greater distances.(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating thatthey are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluidinjection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects inthe same reservoir or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or by other evidence using reliabletechnology establishing reasonable certainty.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.7DeGolyer and MacNaughton Primary Economic AssumptionsThe following economic assumptions were used for estimating existing and future prices and costs, expressed in United States dollars (U.S.$):Oil, Condensate, and Gasoline PricesBased on information provided by YPF S.A., the government-regulated price of oil, condensate, and gasoline was U.S.$80.36 per barrelfor the Austral, Noroeste, and Neuquina Basins, U.S.$67.73 per barrel for the Cuyana Basin and the Chubut Province in the Golfo SanJorge Basin, and U.S.$68.73 per barrel for the Santa Cruz Province in the Golfo San Jorge Basin. According to information provided byYPF S.A., the government-regulated prices will expire at year-end 2017. YPF S.A. has represented that, after such time, the oil,condensate, and gasoline prices provided by YPF S.A. will be based on a 12-month average West Texas Intermediate price, calculated asthe unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of thereporting period, unless prices are defined by contractual arrangements. YPF S.A. supplied differentials by field to a West TexasIntermediate reference price of U.S.$95.28 per barrel and the prices were held constant thereafter.NGL PricesYPF S.A. has represented that the initial NGL price was U.S.$19.25 per barrel and was to be held constant for the lives of the propertiesunless prices were defined by contractual arrangements. YPF S.A. has represented that this price was calculated as the unweightedarithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period,unless prices are defined by contractual arrangements.Natural Gas PricesYPF S.A. has represented that the natural gas prices were U.S.$4.26 per million British thermal units (MMBtu) for the San Jorge Basin,U.S.$4.27 per MMBtu for the Neuquina and Cuyana Basins, U.S.$4.23 per MMBtu for the Noroeste Basin, and U.S.$3.15 per MMBtu forthe Austral Basin and were held constant thereafter. YPF S.A. has represented that these pricesSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.8DeGolyer and MacNaughton were calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period priorto the end of the reporting period, unless prices are defined by contractual arrangements.Operating Expenses and Capital CostsOperating expenses and capital costs, based on information provided by YPF S.A., were used in estimating future costs required tooperate the properties. In certain cases, future costs, either higher or lower than existing costs, may have been used because of anticipatedchanges in operating conditions. These costs were not escalated for inflation.While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant’s ability torecover its oil and gas reserves, we are not aware of any such governmental actions which would restrict the recovery of the December 31, 2014, estimated oiland gas reserves.YPF S.A. has represented that its estimated net proved reserves attributable to the reviewed properties are based on the definition of provedreserves of the SEC. YPF S.A. has represented that its estimates of the net proved reserves attributable to these properties, which represent 5 percent of YPFS.A.’s reserves on a netSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.9DeGolyer and MacNaughton equivalent barrel basis, are as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent(Mboe): Estimated by YPF S.A.Net Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Developed Package 3a Lindero Atravesado 181.6 52.4 0.0 0.0 12,276.3 2,420.3 Señal Picada (NQN) 220.1 0.0 0.0 0.0 0.0 220.1 Señal Picada (RN) 14,472.8 0.0 0.0 0.0 1,433.8 14,728.2 Total Package 3a 14,874.5 52.4 0.0 0.0 13,710.1 17,368.6 Proved DevelopedPackage 4aCanadon Yatel 5,500.8 151.3 0.0 0.0 33,702.3 11,654.3 Magallanes ENMA 433.3 0.0 0.0 0.0 6,075.0 1,515.2 Magallanes SC 4,189.0 0.0 0.0 0.0 139,415.4 29,018.1 Magallanes TF 304.4 0.0 0.0 0.0 10,199.1 2,120.8 Total Package 4a 10,427.5 151.3 0.0 0.0 189,391.8 44,308.4 Total Proved Developed 25,302.0 203.7 0.0 0.0 203,101.9 61,677.0 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent. Estimated by YPF S.A.Net Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Undeveloped Package 3a Lindero Atravesado 0.0 0.0 0.0 0.0 0.0 0.0 Señal Picada (NQN) 12.6 0.0 0.0 0.0 0.0 12.6 Señal Picada (RN) 1,044.1 0.0 0.0 0.0 102.4 1,062.3 Total Package 3a 1,056.7 0.0 0.0 0.0 102.4 1,074.9 Proved UndevelopedPackage 4aCanadon Yatel 1,240.7 0.0 0.0 0.0 3,424.4 1,850.6 Magallanes ENMA 0.0 0.0 0.0 0.0 0.0 0.0 Magallanes SC 0.0 0.0 0.0 0.0 0.0 0.0 Magallanes TF 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 4a 1,240.7 0.0 0.0 0.0 3,424.4 1,850.6 Total Proved Undeveloped 2,297.4 0.0 0.0 0.0 3,526.8 2,925.5 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.10DeGolyer and MacNaughton Estimated by YPF S.A.Net Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Total Proved Package 3a Lindero Atravesado 181.6 52.4 0.0 0.0 12,276.3 2,420.3 Señal Picada (NQN) 232.7 0.0 0.0 0.0 0.0 232.7 Señal Picada (RN) 15,516.9 0.0 0.0 0.0 1,536.2 15,790.5 Total Package 3a 15,931.2 52.4 0.0 0.0 13,812.5 18,443.5 Total ProvedPackage 4aCanadon Yatel 6,741.5 151.3 0.0 0.0 37,126.7 13,504.9 Magallanes ENMA 433.3 0.0 0.0 0.0 6,075.0 1,515.2 Magallanes SC 4,189.0 0.0 0.0 0.0 139,415.4 29,018.1 Magallanes TF 304.4 0.0 0.0 0.0 10,199.1 2,120.8 Total Package 4a 11,668.2 151.3 0.0 0.0 192,816.2 46,159.0 Total Proved 27,599.4 203.7 0.0 0.0 206,628.7 64,602.5 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Our estimates of YPF S.A.’s net proved reserves attributable to the reviewed properties are based on the definition of proved reserves of the SECand are as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent (Mboe): Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Developed Package 3a Lindero Atravesado 164.2 60.5 0.0 0.0 14,068.3 2,730.2 Señal Picada (NQN) 215.6 0.0 0.0 0.0 3.2 216.2 Señal Picada (RN) 13,435.8 0.0 0.0 0.0 1,384.7 13,682.4 Total Package 3a 13,815.6 60.5 0.0 0.0 15,456.2 16,628.8 Proved DevelopedPackage 4aCanadon Yatel 5,427.3 157.2 0.0 0.0 30,777.5 11,065.8 Magallanes ENMA 438.6 0.0 0.0 0.0 6,234.5 1,548.9 Magallanes SC 2,884.9 0.0 0.0 0.0 136,087.3 27,121.3 Magallanes TF 429.3 0.0 0.0 0.0 9,567.3 2,133.2 Total Package 4a 9,180.1 157.2 0.0 0.0 182,666.6 41,869.2 Total Proved Developed 22,995.7 217.7 0.0 0.0 198,122.8 58,498.0 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.11DeGolyer and MacNaughton Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Undeveloped Package 3a Lindero Atravesado 0.0 0.0 0.0 0.0 0.0 0.0 Señal Picada (NQN) 11.3 0.0 0.0 0.0 0.0 11.3 Señal Picada (RN) 1,409.5 0.0 0.0 0.0 371.2 1,475.6 Total Package 3a 1,420.8 0.0 0.0 0.0 371.2 1,486.9 Proved UndevelopedPackage 4aCanadon Yatel 1,210.7 0.0 0.0 0.0 3,012.3 1,747.2 Magallanes ENMA 0.0 0.0 0.0 0.0 0.0 0.0 Magallanes SC 0.0 0.0 0.0 0.0 0.0 0.0 Magallanes TF 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 4a 1,210.7 0.0 0.0 0.0 3,012.3 1,747.2 Total Proved Undeveloped 2,631.5 0.0 0.0 0.0 3,383.5 3,234.1 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent. Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Total Proved Package 3a Lindero Atravesado 164.2 60.5 0.0 0.0 14,068.3 2,730.2 Señal Picada (NQN) 226.9 0.0 0.0 0.0 3.2 227.5 Señal Picada (RN) 14,845.3 0.0 0.0 0.0 1,755.9 15,158.0 Total Package 3a 15,236.4 60.5 0.0 0.0 15,827.4 18,115.7 Total ProvedPackage 4aCanadon Yatel 6,638.0 157.2 0.0 0.0 33,789.8 12,813.0 Magallanes ENMA 438.6 0.0 0.0 0.0 6,234.5 1,548.9 Magallanes SC 2,884.9 0.0 0.0 0.0 136,087.3 27,121.3 Magallanes TF 429.3 0.0 0.0 0.0 9,567.3 2,133.2 Total Package 4a 10,390.8 157.2 0.0 0.0 185,678.9 43,616.4 Total Proved 25,627.2 217.7 0.0 0.0 201,506.3 61,732.1 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.12DeGolyer and MacNaughton In our opinion, the information relating to estimated proved reserves of oil, condensate, natural gas liquids, and gas contained in this report hasbeen prepared in accordance with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and 932-235-50-9 of the Accounting Standards Update 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (January 2010) of the Financial Accounting StandardsBoard and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4), (8), and 1203(a) of Regulation S–K of the Securitiesand Exchange Commission; provided, however, that (i) estimates of proved developed and proved undeveloped reserves are not presented at the beginningof the year and (ii) the effective date of this report may not correspond to the end of YPF S.A.’s fiscal year.To the extent the above-enumerated rules, regulations, and statements require determinations of an accounting or legal nature, we, as engineers,are necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefor.In comparing the detailed net proved reserves estimates prepared by us and by YPF S.A., we have found differences, both positive and negative,resulting in an aggregate difference of 4.4 percent when compared on the basis of net equivalent barrels. It is our opinion that the net proved reservesestimates prepared by YPF S.A. on the properties reviewed by us and referred to above, when compared on the basis of net equivalent barrels, in aggregate, donot differ materially from those prepared by us.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.13DeGolyer and MacNaughton DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting servicesthroughout the world since 1936. DeGolyer and MacNaughton does not have any financial interest, including stock ownership, in YPF S.A. Our fees were notcontingent on the results of our evaluation. This letter report has been prepared at the request of YPF S.A. DeGolyer and MacNaughton has used allassumptions, data, procedures, and methods that it considers necessary and appropriate to prepare this report. Submitted,/s/ DeGolyer and MacNaughtonDeGOLYER and MacNAUGHTONTexas Registered Engineering Firm F-716/s/ R. M. Shuck, P.E.[SEAL]R. M. Shuck, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DeGolyer and MacNaughton CERTIFICATE of QUALIFICATIONI, R. M. Shuck, Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., herebycertify: 1.That I am a Senior Vice President with DeGolyer and MacNaughton, which company did prepare the letter report addressed to YPF S.A. datedMarch 3, 2015, and that I, as Senior Vice President, was responsible for the preparation of this letter report. 2.That I attended the University of Houston, and that I graduated with a Bachelor of Science degree in Chemical Engineering in the year 1977;that I am a Registered Professional Engineer in the State of Texas; that I am a member of the Society of Petroleum Engineers; and that I have inexcess of 37 years of experience in oil and gas reservoir studies and evaluations. /s/ R. M. Shuck, P.E.[SEAL]R. M. Shuck, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 99.1(c)DEGOLYER AND MACNAUGHTON5001 SPRING VALLEY ROADSUITE 800 EASTDALLAS, TEXAS 75244This is a digital representation of a DeGolyer and MacNaughton report.Each file contained herein is intended to be a manifestation of certain data in the subject report and as such is subject to the definitions,qualifications, explanations, conclusions, and other conditions thereof. The information and data contained in each file may be subject to misinterpretation;therefore, the signed and bound copy of this report should be considered the only authoritative source of such information. Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DeGolyer and MacNaughton5001 Spring Valley RoadSuite 800 EastDallas, Texas 75244March 3, 2015YPF Sociedad AnónimaMacacha Güemes 515Ciudad Autonóma de Buenos AiresArgentinaLadies and Gentlemen:Pursuant to your request, we have conducted a reserves evaluation of the net proved crude oil, condensate, natural gas liquids (NGL), gasoline,and natural gas reserves, as of December 31, 2014, of certain selected properties in which YPF Sociedad Anónima (YPF S.A.) has represented that it owns aninterest. This evaluation was completed on March 3, 2015. The reserves for these properties are termed Packages 4c and 8. YPF S.A. has represented that theseproperties account for 13 percent on a net equivalent barrel basis of YPF S.A.’s net proved reserves as of December 31, 2014, that the proved undevelopedreserves estimated in this report constitute approximately 18 percent of YPF S.A.’s proved undeveloped reserves, and that the net proved reserves estimateshave been prepared in accordance with the reserves definitions of Rules 4 10(a) (1) (32) of Regulation S–X of the Securities and Exchange Commission (SEC)of the United States. This report was prepared in accordance with guidelines specified in Item 1202 (a)(8) of Regulation S-K and is to be used for inclusion incertain SEC filings by YPF S.A.Reserves estimates included herein are expressed as net reserves. Gross reserves are defined as the total estimated petroleum to be produced fromthese properties after December 31, 2014. Net reserves are defined as that portion of the gross reserves attributable to the interests owned by YPF S.A. afterdeducting all interests owned by others.Estimates of oil, condensate, NGL, gasoline, and natural gas reserves should be regarded only as estimates that may change as further productionhistory andSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.2DeGolyer and MacNaughton additional information become available. Not only are such reserves estimates based on that information which is currently available, but such estimates arealso subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.Data used in this evaluation were obtained from reviews with YPF S.A. personnel, from YPF S.A. files, from records on file with the appropriateregulatory agencies, and from public sources. In the preparation of this report we have relied, without independent verification, upon such informationfurnished by YPF S.A. with respect to property interests, production from such properties, current costs of operation and development, current prices forproduction, agreements relating to current and future operations and sale of production, and various other information and data that were accepted asrepresented. A field examination of the properties was not considered necessary for the purposes of this report.Methodology and ProceduresEstimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that arein accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled“Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007).” The method or combinationof methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basicdata, and production history.When applicable, the volumetric method was used to estimate the original oil in place (OOIP) and the original gas in place (OGIP). Structure andisopach maps were constructed to estimate reservoir volume. Electrical logs, radioactivity logs, core analyses, and other available data were used to preparethese maps as well as to estimate representative values for porosity and water saturation. When adequate data were available and when circumstancesjustified, material balance and other engineering methods were used to estimate OOIP or OGIP.Estimates of ultimate recovery were obtained after applying recovery factors to OOIP or OGIP. These recovery factors were based onconsideration of the type of energy inherent in the reservoirs, analyses of the petroleum, the structural positionsSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.3DeGolyer and MacNaughton of the properties, and the production histories. When applicable, material balance and other engineering methods were used to estimate recovery factors. Insuch cases, an analysis of reservoir performance, including production rate, reservoir pressure, and gas-oil ratio behavior, was used in the estimation ofreserves.For depletion-type reservoirs or those whose performance disclosed a reliable decline in producing-rate trends or other diagnostic characteristics,reserves were estimated by the application of appropriate decline curves or other performance relationships. In the analyses of production-decline curves,reserves were estimated only to the limits of economic production or to the limit of the production licenses as appropriate.Oil and condensate reserves estimated herein are expressed in terms of 42 United States gallons per barrel. Condensate reserves are to berecovered by normal field separation.Gas reserves reported herein are expressed as marketable-gas volumes, at a temperature base of 60 degrees Fahrenheit (°F) and at a pressure baseof 14.696 pounds per square inch absolute (psia). Marketable gas is defined as the gas remaining after field separation and after deduction for flare, plantprocessing, and removal of inerts, but prior to deduction for fuel usage.Gas quantities are identified by the type of reservoir from which the gas is to be produced. Nonassociated gas is gas at initial reservoir conditionswith no crude oil present in the reservoir. Associated gas includes both gas-cap gas and solution gas. Gas-cap gas is gas at initial reservoir conditions and is incommunication with an underlying crude oil zone. Solution gas is gas dissolved in crude oil at initial reservoir conditions. Gas quantities herein includeassociated and nonassociated gas reserves.NGL and gasoline reserves estimated herein are defined as propane and butane fractions and pentane and heavier fractions, respectively, in orderto be consistent with YPF S.A.’s internal reporting standards. NGL and gasoline reserves are products of gas plant processing and low temperature separationand are expressed in terms of 42 United States gallons per barrel.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.4DeGolyer and MacNaughton Definition of ReservesPetroleum reserves included in this report are classified as proved. Only proved reserves have been evaluated for this report. Reservesclassifications used in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC. Reserves are judgedto be economically producible in future years from known reservoirs under existing economic and operating conditions and assuming continuation of currentregulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were estimated only to thelimit of economic rates of production under existing economic and operating conditions using prices and costs consistent with the effective date of thisreport, including consideration of changes in existing prices provided only by contractual arrangements but not including escalations based upon futureconditions. The petroleum reserves are classified as follows:Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineeringdata, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and underexisting economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right tooperate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are usedfor the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it willcommence the project within a reasonable time.(i) The area of the reservoir considered as proved includes:(A) The area identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, withreasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of availablegeoscience and engineering data.(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seenin a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact withreasonable certainty.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.5DeGolyer and MacNaughton (iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for anassociated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience,engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to,fluid injection) are included in the proved classification when:(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, theoperation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes thereasonable certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved fordevelopment by all necessary parties and entities, including governmental entities.(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. Theprice shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as anunweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined bycontractual arrangements, excluding escalations based upon future conditions.Developed oil and gas reserves – Developed oil and gas reserves are reserves of any category that can be expected to be recovered:(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relativelyminor compared to the cost of a new well; andSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6DeGolyer and MacNaughton (ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is bymeans not involving a well.Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from newwells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain ofproduction when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economicproducibility at greater distances.(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating thatthey are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluidinjection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects inthe same reservoir or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or by other evidence using reliabletechnology establishing reasonable certainty.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.7DeGolyer and MacNaughton Primary Economic AssumptionsThe following economic assumptions were used for estimating existing and future prices and costs, expressed in United States dollars (U.S.$):Oil, Condensate, and Gasoline PricesBased on information provided by YPF S.A., the government-regulated price of oil condensate, and gasoline was U.S.$80.36 per barrelfor the Austral, Noroeste, and Neuquina Basins, U.S.$67.73 per barrel for the Cuyana Basin and the Chubut Province in the Golfo SanJorge Basin, and U.S.$68.73 per barrel for the Santa Cruz Province in the Golfo San Jorge Basin. According to information provided byYPF S.A., the government-regulated prices will expire at year-end 2017. YPF S.A. has represented that, after such time, the oil,condensate, and gasoline prices provided by YPF S.A. will be based on a 12-month average West Texas Intermediate price, calculated asthe unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of thereporting period, unless prices are defined by contractual arrangements. YPF S.A. supplied differentials by field to a West TexasIntermediate reference price of U.S.$95.28 per barrel and the prices were held constant thereafter.NGL PricesYPF S.A. has represented that the initial NGL price was U.S.$19.25 per barrel and was to be held constant for the lives of the propertiesunless prices were defined by contractual arrangements. YPF S.A. has represented that this price was calculated as the unweightedarithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period,unless prices are defined by contractual arrangements.Natural Gas PricesYPF S.A. has represented that the natural gas prices were U.S.$4.26 per million British thermal units (MMBtu) for the San Jorge Basin,U.S.$4.27 per MMBtu for the Neuquina and Cuyana Basins, U.S.$4.23 per MMBtu for the Noroeste Basin, and U.S.$3.15 per MMBtu forthe Austral Basin and were held constant thereafter. YPF S.A. has represented that these pricesSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.8DeGolyer and MacNaughton were calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period priorto the end of the reporting period, unless prices are defined by contractual arrangements.Operating Expenses and Capital CostsOperating expenses and capital costs, based on information provided by YPF S.A., were used in estimating future costs required tooperate the properties. In certain cases, future costs, either higher or lower than existing costs, may have been used because of anticipatedchanges in operating conditions. These costs were not escalated for inflation.While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant’s ability torecover its oil and gas reserves, we are not aware of any such governmental actions which would restrict the recovery of the December 31, 2014, estimatedproved oil and gas reserves.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.9DeGolyer and MacNaughton Our estimates of YPF S.A.’s net proved reserves attributable to the reviewed properties are based on the definition of proved reserves of the SECand are as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent (Mboe): Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Developed Package 4c Lago Fuego 117.8 0.0 71.3 38.1 7,121.9 1,495.6 Los Chorrillos 961.1 0.0 0.0 0.0 2,392.8 1,387.2 Tierra del Fuego - Fraccion A 2,300.1 0.0 0.0 123.6 13,249.0 4,783.3 Tierra del Fuego - Fraccion B 1,558.9 0.0 1,454.9 1,794.8 172,048.4 35,449.5 Tierra del Fuego - Fraccion C 0.0 0.0 0.0 0.0 0.0 0.0 Tierra del Fuego - Fraccion D 469.2 0.0 0.0 0.0 292.1 521.2 Total Package 4c 5,407.1 0.0 1,526.2 1,956.5 195,104.2 43,636.8 Package 8Agua Salada 1,031.6 0.0 0.0 0.0 18,740.3 4,369.1 Aguada Villanueva 0.0 0.0 0.0 0.0 0.0 0.0 Al Norte de la Dorsal 2,822.6 0.0 683.4 340.2 65,015.5 15,425.1 Al Sur de la Dorsal 2,063.1 73.2 270.0 121.7 18,130.1 5,756.9 Anticlinal Campamento 376.8 0.0 48.2 40.7 25,137.1 4,942.5 Bajo Baguales 0.0 0.0 0.0 0.0 0.0 0.0 Collon Cura 0.0 0.0 0.0 0.0 0.0 0.0 Confluencia Sur 183.0 0.0 0.0 0.0 1,327.8 419.5 Cutralco Sur 0.0 0.0 0.0 0.0 0.0 0.0 Dadin 749.5 0.0 0.0 0.0 6,504.0 1,907.8 Dos Hermanas 76.1 0.0 0.0 0.0 0.0 76.1 El Santiagueno 766.6 0.0 0.0 0.0 1,942.6 1,112.6 Estacion Fernandez Oro 3,149.6 0.0 932.1 366.2 95,018.1 21,370.1 Jaguel de Bara 0.0 0.0 0.0 0.0 0.0 0.0 Jaguel de los Milicos 0.0 0.0 0.0 0.0 0.0 0.0 La Calera 46.1 0.0 0.0 0.0 0.0 46.1 Loma Negra 0.0 0.0 0.0 0.0 0.0 0.0 Meseta Buena Esperanza 0.0 0.0 0.0 0.0 0.0 0.0 Neuquen del Medio 0.0 0.0 0.0 0.0 0.0 0.0 Ojo de Agua 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 8 11,265.0 73.2 1,933.7 868.8 231,815.5 55,425.8 Total Proved Developed 16,672.1 73.2 3,459.9 2,825.3 426,919.7 99,062.6 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent. Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.10DeGolyer and MacNaughton Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Proved Undeveloped Package 4c Lago Fuego 0.0 376.8 267.1 142.0 26,687.8 5,538.8 Los Chorrillos 1,436.2 0.0 0.0 0.0 2,899.5 1,952.6 Tierra del Fuego - Fraccion A 783.2 0.0 0.0 53.5 5,687.4 1,849.6 Tierra del Fuego - Fraccion B 0.0 184.0 141.7 174.8 17,993.1 3,704.9 Tierra del Fuego - Fraccion C 0.0 0.0 0.0 0.0 0.0 0.0 Tierra del Fuego - Fraccion D 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 4c 2,219.4 560.8 408.8 370.3 53,267.8 13,045.9 Package 8Agua Salada 0.0 0.0 0.0 0.0 0.0 0.0 Aguada Villanueva 0.0 0.0 0.0 0.0 0.0 0.0 Al Norte de la Dorsal 0.0 0.0 65.2 34.3 4,262.1 858.6 Al Sur de la Dorsal 0.0 0.0 34.9 12.5 1,738.2 356.9 Anticlinal Campamento 2,445.4 27.8 103.1 51.3 30,146.8 7,996.6 Bajo Baguales 0.0 0.0 0.0 0.0 0.0 0.0 Collon Cura 0.0 0.0 0.0 0.0 0.0 0.0 Confluencia Sur 0.0 0.0 0.0 0.0 0.0 0.0 Cutralco Sur 0.0 0.0 0.0 0.0 0.0 0.0 Dadin 0.0 0.0 0.0 0.0 0.0 0.0 Dos Hermanas 0.0 0.0 0.0 0.0 0.0 0.0 El Santiagueno 0.0 0.0 0.0 0.0 0.0 0.0 Estacion Fernandez Oro 0.0 4,189.4 1,561.3 613.4 151,713.8 33,383.5 Jaguel de Bara 0.0 0.0 0.0 0.0 0.0 0.0 Jaguel de los Milicos 0.0 0.0 0.0 0.0 0.0 0.0 La Calera 0.0 0.0 0.0 0.0 0.0 0.0 Loma Negra 0.0 0.0 0.0 0.0 0.0 0.0 Meseta Buena Esperanza 0.0 0.0 0.0 0.0 0.0 0.0 Neuquen del Medio 0.0 0.0 0.0 0.0 0.0 0.0 Ojo de Agua 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 8 2,445.4 4,217.2 1,764.5 711.5 187,860.9 42,595.6 Total Proved Undeveloped 4,664.8 4,778.0 2,173.3 1,081.8 241,128.7 55,641.5 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.11DeGolyer and MacNaughton Estimated by DeGolyer and MacNaughtonNet Proved Reservesas of December 31, 2014 ClassificationPackageArea Oil(Mbbl) Condensate(Mbbl) NGL(Mbbl) Gasoline(Mbbl) MarketableGas(MMcf) OilEquivalent(Mboe) Total Proved Package 4c Lago Fuego 117.8 376.8 338.4 180.1 33,809.7 7,034.4 Los Chorrillos 2,397.3 0.0 0.0 0.0 5,292.3 3,339.8 Tierra del Fuego - Fraccion A 3,083.3 0.0 0.0 177.1 18,936.4 6,632.9 Tierra del Fuego - Fraccion B 1,558.9 184.0 1,596.6 1,969.6 190,041.5 39,154.4 Tierra del Fuego - Fraccion C 0.0 0.0 0.0 0.0 0.0 0.0 Tierra del Fuego - Fraccion D 469.2 0.0 0.0 0.0 292.1 521.2 Total Package 4c 7,626.5 560.8 1,935.0 2,326.8 248,372.0 56,682.7 Package 8Agua Salada 1,031.6 0.0 0.0 0.0 18,740.3 4,369.1 Aguada Villanueva 0.0 0.0 0.0 0.0 0.0 0.0 Al Norte de la Dorsal 2,822.6 0.0 748.6 374.5 69,277.6 16,283.7 Al Sur de la Dorsal 2,063.1 73.2 304.9 134.2 19,868.3 6,113.8 Anticlinal Campamento 2,822.2 27.8 151.3 92.0 55,283.9 12,939.1 Bajo Baguales 0.0 0.0 0.0 0.0 0.0 0.0 Collon Cura 0.0 0.0 0.0 0.0 0.0 0.0 Confluencia Sur 183.0 0.0 0.0 0.0 1,327.8 419.5 Cutralco Sur 0.0 0.0 0.0 0.0 0.0 0.0 Dadin 749.5 0.0 0.0 0.0 6,504.0 1,907.8 Dos Hermanas 76.1 0.0 0.0 0.0 0.0 76.1 El Santiagueno 766.6 0.0 0.0 0.0 1,942.6 1,112.6 Estacion Fernandez Oro 3,149.6 4,189.4 2,493.4 979.6 246,731.9 54,753.6 Jaguel de Bara 0.0 0.0 0.0 0.0 0.0 0.0 Jaguel de los Milicos 0.0 0.0 0.0 0.0 0.0 0.0 La Calera 46.1 0.0 0.0 0.0 0.0 46.1 Loma Negra 0.0 0.0 0.0 0.0 0.0 0.0 Meseta Buena Esperanza 0.0 0.0 0.0 0.0 0.0 0.0 Neuquen del Medio 0.0 0.0 0.0 0.0 0.0 0.0 Ojo de Agua 0.0 0.0 0.0 0.0 0.0 0.0 Total Package 8 13,710.4 4,290.4 3,698.2 1,580.3 419,676.4 98,021.4 Total Proved 21,336.9 4,851.2 5,633.2 3,907.1 668,048.4 154,704.1 Note:Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent.In our opinion, the information relating to estimated proved reserves of oil, condensate, natural gas liquids, and gas contained inthis report has been prepared in accordance with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and 932-235-50-9 of the Accounting StandardsUpdate 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (January 2010) of the FinancialAccounting Standards Board and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, 1202(a)Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.12DeGolyer and MacNaughton (1), (2), (3), (4), (8), and 1203(a) of Regulation S–K of the Securities and Exchange Commission; provided, however, that (i) estimates of proved developedand proved undeveloped reserves are not presented at the beginning of the year and (ii) the effective date of this report may not correspond to the end of YPFS.A.’s fiscal year.To the extent the above-enumerated rules, regulations, and statements require determinations of an accounting or legal nature, we, as engineers,are necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefor.DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting servicesthroughout the world since 1936. DeGolyer and MacNaughton does not have any financial interest, including stock ownership, in YPF S.A. Our fees were notcontingent on the results of our evaluation. This letter report has been prepared at the request of YPF S.A. DeGolyer and MacNaughton has used allassumptions, data, procedures, and methods that it considers necessary and appropriate to prepare this report. Submitted,/s/ DeGolyer and MacNaughtonDeGOLYER and MacNAUGHTONTexas Registered Engineering Firm F-716 /s/ R. M. Shuck, P.E.[SEAL]R. M. Shuck, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DeGolyer and MacNaughton CERTIFICATE of QUALIFICATIONI, R. M. Shuck, Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A., herebycertify: 1.That I am a Senior Vice President with DeGolyer and MacNaughton, which company did prepare the letter report addressed to YPF S.A. datedMarch 3, 2015, and that I, as Senior Vice President, was responsible for the preparation of this letter report. 2.That I attended the University of Houston, and that I graduated with a Bachelor of Science degree in Chemical Engineering in the year 1977;that I am a Registered Professional Engineer in the State of Texas; that I am a member of the Society of Petroleum Engineers; and that I have inexcess of 37 years of experience in oil and gas reservoir studies and evaluations. /s/ R. M. Shuck, P.E.[SEAL]R. M. Shuck, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.Exhibit 99.1(d)DEGOLYER AND MACNAUGHTON5001 SPRING VALLEY ROADSUITE 800 EASTDALLAS, TEXAS 75244This is a digital representation of a DeGolyer and MacNaughton report.Each file contained herein is intended to be a manifestation of certain data in the subject report and as such is subject to the definitions,qualifications, explanations, conclusions, and other conditions thereof. The information and data contained in each file may be subject to misinterpretation;therefore, the signed and bound copy of this report should be considered the only authoritative source of such information. Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DEGOLYER AND MACNAUGHTON5001 SPRING VALLEY ROADSUITE 800 EASTDALLAS, TEXAS 75244January 14, 2015Maxus Energy Corporation10333 Richmond AvenueSuite 1050Houston, Texas 77042Ladies and Gentlemen:Pursuant to your request, we have conducted a reserves audit of the net proved crude oil, condensate, natural gas liquids (NGL), and natural gasreserves, as of December 31, 2014, of certain properties that Maxus Energy Corporation (Maxus), an indirect wholly owned subsidiary of YPF S.A. (YPF) forthe purposes of YPF’s disclosure of reserves pursuant to the requirements of Item 1202 of Regulation S–K and inclusion of this report as an exhibit to YPF’sfilings with the United States Securities and Exchange Commission (SEC), has represented that it owns. This evaluation was completed on January 14, 2015.The properties appraised consist of working and overriding royalty interests located in Oklahoma and Texas (Crescendo) and offshore Gulf of Mexico(Neptune). Maxus has represented that these properties account for 100 percent on a net equivalent barrel basis of Maxus’ net proved reserves of assets theycan account for as of December 31, 2014, and that the net proved reserves estimates have been prepared in accordance with the reserves definitions of Rules4–10(a) (1)–(32) of Regulation S–X of the SEC of the United States. We have reviewed information provided to us by Maxus that it represents to be Maxus’estimates of the net reserves, as of December 31, 2014, for the same properties as those which we evaluated.Reserves estimates included herein are expressed as net reserves as represented by Maxus. Gross reserves are defined as the total estimatedpetroleum to be produced from these properties after December 31, 2014. Net reserves are defined as that portion of the gross reserves attributable to theinterests owned by Maxus after deducting all interests owned by others.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.2DEGOLYER AND MACNAUGHTON Estimates of oil, condensate, NGL, and natural gas should be regarded only as estimates that may change as further production history andadditional information become available. Not only are such reserves estimates based on that information which is currently available, but such estimates arealso subject to the uncertainties inherent in the application of judgmental factors in interpreting such information.Data used in this audit were obtained from reviews with Maxus personnel, from Maxus’ files, from records on file with the appropriate regulatoryagencies, and from public sources. In the preparation of this report we have relied, without independent verification, upon such information furnished byMaxus with respect to property interests, production from such properties, current costs of operation and development, current prices for production,agreements relating to current and future operations and sale of production, and various other information and data that were accepted as represented. A fieldexamination of the properties was not considered necessary for the purposes of this report.Methodology and ProceduresEstimates of reserves were prepared by the use of appropriate geologic, petroleum engineering, and evaluation principles and techniques that arein accordance with practices generally recognized by the petroleum industry as presented in the publication of the Society of Petroleum Engineers entitled“Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information (Revision as of February 19, 2007).” The method or combinationof methods used in the analysis of each reservoir was tempered by experience with similar reservoirs, stage of development, quality and completeness of basicdata, and production history.An analysis of reservoir performance, including production rate, water-cut, and gas-oil ratio behavior, was used in the estimation of reserves.For depletion-type reservoirs or those whose performance disclosed a reliable decline in producing-rate trends or other diagnostic characteristics,reserves were estimated by the application of appropriate decline curves or other performance relationships. In the analyses of production-decline curves,reserves were estimated only to the limits of economic production or to the limit of the production licenses as appropriate.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.3DEGOLYER AND MACNAUGHTON In certain cases, when the previously named methods could not be used, reserves were estimated by analogy with similar wells or reservoirs forwich more complete data were available.Gas quantities estimated herein are expressed as sales gas. Sales gas is defined as that portion of the total gas to be delivered into a gas pipelinefor sale after separation, processing, fuel use, and flare. Gas reserves are expressed at a temperature base of 60 degrees Fahrenheit (°F) and at the legal pressurebase of the state or area in which the interest is located. Condensate reserves estimated herein are those to be recovered by conventional lease separation.NGL reserves are those attributed to the leasehold interests according to processing agreements.Definition of ReservesPetroleum reserves estimated by Maxus and by us included in this report are classified as proved. Only proved reserves have been evaluated forthis report. Reserves classifications used by Maxus and by us in this report are in accordance with the reserves definitions of Rules 4–10(a) (1)–(32) ofRegulation S–X of the SEC. Reserves are judged to be economically producible in future years from known reservoirs under existing economic and operatingconditions and assuming continuation of current regulatory practices using conventional production methods and equipment. In the analyses of production-decline curves, reserves were estimated only to the limit of economic rates of production under existing economic and operating conditions using prices andcosts consistent with the effective date of this report, including consideration of changes in existing prices provided only by contractual arrangements butnot including escalations based upon future conditions. The petroleum reserves are classified as follows:Proved oil and gas reserves – Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineeringdata, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and underexisting economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right tooperate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are usedfor the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it willcommence the project within a reasonable time.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.4DEGOLYER AND MACNAUGHTON (i) The area of the reservoir considered as proved includes:(A) The area identified by drilling and limited by fluid contacts, if any, and (B) Adjacent undrilled portions of the reservoir that can, withreasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of availablegeoscience and engineering data.(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seenin a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact withreasonable certainty.(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for anassociated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience,engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to,fluid injection) are included in the proved classification when:(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, theoperation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes thereasonable certainty of the engineering analysis on which the project or program was based; and (B) The project has been approved fordevelopment by all necessary parties and entities, including governmental entities.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.5DEGOLYER AND MACNAUGHTON (v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. Theprice shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as anunweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined bycontractual arrangements, excluding escalations based upon future conditions.Developed oil and gas reserves – Developed oil and gas reserves are reserves of any category that can be expected to be recovered:(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relativelyminor compared to the cost of a new well; and(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is bymeans not involving a well.Undeveloped oil and gas reserves – Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from newwells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain ofproduction when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economicproducibility at greater distances.(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating thatthey are scheduled to be drilled within five years, unless the specific circumstances justify a longer time.(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which anSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.6DEGOLYER AND MACNAUGHTON application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effectiveby actual projects in the same reservoir or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or by other evidenceusing reliable technology establishing reasonable certainty.Primary Economic AssumptionsThe following economic assumptions were used for estimating existing and future prices and costs:Oil and Condensate PricesMaxus has represented that the oil and condensate prices were based on a reference price, calculated as the unweighted arithmeticaverage of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unlessprices are defined by contractual arrangements. Maxus supplied differentials by field to a West Texas Intermediate reference price of$90.14 per barrel and the prices were held constant thereafter. The volume-weighted average price attributable to estimated provedreserves was $88.36 per barrel of oil and condensate.Natural Gas Liquids PriceMaxus supplied differentials by field to a reference price of $49.58 per barrel and the prices were held constant thereafter. The volume-weighted average price attributable to estimated proved reserves was $42.02 per barrel of NGL.Natural Gas PricesMaxus has represented that the natural gas prices were based on a reference price, calculated as the unweighted arithmetic average of thefirst-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, unless prices are definedby contractual arrangements. The gas prices were calculated for each property usingSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.7DEGOLYER AND MACNAUGHTON differentials to the Henry Hub reference price of $4.29 per million British thermal units (MMbtu) furnished by Maxus and held constantthereafter. The volume-weighted average price attributable to estimated proved reserves was $4.326 per thousand cubic feet of gas.Operating Expenses and Capital CostsOperating expenses and capital costs, based on information provided by Maxus, were used in estimating future costs required to operatethe properties. In certain cases, future costs, either higher or lower than existing costs, may have been used because of anticipatedchanges in operating conditions. These costs were not escalated for inflation.While the oil and gas industry may be subject to regulatory changes from time to time that could affect an industry participant’s ability torecover its oil and gas reserves, we are not aware of any such governmental actions which would restrict the recovery of the December 31, 2014, estimated oiland gas reserves.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.8DEGOLYER AND MACNAUGHTON Maxus has represented that its estimated net proved reserves attributable to the reviewed properties are based on the definition of proved reservesof the SEC. Maxus represents that its estimates of the net proved reserves attributable to these properties, which represent 100 percent of Maxus’ reserves on anet equivalent basis, are as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent(Mboe): Estimated by MaxusNet Proved Reservesas ofDecember 31, 2014 Properties reviewed byDeGolyer andMacNaughton Oil andCondensate(Mbbl) NaturalGasLiquids(Mbbl) SalesGas(MMcf) OilEquivalent(Mboe) Crescendo Proved Developed 250 0 4,184 971 Proved Undeveloped 0 0 0 0 Total Proved Crescendo 250 0 4,184 971 NeptuneProved Developed 1,032 36 527 1,162 Proved Undeveloped 0 0 0 0 Total Proved Neptune 1,032 36 527 1,162 Total Proved 1,282 36 4,711 2,133 Notes:1.Gas is converted to oil equivalent using an energy equivalent factor of 5,800 cubic feet of gas per 1 barrel of oil equivalent in Crescendo.2.Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent in Neptune.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.9DEGOLYER AND MACNAUGHTON Our estimates of Maxus’ net proved reserves attributable to the reviewed properties are based on the definition of proved reserves of the SEC andare as follows, expressed in thousands of barrels (Mbbl), millions of cubic feet (MMcf), and thousands of barrels of oil equivalent (Mboe): Estimated by DeGolyer and MacNaughtonNet Proved Reservesas ofDecember 31, 2014 Oil andCondensate(Mbbl) Natural GasLiquids(Mbbl) SalesGas(MMcf) OilEquivalent(Mboe) Crescendo Proved Developed 252 0 4,215 979 Proved Undeveloped 0 0 0 0 Total Proved Crescendo 252 0 4,215 979 NeptuneProved Developed 1,106 38 599 1,251 Proved Undeveloped 0 0 0 0 Total Proved Neptune 1,106 38 599 1,251 Total Proved 1,358 38 4,814 2,230 Notes:1.Gas is converted to oil equivalent using an energy equivalent factor of 5,800 cubic feet of gas per 1 barrel of oil equivalent in Crescendo.2.Gas is converted to oil equivalent using an energy equivalent factor of 5,615 cubic feet of gas per 1 barrel of oil equivalent in Neptune.In our opinion, the information relating to estimated proved reserves of oil, condensate, natural gas liquids, and gas contained in this report hasbeen prepared in accordance with Paragraphs 932-235-50-4, 932-235-50-6, 932-235-50-7, and 932-235-50-9 of the Accounting Standards Update 932-235-50, Extractive Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and Disclosures (January 2010) of the Financial Accounting StandardsBoard and Rules 4–10(a) (1)–(32) of Regulation S–X and Rules 302(b), 1201, and 1202(a) (1), (2), (3), (4), (8)(i), (ii), and (v)–(x) of Regulation S–K of theSecurities and Exchange Commission; provided, however, that estimates of proved developed and proved undeveloped reserves are not presented at thebeginning of the year.Source: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.10DEGOLYER AND MACNAUGHTON To the extent the above-enumerated rules, regulations, and statements require determinations of an accounting or legal nature, we, as engineers,are necessarily unable to express an opinion as to whether the above-described information is in accordance therewith or sufficient therefor.In comparing the detailed net proved reserves estimates prepared by us and by Maxus, we have found differences, both positive and negative,resulting in an aggregate difference of 4.5 percent when compared on the basis of net equivalent barrels. It is our opinion that the net proved reservesestimates prepared by Maxus on the properties reviewed by us and referred to above, when compared on the basis of net equivalent barrels, in aggregate, donot differ materially from those prepared by us.DeGolyer and MacNaughton is an independent petroleum engineering consulting firm that has been providing petroleum consulting servicesthroughout the world since 1936. DeGolyer and MacNaughton does not have any financial interest, including stock ownership, in Maxus. Our fees were notcontingent on the results of our evaluation. This letter report has been prepared at the request of Maxus. DeGolyer and MacNaughton has used allassumptions, data, procedures, and methods that it considers necessary and appropriate to prepare this report. Submitted,/s/ DeGOLYER and MacNAUGHTONDeGOLYER and MacNAUGHTONTexas Registered Engineering Firm F-716 /s/ Paul J. Szatkowski, P.E.Paul J. Szatkowski, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.DEGOLYER AND MACNAUGHTON CERTIFICATE of QUALIFICATIONI, Paul J. Szatkowski, Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800 East, Dallas, Texas, 75244 U.S.A.,hereby certify: 1.That I am a Senior Vice President with DeGolyer and MacNaughton, which company did prepare the letter report addressed to Maxus datedJanuary 14, 2015, and that I, as Senior Vice President, was responsible for the preparation of this report. 2.That I attended Texas A&M University, and that I graduated with a Bachelor of Science degree in Petroleum Engineering in the year 1974; that Iam a Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers and theAmerican Association of Petroleum Geologists; and that I have in excess of 40 years of experience in oil and gas reservoir studies and reservesevaluations. /s/ Paul J. Szatkowski, P.E.Paul J. Szatkowski, P.E.Senior Vice PresidentDeGolyer and MacNaughtonSource: YPF SOCIEDAD ANONIMA, 20-F, March 30, 2015Powered by Morningstar® Document Research℠The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.

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