Edgar Filing: YPF SOCIEDAD ANONIMA

From 1
to 2 years

Over
5 years

Noncurrent loans

Form 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

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

the Securities Exchange Act of 1934

For the month of March, 2010

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

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

Form 20-F x Form 40-F ¨

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

Yes ¨ No x

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

Yes ¨ No x

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

This Form 6-K is incorporated by reference into the registration statements on Form F-3 filed by YPF Sociedad Anónima

with the Securities and Exchange Commission (File Nos. 333-149313 and 333-149486).

YPF Sociedad Anónima

TABLE OF CONTENTS


Item

1		Financial Statements as of December 31, 2009 and Comparative Information

LOGO

SOCIEDAD ANONIMA

Financial Statements as of December 31, 2009 and Comparative Information

YPF SOCIEDAD ANONIMA

FINANCIAL STATEMENTS AS OF DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

INDEX


		Page
Cover

Consolidated Financial Statements		1

– Consolidated balance sheet		2

– Consolidated statement of income		3

– Consolidated statement of cash flows		4

– Notes to consolidated financial statements		5

– Exhibits to consolidated financial statements		17

Primary Financial Statements

– Balance sheet		19

– Statement of income		20

– Statement of changes in shareholders’ equity		21

– Statement of cash flows		22

– Notes to financial statements		23

– Exhibits to financial statements		51

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA

Macacha Güemes 515 – Ciudad Autónoma de Buenos Aires, Argentina

FISCAL YEAR NUMBER 33

BEGINNING ON JANUARY 1, 2009

FINANCIAL STATEMENTS AS OF DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

Principal business of the Company: exploration, development and production of oil and natural gas and other minerals and refining, transportation, marketing and distribution of oil and petroleum products and petroleum derivatives, including petrochemicals, chemicals and non-fossil fuels, biofuels and their components, generation 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 24, 2008.

Optional Statutory Regime related to Compulsory Tender Offer provided by Decree No. 677/2001 art. 24: not incorporated.

Capital structure as of December 31, 2009

(expressed in Argentine pesos)


		Subscribed, paid-in and authorized for stock exchange listing (Note 4 to primary financial statements)
– Shares of Common Stock, Argentine pesos 10 par value, 1 vote per share		3,933,127,930


						ANTONIO GOMIS SÁEZ
						Director

Schedule I

1 of 3

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA AND CONTROLLED AND JOINTLY CONTROLLED COMPANIES

CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos - Note 1 to the primary financial statements)


	2009	2008	2007
Current Assets
Cash	669	391	196
Investments (Note 2.a)	1,476	825	655
Trade receivables (Note 2.b)	2,831	2,702	3,235
Other receivables (Note 2.c)	2,490	1,861	4,361
Inventories (Note 2.d)	3,066	3,449	2,573

Total current assets	10,532	9,228	11,020


Noncurrent Assets
Trade receivables (Note 2.b)	22	24	32
Other receivables (Note 2.c)	975	945	809
Investments (Note 2.a)	749	848	799
Fixed assets (Note 2.e)	27,993	28,028	25,434
Intangible assets	12	6	8

Total noncurrent assets	29,751	29,851	27,082

Total assets	40,283	39,079	38,102


Current Liabilities
Accounts payable (Note 2.f)	5,857	6,763	4,339
Loans (Note 2.g)	4,679	3,219	471
Salaries and social security	298	284	213
Taxes payable	1,437	1,132	1,441
Net advances from crude oil purchasers	—	—	9
Reserves	341	588	466

Total current liabilities	12,612	11,986	6,939


Noncurrent Liabilities
Accounts payable (Note 2.f)	4,391	3,473	2,542
Loans (Note 2.g)	2,140	1,260	523
Salaries and social security	110	116	164
Taxes payable	190	31	21
Reserves	1,959	1,857	1,853

Total noncurrent liabilities	8,790	6,737	5,103

Total liabilities	21,402	18,723	12,042

Shareholder’s Equity	18,881	20,356	26,060

Total liabilities and shareholder’s equity	40,283	39,079	38,102

Notes 1 to 4 and the accompanying exhibits A and H to Schedule I and the primary financial statements of

YPF, are an integral part of and should be read in conjunction with these statements.


				ANTONIO GOMIS SÁEZ
				Director

Schedule I

2 of 3

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA AND CONTROLLED AND JOINTLY CONTROLLED COMPANIES

CONSOLIDATED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos, except for per share amounts in Argentine pesos - Note 1 to the primary financial statements)


	2009		2008		2007

Net sales	34,320		34,875		29,104
Cost of sales	(23,177	)	(24,013	)	(19,000	)

Gross profit	11,143		10,862		10,104

Selling expenses (Exhibit H)	(2,490	)	(2,460	)	(2,120	)
Administrative expenses (Exhibit H)	(1,102	)	(1,053	)	(805	)
Exploration expenses (Exhibit H)	(552	)	(684	)	(522	)

Operating income	6,999		6,665		6,657

(Loss) income on long-term investments	(22	)	83		34
Other income (expense), net (Note 2.i)	159		(376	)	(439	)
Financial income (expense), net and holding (losses) gains:
Gains (losses) on assets
Interests	109		134		278
Exchange differences	182		416		142
Holding (losses) gains on inventories	(11	)	476		451
Losses on liabilities
Interests	(958	)	(492	)	(292	)
Exchange differences	(564	)	(708	)	(61	)
Income from sale of long-term investments	—		—		5
Reversal of impairment of other current assets	—		—		69

Net income before income tax	5,894		6,198		6,844
Income tax	(2,408	)	(2,558	)	(2,758	)

Net income	3,486		3,640		4,086

Earnings per share	8.86		9.25		10.39

Notes 1 to 4 and the accompanying exhibits A and H to Schedule I and the primary financial statements of

YPF, are an integral part of and should be read in conjunction with these statements.


				ANTONIO GOMIS SÁEZ
				Director

Schedule I

3 of 3

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA AND CONTROLLED AND JOINTLY CONTROLLED COMPANIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos - Note 1 to the primary financial statements)


	2009		2008		2007

Cash Flows from Operating Activities
Net income	3,486		3,640		4,086
Adjustments to reconcile net income to net cash flows provided by operating activities:
Loss (income) on long-term investments	22		(83	)	(34	)
Income from sale of long-term investments	—		—		(5	)
Reversal of impairment of other current assets	—		—		(69	)
Depreciation of fixed assets	4,832		4,775		4,139
Consumption of materials and fixed assets retired, net of allowances	645		647		247
Increase in allowances for fixed assets	1		2		116
Income tax	2,408		2,558		2,758
Increase in reserves	1,062		862		1,005
Changes in assets and liabilities:
Trade receivables	(21	)	704		(981	)
Other receivables	(725	)	2,401		849
Inventories	383		(876	)	(876	)
Accounts payable	(461	)	1,486		670
Salaries and social security	43		(21	)	(25	)
Taxes payable	(762	)	(507	)	(340	)
Net advances from crude oil purchasers	—		(10	)	(93	)
Decrease in reserves	(1,207	)	(736	)	(537	)
Interests, exchange differences and others	746		1,052		73
Dividends from long-term investments	38		51		54
Income tax payments	(1,076	)	(2,387	)	(2,281	)

Net cash flows provided by operating activities	9,414	⁽¹⁾	13,558	⁽¹⁾	8,756	⁽¹⁾


Cash Flows used in Investing Activities
Acquisitions of fixed assets	(5,636	)⁽²⁾	(7,035	)⁽²⁾	(6,163	)
Stock redemption (capital contributions) in long-term investments	3		—		(16	)
Proceeds from sale of long-term investments	—		—		6
Investments (non cash and equivalents)	30		(8	)	(14	)

Net cash flows used in investing activities	(5,603	)	(7,043	)	(6,187	)


Cash flows used in Financing Activities
Payments of loans	(13,870	)	(5,400	)	(1,860	)
Proceeds from loans	15,886		8,540		1,411
Dividends paid	(4,897	)	(9,287	)	(2,360	)

Net cash flows used in financing activities	(2,881	)	(6,147	)	(2,809	)

Increase (decrease) in Cash and Equivalents	930		368		(240	)


Cash and equivalents at the beginning of year	1,215		847		1,087
Cash and equivalents at the end of year	2,145		1,215		847

Increase (decrease) in Cash and Equivalents	930		368		(240	)

For supplemental information on cash and equivalents, see Note 2.a.

(1)	Includes (372), (155) and (114) corresponding to interest payments for the years ended December 31, 2009, 2008 and 2007, respectively.

(2)	Includes 529 and 111 corresponding to payments related with the extension of certain exploitation concessions in the Province of Neuquén (Note 9.c.ii and iii to the primary financial statements), for the years ended December 31, 2009 and 2008, respectively.

Notes 1 to 4 and the accompanying exhibits A and H to Schedule I and the primary financial statements of

YPF, are an integral part of and should be read in conjunction with these statements.

ANTONIO GOMIS SÁEZ

Director

Schedule I

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA AND CONTROLLED AND JOINTLY CONTROLLED COMPANIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos - Note 1 to the primary financial statements, except where otherwise indicated)

1.	CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to General Resolution No. 368 from the Argentine Securities Commission (“CNV”), YPF Sociedad Anónima (the “Company” or “YPF”) discloses its consolidated financial statements, included in Schedule I, preceding its primary financial statements. Consolidated financial statements are supplemental and should be read in conjunction with the primary financial statements.

a)	Consolidation policies:

Following the methodology established by Technical Resolution No. 21 of the Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”), the Company has consolidated its balance sheets and the related statements of income and cash flows as follows:

•

Investments and income (loss) related to controlled companies in which YPF has the number of votes necessary to control corporate decisions are substituted for such companies’ assets, liabilities, net revenues, costs and expenses, which are aggregated to the Company’s balances after the elimination of intercompany profits, transactions, balances and other consolidation adjustments and minority interest if applicable.

•

Investments and income (loss) related to companies in which YPF holds joint control are consolidated line by line on the basis of the Company’s proportionate share in their assets, liabilities, net revenues, costs and expenses, considering the elimination of intercompany profits, transactions, balances and other consolidation adjustments.

Investments in companies under control and joint control are detailed in Exhibit C to the primary financial statements.

b)	Financial statements used for consolidation:

The consolidated financial statements are based upon the latest available financial statements of those companies in which YPF holds control or joint control, taking into consideration, if applicable, significant subsequent events and transactions, available management information and transactions between YPF and the related companies, which could have produced changes to their shareholders’ equity.

c)	Valuation criteria:

In addition to the valuation criteria disclosed in the notes to YPF’s primary financial statements, the following additional valuation criteria have been applied in the preparation of the consolidated financial statements:

Salaries and Social Security – Pension Plans and other Postretirement and Postemployment Benefits

As of December 31, 2007, YPF Holdings Inc., which has operations in the United States of America, had three trustee defined-benefit pension plans and postretirement and postemployment benefits.

In March 2008, YPF Holdings Inc. acquired certain contracts from Prudential Insurance Company (“Prudential”) to settle the liability associated with two defined-benefit pension plans, paying a premium amount of US$ 115 million. Prudential assumed the liabilities under these pension plans as of March 20, 2008.

The funding policy related to the outstanding pension plan as of December 31, 2009, is to contribute amounts to the plan sufficient to meet the minimum funding requirements under governmental 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, and other postemployment benefits for eligible individuals in case employment is terminated by YPF Holdings Inc. before their normal retirement. YPF Holdings Inc. accrues the estimated cost of retiree benefit payments during employees’ active service periods. Employees become eligible for these benefits if they meet minimum age and years of service requirements. YPF Holdings Inc. accounts for benefits provided when the minimum service period is met, payment of the benefit is probable and the amount of the benefit can be reasonably estimated.

During the year 2008, YPF Holdings Inc. curtailed postretirement health care benefits to certain retirees. The effect of the curtailment of net income has not been material.

The defined-benefits and postretirement pension plans mentioned above are valued at net present value, are accrued on the years of active service of employees and are disclosed as non-current liabilities in the “Salaries and social security” account. As of December 31, 2009, the actuarial losses and gains are disclosed in the “Other income (expense), net” account of the statement of income. As of December 31, 2008 and 2007, the unrecognized actuarial losses and gains generated since December 31, 2003 were disclosed net of the present value of the obligation and were recognized in the statement of income during the expected average remaining service period of the employees participating in the plans and the life expectancy of the retired employees. The effect on net income related to the change in the accounting recognition criteria for losses and gains due to changes in actuarial assumptions for the years ended December 31, 2008 and 2007, is not material.

Other postretirement and postemployment benefits are recorded as claims are incurred.

The additional disclosures related to the pension plans and other postretirement and postemployment benefits, are included in Note 2.h.

Recognition of revenues and costs of construction activities

Revenues and costs related to construction activities performed by A-Evangelista S.A., controlled company, are accounted by the percentage of completion method. When adjustments in contract values or estimated costs are determined, any change from prior estimates is reflected in earnings in the current year. Anticipated losses on contracts in progress are expensed as soon as they become evident.

2.	ANALYSIS OF THE MAIN ACCOUNTS OF THE CONSOLIDATED FINANCIAL STATEMENTS

Details regarding the significant accounts included in the accompanying consolidated financial statements are as follows:

Consolidated Balance Sheet as of December 31, 2009 and Comparative Information

a)	Investments:


	2009				2008				2007
	Current		Noncurrent		Current		Noncurrent		Current		Noncurrent
Short-term investments and government securities	1,476	⁽¹⁾	150	⁽³⁾	825	⁽¹⁾	179	⁽³⁾	655	⁽¹⁾	168	⁽³⁾
Long-term investments	—		724	⁽²⁾	—		890	⁽²⁾	—		837	⁽²⁾
Allowance for reduction in value of holdings in long-term investments	—		(125	)⁽²⁾	—		(221	)⁽²⁾	—		(206	)⁽²⁾

	1,476		749		825		848		655		799

(1)	Includes 1,476, 824 and 651 as of December 31, 2009, 2008 and 2007, respectively, with an original maturity of less than three months.

(2)

In addition to those companies under significant influence and other companies detailed in Exhibit C to the primary financial statements, includes the interest in Gas Argentino S.A. (“GASA”). On May 19, 2009, GASA filed a voluntary reorganization petition (“concurso preventivo”), which was opened on June 8, 2009. Book value in this investment has been fully reserved.

(3)	Corresponds to restricted cash as of December 31, 2009, 2008 and 2007, which represents bank deposits used to pay labor claims and deposits used as guarantees given to government agencies.

b)	Trade receivables:


	2009			2008			2007
	Current		Noncurrent	Current		Noncurrent	Current		Noncurrent
Accounts receivable	2,963		22	2,813		24	3,142		32
Related parties	281		—	306		—	533		—

	3,244		22	3,119		24	3,675		32
Allowance for doubtful trade receivables	(413	)	—	(417	)	—	(440	)	—

	2,831		22	2,702		24	3,235		32

c)	Other receivables:


	2009				2008				2007
	Current		Noncurrent		Current		Noncurrent		Current		Noncurrent
Deferred income tax	—		448		—		554		—		517
Tax credits and export rebates	1,403		16		749		19		931		15
Trade	105		—		217		—		97		—
Prepaid expenses	208		82		154		80		111		60
Concessions charges	17		38		17		50		17		79
Related parties	192	⁽¹⁾	74	⁽¹⁾	178	⁽¹⁾	109	⁽¹⁾	2,681	⁽¹⁾	—
Loans to clients	30		69		29		79		14		90
Trust contributions - Obra Sur	—		119		—		—		—		—
Advances to suppliers	125		—		160		—		132		—
Collateral deposits	177		4		91		18		80		19
Advances and loans to employees	42		—		69		—		46		—
From joint ventures and other agreements	100		—		101		—		62		—
Miscellaneous	185		142		230		84		312		79

	2,584		992		1,995		993		4,483		859
Allowance for other doubtful accounts	(94	)	—		(134	)	—		(122	)	—
Allowance for valuation of other receivables to their estimated realizable value	—		(17	)	—		(48	)	—		(50	)

	2,490		975		1,861		945		4,361		809

(1)

In addition to the balances with non-consolidated related parties detailed in Note 7 to the primary financial statements, mainly includes 234 and 200 with Central Dock Sud S.A., as of December 31, 2009 and 2008, respectively, for loans granted that accrue an annual fixed interest rate of 5.74% in average. As of December 31, 2007, in addition to the amounts detailed in Note 3.c to the primary financial statements, includes 51 with Repsol Netherlands Finance B.V.

d)	Inventories:


	2009	2008	2007
Refined products	1,715	1,941	1,612
Crude oil and natural gas	989	1,110	646
Products in process	59	69	46
Raw materials, packaging materials and others	303	329	269

	3,066	3,449	2,573

e)	Fixed assets:



	2009		2008		2007
Net book value of fixed assets (Exhibit A)	28,033		28,073		25,481
Allowance for unproductive exploratory drilling	(3	)	(3	)	(3	)
Allowance for obsolescence of material and equipment	(37	)	(42	)	(44	)

	27,993		28,028		25,434

f)	Accounts payable:


	2009		2008		2007
	Current	Noncurrent	Current	Noncurrent	Current	Noncurrent
Trade	4,576	40	4,841	45	3,131	21
Hydrocarbon wells abandonment obligations	238	4,016	547	3,130	395	2,316
Related parties	249	—	166	—	140	—
Extension of the Concessions - Province of Neuquén	142	—	483	—	—	—
From joint ventures and other agreements	358	—	334	—	373	—
Environmental liabilities	179	285	172	257	137	166
Miscellaneous	115	50	220	41	163	39

	5,857	4,391	6,763	3,473	4,339	2,542

g)	Loans:


				2009				2008		2007
	Interest rate⁽¹⁾		Principal maturity	Current		Noncurrent		Current	Noncurrent	Current	Noncurrent
Negotiable Obligations	10.00 - 13.00	%	2011 - 2028	6		547		364	224	14	523
Related parties	2.28 - 14.00	%	2010 - 2011	912		380		94	1,036	—	—
Other financial debts	2.20 - 17.05	%	2010 - 2012	3,761		1,213		2,761	—	457	—

				4,679	⁽²⁾	2,140	⁽²⁾	3,219	1,260	471	523

(4)	Annual interest rate as of December 31, 2009.

(5)	As of December 31, 2009, 5,344 accrue fixed interest, 205 accrue variable interest of BADLAR plus 1.75%, 1,146 accrue variable interest of LIBO plus 2% and 124 accrue variable interest of LIBO plus 5.25%.

h)	Pension plans and postretirement benefits:

Defined – benefit obligations


	2009	2008		2007
Net present value of obligations	93	117		472
Fair value of assets	—	—		(247	)
Deferred actuarial losses	—	(1	)	(61	)

Recognized net liabilities	93	116		164

Changes in the fair value of the defined-benefit obligations


	2009		2008		2007
Liabilities at the beginning of the year	117		472		480
Settlement of obligations - Prudential (Note 1.c)	—		(319	)	—
Translation differences	14		16		15
Service cost	—		1		1
Interest cost	8		10		28
Actuarial (gains) losses	(33	)	16		25
Benefits paid and settlements	(13	)	(79	)	(77	)

Liabilities at the end of the year	93		117		472

Changes in the fair value of the plan assets



	2009		2008		2007
Fair value of assets at the beginning of the year	—		247		226
Settlement of obligations - Prudential (Note 1.c)	—		(242	)	—
Translation differences	—		—		7
Expected return on assets	—		—		17
Actuarial losses	—		—		(1	)
Employer and employees contributions	13		19		60
Benefits paid and settlements	(13	)	(24	)	(62	)

Fair value of assets at the end of the year	—		—		247

Amounts recognized in the Statement of Income



	Income (Expense)
	2009		2008		2007
Service cost	—		(1	)	(1	)
Interest cost	(8	)	(10	)	(28	)
Expected return on assets	—		—		17
Actuarial gains (losses) recognized in the year	33		—		(1	)
Gains (losses) on settlements	—		29		(8	)

Total recognized as other income (expense), net (Note 2.i)	25		18		(21	)

Actuarial assumptions



	2009		2008		2007
Discount rate	5.5	%	6.2	%	6.5	%
Expected return on assets	N/A		N/A		7	%
Expected increase on salaries	N/A		N/A		N/A

Health care cost trend

For measurement purposes, an 8.7% annual rate of increase in the per capita cost of covered health care benefits was assumed for the year ended December 31, 2009. The rate is assumed to decrease by 0.3% each year until reaching 4.5% in 2024 and remain in that level thereafter.

Consolidated Statement of Income as of December 31, 2009 and Comparative Information

i)	Other income (expense), net:


	Income (Expense)
	2009		2008		2007
Recovery (reserve) for pending lawsuits and other claims	106		(104	)	(194	)
Environmental remediation - YPF Holdings Inc.	(134	)	(303	)	(206	)
Recovery of sinisters	98		—		—
Defined benefit pension plans and other postretirement benefits (Nota 2.h)	25		18		(21	)
Miscellaneous	64		13		(18	)

	159		(376	)	(439	)

3.	COMMITMENTS AND CONTINGENCIES IN RELATED COMPANIES

a) YPF Holdings Inc.:

Laws and regulations relating to health and environmental quality in the United States of America affect nearly all the operations of YPF Holdings Inc. These laws and regulations set various standards regulating certain aspects of health and environmental quality, provide for penalties and other liabilities for the violation of such standards and establish in certain circumstances remedial obligations.

YPF Holdings Inc. believes that its policies and procedures in the area of pollution control, product safety and occupational health are adequate to prevent unreasonable risk of environmental and other damage, and of resulting financial liability, in connection with its business. Some risk of environmental and other damage is, however, inherent in particular operations of YPF Holdings Inc. and, as discussed below, Maxus Energy Corporation (“Maxus”) and Tierra Solutions Inc. (“Tierra”), both controlled by YPF Holdings Inc., could have certain potential liabilities associated with operations of Maxus’ former chemical subsidiary.

YPF Holdings Inc. cannot predict what environmental legislation or regulations will be enacted in the future or how existing or future laws or regulations will be administered or enforced. Compliance with more stringent law regulations, as well as more vigorous enforcement policies of the regulatory agencies, could in the future require material expenditures by YPF Holdings Inc. for the installation and operation of systems and equipment for remedial measures, possible dredging requirements, among other things. Also, certain laws allow for recovery of natural resource damages from responsible parties and ordering the implementation of interim remedies to abate an imminent and substantial endangerment to the environment. Potential expenditures for any such actions cannot 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 and Tierra.

In connection with the sale of Maxus’ former chemical subsidiary, Diamond Shamrock Chemicals Company (“Chemicals”) to Occidental Petroleum Corporation (“Occidental”) in 1986, Maxus agreed to indemnify Chemicals and Occidental from and against certain liabilities relating to the business or activities of Chemicals prior to the selling date, September 4, 1986 (the “selling date”), including environmental liabilities relating to chemical plants and waste disposal sites used by Chemicals prior to the selling date.

As of December 31, 2009, reserves for the environmental contingencies and other claims totaled approximately 531. YPF Holdings Inc.’s Management believes it has adequately reserved for all environmental contingencies, which are probable and can be reasonably estimated; however, changes in circumstances, including new information or new requirements of governmental entities, could result in changes, including additions, to such reserves in the future. The most significant contingencies are described in the following paragraphs:

Newark, New Jersey. A consent decree, previously agreed upon by the U.S. Environmental Protection Agency (“EPA”), the New Jersey Department of Environmental Protection and Energy (“DEP”) and Occidental, as successor to Chemicals, was entered in 1990 by the United States District Court of New

Jersey and requires implementation of a remedial action plan at Chemical’s former Newark, New Jersey agricultural chemicals plant. The approved remedy has been completed and paid for by Tierra. This project is in the operation and maintenance phase. YPF Holdings Inc. has reserved approximately 53 as of December 31, 2009, in connection with such activities.

Passaic River, New Jersey. Studies have indicated that sediments of the Newark Bay watershed, including the Passaic River adjacent to the former Newark plant, are contaminated with hazardous chemicals from many sources. These studies suggest that older and more contaminated sediments located adjacent to the former Newark plant generally are buried under more recent sediments deposits. Maxus, forced to act on behalf of Occidental, negotiated an agreement with the EPA under which Tierra has conducted further testing and studies near the plant site. While some work remains in a pending state, these studies were substantially completed in 2005.

In addition:

•

YPF Holdings Inc. has been conducting similar studies under their own auspices for several years.

•

The EPA and other agencies are addressing the lower Passaic River in a joint federal, state, local and private sector cooperative effort designated as the Lower Passaic River Restoration Project (“PRRP”). Tierra, along with other entities, participated in an initial remedial investigation and feasibility study (“RIFS”) in connection with the PRRP. The parties are discussing the possibility of further work with the EPA. The entities have agreed the allocations of costs associated with the RIFS, based on a number of considerations.

•

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. 1 seeks to address natural resource damages allegedly resulting from almost 200 years of historic industrial and commercial development along a portion of the Passaic River and a part of its watershed. Directive No. 1 asserts that the named entities are jointly and severally liable for the alleged natural resource damages 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. Maxus and Tierra responded to Directive No. 1 setting forth good faith defenses. Settlement discussions between the DEP and the named entities have been hold, however, no agreement has been reached or is assured.

•

In 2004, the EPA and Occidental entered into an administrative order on consent (the “AOC”) pursuant to which Tierra (on behalf of Occidental) has agreed to conduct testing and studies to characterize contaminated sediment and biota in the Newark bay. The initial field work on this study, which includes testing in the Newark Bay, has been substantially completed. Discussions with the EPA regarding additional work that might be required are underway. EPA has notified other companies in relation to the contamination of the Newark Bay. Additionally, Tierra, acting on behalf of Occidental, is performing a separate RIFS to characterize sediment contamination and evaluate remediation, if necessary, in certain portions of the Hackensack River, the Arthur Kill River and the Kill van Kull River.

•

In December 2005, the DEP issued a directive to Tierra, Maxus and Occidental directing said parties to pay the State of New Jersey’s cost of developing a Source Control Dredge Plan focused on allegedly dioxin – contaminated sediment in the lower six–mile portion of the Passaic River. The development of this plan is estimated by the DEP to cost approximately US$ 2 million. This directive was issued even though this portion of the lower Passaic River is a subject of the PRRP. The DEP has advised the recipients that (a) it is engaged in discussions with the EPA regarding the subject matter of the directive, and (b) they are not required to respond to the directive until otherwise notified. Additionally, in December 2005, the DEP sued YPF Holdings Inc., Tierra, Maxus and other several companies, besides to Occidental, in connection with the dioxin contamination allegedly emanating from Chemicals’ former Newark plant and contaminating the lower portion of the Passaic River, Newark Bay, other nearby waterways and surrounding areas. The DEP seeks remediation of natural resources damaged and punitive damages and other matters. The defendants have made responsive pleadings and filings. The

Court denied motions to dismiss by Occidental Chemical Corporation, Tierra and Maxus. The DEP filed its Second Amended Complaint in April 2008. YPF filed a motion to dismiss for lack of personal jurisdiction. The motion mentioned previously was denied in September, 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 and governmental entities (including certain municipalities) which could have responsibility in connection with the claim were filed in February, 2009.

•

In June 2007, EPA released a draft Focused Feasibility Study (the “FFS”) that outlines several alternatives for remedial action in the lower eight miles of the Passaic River. These alternatives range from no action, which would result in comparatively little cost, to extensive dredging and capping, which according to the draft FFS, EPA estimated could cost from US$ 0.9 billion to US$ 2.3 billion and are all described by EPA as involving proven technologies that could be carried out in the near term, without extensive research. Tierra, in conjunction with the other parties of the PRRP group, submitted comments on the legal and technical defects of the draft FFS to EPA, as did other interested parties. In light of these comments, EPA decided to initiate his review and informed that a revised remedy proposal will be forthcoming during 2010. Tierra will respond to any further EPA proposal as may be appropriate at that time.

•

In August 2007, the National Oceanic Atmospheric Administration (“NOAA”) sent a letter to the parties of the PRRP group, including Tierra and Occidental, requesting that the group enters into an agreement to conduct a cooperative assessment of natural resources damages in the Passaic River and Newark Bay. The PRRP group has declined to do so at this time, citing concerns with matters such as the FFS being revised by EPA as described above. In January 2008, the NOAA sent a letter to YPF S.A., YPF Holdings Inc., CLH Holdings Inc. and other entities, designating them as potentially responsible parties (“PRP”). Such letters have been responded, rejecting the designation as PRP. In November 2008, Tierra and Occidental entered into an agreement with the NOAA to fund a portion of the costs it has incurred and to conduct certain assessment activities during 2009. Approximately 20 other PRRP members have also entered into similar agreements. In November 2009, Tierra declined to extend this agreement for one additional year, citing concerns arising from the Passaic River litigation.

•

In June 2008, the EPA, Occidental, and Tierra entered into an AOC, pursuant to which Tierra (on behalf of Occidental) will undertake a removal action of sediment from the Passaic River in the vicinity of the former Diamond Alkali facility. This action will result in the removal of approximately 200,000 cubic yards of sediment, which will be carried out in two different phases. The first phase, which is scheduled to begin in 2010, encompasses the removal of 40,000 cubic yards of sediments and is expected to be completed in nine months. The first phase estimated cost is approximately US$ 45 million. The second phase involves the removal of approximately 160,000 cubic yards of sediment. This second phase will start once the first phase is completed. Pursuant to the AOC, the EPA has required the constitution of a trust fund of US$ 80 million for the performance of the removal work. As of December 31, 2009, US$ 22 million have been deposited and an additional US$ 10 million must be contributed every six months, until the completion of the US$ 80 million. During the removal action, contaminants not produced by the former Diamond Alkali plant, such as PCBs and mercury, will necessarily be removed along with dioxin. Although having recognized the estimated costs related to all works mentioned above, YPF Holdings Inc. and its subsidiaries may seek cost recovery from the parties responsible for such contamination, provided contaminants’ origins were not from the Diamond Alkali plant. However, as of December 31, 2009, it is not possible to make any predictions regarding the likelihood of success or the funds potentially recoverable in a cost-recovery action.

As of December 31, 2009, there are approximately 248 reserved, comprising the estimated costs for studies, the YPF Holdings Inc.’s best estimate of the cash flows it could incur in connection with remediation activities considering the studies performed by Tierra, the estimated costs related to the agreement, and in addition certain other matters related to Passaic River and the Newark Bay. However, it is possible that other works, including interim remedial measures, may be ordered. In addition, the development of new information on the imposition of natural resource damages, or remedial actions differing from the scenarios that YPF Holdings Inc. has evaluated could result in additional costs to the amount currently reserved.

Hudson County, New Jersey. Until 1972, Chemicals operated a chromite ore processing plant at Kearny, New Jersey (“Kearny Plant”). According to the DEP, wastes from these ore processing operations were used as fill material at a number of sites in and near Hudson County. The DEP and Occidental, as successor to Chemicals, signed an administrative consent order with the DEP in 1990 for investigation and remediation work at certain chromite ore residue sites in Kearny and Secaucus, New Jersey.

Tierra, on behalf of Occidental, is presently performing the work and funding Occidental’s share of the cost of investigation and remediation of these sites and is providing financial assurance in the amount of US$ 20 million for performance of the work. The ultimate cost of remediation is uncertain. Tierra 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 to Maxus, Occidental and two other chromium manufacturers directing them to arrange for the cleanup of chromite ore residue at three sites in New Jersey City and 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 little or no evidence that Chemicals’ chromite ore residue was sent to any of these sites, the DEP claims these companies are jointly and severally liable without regard to fault. Second, the State of New Jersey filed a lawsuit against Occidental and two other entities in state court in Hudson County seeking, among other things, cleanup of various sites where chromite ore residue is allegedly located, recovery of past costs incurred by the state at such sites (including in excess of US$ 2 million allegedly spent for investigations and studies) and, with respect to certain costs at 18 sites, treble damages. The DEP claims that the defendants are jointly and severally liable, without regard to fault, for much of the damages alleged. In February 2008, the parties reached an agreement for which Tierra will pay US$ 5 million and will perform remediation works in three sites, with a total cost of approximately US$ 2 million. As a result YPF Holdings Inc. has reserved 27 (which are included in the amount of 102 disclosed in the following paragraphs).

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 “Adjacent Property”), including among others Tierra, under the Resource Conservation and Recovery Act. The stated purpose of the lawsuit, if filed, would be to require the noticed parties to carry out measures to abate alleged endangerments to health and the environment emanating from the Adjacent Property. The parties have entered into an agreement that addresses the concerns of the environmental groups, and these groups have agreed, at least for now, not to file suit.

Pursuant to a request of the DEP, in the second half of 2006, Tierra and other parties tested the sediments in a portion of the Hackensack River near the former Kearny Plant. Tierra has submitted work plans for additional sampling requested by the DEP and is presently awaiting DEP comments.

In March 2008, the DEP approved an interim response action work plan for work to be performed at the Kearny Plant by Tierra and the Adjacent Property by Tierra in conjunction with other parties. As a result YPF Holdings Inc. has reserved 29 (which are included in the amount of 102 disclosed in the following paragraphs).

As of December 31, 2009, there are approximately 102 reserved in connection with the foregoing chrome-related matters. The study of the levels of chromium has not been finalized, and the DEP is still reviewing the proposed actions. The cost of addressing these chrome-related matters could increase depending upon the final soil actions, the DEP’s response to Tierra’s reports and other developments.

Painesville, Ohio. In connection with the operation until 1976 of one chromite ore processing plant (“Chrome Plant”), from Chemicals, the Ohio Environmental Protection Agency (“OEPA”) ordered to conduct a RIFS at the former Painesville’s Plant area. Tierra has agreed to participate in the RIFS as required by the OEPA. Tierra submitted the remedial investigation report to the OEPA, which report was finalized in 2003. Tierra will submit required feasibility reports separately. In addition, the OEPA has approved certain work, including the

remediation of specific sites 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 for the site of the former Painesville Works, additional amounts will need to be reserved.

Over ten years ago, the former Painesville Works site was proposed for listing on the national Priority List under the Comprehensive Environmental Response, 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 is satisfactorily addressed pursuant to the Director’s Order and OEPA’s programs. As of the date of issuance of these financial statements, the site has not been listed. YPF Holdings Inc. has reserved a total of 8 as of December 31, 2009 for its estimated share of the cost to perform the RIFS, 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 RIFS progresses, YPF Holdings Inc. will continuously assess the condition of the Painesville’s plants works site and make any required changes, including additions, to its reserve as may be necessary.

Third Party Sites. Pursuant to settlement agreements with the Port of Houston Authority and other parties, Tierra and Maxus are participating (on behalf of Chemicals) in the remediation of property required Chemicals’ former Greens Bayou facility where DDT and certain other chemicals were manufactured. Additionally, the parties have reached an agreement with the Federal and State Natural Resources Trustees concerning natural resources damages, which could require future additional contributions. As of December 31, 2009, YPF Holdings Inc. has reserved 32 for its estimated share of future remediation activities associated with the Greens Bayou facility. Although the primary work was completed in 2009, some follow-up activities and operation and maintenance remain pending.

In June 2005, the EPA designated Maxus as a 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., companies that the EPA has asserted are former owners or operators of such site. Preliminary works in connection with the RIFS of this site commenced in the second half of 2006. YPF Holdings Inc. has reserved 10 as of December 31, 2009 for its estimated share of the costs of the RIFS. YPF Holdings Inc. lacks sufficient information to determine additional costs, if any; it might have in respect of this site.

Maxus 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. It is subject of enforcement activities by the EPA. Although Occidental is one of many PRPs that have been identified and have agreed to an AOC, Tierra (which is handling this matter on behalf of Maxus) presently believes the degree of Occidental’s alleged involvement as successor to Chemicals is relatively small. Chemicals has also been designated as a PRP with respect to a number of third party sites where hazardous substances from Chemicals’ plant operations allegedly were disposed or have come to be located. At several of these, Chemicals has no known vinculation. Although PRPs are typically jointly and severally 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, 2009, YPF Holdings Inc. has reserved approximately 2 in connection with its estimated share of costs related to certain sites and the ultimate cost of other sites cannot be estimated at the present time.

Black Lung Benefits Act Liabilities. The Black Lung Benefits Act provides monetary and medical benefits to miners disabled with a lung disease, and also provides benefits to the dependents of deceased 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 Holdings Inc. is required to provide insurance of this benefit to former employees and their dependents. As of December 31, 2009, YPF Holdings Inc. has reserved 32 in connection with its estimate of these obligations.

Legal Proceedings. In 2001, the Texas State Controller assessed Maxus approximately US$ 1 million in Texas state sales taxes for the period of September 1, 1995 through December 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. YPF Holdings Inc. believes the decision is erroneous, but has paid the revised tax assessment, penalty and interest (a total of approximately US$ 2 million) under protest. 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 in the court action.

In 2002, Occidental sued Maxus and Tierra in state court in Dallas, Texas seeking a declaration that Maxus and Tierra have the obligation under the agreement pursuant to which Maxus sold Chemicals to Occidental to defend and indemnify Occidental from and against certain historical obligations of Chemicals, including claims related to “Agent Orange” and Vinyl Chloride Monomer (“VCM”), notwithstanding the fact that said agreement contains a 12-year cut-off for defense and indemnity obligations 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 has petitioned the Supreme Court of Texas for review. This lawsuit was denied. This decision will require Maxus to accept responsibility of various matters which it has refused indemnification since 1998 which could result in the incurrence of costs in addition to YPF Holdings Inc.’s current reserves for this matter. In March 2009, Maxus paid US$ 15 million to Occidental, and remains in discussions with Occidental regarding additional costs. As of December 31, 2009 YPF Holdings Inc. has reserved approximately 1 in respect to this matter.

In March 2005, Maxus agreed to defend Occidental, as successor to Chemicals, in respect of an action seeking the contribution of costs incurred in connection with the remediation of the Turtle Bayou waste disposal site in Liberty County, Texas. The plaintiffs alleged that certain wastes attributable to Chemicals found their way to the Turtle Bayou site. Trial for this matter was bifurcated, and in the liability phase Occidental and other parties were found severally, 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 of 2007, and pursuant to the court decision, Maxus must pay on behalf of Occidental 15.96% of those costs incurred by one of the plaintiffs. That decision was appealed, and the parties are awaiting the court’s decision. As of December 31, 2009, YPF Holdings Inc. has reserved 14 in respect of this matter.

YPF Holdings Inc., including its subsidiaries, is a party to various other lawsuits and environmental situations, the outcomes of which are not expected to have a material adverse effect on YPF’s financial condition or its future results of operations. YPF Holdings Inc. reserves legal contingences and environmental situations that are probable and can be reasonably estimated.

YPF Holdings Inc. has entered into various operating agreements and capital commitments associated with the exploration and development of its oil and gas properties which are not material except those for the “Neptune Project”. Total commitments related to the development of the Neptune Project amounts to approximately US$ 14 million.

b) Pluspetrol Energy S.A. contractual obligations:

Pluspetrol Energy S.A. (“Pluspetrol”) and Gas Atacama Generación S.A. (“Gas Atacama”) had reached an agreement through which, in case that Pluspetrol could not fulfill its natural gas delivery obligations, it would indemnify Gas Atacama. This agreement would come into effect once ratified by the Secretariat of Energy. However, in March 10, 2008, the Ministry of Economy and Production issued Resolution No. 127/2008, by which natural gas export withholding rate was increased, significantly changing the commercial terms of the aforementioned agreement. Consequently, Pluspetrol informed Gas Atacama and the Secretariat of Energy its intention to terminate the aforementioned agreement. As a result, the parties initiated conversations in order to consider the new regulatory framework and reached a new agreement with a cap to the compensation Pluspetrol must pay to Gas Atacama in case it fails to deliver the committed volumes.

4.	CONSOLIDATED BUSINESS SEGMENT INFORMATION

The Company organizes its business into four segments which comprise: the exploration and production, including contractual purchases of natural gas and crude oil purchases arising from service contracts and concession obligations, as well as crude oil intersegment sales, natural gas and its derivatives sales and electric power generation (“Exploration and Production”); the refining, transport, purchase and marketing of crude oil and refined products (“Refining and Marketing”); the petrochemical operations (“Chemical”); and other activities, not falling into these categories, are classified under “Corporate and Other”, which principally includes corporate administration costs and construction activities.

Operating income (loss) and assets for each segment have been determined after intersegment adjustments.


	Exploration and Production		Refining and Marketing	Chemical	Corporate and Other		Consolidation Adjustments		Total
Year ended December 31, 2009
Net sales to unrelated parties	4,757		25,733	1,932	520		—		32,942
Net sales to related parties	751		627	—	—		—		1,378
Net intersegment sales	14,473		1,202	1,105	350		(17,130	)	—

Net sales	19,981		27,562	3,037	870		(17,130	)	34,320

Operating income (loss)	5,379		1,896	559	(820	)	(15	)	6,999
(Loss) income on long-term investments	(43	)	21	—	—		—		(22	)
Depreciation	4,073		527	121	111		—		4,832
Acquisitions of fixed assets	3,879		1,177	155	178		—		5,389
Assets	24,133		11,393	2,066	3,439		(748	)	40,283

Year ended December 31, 2008
Net sales to unrelated parties	4,016		25,364	2,829	219		—		32,428
Net sales to related parties	939		1,508	—	—		—		2,447
Net intersegment sales	12,663		1,145	1,094	461		(15,363	)	—

Net sales	17,618		28,017	3,923	680		(15,363	)	34,875

Operating income (loss)	3,315		3,089	1,178	(815	)	(102	)	6,665
Income on long-term investments	67		16	—	—		—		83
Depreciation	4,111		467	119	78		—		4,775
Acquisitions of fixed assets	6,290		1,013	148	511		—		7,962
Assets	21,755		10,286	2,295	5,224		(481	)	39,079

Year ended December 31, 2007
Net sales to unrelated parties	3,288		20,375	2,563	109		—		26,335
Net sales to related parties	724		2,045	—	—		—		2,769
Net intersegment sales	14,056		1,858	892	440		(17,246	)	—

Net sales	18,068		24,278	3,455	549		(17,246	)	29,104

Operating income (loss)	5,679		1,234	500	(620	)	(136	)	6,657
Income on long-term investments	18		16	—	—		—		34
Depreciation	3,616		377	92	54		—		4,139
Acquisitions of fixed assets	4,861		898	143	314		—		6,216
Assets	19,893		11,199	2,220	5,421		(631	)	38,102

Export sales, net of withholdings taxes, for the years ended December 31, 2009, 2008 and 2007 were 4,904, 7,228 and 8,400, respectively. Export sales were mainly to the United States of America and Brazil.

ANTONIO GOMIS SÁEZ

Director

Schedule I

Exhibit A

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA AND CONTROLLED AND JOINTLY CONTROLLED COMPANIES

CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

FIXED ASSETS EVOLUTION

(amounts expressed in million of Argentine pesos - Note 1 to the primary financial statements)


	2009
	Cost
Main account	Amounts at beginning of year	Net translation effect⁽⁵⁾	Increases		Net decreases, reclassifications and transfers		Amounts at the end of year
Land and buildings	2,508	—	5		693		3,206
Mineral property, wells and related equipment	57,588	53	304		3,556		61,501
Refinery equipment and petrochemical plants	10,243	—	13		591		10,847
Transportation equipment	1,956	—	—		17		1,973
Materials and equipment in warehouse	827	—	800		(813	)	814
Drilling and work in progress	4,339	1	3,866		(4,566	)	3,640
Exploratory drilling in progress	116	—	347		(344	)	119
Furniture, fixtures and installations	749	—	6		129		884
Selling equipment	1,456	—	—		29		1,485
Other property	582	—	48		22		652

Total 2009	80,364	54	5,389	⁽²⁾⁽⁶⁾	(686	)⁽¹⁾	85,121

Total 2008	73,060	56	7,962	⁽²⁾⁽⁶⁾	(714	)⁽¹⁾	80,364

Total 2007	61,939	10	6,216	⁽²⁾	4,895	⁽¹⁾⁽⁷⁾	73,060


	2009									2008		2007
	Depreciation
Main account	Accumulated at beginning of year	Net decreases, reclassifications and transfers		Depreciation rate		Increases	Accumulated at the end of year	Net book value		Net book value		Net book value
Land and buildings	1,163	(13	)	2	%	69	1,219	1,987		1,345		1,283
Mineral property, wells and related equipment	41,146	(3	)	⁽	⁴⁾	4,019	45,162	16,339	⁽³⁾	16,442	⁽³⁾	14,464	⁽³⁾
Refinery equipment and petrochemical plants	6,592	(5	)	4 - 10	%	515	7,102	3,745		3,651		3,088
Transportation equipment	1,383	(14	)	4 - 5	%	64	1,433	540		573		563
Materials and equipment in warehouse	—	—		—		—	—	814		827		791
Drilling and work in progress	—	—		—		—	—	3,640		4,339		4,617
Exploratory drilling in progress	—	—		—		—	—	119		116		147
Furniture, fixtures and installations	588	—		10	%	86	674	210		161		99
Selling equipment	1,115	—		10	%	61	1,176	309		341		350
Other property	304	—		10	%	18	322	330		278		79

Total 2009	52,291	(35	)⁽¹⁾			4,832	57,088	28,033

Total 2008	47,579	(63	)⁽¹⁾			4,775	52,291			28,073

Total 2007	39,377	4,063	⁽¹⁾⁽⁷⁾			4,139	47,579					25,481

(1)	Includes 6, 4 and 118 of net book value charged to fixed assets allowances for years ended December 31, 2009, 2008 and 2007, respectively.

(2)	Includes 176, 444 and 53 corresponding to hydrocarbon wells abandonment costs for the years ended December 31, 2009, 2008 and 2007, respectively.

(3)	Includes 1,196, 1,260 and 851 of mineral property as of December 31, 2009, 2008 and 2007, respectively.

(4)	Depreciation has been calculated according to the unit of production method.

(5)	Includes the net effect of the exchange differences arising from the translation of foreign companies’ fixed assets net book values at beginning of the year.

(6)	Includes 106 and 594 for the extension of certain exploitation concessions in the Province of Neuquén for the years ended December 31, 2009 and 2008, respectively (Note 9 c.ii and iii to the primary financial statements).

(7)	Includes 5,291 of cost and 4,094 of accumulated depreciation corresponding to oil and gas exploration and producing areas, which were disclosed as held for sale as of December 31, 2006 (Note 2.j to the primary financial statements).

ANTONIO GOMIS SÁEZ

Director

Schedule I

Exhibit H

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA AND CONTROLLED AND JOINTLY CONTROLLED COMPANIES

CONSOLIDATED STATEMENT OF INCOME FOR YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

EXPENSES INCURRED

(amounts expressed in million of Argentine pesos – Note 1 to the primary financial statements)


	2009							2008		2007
	Production costs	Administrative expenses	Selling expenses		Exploration expenses	Total		Total		Total

Salaries and social security taxes	1,245	303	219		60	1,827		1,592		1,225
Fees and compensation for services	189	337	52		9	587		638		517
Other personnel expenses	359	94	24		17	494		520		415
Taxes, charges and contributions	277	40	438		—	755		712		551
Royalties and easements	2,516	—	9		20	2,545		2,418		2,006
Insurance	176	10	14		—	200		159		126
Rental of real estate and equipment	449	5	77		—	531		466		396
Survey expenses	—	—	—		54	54		186		218
Depreciation of fixed assets	4,610	100	122		—	4,832		4,775		4,139
Industrial inputs, consumable materials and supplies	631	6	58		1	696		676		593
Operation services and other service contracts	1,810	38	133		—	1,981		1,244		677
Preservation, repair and maintenance	2,176	32	99		8	2,315		2,471		1,757
Contractual commitments	139	—	—		—	139		61		596
Unproductive exploratory drillings	—	—	—		356	356		351		144
Transportation, products and charges	927	—	1,117		1	2,045		2,144		1,813
(Recovery) allowance for doubtful trade receivables	—	—	(11	)	—	(11	)	(12	)	45
Publicity and advertising expenses	—	67	98		—	165		179		142
Fuel, gas, energy and miscellaneous	1,428	70	41		26	1,565		1,483		875

Total 2009	16,932	1,102	2,490		552	21,076

Total 2008	15,866	1,053	2,460		684			20,063

Total 2007	12,788	805	2,120		522					16,235

ANTONIO GOMIS SÁEZ

Director

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA

BALANCE SHEET AS OF DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos – Note 1)


	2009	2008	2007
Current Assets
Cash	380	165	120
Investments (Note 3.a)	1,103	453	242
Trade receivables (Note 3.b)	2,639	2,600	3,148
Other receivables (Note 3.c)	1,906	1,482	4,937
Inventories (Note 3.d)	2,818	3,095	2,284

Total current assets	8,846	7,795	10,731


Noncurrent Assets
Trade receivables (Note 3.b)	22	24	31
Other receivables (Note 3.c)	857	1,333	788
Investments (Note 3.a)	2,511	2,498	2,718
Fixed assets (Note 3.e)	26,315	26,123	23,585

Total noncurrent assets	29,705	29,978	27,122

Total assets	38,551	37,773	37,853


Current Liabilities
Accounts payable (Note 3.f)	5,584	6,827	5,115
Loans (Note 3.g)	4,383	2,880	288
Salaries and social security	221	196	167
Taxes payable	1,135	985	1,293
Net advances from crude oil purchasers	—	—	9
Reserves (Note 9.a and Exhibit E)	128	339	323

Total current liabilities	11,451	11,227	7,195


Noncurrent Liabilities
Accounts payable (Note 3.f)	4,371	3,447	2,519
Loans (Note 3.g)	2,043	1,260	523
Salaries and social security	12	—	—
Taxes payable	185	27	8
Reserves (Note 9.a and Exhibit E)	1,608	1,456	1,548

Total noncurrent liabilities	8,219	6,190	4,598

Total liabilities	19,670	17,417	11,793

Shareholders’ Equity (per corresponding statements)	18,881	20,356	26,060

Total liabilities and shareholders’ equity	38,551	37,773	37,853

Notes 1 to 13 and the accompanying exhibits A, C, E, F, G and H and Schedule I

are an integral part of these statements.

ANTONIO GOMIS SÁEZ

Director

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA

STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos, except for per share amounts in Argentine pesos – Note 1)


	2009		2008		2007

Net sales (Note 3.h)	31,346		32,136		27,192
Cost of sales (Exhibit F)	(21,205	)	(22,476	)	(18,116	)
Gross profit	10,141		9,660		9,076


Selling expenses (Exhibit H)	(2,338	)	(2,316	)	(2,009	)
Administrative expenses (Exhibit H)	(966	)	(900	)	(688	)
Exploration expenses (Exhibit H)	(514	)	(614	)	(465	)

Operating income	6,323		5,830		5,914

Income on long-term investments	296		221		169
Other income (expense), net (Note 3.i)	203		(62	)	(124	)
Financial income (expense), net and holding (losses) gains:
Gains (losses) on assets
Interests	97		123		272
Exchange differences	146		373		130
Holding (losses) gains on inventories	(42	)	530		424
Losses on liabilities
Interests	(919	)	(456	)	(274	)
Exchange differences	(522	)	(663	)	(58	)
Income from sale of long-term investments	—		—		5
Reversal of impairment of other current assets (Note 2.j)	—		—		69

Net income before income tax	5,582		5,896		6,527
Income tax (Note 3.j)	(2,096	)	(2,256	)	(2,441	)

Net income	3,486		3,640		4,086

Earnings per share (Note 1)	8.86		9.25		10.39

Notes 1 to 13 and the accompanying exhibits A, C, E, F, G and H and Schedule I

are an integral part of these statements.

ANTONIO GOMIS SÁEZ

Director

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos, except for per share amounts in Argentine pesos – Note 1)


	Shareholders’ Contributions
	Subscribed capital	Adjustment to contributions	Issuance premiums	Total	Legal reserve		Deferred earnings		Reserve for future dividends		Unappropriated retained earnings		Total shareholders’ equity

Balance as of December 31, 2006	3,933	7,281	640	11,854	1,797		(124	)	2,710		8,108		24,345

As decided by the Board of Directors’ meeting of March 6, 2007:
- Cash dividends (6 per share)	—	—	—	—	—		—		(2,360	)	—		(2,360	)
As decided by the Ordinary Shareholders’ meeting of April 13, 2007:
- Appropriation to Legal reserve	—	—	—	—	223		—		—		(223	)	—
- Appropriation to Reserve for Future Dividends	—	—	—	—	—		—		4,234		(4,234	)	—
Net decrease in deferred earnings (Note 2.i)	—	—	—	—	—		(11	)	—		—		(11	)
Net income	—	—	—	—	—		—		—		4,086		4,086

Balance as of December 31, 2007	3,933	7,281	640	11,854	2,020		(135	)	4,584		7,737		26,060

As decided by the Board of Directors’ meeting of February 6, 2008:
- Cash dividends (10.76 per share)	—	—	—	—	—		—		(4,232	)	—		(4,232	)
As decided by the Ordinary and Extraordinary Shareholders’ meeting of April 24, 2008:
- Cash dividends (6.5 per share)	—	—	—	—	—		—		—		(2,557	)	(2,557	)
- Appropriation to Legal Reserve	—	—	—	—	204		—		—		(204	)	—
- Reversal of reserve for Future Dividends	—	—	—	—	—		—		(352	)	352		—
- Appropriation to Reserve for Future Dividends	—	—	—	—	—		—		4,003		(4,003	)	—
As decided by the Board of Directors’ meeting of November 6, 2008:
- Cash dividends (6.35 per share)	—	—	—	—	—		—		(2,498	)	—		(2,498	)
Net decrease in deferred earnings (Note 2.i)	—	—	—	—	—		(57	)	—		—		(57	)
Net income	—	—	—	—	—		—		—		3,640		3,640

Balance as of December 31, 2008	3,933	7,281	640	11,854	2,224		(192	)	1,505		4,965		20,356

As decided by the Ordinary Shareholders’ meeting of April 28, 2009:
- Reversal of Reserve for Future Dividends	—	—	—	—	—		—		(1,505	)	1,505		—
- Appropiation to Legal Reserve	—	—	—	—	19		—		—		(19	)	—
- Appropiation to Reserve for Future Dividends	—	—	—	—	—		—		5,901		(5,901	)	—

As decided by the Board of Directors’ meeting of May 5, 2009:
- Cash dividends (6.3 per share)	—	—	—	—	—		—		(2,478	)	—		(2,478	)

As decided by the Board of Directors’ meeting of November 4, 2009:
- Cash dividends (6.15 per share)	—	—	—	—	—				(2,419	)	—		(2,419	)
Net decrease in deferred earnings (Note 2.i)	—	—	—	—	(64	)			—		—		(64	)
Net income	—	—	—	—	—				—		3,486		3,486

Balance as of December 31, 2009	3,933	7,281	640	11,854	2,243		(256	)	1,004		4,036		18,881

Notes 1 to 13 and the accompanying exhibits A, C, E, F, G and H and Schedule I

are an integral part of these statements.

ANTONIO GOMIS SÁEZ

Director

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos – Note 1)


	2009		2008		2007
Cash Flows from Operating Activities
Net income	3,486		3,640		4,086
Adjustments to reconcile net income to net cash flows provided by operating activities:
Income on long-term investments	(296	)	(221	)	(169	)
Income from sale of long-term investments	—		—		(5	)
Reversal of impairment of other current assets	—		—		(69	)
Depreciation of fixed assets	4,393		4,568		4,035
Consumption of materials and fixed assets retired, net of allowances	625		629		206
Increase in allowances for fixed assets	1		2		116
Income tax	2,096		2,256		2,441
Increase in reserves	910		558		923
Changes in assets and liabilities:
Trade receivables	69		718		(997	)
Other receivables	(749	)	2,081		359
Inventories	277		(811	)	(762	)
Accounts payable	(267	)	1,505		554
Salaries and social security	37		29		5
Taxes payable	(730	)	(468	)	(340	)
Net advances from crude oil purchasers	—		(10	)	(93	)
Decrease in reserves	(969	)	(634	)	(484	)
Interests, exchange differences and others	882		818		150
Dividends from long-term investments	562		514		512
Income tax payments	(945	)	(2,113	)	(1,991	)

Net cash flows provided by operating activities	9,382	⁽¹⁾	13,061	⁽¹⁾	8,477	⁽¹⁾


Cash Flows used in Investing Activities
Acquisitions of fixed assets	(5,458	)⁽²⁾	(6,810	)⁽²⁾	(5,799	)
(Capital contributions) stock redemption in long-term investments	(131	)⁽³⁾	309	⁽³⁾	(61	)
Proceeds from sales of long-term investments	—		—		6
Investments (non cash and equivalents)	1		3		(2	)

Net cash flows used in investing activities	(5,588	)	(6,498	)	(5,856	)


Cash Flows used in Financing Activities
Payment of loans	(12,990	)	(4,847	)	(1,594	)
Proceeds from loans	14,959		7,830		1,053
Dividends paid	(4,897	)	(9,287	)	(2,360	)

Net cash flows used in financing activities	(2,928	)	(6,304	)	(2,901	)

Increase (decrease) in Cash and Equivalents	866		259		(280	)


Cash and equivalents at the beginning of year	617		358		638
Cash and equivalents at the end of year	1,483		617		358

Increase (decrease) in Cash and Equivalents	866		259		(280	)

For supplemental information on cash and equivalents, see Note 3.a.

(1)	Includes (339), (136) and (105) corresponding to interest payments for the years ended December 31, 2009, 2008 and 2007, respectively.

(2)	Includes 529 and 111 corresponding to payments related with the extension of certain exploitation concessions in the Province of Neuquén (Note 9.c.ii and iii), for the years ended December 31, 2009 and 2008, respectively.

(3)	Additionally, capital contributions were made to controlled companies which had no impact in cash and equivalents as they were made through the capitalization of loans receivable for 731 and 1,023 for the years ended December 31, 2009 and 2008, respectively.

Notes 1 to 13 and the accompanying exhibits A, C, E, F, G and H and Schedule I

are an integral part of these statements.

ANTONIO GOMIS SÁEZ

Director

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”),

except for the inclusion of Note 13 to the primary financial statements in the English translation.

In case of discrepancy, the financial statements filed with the CNV prevail over this translation.

YPF SOCIEDAD ANONIMA

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2009 AND COMPARATIVE INFORMATION

(amounts expressed in million of Argentine pesos, except where otherwise indicated – Note 1)

1.	SIGNIFICANT ACCOUNTING POLICIES

The financial statements of YPF Sociedad Anónima have been prepared in accordance with generally accepted accounting principles in Argentina and the regulations of the CNV.

On March 20, 2009, the FACPCE approved the Technical Resolution No. 26 “Adoption of the International Financial Reporting Standards (“IFRS”) of the International Accounting Standards Board (“IASB”)”. Such resolution was approved by the CNV through General Resolution No. 562/09 dated December 29, 2009, for certain publicly-traded entities under Law No. 17,811. The application of such rules will be mandatory for the Company for the fiscal year beginning on January 1, 2012. Consequently, the first financial statements under IFRS will be as of March 31, 2012. The Board of Directors is analyzing the specific implementation plan.

Presentation of financial statements in constant Argentine pesos

The financial statements reflect the effect of changes in the purchasing power of money by the application of the method for restatement in constant Argentine pesos set forth in Technical Resolution No. 6 of the FACPCE and taking into consideration General Resolution No. 441 of the CNV, which established the discontinuation of the restatement of financial statements in constant Argentine pesos as from March 1, 2003.

Cash and equivalents

In the statements of cash flows, the Company considers cash and all highly liquid investments with an original maturity of less than three months to be cash and equivalents.

Revenue recognition criteria

Revenue is recognized on sales of crude oil, refined products and natural gas, in each case, when title and risks are transferred to the customer.

Subsidies and incentives are recognized as sales in the income statement in the year in which the conditions for obtaining them are accomplished.

Joint ventures and other agreements

The Company’s interests in oil and gas related joint ventures and other agreements involved in oil and gas exploration and production, have been consolidated line by line on the basis of the Company’s proportional share in their assets, liabilities, revenues, costs and expenses (Note 6).

Production concessions and exploration permits

According to Argentine Law No. 24,145 issued in November 1992, YPF’s areas were converted into production concessions and exploration permits under Law No. 17,319, which has been amended by Law No. 26,197. Pursuant to these laws, the hydrocarbon reservoirs located in Argentine onshore territories and offshore continental shelf, belong to national or provincial governments, depending on the location. Exploration permits may have a term of up to 17 years and production concessions have a term of 25 years, which may be extended for an additional ten-year term (Note 9.c).

Fair value of financial instruments and concentration of credit risk

The carrying value of cash, current investments and trade receivables approximates its fair value due to the short maturity of these instruments. Furthermore, the fair value of loans receivable, which has been estimated based on current interest rates offered to the Company at the end of each year, for investments with the same remaining maturity, approximates its carrying value. As of December 31, 2009, 2008 and 2007 the fair value of loans payable estimated based on market prices or current interest rates at the end of each year amounted to 6,434, 4,060 and 866, respectively.

Financial instruments that potentially expose the Company to concentration of credit risk consist primarily of cash, current investments, trade receivables and other receivables. The Company invests cash excess primarily in high liquid investments in financial institutions both in Argentina and abroad with strong credit rating. In the normal course of business, the Company provides credit based on ongoing credit evaluations to its customers and certain related parties. Additionally, the Company accounts for credit losses based on specific information of its clients. Credit risk on trade receivables is not significant, as a result of the Company’s large customer base.

As of December 31, 2009, YPF does not hold derivative financial statements.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses and disclosure of contingencies. Future results could differ from the estimates made by Management.

Earnings per share

Earnings per share have been calculated based on the 393,312,793 shares outstanding during the years ended as of December 31, 2009, 2008 and 2007.

2.	VALUATION CRITERIA

The principal valuation criteria used in the preparation of the financial statements are as follows:

Cash:

•

Amounts in Argentine pesos have been stated at face value.

•

Amounts in foreign currencies have been valued at the relevant exchange rates as of the end of each year, as applicable. Exchange differences have been credited (charged) to current income.

b)	Current investments, trade and other receivables and payables:

•

Amounts in Argentine pesos have been stated at face value, which includes accrued interest through the end of each year, if applicable. Investments with price quotation have been valued at fair value as of the end of each year.

•

Amounts in foreign currency have been valued at face value at the relevant exchange rates in effect as of the end of each year, including accrued interest, if applicable. Investments with price quotation have been valued at fair value at the relevant exchange rate in effect as of the end of each year. Exchange differences have been credited (charged) to current income. Additional information on assets and liabilities denominated in foreign currency is disclosed in Exhibit G.

When generally accepted accounting principles require the valuation of receivables or payables at their discounted value, that value does not differ significantly from their face value.

If applicable, allowances have been made to reduce receivables to their estimated realizable value.

c)	Inventories:

•

Refined products, products in process, crude oil and natural gas have been valued at last production or replacement cost, as applicable, as of the end of each year.

•

Raw materials and packaging materials have been valued at cost, which does not differ significantly from its replacement cost as of the end of each year.

Valuation of inventories does not exceed their estimated realizable value.

d)	Noncurrent investments:

These include the Company’s investments in companies under control, joint control or significant influence and holdings in other companies. These investments are detailed in Exhibit C and have been valued using the equity method, except for holdings in other companies, which have been valued at its acquisition cost remeasured as detailed in Note 1.

Investments in Gasoducto del Pacífico (Argentina) S.A., Gasoducto del Pacífico (Cayman) Ltd. and Oleoducto Trasandino (Chile) S.A., where less than 20% direct or indirect interest is held, are accounted by the equity method since YPF exercises significant influence over these companies in making operation and financial decisions based on its representation on the Boards of Directors and/or the significant transactions between YPF and such companies.

If applicable, allowances have been made to reduce investments, where direct or indirect interest is held, to their estimated recoverable value. The main factors for the recognized impairment were the devaluation of the Argentine peso, lower activity expectations, events of default on certain debts and the de-dollarization and freezing of certain utility rates.

Foreign subsidiaries are defined as integrated companies when they carry out their operations as an extension of the parent company’s operations or as non-integrated companies when they collect cash and other monetary items, incur expenses, generate income and are financed principally through their own resources. Assets and liabilities of non-integrated foreign subsidiaries are translated into Argentine pesos at the exchange rate prevailing as of the end of each year. Income statements are translated using the relevant exchange rate at the date of each transaction. Exchange differences arising from the translation process are included as a component of shareholders’ equity in the account “Deferred Earnings”, which are maintained until the sale or complete or partial reimbursement of capital of the related investment occurs. Assets, liabilities and income statements of integrated foreign subsidiaries are translated at the relevant exchange rate at the date of each transaction. Exchange differences arising from the translation process are credited (charged) to the income statement in the account “Gains (losses) on assets—Exchange differences”.

Holdings in preferred shares have been valued as defined in the respective bylaws.

For the year ended December 31, 2009, the Company has capitalized loans and made contributions to YPF Holdings Inc. for an amount of 861. As of December 31, 2008 and 2007, investments in companies with negative shareholders’ equity were disclosed in the “Accounts payable” account in the balance sheet provided that the Company had the intention to provide the corresponding financial support.

If necessary, adjustments to the accounting information have been made to conform the accounting principles used by controlled, jointly controlled or under significant influence companies to those of the Company. Main adjustments are related to the application of the general accepted accounting principles in Argentina to foreign related companies’ financial statements.

The investments in companies under control, joint control or significant influence, have been valued based upon the latest available financial statements of these companies as of the end of each year, taking into consideration, if applicable, significant subsequent events and transactions, available management information and transactions between YPF and the related company which have produced changes on the latter’s shareholders’ equity.

The Company includes supplemental consolidated financial statements as part of the primary financial statements (Schedule I).

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 and which are in excess of the accumulated income that these companies carry upon distribution shall be subject to a 35% income tax withholding as a sole and final payment. YPF has not recorded any charge for this tax since it has estimated that dividends from earnings recorded by the equity method would not be subject to such tax.

e)	Fixed assets:

Fixed assets have been valued at acquisition cost remeasured as detailed in Note 1, less related accumulated depreciation. Depreciation rates, representative of the useful life assigned, applicable to each class of asset, are disclosed in Exhibit A. For those assets whose construction requires an extended period of time, financial costs corresponding to third parties’ financing have been capitalized during the assets’ construction period.

Oil and gas producing activities

•

The Company follows the “successful effort” method of accounting for its oil and gas exploration and production operations. Accordingly, exploratory costs, excluding the costs of exploratory wells, have been charged to expense as incurred. Costs of drilling exploratory wells, including stratigraphic test wells, have been capitalized pending determination as to whether the wells have found proved reserves that justify commercial development. If such reserves were not found, the mentioned costs are charged to expense. Occasionally, an exploratory well may be determined to have found oil and gas reserves, but classification of those reserves as proved cannot be made when drilling is completed. In those cases, the cost of drilling the exploratory well shall continue to be capitalized if the well has found a sufficient quantity of reserves to justify its completion as a producing well and the enterprise is making sufficient progress assessing the reserves and the economic and operating viability of the project. If any of the mentioned conditions is not met, cost of drilling exploratory wells is charged to expense. As of the issuance date of these financial statements, there are no exploratory wells capitalized for more than one year after the completion of the drilling.

•

Intangible drilling costs applicable to productive wells and to developmental dry holes, as well as tangible equipment costs related to the development of oil and gas reserves, have been capitalized.

•

The capitalized costs related to producing activities have been depreciated by field on the unit-of-production basis by applying the ratio of produced oil and gas to estimate recoverable proved and developed oil and gas reserves.

•

The capitalized costs related to acquisitions of properties and extension of concessions with proved reserves have been depreciated by field on the unit-of-production basis by applying the ratio of produced oil and gas to proved oil and gas reserves.

•

The capitalized costs related to areas with unproved reserves, are periodically reviewed by Management to ensure that the carrying value does not exceed their estimated recoverable value.

•

Revisions of crude oil and natural gas proved reserves are considered prospectively in the calculation of depreciation. Revisions in estimates of reserves are performed at least once a year. Additionally, estimates of reserves are audited by independent petroleum engineers on a three-year rotation plan.

•

Costs related to hydrocarbon wells abandonment obligations are capitalized along with the related assets, and are depreciated using the unit-of-production method. As compensation, a liability is recognized for this concept at the estimated value of the discounted payable amounts. 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 not abandoned and likewise the complexity with respect to different geographic areas where the wells are located, the current costs incurred in plugging are used for estimating the plugging cost of the wells pending abandonment. Current costs incurred are the best source of information in order to make the best estimate of asset retirement obligations.

Other fixed assets

•

The Company’s other fixed assets are depreciated using the straight-line method, with depreciation rates based on the estimated useful life of each class of property.

Fixed assets’ maintenance and repairs have been charged to expense as incurred.

Major inspections, necessary to continue to operate the related assets, are capitalized and depreciated using the straight-line method over the period of operation to next major inspection.

Renewals and betterments that extend the useful life and/or increase the productive capacity of properties are capitalized. As fixed assets are retired, the related cost and accumulated depreciation are eliminated from the balance sheet.

The Company capitalizes the costs incurred in limiting, neutralizing or preventing environmental pollution only in those cases in which at least one of the following conditions is met: (a) the expenditure improves the safety or efficiency of an operating plant (or other productive asset); (b) the expenditure prevents or limits environmental pollution; or (c) the expenditures are incurred to prepare assets for sale and do not raise the assets’ carrying value above their estimated recoverable value.

The carrying value of the fixed asset of each business segment, as defined in Note 4 to the consolidated financial statements, does not exceed their estimated recoverable value.

f)	Taxes, withholdings and royalties:

Income tax and tax on minimum presumed income

The Company recognizes the income tax applying the liability method, which considers the effect of the temporary differences between the financial and tax basis of assets and liabilities and the tax loss carryforwards and other tax credits, which may be used to offset future taxable income, at the current statutory rate of 35%.

In deferred income tax computations, the difference between the book value of fixed assets remeasured into constant Argentine pesos and their corresponding historical cost used for tax purposes is a temporary difference to be considered in deferred income tax computations. However, generally accepted accounting principles in Argentina allow the option to disclose the mentioned effect in a note to the financial statements. The Company adopted this latter criterion (Note 3.j).

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 presumed income and the Company’s tax liability related to income tax, calculated applying the current 35% income tax rate to taxable income for the year. However, if the tax on minimum presumed income exceeds income tax during one tax year, such excess may be computed 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, 2009, 2008 and 2007, the amounts determined as current income tax were higher than tax on minimum presumed income and they were included in the “Income tax” account of the statement of income of each year.

Royalties and withholding systems for hydrocarbon exports

A 12% royalty is payable on the estimated value at the wellhead of crude oil production and the commercialized natural gas volumes (see additionally Note 9.c). The estimated value is calculated based upon the approximate sale price of the crude oil and gas produced, less the costs of transportation and storage. As of the date of issuance of these financial statements, the Company has considered price agreements according to crude oil buying and selling operations, obtained in the market for certain qualities of such product, and has applied these prices, net of the discounts mentioned above, to calculate the royalties, according to regulations of Law No. 17,319 and its amendments.

Royalty expense is accounted for as a production cost.

Law No. 25,561 on Public Emergency and Exchange System Reform, issued in January 2002, established duties for hydrocarbon exports for a five-year period. In January 2007, Law No. 26,217 extended this export withholding system for an additional five-year period and also established specifically that this regime is also applicable to exports from “Tierra del Fuego” province, which were previously exempted. Up to March 2008, Resolution No. 534/2006 of the Ministry of Economy and Production (“MEP”) was in force, which, as from July 25, 2006, had raised the natural gas withholding rate from 20% to 45% and had established the natural gas import price from Bolivia as the basis for its determination. Resolution No. 532/2004 (in force until November, 2007) had settled the withholding rate for crude oil between 25% and 45% in function of the West Texas Intermediate (“WTI”) price, and between 5% and 25% for other refined products. On November 16, 2007, the MEP published Resolution No. 394/2007, modifying the withholding regime on exports of crude oil and other refined products. The new regime provides reference prices and floor prices which in conjunction with the WTI determine the export rate for each product. For crude oil, when the WTI exceeds the reference price of US$ 60.9 per barrel, the producer is allowed to collect a floor price of US$ 42 per barrel, depending on the quality of the crude oil sold, with the remainder being withheld by the Argentine Government. When the WTI is under the reference price but over US$ 45 per barrel, a 45% withholding rate should be applied. If such price is under US$ 45 per barrel, the Government will have to determine the export rate within a term of 90 business days. Furthermore, in March 2008, Resolution No. 127/2008 of the MEP increased the natural gas export withholding rate to 100% of the highest price from any natural gas import contract. This resolution has also established a variable withholding system applicable to liquefied petroleum gas, similar to the one established by the Resolution No. 394/2007. As of December 31, 2009, the crude oil withholding rate determined according to Resolutions No. 394/2007 and No. 127/2008 of MEP, also currently applies to diesel, gasoline products and other refined products. In addition, the procedure above mentioned also applies to fuel oil, petrochemical gasoline, lubricants and liquefied petroleum gas (including propane, butane and blends) and other refined products, considering different reference and floor prices disclosed in the mentioned resolutions.

Natural gas export clients are currently absorbing the payment of export duties established by the Resolution No. 127/2008. Some of them have paid reserving their rights to future claims.

Hydrocarbon export withholdings are charged to the “Net sales” account of the statement of income.

g)	Allowances and reserves:

•

Allowances: amounts have been provided in order to reduce the valuation of trade receivables, other receivables, noncurrent investments and fixed assets based on the analysis of doubtful accounts and on the estimated recoverable value of these assets.

•

Reserves for losses: amounts have been provided for various contingencies which are probable and can be reasonably estimated, based on Management’s expectations and in consultation with legal counsels. Reserves for losses are required to be accounted for at the discounted value as of the end of each year; however, as their face value does not differ significantly from discounted values, they are recorded at face value.

The activity in the allowances and reserves accounts is set forth in Exhibit E.

h)	Environmental liabilities:

Environmental liabilities are recorded when environmental assessments and/or remediation are probable and can be reasonably estimated. Such estimates are based on either detailed feasibility studies of remediation approach and cost for individual sites or on the Company’s estimate of costs to be incurred based on historical experience and available information based on the stage of assessment and/or remediation of each site. As additional information becomes available regarding each site or as environmental standards change, the Company revises its estimate of costs to be incurred in environmental assessment and/or remediation matters.

i)	Shareholders’ equity accounts:

These accounts have been remeasured in Argentine pesos as detailed in Note 1, except for “Subscribed Capital” account, which is stated at its historical value. The adjustment required to state this account in constant Argentine pesos is disclosed in the “Adjustment to Contributions” account.

The account “Deferred Earnings” includes the exchange differences generated by the translation into pesos of investments in non-integrated foreign companies.

j)	Statements of income accounts:

The amounts included in the income statement accounts have been recorded by applying the following criteria:

•

Accounts which accumulate monetary transactions at their face value.

•

Cost of sales has been calculated by computing units sold in each month at the replacement cost of that month.

•

Depreciation of nonmonetary assets, valued at acquisition cost, has been recorded based on the remeasured cost of such assets as detailed in Note 1.

•

Holding gains (losses) on inventories valued at replacement cost have been included in the “Holding (losses) gains on inventories” account.

•

Income (loss) on long-term investments in which control, joint control or significant influence is held, has been calculated on the basis of the income (loss) of those companies and was included in the “Income on long-term investments” account, except for the exchange differences arising from the translation process of the foreign subsidiaries defined as integrated companies which are included in the account “Gains (losses) on assets - Exchange differences”.

•

The “Reversal of impairment of other current assets” account for the year ended December 31, 2007, includes the reversal of the impairment mentioned, as consequence of the decision of the Company to suspend the selling process of those assets on April, 2007. Consequently, the book value of the mentioned assets was transferred to fixed assets held for use.

3.	ANALYSIS OF THE MAIN ACCOUNTS OF THE FINANCIAL STATEMENTS

Details regarding significant accounts included in the accompanying financial statements are as follows:

Balance Sheet as of December 31, 2009 and Comparative Information

a)	Investments:


	2009				2008				2007
	Current		Noncurrent		Current		Noncurrent		Current		Noncurrent
Short-term investments and government securities	1,103	⁽¹⁾	—		453	⁽¹⁾	—		242	⁽¹⁾	—
Long-term investments (Exhibit C)	—		2,537		—		2,523		—		2,743
Allowance for reduction in value of holdings in long-term investments (Exhibit E)	—		(26	)	—		(25	)	—		(25	)

	1,103		2,511		453		2,498		242		2,718

(1)	Includes 1,103, 452 and 238 as of December 31, 2009, 2008 and 2007, respectively, with an original maturity of less than three months.

b)	Trade receivables:


	2009			2008			2007
	Current		Noncurrent	Current		Noncurrent	Current		Noncurrent
Accounts receivable	2,585		22	2,535		24	2,882		31
Related parties (Note 7)	461		—	476		—	699		—

	3,046	⁽¹⁾	22	3,011		24	3,581		31

Allowance for doubtful trade receivables (Exhibit E)	(407	)	—	(411	)	—	(433	)	—

	2,639		22	2,600		24	3,148		31

(1)	Includes 348 in litigation, 7 of less than three months past due, 199 in excess of three months past due, 2,445 due within three months and 47 due after three months.

c)	Other receivables:


	2009				2008				2007
	Current		Noncurrent		Current		Noncurrent		Current		Noncurrent
Deferred income tax (Note 3.j)	—		431		—		544		—		508
Tax credit and export rebates	1,090		14		494		14		819		15
Trade	102		—		214		—		94		—
Prepaid expenses	134		67		106		75		102		53
Concessions charges	17		38		17		50		17		79
Related parties (Note 7)	28		—		147		523		3,426		—
Loans to clients	30		69		29		79		14		90
Trust contributions – Obra Sur	—		119		—		—		—		—
Advances to suppliers	120		—		157		—		122		—
Collateral deposits	176		1		91		18		80		19
Advances and loans to employees	41		—		69		—		46		—
From joint ventures and other agreements	100		—		101		—		62		—
Miscellaneous	156		134		164		77		264		73

	1,994	⁽¹⁾	873	⁽²⁾	1,589		1,380		5,046		837

Allowances for other doubtful accounts (Exhibit E)	(88	)	—		(107	)	—		(109	)	—
Allowance for valuation of other receivables to their estimated realizable value (Exhibit E)	—		(16	)	—		(47	)	—		(49	)

	1,906		857		1,482		1,333		4,937		788

(1)	Includes 74 of less than three months past due, 114 in excess of three months past due, 703 without established due date and 1,103 due as follow: 523 from one to three months, 102 from three to six months, 92 from six to nine months and 386 from nine to twelve months.

(2)	Includes 774 due from one to two years, 26 due from two to three years and 73 due after three years.

d)	Inventories:


	2009	2008	2007

Refined products	1,581	1,747	1,444
Crude oil and natural gas	971	1,090	631
Products in process	59	69	46
Raw materials and packaging materials	207	189	163

	2,818	3,095	2,284

e)	Fixed assets:


	2009		2008		2007

Net book value of fixed assets (Exhibit A)	26,355		26,168		23,632
Allowance for unproductive exploratory drilling (Exhibit E)	(3	)	(3	)	(3	)
Allowance for obsolescence of materials and equipment (Exhibit E)	(37	)	(42	)	(44	)

	26,315		26,123		23,585

f)	Accounts payable:


	2009				2008		2007
	Current		Noncurrent		Current	Noncurrent	Current	Noncurrent
Trade	4,194		34		4,491	37	2,804	12
Hydrocarbon wells abandonment obligations	238		4,003		547	3,114	395	2,303
Related parties (Note 7)	423		—		261	—	277	—
Investment in controlled company – YPF Holdings Inc.	—		—		524	—	1,124	—
Extension of Concessions - Province of Neuquén (Note 9.c.ii and iii)	142		—		483	—	—	—
From joint ventures and other agreements	358		—		334	—	373	—
Environmental liabilities (Note 9.b)	179		285		172	257	137	166
Miscellaneous	50		49		15	39	5	38

	5,584	⁽¹⁾	4,371	⁽²⁾	6,827	3,447	5,115	2,519

(1)	Includes 5,000 due within three months, 196 due from three to six months and 388 due after six months.

(2)	Includes 289 due from one to two years and 4,082 due after two years.

g)	Loans:


	Interest Rate⁽¹⁾		Principal Maturity	2009				2008		2007
	Interest Rate⁽¹⁾		Principal Maturity	Current		Noncurrent		Current	Noncurrent	Current	Noncurrent
Negotiable Obligations⁽²⁾	10.00-13.00	%	2011-2028	6		547		364	224	14	523
Related parties (Note 7)	2.28-14.00	%	2010-2011	912	⁽³⁾	380	⁽³⁾	94	1,036	—	—
Other financial debts	3.38-17.05	%	2010-2011	3,465	⁽⁴⁾	1,116	⁽⁴⁾	2,422	—	274	—

				4,383	⁽⁵⁾	2,043	⁽⁵⁾	2,880	1,260	288	523

(1)	Annual interest rate as of December 31, 2009.

(2)	Disclosed net of 38, 548 and 500, corresponding to YPF outstanding Negotiable Obligations repurchased through open market transactions as of December 31, 2009, 2008 and 2007, respectively.

(3)	Includes approximately 1,253 corresponding to loans agreed in U.S. dollars and accrue interest at rates between 2.28 and 5.25%.

(4)	Includes 1,141 guaranteed by Repsol YPF. Also includes approximately 3,430 corresponding to loans agreed in U.S. dollars and accrue interest at rates between 3.38 and 6.90%.

(5)	As of December 31, 2009, 5,075 accrue fixed interest, 205 accrue variable interest of BADLAR plus 1.75% and 1,146 accrue variable interest of LIBO plus 2%.

The maturities of the Company’s current and noncurrent loans, as of December 31, 2009, are as follows:


	From 1 to 3 months	From 3 to 6 months	From 6 to 9 months	From 9 to 12 months	Total
Current loans	1,958	865	788	772	4,383

Details regarding the Negotiable Obligations of the Company are as follows:


(in million)									Book Value
M.T.N. Program			Issuance						2009		2008		2007
Year	Amount		Year	Principal Value		Interest Rate⁽¹⁾		Principal Maturity	Current	Noncurrent	Current	Noncurrent	Current	Noncurrent

1997	US$	1,000	1998	US$	100	10.00	%	2028	6	342	4	224	4	205
2008	US$	1,000	2009	$	205	13.00	%⁽²⁾	2011	—	205	—	—	—	—
1998	US$	1,000	1999	US$	225	—		—	—	—	360	—	10	318

									6	547	364	224	14	523

(1)	Annual interest rate as of December 31, 2009.

(2)	Accrues interest at a variable interest rate of BADLAR plus 1.75%.

In connection with the issued Negotiable Obligations, the Company has agreed for itself and its controlled companies to certain covenants, including among others, to pay all liabilities at their maturity and not to create other encumbrances that exceed 15% of total consolidated assets. If the Company does not comply with any covenant, the trustee or the holders of not less than 25% in aggregate principal amount of each outstanding Negotiable Obligations may declare the principal and accrued interest immediately due and payable.

Financial debt contains customary covenants for contracts of this nature, including negative pledge, material adverse change and cross-default clauses. Almost all of YPF’s total outstanding debt is subject to cross-default provisions, which may be triggered if an event of default occurs with respect to the payment of principal or interest on indebtedness equal to or exceeding US$ 20 million.

The Shareholder’s meeting held on January 8, 2008, approved a Notes Program for an amount up to US$ 1,000 million. Proceeds from this offering shall be used exclusively to invest in fixed assets and working capital in Argentina. On September 24, 2009, the Company issued under the mentioned program the Negotiable Obligations “Class I” at variable interest, with final maturity in 2011, for an amount of 205 million of Argentine pesos. The mentioned 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. Additionally, under the mentioned program, as of the date of issuance of these financial statements, the Company is in process of issuance of two new series of Negotiable Obligations, for a maximum amount authorized by the Board of Directors of 300 million of Argentine pesos and US$ 100 million.

Statement of Income as of December 31, 2009 and Comparative Information

h)	Net sales:


	Income (Expense)
	2009		2008		2007
Sales	33,772		36,063		28,488
Turnover tax	(798	)	(762	)	(537	)
Hydrocarbon export withholdings	(1,628	)	(3,165	)	(759	)

	31,346		32,136		27,192

i)	Other income (expense), net:


Recovery (reserve) for pending lawsuits and other claims	112	(97	)	(194	)
Recovery of sinisters	61	—		—
Miscellaneous	30	35		70

	203	(62	)	(124	)

j)	Income tax:


	2009		2008		2007

Current income tax	(1,983	)	(2,292	)	(2,449	)
Deferred income tax	(113	)	36		8

	(2,096	)	(2,256	)	(2,441	)

The reconciliation of pre-tax income at the statutory tax rate, to the income tax as disclosed in the income statements for the years ended December 31, 2009, 2008 and 2007 is as follows:


	2009		2008		2007
Net income before income tax	5,582		5,896		6,527
Statutory tax rate	35	%	35	%	35	%

Statutory tax rate applied to net income before income tax	(1,954	)	(2,064	)	(2,284	)

Effect of the restatement of fixed assets into constant Argentine pesos	(177	)	(234	)	(262	)
Income on long-term investments	104		77		59
Tax free income - Law No. 19,640 (Tierra del Fuego)	29		22		19
Tax amnesty - Law No. 26,476	(97	)	—		—
Non-taxable foreign source income	—		1		39
Miscellaneous	(1	)	(58	)	(12	)

Income Tax	(2,096	)	(2,256	)	(2,441	)

The breakdown of the net deferred tax asset as of December 31, 2009, 2008 and 2007, is as follows:


	2009		2008		2007
Deferred tax assets
Non deductible allowances and reserves	730		746		732
Tax loss and other tax credits	42		42		79
Miscellaneous	—		10		19

Total deferred tax assets	772		798		830


Deferred tax liabilities
Fixed assets	(341	)	(203	)	(309	)
Miscellaneous	—		(51	)	(13	)

Total deferred tax liabilities	(341	)	(254	)	(322	)

Net deferred tax asset	431		544		508

As explained in Note 2.f, the difference between the book value of fixed assets remeasured into constant Argentine pesos and their corresponding historical cost used for tax purposes, at the current tax rate, is a deferred tax liability of 930, 1,107 and 1,341 as of December 31, 2009, 2008 and 2007, respectively. Had this deferred tax liability been recorded, the amount charged to income for the year ended December 31, 2009, 2008 and 2007 would have been 177, 234 and 262, respectively. The Company estimates that the difference will be reversed as follows:


	2010	2011	2012 thereafter	Total
Deferred income tax	185	151	594	930

4.	CAPITAL STOCK

The Company’s subscribed capital as of December 31, 2009, is 3,933 and is represented by 393,312,793 shares of common stock and divided into four classes 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 for stock exchange listing.

As of December 31, 2009, Repsol YPF, S.A. (“Repsol YPF”) controls the Company, directly and indirectly, through an 84.04% shareholding, while Petersen Energía S.A. (“PESA”) and its affiliates exercises significant influence through a 15.46% shareholding. Additionally, Repsol YPF granted certain affiliates of PESA an option, which expires on February 21, 2012, to purchase from Repsol YPF up to an additional 10% of YPF’s outstanding capital stock.

Additionally, Repsol YPF and PESA have signed a shareholders’ agreement establishing among other things, the adoption of a dividend policy under which YPF will distribute 90% of the annual net income as dividends.

Repsol YPF’s legal address is Paseo de la Castellana 278, 28046 Madrid, Spain. Repsol YPF’s principal business is the exploration, development and production of crude oil and natural gas, transportation of petroleum products, liquefied petroleum gas and natural gas, petroleum refining, production of a wide range of petrochemicals and marketing of petroleum products, petroleum derivatives, petrochemicals, liquefied petroleum gas and natural gas.

As of December 31, 2009, there are 3,764 Class A shares outstanding. As long as any Class A share remains outstanding, the affirmative vote of Argentine Government is required for: 1) mergers, 2) acquisitions of more than 50% of the Company’s shares in an agreed or hostile bid, 3) transfers of all the Company’s production and exploration 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 also require prior approval by the Argentine Congress.

5.	RESTRICTED ASSETS AND GUARANTEES GIVEN

As of December 31, 2009, YPF has signed guarantees in relation to the financing activities of Pluspetrol Energy S.A. and Central Dock Sud S.A. in an amount of approximately US$ 10 million and US$ 17 million, respectively. The corresponding loans have final maturity in 2011 and 2013, respectively.

6.	PARTICIPATION IN JOINT VENTURES AND OTHER AGREEMENTS

As of December 31, 2009, the main exploration and production joint ventures and other agreements in which the Company participates are the following:


Name and Location	Ownership Interest		Operator
Acambuco Salta	22.50	%	Pan American Energy LLC
Aguada Pichana Neuquén	27.27	%	Total Austral S.A.
Aguaragüe Salta	30.00	%	Tecpetrol S.A.
CAM-2/A SUR Tierra del Fuego	50.00	%	Enap Sipetrol Argentina S.A.


Name and Location	Ownership Interest		Operator
Campamento Central / Cañadón Perdido Chubut	50.00	%	YPF S.A.
Consorcio CNQ7/A La Pampa and Mendoza	50.00	%	Petro Andina Resources Ltd. Sucursal Argentina
El Tordillo Chubut	12.20	%	Tecpetrol S.A.
La Tapera y Puesto Quiroga Chubut	12.20	%	Tecpetrol S.A.
Llancanelo Mendoza	51.00	%	YPF S.A.
Magallanes Santa Cruz, Tierra del Fuego and National Continental Shelf	50.00	%	Enap Sipetrol Argentina S.A.
Palmar Largo Formosa and Salta	30.00	%	Pluspetrol S.A.
Puesto Hernández Neuquén and Mendoza	61.55	%	Petrobras Energía S.A.
Ramos Salta	15.00	%⁽¹⁾	Pluspetrol Energy S.A.
San Roque Neuquén	34.11	%	Total Austral S.A.
Tierra del Fuego Tierra del Fuego	30.00	%	Petrolera L.F. Company S.R.L.
Yacimiento La Ventana – Río Tunuyán Mendoza	60.00	%	YPF S.A.
Zampal Oeste Mendoza	70.00	%	YPF S.A.

(1)	Additionally, YPF has a 27% indirect ownership interest through Pluspetrol Energy S.A.

Additionally, YPF Holdings Inc. (controlled company) participates in exploration and production agreements in the Gulf of Mexico (see Note 3 to the consolidated financial statements).

The assets and liabilities as of December 31, 2009, 2008 and 2007 and production costs of the joint ventures and other agreements for the years ended December 31, 2009, 2008 and 2007 included in the financial statements are as follows:


	2009	2008	2007
Current assets	260	256	186
Noncurrent assets	3,350	3,526	3,097

Total assets	3,610	3,782	3,283


Current liabilities	480	481	472
Noncurrent liabilities	628	525	360

Total liabilities	1,108	1,006	832

Production costs	1,994	1,659	1,423

Participation in joint ventures and other agreements have been calculated based upon the latest available financial statements as of the end of each year, taking into account significant subsequent events and transactions as well as available management information.

7.	BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The principal outstanding balances as of December 31, 2009, 2008 and 2007 from transactions with related companies are as follows:


	2009					2008						2007
	Trade receivables	Other receivables	Accounts payable	Loans		Trade receivables	Other receivables		Accounts payable	Loans		Trade receivables	Other receivables	Accounts payable
	Current	Current	Current	Current	Noncurrent	Current	Current	Noncurrent	Current	Current	Noncurrent	Current	Current	Current
Controlled companies:

Operadora de Estaciones de Servicios S.A.	38	1	10	—	—	31	6	—	12	—	—	29	12	13
A - Evangelista S.A.	—	2	141	—	—	1	1	—	77	—	—	—	—	103
YPF Holdings Inc.	—	—	—	—	—	—	—	—	3	—	—	—	867	2
Maxus (U.S.) Exploration Company⁽¹⁾	—	—	—	—	—	—	110	523	—	—	—	—	—	—
Maxus⁽¹⁾	—	—	1	—	—	—	—	—	—	—	—	—	—	—

	38	3	152	—	—	32	117	523	92	—	—	29	879	118

Jointly controlled companies:
Profertil S.A.	10	1	11	—	—	9	5	—	4	—	—	7	—	15
Compañía Mega S.A. (“Mega”)	245	—	8	—	—	193	1	—	—	—	—	269	—	—
Refinería del Norte S.A. (“Refinor”)	86	—	32	—	—	140	—	—	8	—	—	88	—	28

	341	1	51	—	—	342	6	—	12	—	—	364	—	43

Companies under significant influence:	22	1	25	—	—	16	7	—	36	—	—	25	2	30

Main shareholders and other related parties under their control:
Repsol YPF	—	8	112	—	—	—	7	—	68	—	—	—	6	43
Repsol YPF Transporte y Trading S.A.	—	—	—	—	—	4	—	—	5	—	—	178	—	3
Repsol YPF Gas S.A.	35	3	2	—	—	22	2	—	1	—	—	30	5	1
Repsol YPF Brasil S.A.	7	—	—	—	—	13	2	—	—	—	—	10	1,102	—
Repsol International Finance B.V.	—	1	—	—	—	—	1	—	—	—	—	—	1,427	—
Repsol Netherlands Finance B.V.	—	—	—	766	380	—	—	—	—	13	1,036	—	—	—
Nuevo Banco de Entre Ríos S.A.	—	—	—	50	—	—	—	—	—	23	—	—	—	—
Nuevo Banco de Santa Fe S.A.	—	—	—	75	—	—	—	—