Tags: Soros | YPF | Argentina | Shale

Soros Doubles YPF Stake in Argentina's Nascent Shale Boom

Thursday, 14 August 2014 06:54 PM

George Soros’s $28 billion family office more than doubled its stake in YPF SA, making Argentina’s state-controlled oil company its biggest U.S.-traded stock holding in the second quarter.

Soros Fund Management LLC added 8.47 million shares of YPF, according to a regulatory filing Thursday, bringing its total position to 3.5 percent of the company’s American depositary receipts. The position was worth $450 million at the end of June, making Soros the fourth biggest holder. Perry Capital, the $10.9 billion hedge-fund firm run by Richard Perry, and Dan Loeb’s Third Point LLC also added significantly to YPF in the second quarter.

YPF, control of which was seized by Argentine President Cristina Fernandez de Kirchner in 2012, is steering its efforts into some of the world’s largest shale oil and gas deposits in the Vaca Muerta formation along with Chevron Corp. to reverse a widening energy deficit. The Buenos Aires-based company said Thursday it made a shale discovery in Mendoza province, its third non-conventional find in South America’s second-largest economy.

Soros, 84, is the world’s 23rd wealthiest person with a net worth of $26.3 billion, according to data compiled by Bloomberg. The Hungarian-born investor increased his fortune 14 percent this year.

Michael Vachon, a spokesman for the New York-based fund, didn’t immediately reply to an e-mail seeking comment on the increased stake in YPF. The YPF press office didn’t immediately reply for comment on the Soros investment.

Market Return

Argentina’s Fernandez seized a 51 percent stake in YPF from Repsol SA in April 2012, handing control of the company to former Schlumberger Ltd executive Miguel Galuccio. The company’s ADRs have surged 136 percent since the takeover to $30.97. They have fallen 6 percent this year and rose 4.9 percent in the second quarter.

YPF returned to the international debt markets last year and sold $1 billion of bonds due 2024 in May to finance its exploration and production program.

The Argentine government agreed to compensate Repsol with $5 billion of bonds earlier this year, and the Spanish energy producer sold the majority of its remaining shares in the company afterward.

© Copyright 2021 Bloomberg News. All rights reserved.


StreetTalk
George Soros's $28 billion family office more than doubled its stake in YPF SA, making Argentina's state-controlled oil company its biggest U.S.-traded stock holding in the second quarter.
Soros, YPF, Argentina, Shale
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2014-54-14
Thursday, 14 August 2014 06:54 PM
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