1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
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1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation & Price Target
3. Business & Product Moat
Discussion
Symbol
YLUZ
Offer Range
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Shares Offered
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Implied Upside vs Midpoint
$00.00Description
We are the leading pure-play power generation company in Argentina based on installed capacity, engaged in the development and operation of electricity power plants and the generation and commercialization of electricity using both thermal and renewable technologies. We own and operate 17 power generation assets with a total installed capacity of 3,764 MW, representing 8.2% of Argentina’s total installed capacity connected to the SADI, the country’s electricity grid, as of March 2026. For the twelve-month period ended March 31, 2026, we supplied 15.0 TWh of electricity, representing 9.9% of the total electricity supplied on the SADI. We have a strategically diversified portfolio with multiple technologies, which allows us to benefit from the complementarity of our assets by delivering efficient thermal and renewable energy, along with firm capacity, as well as numerous geographic locations across the country. A significant portion of our generation capacity is contracted under long-term PPAs, and all our revenues, from both PPAs and the spot market, are denominated in U.S. dollars. From March 2016 to March 2026, we have grown at a compound annual growth rate (“CAGR”) of 16.0% in terms of our installed capacity, primarily through organic development, and we intend to continue to grow with our pipeline of projects, through potential acquisitions and by taking advantage of opportunities we expect to arise as part of Argentina’s electricity market transition. Our operating portfolio is comprised of 2,740 MW of thermal assets and 1,024 MW of renewable assets, representing 73% and 27% of our total installed capacity, respectively, as of the date of this prospectus. Our thermal assets include reliable and efficient: (i) combined-cycle plants, which generate additional electricity by using exhaust heat to drive a steam turbine; (ii) simple-cycle plants, which use one or more gas turbines in a single energy cycle; (iii) cogeneration plants, which produce both electricity and heat; and (iv) reciprocating engine plants, which use piston-driven engines to generate electricity. Our renewable generation portfolio is comprised of wind and solar farms, which are strategically located in sites with strong wind and concentrated solar photovoltaic power conditions, resulting in load factors significantly above industry averages, both in Argentina and worldwide. For the twelve-month period ended March 31, 2026, 81.0% of the electricity we supplied was from thermal sources and 19.0% was from renewable sources. We expect the proportion of our electricity generation from renewable sources to grow, given the recent commencement of operations of the new renewables plants. We are the third largest thermal power generation company and the second largest in renewable power generation in Argentina in terms of installed capacity as of March 2026 and of energy generated for the twelve-month period ended March 31, 2026. Our thermal assets represent 10.8% of Argentina’s total thermal installed capacity connected to the SADI as of March 2026 and we contributed 15.0% of the country’s thermal energy generation on the SADI for the twelve-month period ended March 31, 2026. Our renewable assets represent 11.7% of Argentina’s total renewable installed capacity connected to the SADI as of March 2026 and we contributed 10.3% of the country’s renewable energy generation on the SADI for the twelve-month period ended March 31, 2026. The Company was formed in August 2013 with YPF as its sole shareholder. YPF is Argentina’s largest energy company, with fully integrated oil and gas operations and a leading market position in Argentina’s upstream and downstream sectors. YPF’s shares have been listed on the BYMA and the NYSE since 1993. The Argentine government owns 51% of the capital stock of YPF. During its early years, the Company focused its strategy on providing a reliable and efficient energy supply for YPF. Starting in 2018, the Company shifted its strategy to focus on its own standalone and independent development and entered a growth phase leveraging on opportunities within Argentina’s electricity market through participation in multiple tenders, as well as in the renewable energy sector development in the country. As part of our growth strategy, in March 2018, GE EFS Power Investments B.V. (then an affiliate of General Electric) acquired 24.99% of our capital stock, with the remaining 75.01% continuing to be held directly or indirectly by YPF. Since then, we successfully executed on our strategy and have grown our installed capacity, becoming Argentina’s largest pure-play power generation company. In 2019, GE EFS Power Investments B.V. was transferred to BNR Infrastructure Co-Investment Ltd, an entity controlled by GE Vernova with 50/50 participation from GE Vernova and the Silk Road Fund. Following the GE Vernova spin-off in April 2024, GE EFS Power Investments B.V. was renamed to BNR Power Investments B.V., with its underlying shareholding structure remaining unchanged. --- Our assets are located across eight provinces in the center, North, South and West of Argentina, allowing us to deliver energy through multiple nodes of the country’s electricity grid. As of the date of this prospectus, we own and operate ten thermal plants for a total installed capacity of 2,740 MW, five wind farms totaling 619 MW and two solar farms totaling 405 MW. We also produce steam from our LPC I and LPC II thermal power plants, which have steam capacities of between 190 and 210 tons per hour and between 190 and 200 tons per hour, respectively. Additionally, we are constructing our first BESS project for 90 MW, which upon completion will increase our total installed capacity to 3,854 MW. Our BESS project, which was part of the first bidding process for a BESS technology in Argentina, is located in the Province of Buenos Aires and is expected to add 90 MW of power capacity and 450 MWh of storage capacity and is expected to reach full commercial operations in the fourth quarter of 2026. --- A significant portion of our revenues are generated under a diversified portfolio of long-term PPAs denominated in U.S. dollars. We have entered into these PPAs with private clients and with CAMMESA, Argentina’s centralized administrator of power supply and demand. We have the largest portfolio of contracted energy in the Argentine private PPA market with approximately a 21% market share for the twelve-month period ended March 31, 2026. Our private clients include YPF and more than 100 other industrial clients, which we expect will continue to grow and represent an increasingly important part of our client portfolio. Today, our private PPAs have a capacity-weighted average remaining life of approximately seven years. Our CAMMESA PPAs come from various tenders awarded across thermal and renewable assets. The CAMMESA PPAs have a capacity-weighted average remaining life of approximately five years. Under our thermal PPAs with CAMMESA, we receive two types of remuneration: capacity prices based on our power plants available capacity and energy prices based on the actual energy produced. Under our thermal PPAs with private users, we can receive remuneration for available capacity or energy produced, or both. Under our renewable PPAs, we receive remuneration based on the actual energy produced. Our remuneration under these PPAs is denominated in U.S. dollars and payable in Argentine pesos. We also participate in the spot market for our non-contracted energy and capacity, as well as for any surpluses over committed power. In the spot market, we receive two types of remuneration from CAMMESA: capacity prices based on our thermal power plants available capacity during each designated hour and energy prices based on the actual energy produced. Since the implementation of Resolution No. 400/2025 effective as of November 1, 2025, all our revenues from sales in the spot market are U.S. dollar-denominated, although payable in pesos. We also produce steam in our LPC I and LPC II power plants, which we sell to YPF under two long-term supply agreements, which were entered into in January 2018 and October 2020, respectively. Our revenues from steam sales are reflected under our thermal revenues and accounted for 6.0% and 4.7% of our total revenues for the year ended December 31, 2025 and the three-month period ended March 31, 2026, respectively. During the year ended December 31, 2025, our revenues under our PPAs with our private clients represented 37.4% of our total revenues (including 20.5% from YPF), our revenues under PPAs with CAMMESA accounted for 38.3% and our revenues from the spot market accounted for 24.2% of our total revenues. For the same year, our revenues for available capacity and for actual energy produced represented 42.1% and 51.9% of our total revenues, respectively. During the three-month period ended March 31, 2026, our revenues under our PPAs with our private clients represented 30.9% of our total revenues (including 14.7% from YPF), our revenues under PPAs with CAMMESA accounted for 23.3% and our revenues from the spot market accounted for 45.7%, which includes the recognition of revenues from the self-management procurement of fuel following the new regulatory framework established by Resolution No. 400/2025. For the same period, our revenues for available capacity and for actual energy produced represented 31.4% and 63.8% of our total revenues, respectively. Regarding our project under construction, 100% of the BESS project’s installed capacity has been committed under a 15-year PPA with EDESUR, the second largest electricity distribution company in Argentina. The following table provides a summary of our portfolio of operating assets and projects under construction, including information on the PPA contracting status: Installed Power Generation Capacity Equipment Fuel Asset(1) (MW) Technology Supplier Source Market /Off-taker COD Operating Thermal Central Dock Sud 933 Combined GE Vernova | Gas & Diesel Spot market / Potential to 2001 cycle/simple Babcock Contract(2) cycle Wilcox El Bracho 473 Combined GE Vernova Gas CAMMESA PPA 2018/20 cycle Tucumán 447 Combined Siemens | GE Gas Spot market / Potential to 1996/97 cycle Vernova | Contract(2) Nooter Eriksen San Miguel de 382 Combined GE Vernova | Gas Spot market / Potential to 1995/2000 Tucumán cycle Alstom | CMI Contract(2) LPC I 128 Cogeneration GE Vernova | Gas & Diesel YPF PPA / spot market 1997 Nooter Eriksen Loma Campana II 107 Simple cycle GE Vernova Gas CAMMESA PPA 2017 Loma Campana I 105 Simple cycle GE Vernova Gas YPF PPA / spot market 2017 LPC II 90 Cogeneration GE Vernova Gas & Diesel YPF & CAMMESA PPAs 2020 Manantiales Behr 58 Reciprocating Wärtsilä Gas Private PPA 2021 engines Loma Campana Este 17 Reciprocating Jenbacher Gas YPF PPA 2017 engines Total Thermal 2,740 Renewable Los Teros 175 Wind Farm GE Vernova — YPF & Private PPAs 2020/21 General Levalle 155 Wind Farm Vestas — Private PPAs 2024 Cañadón León 123 Wind Farm GE Vernova — YPF & CAMMESA PPAs 2021 Manantiales Behr 104 Wind Farm Vestas — YPF & Private PPAs 2018 CASA 63 Wind Farm Nordex — Private PPAs 1Q26 El Quemado(3) 305 Solar Farm Jinko Solar — Private PPAs / spot market 2Q26 Zonda 100 Solar Farm Trina — Private PPAs 2023 Total Renewable 1,024 Total Operating 3,764 Projects Under Construction BESS 90 BESS Trina — PPA with EDESUR Expected 4Q26 Total Projects 90 Under Construction Total (including 3,854 Projects Under Construction) The regulatory framework applicable to electricity power generators, in which we develop our activities, is undergoing significant changes and transitioning towards a more deregulated and competitive market model. Effective as of November 1, 2025, Resolution No. 400/2025 set the new regulatory framework for the Argentine power sector, promoting competition within the WEM, free contracting among market participants, decentralizing fuel management, and introducing economic incentives for new generation capacity. The new framework also aims to reduce state intervention in the remuneration scheme and contracting system of the sector, establishing a marginal cost-based remuneration system for electricity supply. We expect that this new regulatory framework will offer greater opportunities to enter into contracts with private clients and present other growth opportunities. We see potential opportunities to capture incremental electricity demand from a range of existing and emerging end-use segments, including mining activities, oil and gas developments, data centers and electric mobility. We continuously evaluate strategic alternatives to address new demand, including organic growth initiatives and potential acquisitions, subject to market conditions, regulatory considerations and capital allocation priorities. The life cycle of our power generation projects encompasses several stages, ranging from prospecting and developing projects, to the construction, to the operation, maintenance and dispatch of our power generation assets. --- • Business & Project Development: The development stages we follow for our projects are as follows: • Early stage developments: In this first stage, we prepare the initial project designs, we carry out the preliminary selection of the technology and conduct pre-feasibility studies. Securing land rights is also a key activity at this stage. • Advanced developments: Projects at this stage undergo detailed technical development and actively pursue required permits. Key activities include conducting engineering studies, evaluating appropriate technologies, completing environmental impact assessments required for permitting, and coordinating with regulatory, national, provincial and municipal authorities in connection with the applicable permitting processes. • Ready-to-tender developments: Following completion of the technical development undertaken during the advanced development stage, we prepare comprehensive tender documentation for all project work packages and negotiate long-term maintenance agreements with technology providers, which become effective upon COD. This stage also includes obtaining all required construction permits. • Ready-to-build developments: At this stage, tenders are issued for all project work packages, including technology, and bids are subject to comprehensive technical and economic evaluation. Projects at this stage are also engaged in advanced financing discussions and are prepared for submission to our Board of Directors for approval. • Under Construction Projects: Following approval by our Board of Directors, we can proceed to execute all technology and EPC agreements. Each project is carried out by our contractors under the guidance of our dedicated project management team that oversees all aspects of construction, from civil works to grid connection and commissioning, guaranteeing that quality standards are strictly maintained throughout the process. The strong presence of our project management teams ensures the timely and on-budget delivery of projects. The construction phase is completed upon achievement of the project’s COD, following CAMMESA’s verification of all tests and formal approval of the commercial commissioning. • Operating Projects: Upon achieving COD, the project transitions to the operations and maintenance phase. All renewable projects are managed from a centralized remote operations center at our Buenos Aires headquarters, providing continuous real-time monitoring of all assets. Thermal assets are operated directly on-site, taking advantage of operational synergies within our generation complexes. We maintain long-term service agreements with original equipment manufacturers to ensure optimal asset availability. Plant dispatch is coordinated with CAMMESA, which oversees the national system’s dispatch operations. Our growth has been primarily organic, achieved through the in-house development of projects. As part of our growth strategy, we have developed a robust and evolving pipeline of new energy projects to provide options to meet rising demand, supported by teams with significant expertise. Our proprietary development pipeline comprises five ready-to-build projects representing 520 MW, five ready-to-tender projects representing 696 MW, five advanced development projects representing 1,060 MW and nine early stage projects representing 3,063 MW. Our proprietary development pipeline includes 2.2 GW in wind projects, 1.3 GW in solar projects, 1.2 GW in thermal projects and 0.6 GW in BESS projects. Of the 520 MW representing ready-to-build projects, 370 MW, which consist of 250 MW of solar photovoltaic capacity and 120 MW of BESS capacity, have been approved by our Board of Directors, subject to the completion of certain conditions including, among others, acceptance into the RIGI regime. (1) We own 100% of all our assets except for the Central Dock Sud thermal power plant and the BESS project at CDS. We own a 70.16% equity interest in IDS, which owns 71.77% of the equity interest in CDS, which owns the Central Dock Sud thermal power plant and the BESS project, under construction, which is expected to add 90 MW/450 MWh of storage capacity to our portfolio in the fourth quarter of 2026. (2) Under Resolution No. 400/2025, effective as of November 1, 2025, thermal power generators may contract a portion of their electricity generation to private users on the MAT. (3) El Quemado reached COD in stages: 100 MW in December 2025, 100 MW in February 2026 and 105 MW in June 2026. --- Our principal executive offices are located at Juana Manso 1069, Floor 5, C1107CBU, City of Buenos Aires, Argentina. Our telephone number is +54 (11) 5441-5400 and our email address is inversores.ypfee@ypf.com. Our website is www.ypfluz.com.