NEW YORK (TheStreet) -- Shares of Yacimientos Pete Fiscales SA, or YPF (YPF) are down -2.79% to $29.59 after a federal appellate court in Argentina ordered a criminal investigation into the approval of a billion-dollar deal with Chevron Corp. (CVX) to produce oil and gas by hydraulic fracturing in the world's third-largest shale deposit, the Associated Press reports.
Argentine President Cristina Fernandez is accused of abusing her power and harming the environment by issuing a decree last year that facilitated the deal, the AP said.
Chevron's shares are down -1.17% to $123.88.
TheStreet Ratings team rates YACIMIENTOS PETE FISCALES SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate YACIMIENTOS PETE FISCALES SA (YPF) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: