NYSE:PAM Pampa Energía Q2 2024 Earnings Report $76.65 -1.54 (-1.97%) Closing price 05/30/2025 03:59 PM EasternExtended Trading$76.60 -0.05 (-0.07%) As of 05/30/2025 05:10 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Pampa Energía EPS ResultsActual EPS$1.80Consensus EPS $1.36Beat/MissBeat by +$0.44One Year Ago EPSN/APampa Energía Revenue ResultsActual Revenue$500.00 millionExpected Revenue$479.17 millionBeat/MissBeat by +$20.83 millionYoY Revenue GrowthN/APampa Energía Announcement DetailsQuarterQ2 2024Date8/7/2024TimeN/AConference Call DateThursday, August 8, 2024Conference Call Time10:00AM ETUpcoming EarningsPampa Energía's Q2 2025 earnings is scheduled for Wednesday, August 6, 2025, with a conference call scheduled on Thursday, August 7, 2025 at 8:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckInterim ReportEarnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Pampa Energía Q2 2024 Earnings Call TranscriptProvided by QuartrAugust 8, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning, everyone. Thank you for waiting. I'm Raquel Caldas from IR, and we would like to welcome everyone to Pampa Energia's Second Quarter twenty twenty four Results Video Conference. We would like to inform you that this event is being recorded. All participants will be in listen only mode during the presentation. Operator00:00:21After the company's remarks, there will be a Q and A session. Questions can only be submitted in writing through Should any participant need assistance, please send us a chat message. Before proceeding, please read the disclaimer in the second page of our presentation. Let me mention that forward looking statements are based on Pampa Energia's management beliefs and assumptions and information currently available to the company. They involve risks, uncertainties and assumptions because they are related to future events that may or may not occur. Operator00:00:56Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampa Energia and could cause results to differ materially from those expressed in such forward looking statements. Now, I'll turn the video conference over to Lea. Please go ahead. Speaker 100:01:20Hi. Thank you, Raquel. Hello, everyone, and thank you for joining our conference call. I will make a quick summary of the Q2. You may find more details in our earnings release and financial statements. Speaker 100:01:33Today, we are having a Q and A with our CFO, Mr. Nicolas Mindlin Mr. Rorazioturi, our Head of the MPG, is here Aloso Soube Buzer, our Head of Finance, is also here. Unfortunately, our CEO, Gustavo Mariani, can join us today because he is in Vaca Muerta hosting our President's debate. The gas production is what definitely stands out the quarter's figures. Speaker 100:01:59Again, we've beaten all company records, delivering a 37% increase year on year in Q2 and recording a new daily record high of 16,800,000 cubic meters per day. The output surge is explained by the latest land gas contract. We've been awarded, enabled by the new pipeline build last year. It also helped the early winter freeze, driving retail and thermal power generation. The production increase is backed by shale gas, harvesting the campaign we began last year. Speaker 100:02:40Shale gas now represents almost half of our total output this quarter, a significant increase compared to last year's 23%. Therefore, this quarter, the adjusted EBITDA amounted to two eighty eight million dollars an increase of 30% compared to last year's figure, mainly because of the gas outperformance and TGS' contribution, which surged by the 675% tariff hike granted in April. Lower gas exports, sales to industries and thermal dispatch partially offset these effects. The quarter on quarter increase is explained by the seasonality in CAMMESA's haircut recorded in Q1 and last year Q4. It is worth noting that almost 80% of the quarter's EBITDA was dollar linked, and the share now is led by YMP, which is mainly due to the gas production. Speaker 100:03:45CapEx in Q2 is 28% lower year on year, mainly because in Q3 in 2023, we had a strong shale gas drilling and completion campaign and the construction of BP4. This was partially offset by the last divestments of Pepe six, which is estimated to be fully commissioned by October and the beginning of the pilot plan for shale oil in the Incon Garanda. Moving on to the Power Generation segment. As seen on Slide four five, sorry, we posted an adjusted EBITDA of $106,000,000 in Q2. This is 9% higher year on year, mainly explained by lower operating costs, the full commissioning of the PEPE-four in June and the strong spot sales in Genelba, partially offset by reduced Energia Plus sales, which is in line with the decline in industrial activity, in addition to Mario Cerrado's divestment last year. Speaker 100:04:52Q2 dispatch increased 3% year on year. This is mainly due to the lower gas availability for thermal dispatch that mainly affected our CCGT, partially offset by a better dispatch in the old CCGT in Geneloa, which in Q2 last year had more days out of service for maintenance, higher water levels at Mendoza Hydro and Pepe Force contribution. Take per pay capacity payment, especially from PPAs, explains most of the EBITDA. It is driven by availability. And in Q2, we reached 98% availability. Speaker 100:05:35This is higher than last year's 95%, mainly due to the previous year's thermal outages that we mentioned. So now turning let me give you a quick brief on PP6, the expansion. The project, it's highly advanced, 94%. Between July and August, '10 Vestas wind turbines were commissioned by CAMVisa totaling 45 megawatts. We are testing to commission another four. Speaker 100:06:13The 500 kV high voltage grid and transformer station have been fully energized as well as free wind turbine circuits. The estimated fuel COV will be in October. And PP6 Energy will be sold under B2B PPAs in the matter. Going on, on Slide eight, our E and P business posted an adjusted EBITDA of $121,000,000 in Q2. This is 24% higher year on year. Speaker 100:06:50This increase was driven by Plant Gas' latest round, unlocked by the commissioning of the new gas pipeline, in which we were awarded a long term contract for 4,800,000 cubic meters per day flat during the year. We the early freeze also helped. Lower gas exports and sales to the industries offset this. In Q2, our total production averaged almost 91,000 barrels per day. This is 35% higher than last year. Speaker 100:07:27When we're assuming crude oil, which just represented 6% of our E and P output and 50% of the segment's revenue, total gas just keeps taking the lead, representing 94% of our total production. Higher maintenance and treatment costs due to the increased activity explained that our total lifting cost grew by 11% year on year. Still, the rising output possibly impacted lifting cost per BOE, which decreased 17% year on year, recording $5.3 per BOE and monetizing the economies of scale. Quickly commenting on gas. Our production in Q2 increased by 37% year on year and 24% quarter on quarter. Speaker 100:08:26This is averaging almost 50,000,000 units per day in the quarter. As commented before, shale gas is the main contributor here. And 63% of the quarter's production came from El Vangruco and 23% from Sierra Chata, our flagship shale gas field. Sierra Chata production grew 50% year on year without connecting or drilling a well this quarter, while El Angrucho experienced 45% surge with only three wells tied in. The average gas price over the quarter stood at $4 per million BTU. Speaker 100:09:09This is 14% down due to the lower exports to Chile. As you can see right below, the higher deliveries of local gas we're investing for thermal power generation. This is a quick review on Rincon de Aranda, sharing the promising results. Horacio, surely, will comment more in the Q and A. As you can see here, our wells performance is within the range in our neighboring shale oil blocks, and our daily production reached above 1,600 barrels per day once we connected the shut in well in Shu. Speaker 100:09:50We have already placed a drilling rig in the block to start drilling a pad of four wells plus another pad next year, meaning to produce by mid next year and reaching a plateau production between 40,000, 40 five thousand barrels per day by 2027. The petrochemical business went on to another business, posted a $50,000,000 EBITDA in Q2. This is 50% growth year on year, mainly because of the higher sales of reforming and improved exports of SVR margins, offset by the domestic sales due to the economic downturn. Hence, the export share is getting more and more important. Moving on to Slide 12. Speaker 100:10:45Moving on Slide 12. We show the restricted group figures that reflect the bond parameter. In Q2, we recorded a free cash flow of $60,000,000 Our working capital had recovered since Chamezas Hercules last quarter. As of today, days of sales outstanding is fifty five days total. This is this means a delay of only thirteen days. Speaker 100:11:15The payment normalization allow us to cancel debt. So the net debt is significantly below last quarter, as you can see here. In summary, we increased $69,000,000 of net cash in the quarter, achieving a $914,000,000 cash position by the end of the period. While this slide shows our consolidated financial position, including our affiliates ownership, but let's keep it focusing on restricted group figures. We posted a gross debt of $1,600,000,000 This is 3% lower year on year and a 5% growth in cash. Speaker 100:12:01After settling peso debts and depreciations of the peso, 90 2 percent of the gross debt is in U. S. Dollars. The net debt recorded $691,000,000 This is a 12% year on year lower and onetime to last twelve months EBITDA net leverage. And the average life was two point six years. Speaker 100:12:33And until 2027, we just don't face any relevant debt maturity. So this concludes our presentation. Now I'll turn the word to Raquel, who will poll for the questions. Thank you very much. Operator00:12:49Thank you very much, Lia. So the floor is now open for questions. If you have any questions, please send us through Zoom chat. We will read and answer them in order received. Also, please make sure your name and company are correctly displayed to introduce you to the audience. Operator00:13:47Thank you very much for waiting. Our first question comes from Alejandra Andrade from JPMorgan. First one is how are CAMMESA payments she wants to know how are CAMMESA payments nowadays? Speaker 200:14:08JOSE Hello, everybody. Leon, can you come in? Okay. So CAMMESA is paying quite well. As of today, we are not experiencing any delay, which is in line with historical minimums, as Lia showed in the presentation. Speaker 200:14:29On the other hand, Enaarza has been paying with a delay of almost a month, but we understand that this should normalize in the coming month. And in any case, we are seeing goodwill and reasonable delays in line with the historical minimums that we have seen. Operator00:14:54Thank you, Juanico. In line with this, she also was she also asks, the $23,000,000 impairments are unrecognized CAMMESA interests. Speaker 200:15:10Yes. So as we communicated at the time, we have accepted CAMMESA's proposal to settle transactions for December and January with the A38 bonds. So this proposal did not recognize accrued interest. So considering the bond market prices at the time of the payment, we recognized a loss of $53,000,000 of which $23,000,000 were unrecognized interest. Operator00:15:46Thank you, Nico. The third question of Alejandra. She asks, how are the infrastructure projects progressing? Speaker 300:16:00Good morning, everybody. Well, we have two main lines of infrastructure, the gas pipelines and the oil pipelines. In terms of let's go first to the gas pipelines. We are probably going to see the end of the reversion of the NOAA pipeline by September or October of this year. So this will provide gas to the North Of Argentina and reduce considerably the imports from Bolivia. Speaker 300:16:36On the other hand, TGS has already presented initiative a preludeada to the government in order to expand the transportation capacity of the existing network in our pipeline with the addition of compression in the first tranche and some works in the TGS infrastructure that would boost the capacity transportation or the transportation capacity to approximately 14,000,000 cubic meters per day of additional gas. This is currently being already presented to the government and is being analyzed. It's a very important infrastructure project to be take into account. In terms of oil, we will have by March, April of next year, the Duplicar project of Ol Del Val already commissioned that will give additional 300,000 barrels per day of transportation capacity. We will also have the Tranche one of the Vaca Muerta Sur project from YPF going from Loma Campana to Hajen. Speaker 300:18:01So we call this the collector of the main pipeline that is also in project in work in progress now in the engineering phase, which is the connection of Agen to Punta Corragada that will be commissioned by the first tranche by September of 'twenty six with approximately 180,000 barrels per day and an additional 180,000 in September 26 and an additional 180,000 barrels per day by September of twenty seven. And currently, they're analyzing the possibility of an additional 20,000 cubic meters more or 120,000 barrels more by the end of by September 27. This basically resumes the new infrastructure projects that are currently in progress in Argentina. Operator00:19:06Thank you, Boraccio. Last question from Alejandra. She asked if we have expectations of returning to international market. Speaker 200:19:19Okay. So this is our own question. So we know there is currently an interesting window in the market for Argentine corporates. And as you know, our financial position is quite solid, and our next significant maturity is in January 2027. This is a $750,000,000 bond with a 7.5% coupon, which is below the yields of Pampa's bonds right now and comparables and recent issuance from companies, for example, this year. Speaker 200:20:00And on the other hand, our cash position of nearly $1,000,000,000 allows us to comfortably meet our debt maturities and growth plans, such as Poincon Aranda in the coming years. So for this reason, we are not in a hurry to undertake a liability management at the moment and to tap the markets, but we will closely monitor market conditions and do not rule out doing something early if the conditions are favorable or, for example, if there is an M and A opportunity in the market. Operator00:20:44Thank you, Nico. The next question comes from Alejandro Dimitelis from Jefferies. He asks, what participation can we expect from Pampa in the recently announced LNG export project? Speaker 300:20:58JOSE Okay. We definitely will have a very active participation in the LNG export project. We are still in the process of analyzing the project and our participation, but it's definitely the way out to our massive gas resources in Vaca Muer. Operator00:21:27Thank you, Gracias. Next questions come from Marina Mertens from Latin Securities. First one says, Rincon Derrano has delivered promising results. How do you anticipate crude oil production will develop in 2024 and 2025 given the planned midstream expansions? And what additional evacuation capacity will be needed to meet your 2027 production targets? Speaker 300:21:55JOSE Okay. 2024, we don't foresee an increase in our production in Rincon De Randa, basically two wells that are already been hooked into the production lines. By 2025, as Lida mentioned before, we will be probably drilling and completing two pads, and that will give us the possibility of boosting our production to around 10,000 to 12,000 barrels per day. And that matches as well our transportation capacity from Oderval and the possibility of acquiring additional capacity from companies that will have idle transportation capacity in the Duplicar project. By 2027, we foresee, as I mentioned before, that the Vaca Muerta Sur Tramodos of YPF will be finished. Speaker 300:22:59And we have an overall capacity contracted of approximately 48,000 barrels. So hopefully, by the end of twenty twenty seven, at least our aim is to be in the range of 45 to 48,000 barrels per day. Operator00:23:20Thank you, Boraccio. Next question from Marina says, considering the increase in natural gas production, is it realistic to expect that it could remain stable through the summer when local demand declines? Speaker 300:23:34Well, Argentina is a seasonal market with a strong component of domestic demand. So I don't think it's realistic to think that the demand will be constant during the off peak or the non winter season. Operator00:23:51DANIEL Thank you, Boraccio. Next questions come from Bruno Montanari from Morgan Stanley. First one says, how is natural gas demand performing Can we expect higher volumes versus this quarter? ALVAREZ:] Speaker 300:24:11Okay. Well, so far, we only have one month of the third quarter, which is July. In July, we delivered around 10,800,000 cubic meters per day compared to 15,300,000 this year. So we are 42% up 07/24/2023. August is just starting. Speaker 300:24:37So it's hard to say what's going to happen because it's very much variable depending Operator00:24:48Thank you, Boraccio. Next question from Bruno says, what is the potential maximum volume of natural gas production once Rasutto Nortor Kisner, the second tranche is delivered? And how much would PAPA need to do to achieve that production? Speaker 300:25:05JOSE Okay. We were awarded in the last round of the planned gas with the 4,800,000 cubic meters per day on a flat basis. So the commissioning of the compression plants do not change our participation in plant gas. So we already reached our demand on plant gas basis. So we don't see an additional production due to the and I understand that you're asking about the commissioning of the two compression plants. Speaker 300:25:43So we don't see an additional capacity affecting the Pampas demand on plant gas. So that was the first question. And the other one, In order to keep the production levels that we have, both plant gas and plus exports plus industries, we foresee approximately four to six wells being drilled per year in order to just keep the constant production rates. So that would amount to approximately $100,000,000 per year with no increase in our production curve, just keeping our curve as it is. Operator00:26:37Thank you, Oracio. The last question from Bruno says, can you talk about the evolution of the project to develop the company's shale oil acreage? Is the company on track to deliver the plant for 40,000 barrels per day plateau by 2027? What are the infrastructure bottlenecks and investments required to reach the production plateau? Speaker 300:27:00JOSE Okay. Well, I already mentioned that we are currently drilling our second pad in Rincona Aranda and we will be drilling two pads, additional pads in 2025. The bottlenecks basically have to do with treatment and transportation. In terms of treatment, we are already starting the construction of the all the necessary evacuation pipelines and pipelines in terms of oil pipelines and gas pipelines and temporary production facilities, both owned by Pampa and eventually being negotiated with neighbors in order to be able to deliver those 10,000 to 12,000 barrels per day, I mentioned before, by 2025. And also, we are currently finishing the engineering of our central processing facility that will have four blocks, basically the oil plant, the gas treatment plant, the water disposal plant and the generation plant that will be ready by May 2026 for the first tranche of 3,500 cubic meters per day. Speaker 300:28:31And by September, October '20 '6, the second tranche of an additional 3,500, totaling 7,000 cubic meters per day or 42,000 barrels per day. So in parallel with our evacuation and treatment from the Ricon De Aranda itself, We are currently negotiating with YPF our participation in the Vaca Muerta Sur Tramados connecting Agen to Punta Colorada for, again, I mentioned before, 48,000 barrels per day. We already have contracted with YPF the transportation from Loma Campana to Aegean through the contract of the Vaca Muerta Sur Tramo Una. Operator00:29:21Thank you, Gracias. Next questions come from Anne Mill from Bank of America. First one, she says, can you give us an update on the construction of various infrastructure needed to grow Argentina and Pampa Soil and Gas business in Argentina? If there are any delays, how do you think they will be? Speaker 300:29:42JOSE I think we already covered this. JOSE Operator00:29:45Okay. Next one says, is Pampa looking at any other non conventional oil areas at the moment? Speaker 300:29:52JOSE We are always looking at new opportunities. Operator00:29:57Okay. And the last one says, where do you see Pampa's hydrocarbon production five years from now in terms of volumes and breakdown between natural gas and crude oil? Speaker 100:30:08JOSE Speaker 300:30:09Okay. In terms of oil, we already mentioned that our aim is to reach a plateau of around 45 to 50,000 barrels per day, and that's what we probably going to be keeping as our goal. Eventually, we are looking at new opportunities, but what we have today in the pipeline is that. And in terms of natural gas, until 2028, we have the planned gas, which are current basically the current volumes that we are delivering into the market. We still have to see what happens with the expansion of the gas pipelines. Speaker 300:30:49As I mentioned before, that represents around million cubic meters per day. I guess that probably we will keep around 20% to 30% out of that market share. So we are talking three to four additional million cubic meters per day of natural gas during the winter season that's approximately one hundred to one hundred and twenty days. So basically, those are the main drivers of our future production, not to mention the possibility of the development of the LNG projects that we mentioned before. Operator00:31:37Thank you, Gracias. Next question comes from Gustavo Faria from Bank of America. First one, he says, how do you see the demand for gas export in the second half of this year? And could you give a little disclosure on the export prices in the second half of twenty twenty four? Speaker 300:31:56Okay. For the second half of twenty twenty four, we have committed 600,000 cubic meters per day to Chile through Gasandes. The minimum price and the price at the same time that was approved by the Secretary of Energy is 7% of Brent, which turns out to be around 5.5 per million BTU well ahead. Operator00:32:24Thank you, Gracias. Next question from Gustavo. He says, we saw an important drop in the lifting cost in the second quarter of twenty twenty four. Do you see any room for additional lifting cost improvement in the gas upstream segment or do you consider the current level as the plateau? Speaker 300:32:43JOSE No, consider that what we reached this is probably the plateau. We won't be seeing any substantial decrease in the future. VALLE:] Operator00:32:53Thank you, Bornacio. Next question comes from Ignacio Schniotowski from Emertiram Bolsa. First one, he says, regarding future increases in regulated prices, do you have any estimation of when these hikes will finally translate into effectively higher income for the company rather than merely substituting subsidies? Speaker 100:33:22CAROLINA It's a good question. So less subsidies means less dependence on commercial delays, and it's more reliance on the demand. Basically, the higher hikes on the electricity, the famous electricity raw price in the final bills. That means lesser subsidies. That means lesser subsidies for CAMMESA, and then CAMMESA can pay us faster, for example. Speaker 100:33:54It's not going to be materially we getting more money. We, as a company, are getting more money, but that's meaning we getting a better quality on the collections, on payment side, on the receivables. This is mainly the biggest, importance here, behind the lowering of subsidies. And our fee that is very important is that the other regulated prices, the gas price and the final deals. The higher the gas price for retail, the lower the subsidies it is. Speaker 100:34:30So we collect the less plant gas compensation. But again, we collect it for the distribution. So I mean it's getting a better credit profile and lesser dependence on the government's divestments. Just to notice, the government just passed a few actually, they passed last June the regulated prices until the end of this year for electricity and for gas. They already put their outlook for what's subsidies until the end of the year as well for what's if what kind of subsidies will be for those that are under retail social tariff or middle income as well as the government just passed just a few days ago, the monthly increment monthly increase for inflation, 6% for transmission, for TransEnerg, 4% for TGS and 3% for legacy prices legacy energy. Operator00:35:46Thank you, Ole. Next question from Ignacio is about gas production volumes going forward. Do you see these levels of production being sustained in the forthcoming quarters? Or was this peak due to an exceptionally cooler quarter? I Speaker 300:36:04think we covered that. Operator00:36:05Okay. So the final question is, are there any M and A opportunities being considered or all the cash will be devoted to CapEx in order to accelerate and ramp up Rincon de Rana. Speaker 200:36:22Okay. So we know that our financial position and level of indebtedness allow us to grow inorganically, And we have been analyzing all the opportunities that have been in the market recently, particularly in our core segments, including unconventional areas. But unfortunately, no attractive opportunities in terms of price have appeared yet. So currently, developing our best gas fields such as El Mangrullo and Sierra Chadda and now Rincon Aranda in oil, along with all the necessary infrastructure, is much more profitable for Pampa and paying a high entry price for new assets. So as always, we remain open to potential opportunities that may appear in the market and are always evaluating what is best for the company, but we haven't found anything interesting so far. Operator00:37:27Thank you, Nico. Next question comes from Fernando Puerredon. He asks, have you discussed alternatives with the government regarding the canceled Genelba 3 Greenfield and Barragan expansion projects? Speaker 100:37:53So as Nico, if it goes here. We have presented two projects. The big one, the 300 megawatts, of course, it's not going to pursue because this would cancel. But the other one, actually, we did present that we won it. Well, the telecom auction is canceled, but we're doing it anyways. Speaker 100:38:14This is a way to improve the efficiency even further, the efficiency of the plant. And we are doing this very small. CapEx is $15,000,000 or increasing 100 and megawatts. So we are doing it. Operator00:38:30Thank you, Uly. Next question comes from Walter Chiarvesio from Santander. First one says, can you please update on Rincon De Rana, total regional and production curve, evacuation capacity, etcetera? Speaker 300:38:45I think we already covered it. Operator00:38:49Next one, any update on potential energy price regimes to be introduced by the regulator? Speaker 300:39:00No, we cover that. Okay. Operator00:39:04Next question comes from Florencia Machuora from MetLife. She says the deterioration. Speaker 100:39:12She told me that it's okay. Okay. Operator00:39:23Next question comes from Pedro Leculiera. He wants to know, do you have some color related to export in terms of restrictions? Can you sell that you want abroad? All that you want abroad, sorry. We Speaker 300:39:41are talking about oil, gas or electricity, but I'm not sure about it. If it is oil, there's no restriction whatsoever. And in terms of gas, it's the same thing. We are restricted by the transportation capacity. But there's no regulatory restriction under the new lay the buses in order to export. Speaker 300:40:02It's a free market. Operator00:40:06Thank you, Oracio. Now, yes, from Feliccia Massocca from Medline. Regarding hydros, we are recognizing a provision of termination of Maran Dozo hydros, which was the value? Any update on next steps? Speaker 100:40:37Yes, we've been making provisions. If you can see quarter on quarter in light of this very close expiration. The only update we have is that we'll be granted a twelve month extension. So there's this is complicated because there's two concessions in India that is hydro. That is one is the provincial and one is the national one. Speaker 100:41:06The provincial one has been granted for twelve months, but the state, the national one, is only for six months, extended for another six months. So in light of this, it looks like it's going to INESA, in ULEs will be expiring if there's no extension provided granted on November of this year. We'll see. That's how it is. DYBECK Operator00:41:33Thank you, Olli. Next question comes from Ludovic Castroj. First one says, according to the press, some companies have signed export contracts of natural gas to Brazil. With the reversion of NORTH gas pipeline, could PAPA export gas to Brazil too? Speaker 300:41:56JOSE Yes, we could export gas to Brazil, absolutely. And we can also export gas to the North Of Chile, which is a market that will compete with Brazil. Definitely, we can do that. Operator00:42:13Thank you. And next question from Jorge Luis Mauro. After the recent increase in gas prices and electricity prices, how much of the cost is paid by end users for gas and electricity? DYBECK Speaker 100:42:32For electricity, the other day I got the number. The cost was $91 the average cost of the grid and the coverage was 61%. So it's it's Speaker 100:42:47pretty high. Last year, the coverage was 20%. So it's increasing. Still, we the government has to diverse the other 40%, right? Example, for users, retail users that are non subsidized such as me, I'm not subsidized at all. Speaker 100:43:08I am paying in my bills $72 per megawatt hour. Of course, again, against the real cost, 91,000,000 still subsidized, but I've been hike from $20 last year. So it's been increasing hike. Then in gas, gas, I don't remember the coverage because winter, it's the prices go up very much because of the liquids. It's difficult to assess. Speaker 100:43:35But for example, full non subsidized people like such such as me, I'm paying $3 $3.3 per MMBtu. Last year, I was paying 1 and a half dollars per MMBtu, so it's been increased. And low income people are paying instead of $00.3 $0.20 now they're paying $1.8 But just for a block, if they consume more than that, if they excess in consumption, they have to pay the full fare that's frequent free. So the idea is to lift it up, the prices, little by little. In the case of the people that can afford it, such as myself, it's the pool there. Speaker 100:44:22But still, a little bit lower than real cost, but very close, as you can see. Do we have more questions? Operator00:44:48So next question comes from Ludlow Viegas Ruz 2. You have just announced a share buyback program. Would you consider to return more cash to shareholders? Speaker 200:45:04So we just announced a program, and you're already asking for more. Now in the last five years, less than five years, we have repurchased almost $600,000,000 of shares at an average price of $22 per ADR. And now we are announcing a new program. So that's all for now. We are not considering anything more. Operator00:45:49So we don't have any more questions. Speaker 100:45:52MARIA I think I don't see more questions. If you have any questions about the financial statements or anything, you can just dig it. We just uploaded in our website the earnings. We have all the backup information there. I think we had hit the top of the hour. Speaker 100:46:13We appreciate very much you joining us on this call. Appreciate Horacio, Maloiso and Nico for joining us for the Q and A. Any questions you may have, please send us an e mail. We will be more than happy to help you. I hope I wish you a good day. Speaker 300:46:33Thank you very much. Have a good day.Read morePowered by Key Takeaways Pampa delivered a record 37% YoY increase in natural gas production to a daily high of 16.8 million m³, with shale gas now representing nearly half of output and driving a 30% YoY rise in adjusted EBITDA to $288 million. The Power Generation segment posted a 9% YoY increase in adjusted EBITDA to $106 million, supported by lower operating costs, full commissioning of PEPE 4, strong spot sales, and 98% availability versus 95% last year. Exploration & Production achieved a 24% YoY EBITDA growth to $121 million, with total production averaging 91,000 boe/d (35% higher YoY) and lifting costs per BOE falling 17% to $5.3 due to economies of scale. Capital expenditures in Q2 were 28% lower YoY as a strong shale gas drilling campaign and BP4 construction from Q3 2023 rolled off, partially offset by Pepe Six commissioning and the Rincon de Aranda pilot plan. The company generated $60 million in free cash flow, boosted net cash by $69 million to $914 million, and reduced net debt 12% YoY to $691 million, achieving net leverage of 0.7x with no major maturities until 2027. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallPampa Energía Q2 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckInterim report Pampa Energía Earnings HeadlinesPampa Energia ADR Clears Key Benchmark, Hitting 90-Plus RS RatingMay 29 at 8:09 PM | msn.comPampa Energía (NYSE:PAM) Upgraded by StockNews.com to Buy RatingMay 22, 2025 | americanbankingnews.comDo You Believe In President Trump? Answer This 1 QuestionThey said you wouldn’t last—that Bidenflation, Wall Street selloffs, and DEI funds would break your loyalty to Trump’s economic plan. But now there’s a way to protect your retirement without backing down. This free 2025 Wealth Protection Guide reveals how you can use a legal IRS loophole—nicknamed “Piggy Bank”—to shield your savings.May 31, 2025 | Colonial Metals (Ad)Pampa Energía (NYSE:PAM) Trading 3.9% Higher After Analyst UpgradeMay 21, 2025 | americanbankingnews.comAmerican Elec Power Earns Relative Strength Rating UpgradeMay 16, 2025 | msn.comAmerican Electric Power Stock Earns RS Rating UpgradeMay 16, 2025 | msn.comSee More Pampa Energía Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Pampa Energía? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Pampa Energía and other key companies, straight to your email. Email Address About Pampa EnergíaPampa Energía (NYSE:PAM) operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.View Pampa Energía ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles e.l.f. 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There are 4 speakers on the call. Operator00:00:00Good morning, everyone. Thank you for waiting. I'm Raquel Caldas from IR, and we would like to welcome everyone to Pampa Energia's Second Quarter twenty twenty four Results Video Conference. We would like to inform you that this event is being recorded. All participants will be in listen only mode during the presentation. Operator00:00:21After the company's remarks, there will be a Q and A session. Questions can only be submitted in writing through Should any participant need assistance, please send us a chat message. Before proceeding, please read the disclaimer in the second page of our presentation. Let me mention that forward looking statements are based on Pampa Energia's management beliefs and assumptions and information currently available to the company. They involve risks, uncertainties and assumptions because they are related to future events that may or may not occur. Operator00:00:56Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampa Energia and could cause results to differ materially from those expressed in such forward looking statements. Now, I'll turn the video conference over to Lea. Please go ahead. Speaker 100:01:20Hi. Thank you, Raquel. Hello, everyone, and thank you for joining our conference call. I will make a quick summary of the Q2. You may find more details in our earnings release and financial statements. Speaker 100:01:33Today, we are having a Q and A with our CFO, Mr. Nicolas Mindlin Mr. Rorazioturi, our Head of the MPG, is here Aloso Soube Buzer, our Head of Finance, is also here. Unfortunately, our CEO, Gustavo Mariani, can join us today because he is in Vaca Muerta hosting our President's debate. The gas production is what definitely stands out the quarter's figures. Speaker 100:01:59Again, we've beaten all company records, delivering a 37% increase year on year in Q2 and recording a new daily record high of 16,800,000 cubic meters per day. The output surge is explained by the latest land gas contract. We've been awarded, enabled by the new pipeline build last year. It also helped the early winter freeze, driving retail and thermal power generation. The production increase is backed by shale gas, harvesting the campaign we began last year. Speaker 100:02:40Shale gas now represents almost half of our total output this quarter, a significant increase compared to last year's 23%. Therefore, this quarter, the adjusted EBITDA amounted to two eighty eight million dollars an increase of 30% compared to last year's figure, mainly because of the gas outperformance and TGS' contribution, which surged by the 675% tariff hike granted in April. Lower gas exports, sales to industries and thermal dispatch partially offset these effects. The quarter on quarter increase is explained by the seasonality in CAMMESA's haircut recorded in Q1 and last year Q4. It is worth noting that almost 80% of the quarter's EBITDA was dollar linked, and the share now is led by YMP, which is mainly due to the gas production. Speaker 100:03:45CapEx in Q2 is 28% lower year on year, mainly because in Q3 in 2023, we had a strong shale gas drilling and completion campaign and the construction of BP4. This was partially offset by the last divestments of Pepe six, which is estimated to be fully commissioned by October and the beginning of the pilot plan for shale oil in the Incon Garanda. Moving on to the Power Generation segment. As seen on Slide four five, sorry, we posted an adjusted EBITDA of $106,000,000 in Q2. This is 9% higher year on year, mainly explained by lower operating costs, the full commissioning of the PEPE-four in June and the strong spot sales in Genelba, partially offset by reduced Energia Plus sales, which is in line with the decline in industrial activity, in addition to Mario Cerrado's divestment last year. Speaker 100:04:52Q2 dispatch increased 3% year on year. This is mainly due to the lower gas availability for thermal dispatch that mainly affected our CCGT, partially offset by a better dispatch in the old CCGT in Geneloa, which in Q2 last year had more days out of service for maintenance, higher water levels at Mendoza Hydro and Pepe Force contribution. Take per pay capacity payment, especially from PPAs, explains most of the EBITDA. It is driven by availability. And in Q2, we reached 98% availability. Speaker 100:05:35This is higher than last year's 95%, mainly due to the previous year's thermal outages that we mentioned. So now turning let me give you a quick brief on PP6, the expansion. The project, it's highly advanced, 94%. Between July and August, '10 Vestas wind turbines were commissioned by CAMVisa totaling 45 megawatts. We are testing to commission another four. Speaker 100:06:13The 500 kV high voltage grid and transformer station have been fully energized as well as free wind turbine circuits. The estimated fuel COV will be in October. And PP6 Energy will be sold under B2B PPAs in the matter. Going on, on Slide eight, our E and P business posted an adjusted EBITDA of $121,000,000 in Q2. This is 24% higher year on year. Speaker 100:06:50This increase was driven by Plant Gas' latest round, unlocked by the commissioning of the new gas pipeline, in which we were awarded a long term contract for 4,800,000 cubic meters per day flat during the year. We the early freeze also helped. Lower gas exports and sales to the industries offset this. In Q2, our total production averaged almost 91,000 barrels per day. This is 35% higher than last year. Speaker 100:07:27When we're assuming crude oil, which just represented 6% of our E and P output and 50% of the segment's revenue, total gas just keeps taking the lead, representing 94% of our total production. Higher maintenance and treatment costs due to the increased activity explained that our total lifting cost grew by 11% year on year. Still, the rising output possibly impacted lifting cost per BOE, which decreased 17% year on year, recording $5.3 per BOE and monetizing the economies of scale. Quickly commenting on gas. Our production in Q2 increased by 37% year on year and 24% quarter on quarter. Speaker 100:08:26This is averaging almost 50,000,000 units per day in the quarter. As commented before, shale gas is the main contributor here. And 63% of the quarter's production came from El Vangruco and 23% from Sierra Chata, our flagship shale gas field. Sierra Chata production grew 50% year on year without connecting or drilling a well this quarter, while El Angrucho experienced 45% surge with only three wells tied in. The average gas price over the quarter stood at $4 per million BTU. Speaker 100:09:09This is 14% down due to the lower exports to Chile. As you can see right below, the higher deliveries of local gas we're investing for thermal power generation. This is a quick review on Rincon de Aranda, sharing the promising results. Horacio, surely, will comment more in the Q and A. As you can see here, our wells performance is within the range in our neighboring shale oil blocks, and our daily production reached above 1,600 barrels per day once we connected the shut in well in Shu. Speaker 100:09:50We have already placed a drilling rig in the block to start drilling a pad of four wells plus another pad next year, meaning to produce by mid next year and reaching a plateau production between 40,000, 40 five thousand barrels per day by 2027. The petrochemical business went on to another business, posted a $50,000,000 EBITDA in Q2. This is 50% growth year on year, mainly because of the higher sales of reforming and improved exports of SVR margins, offset by the domestic sales due to the economic downturn. Hence, the export share is getting more and more important. Moving on to Slide 12. Speaker 100:10:45Moving on Slide 12. We show the restricted group figures that reflect the bond parameter. In Q2, we recorded a free cash flow of $60,000,000 Our working capital had recovered since Chamezas Hercules last quarter. As of today, days of sales outstanding is fifty five days total. This is this means a delay of only thirteen days. Speaker 100:11:15The payment normalization allow us to cancel debt. So the net debt is significantly below last quarter, as you can see here. In summary, we increased $69,000,000 of net cash in the quarter, achieving a $914,000,000 cash position by the end of the period. While this slide shows our consolidated financial position, including our affiliates ownership, but let's keep it focusing on restricted group figures. We posted a gross debt of $1,600,000,000 This is 3% lower year on year and a 5% growth in cash. Speaker 100:12:01After settling peso debts and depreciations of the peso, 90 2 percent of the gross debt is in U. S. Dollars. The net debt recorded $691,000,000 This is a 12% year on year lower and onetime to last twelve months EBITDA net leverage. And the average life was two point six years. Speaker 100:12:33And until 2027, we just don't face any relevant debt maturity. So this concludes our presentation. Now I'll turn the word to Raquel, who will poll for the questions. Thank you very much. Operator00:12:49Thank you very much, Lia. So the floor is now open for questions. If you have any questions, please send us through Zoom chat. We will read and answer them in order received. Also, please make sure your name and company are correctly displayed to introduce you to the audience. Operator00:13:47Thank you very much for waiting. Our first question comes from Alejandra Andrade from JPMorgan. First one is how are CAMMESA payments she wants to know how are CAMMESA payments nowadays? Speaker 200:14:08JOSE Hello, everybody. Leon, can you come in? Okay. So CAMMESA is paying quite well. As of today, we are not experiencing any delay, which is in line with historical minimums, as Lia showed in the presentation. Speaker 200:14:29On the other hand, Enaarza has been paying with a delay of almost a month, but we understand that this should normalize in the coming month. And in any case, we are seeing goodwill and reasonable delays in line with the historical minimums that we have seen. Operator00:14:54Thank you, Juanico. In line with this, she also was she also asks, the $23,000,000 impairments are unrecognized CAMMESA interests. Speaker 200:15:10Yes. So as we communicated at the time, we have accepted CAMMESA's proposal to settle transactions for December and January with the A38 bonds. So this proposal did not recognize accrued interest. So considering the bond market prices at the time of the payment, we recognized a loss of $53,000,000 of which $23,000,000 were unrecognized interest. Operator00:15:46Thank you, Nico. The third question of Alejandra. She asks, how are the infrastructure projects progressing? Speaker 300:16:00Good morning, everybody. Well, we have two main lines of infrastructure, the gas pipelines and the oil pipelines. In terms of let's go first to the gas pipelines. We are probably going to see the end of the reversion of the NOAA pipeline by September or October of this year. So this will provide gas to the North Of Argentina and reduce considerably the imports from Bolivia. Speaker 300:16:36On the other hand, TGS has already presented initiative a preludeada to the government in order to expand the transportation capacity of the existing network in our pipeline with the addition of compression in the first tranche and some works in the TGS infrastructure that would boost the capacity transportation or the transportation capacity to approximately 14,000,000 cubic meters per day of additional gas. This is currently being already presented to the government and is being analyzed. It's a very important infrastructure project to be take into account. In terms of oil, we will have by March, April of next year, the Duplicar project of Ol Del Val already commissioned that will give additional 300,000 barrels per day of transportation capacity. We will also have the Tranche one of the Vaca Muerta Sur project from YPF going from Loma Campana to Hajen. Speaker 300:18:01So we call this the collector of the main pipeline that is also in project in work in progress now in the engineering phase, which is the connection of Agen to Punta Corragada that will be commissioned by the first tranche by September of 'twenty six with approximately 180,000 barrels per day and an additional 180,000 in September 26 and an additional 180,000 barrels per day by September of twenty seven. And currently, they're analyzing the possibility of an additional 20,000 cubic meters more or 120,000 barrels more by the end of by September 27. This basically resumes the new infrastructure projects that are currently in progress in Argentina. Operator00:19:06Thank you, Boraccio. Last question from Alejandra. She asked if we have expectations of returning to international market. Speaker 200:19:19Okay. So this is our own question. So we know there is currently an interesting window in the market for Argentine corporates. And as you know, our financial position is quite solid, and our next significant maturity is in January 2027. This is a $750,000,000 bond with a 7.5% coupon, which is below the yields of Pampa's bonds right now and comparables and recent issuance from companies, for example, this year. Speaker 200:20:00And on the other hand, our cash position of nearly $1,000,000,000 allows us to comfortably meet our debt maturities and growth plans, such as Poincon Aranda in the coming years. So for this reason, we are not in a hurry to undertake a liability management at the moment and to tap the markets, but we will closely monitor market conditions and do not rule out doing something early if the conditions are favorable or, for example, if there is an M and A opportunity in the market. Operator00:20:44Thank you, Nico. The next question comes from Alejandro Dimitelis from Jefferies. He asks, what participation can we expect from Pampa in the recently announced LNG export project? Speaker 300:20:58JOSE Okay. We definitely will have a very active participation in the LNG export project. We are still in the process of analyzing the project and our participation, but it's definitely the way out to our massive gas resources in Vaca Muer. Operator00:21:27Thank you, Gracias. Next questions come from Marina Mertens from Latin Securities. First one says, Rincon Derrano has delivered promising results. How do you anticipate crude oil production will develop in 2024 and 2025 given the planned midstream expansions? And what additional evacuation capacity will be needed to meet your 2027 production targets? Speaker 300:21:55JOSE Okay. 2024, we don't foresee an increase in our production in Rincon De Randa, basically two wells that are already been hooked into the production lines. By 2025, as Lida mentioned before, we will be probably drilling and completing two pads, and that will give us the possibility of boosting our production to around 10,000 to 12,000 barrels per day. And that matches as well our transportation capacity from Oderval and the possibility of acquiring additional capacity from companies that will have idle transportation capacity in the Duplicar project. By 2027, we foresee, as I mentioned before, that the Vaca Muerta Sur Tramodos of YPF will be finished. Speaker 300:22:59And we have an overall capacity contracted of approximately 48,000 barrels. So hopefully, by the end of twenty twenty seven, at least our aim is to be in the range of 45 to 48,000 barrels per day. Operator00:23:20Thank you, Boraccio. Next question from Marina says, considering the increase in natural gas production, is it realistic to expect that it could remain stable through the summer when local demand declines? Speaker 300:23:34Well, Argentina is a seasonal market with a strong component of domestic demand. So I don't think it's realistic to think that the demand will be constant during the off peak or the non winter season. Operator00:23:51DANIEL Thank you, Boraccio. Next questions come from Bruno Montanari from Morgan Stanley. First one says, how is natural gas demand performing Can we expect higher volumes versus this quarter? ALVAREZ:] Speaker 300:24:11Okay. Well, so far, we only have one month of the third quarter, which is July. In July, we delivered around 10,800,000 cubic meters per day compared to 15,300,000 this year. So we are 42% up 07/24/2023. August is just starting. Speaker 300:24:37So it's hard to say what's going to happen because it's very much variable depending Operator00:24:48Thank you, Boraccio. Next question from Bruno says, what is the potential maximum volume of natural gas production once Rasutto Nortor Kisner, the second tranche is delivered? And how much would PAPA need to do to achieve that production? Speaker 300:25:05JOSE Okay. We were awarded in the last round of the planned gas with the 4,800,000 cubic meters per day on a flat basis. So the commissioning of the compression plants do not change our participation in plant gas. So we already reached our demand on plant gas basis. So we don't see an additional production due to the and I understand that you're asking about the commissioning of the two compression plants. Speaker 300:25:43So we don't see an additional capacity affecting the Pampas demand on plant gas. So that was the first question. And the other one, In order to keep the production levels that we have, both plant gas and plus exports plus industries, we foresee approximately four to six wells being drilled per year in order to just keep the constant production rates. So that would amount to approximately $100,000,000 per year with no increase in our production curve, just keeping our curve as it is. Operator00:26:37Thank you, Oracio. The last question from Bruno says, can you talk about the evolution of the project to develop the company's shale oil acreage? Is the company on track to deliver the plant for 40,000 barrels per day plateau by 2027? What are the infrastructure bottlenecks and investments required to reach the production plateau? Speaker 300:27:00JOSE Okay. Well, I already mentioned that we are currently drilling our second pad in Rincona Aranda and we will be drilling two pads, additional pads in 2025. The bottlenecks basically have to do with treatment and transportation. In terms of treatment, we are already starting the construction of the all the necessary evacuation pipelines and pipelines in terms of oil pipelines and gas pipelines and temporary production facilities, both owned by Pampa and eventually being negotiated with neighbors in order to be able to deliver those 10,000 to 12,000 barrels per day, I mentioned before, by 2025. And also, we are currently finishing the engineering of our central processing facility that will have four blocks, basically the oil plant, the gas treatment plant, the water disposal plant and the generation plant that will be ready by May 2026 for the first tranche of 3,500 cubic meters per day. Speaker 300:28:31And by September, October '20 '6, the second tranche of an additional 3,500, totaling 7,000 cubic meters per day or 42,000 barrels per day. So in parallel with our evacuation and treatment from the Ricon De Aranda itself, We are currently negotiating with YPF our participation in the Vaca Muerta Sur Tramados connecting Agen to Punta Colorada for, again, I mentioned before, 48,000 barrels per day. We already have contracted with YPF the transportation from Loma Campana to Aegean through the contract of the Vaca Muerta Sur Tramo Una. Operator00:29:21Thank you, Gracias. Next questions come from Anne Mill from Bank of America. First one, she says, can you give us an update on the construction of various infrastructure needed to grow Argentina and Pampa Soil and Gas business in Argentina? If there are any delays, how do you think they will be? Speaker 300:29:42JOSE I think we already covered this. JOSE Operator00:29:45Okay. Next one says, is Pampa looking at any other non conventional oil areas at the moment? Speaker 300:29:52JOSE We are always looking at new opportunities. Operator00:29:57Okay. And the last one says, where do you see Pampa's hydrocarbon production five years from now in terms of volumes and breakdown between natural gas and crude oil? Speaker 100:30:08JOSE Speaker 300:30:09Okay. In terms of oil, we already mentioned that our aim is to reach a plateau of around 45 to 50,000 barrels per day, and that's what we probably going to be keeping as our goal. Eventually, we are looking at new opportunities, but what we have today in the pipeline is that. And in terms of natural gas, until 2028, we have the planned gas, which are current basically the current volumes that we are delivering into the market. We still have to see what happens with the expansion of the gas pipelines. Speaker 300:30:49As I mentioned before, that represents around million cubic meters per day. I guess that probably we will keep around 20% to 30% out of that market share. So we are talking three to four additional million cubic meters per day of natural gas during the winter season that's approximately one hundred to one hundred and twenty days. So basically, those are the main drivers of our future production, not to mention the possibility of the development of the LNG projects that we mentioned before. Operator00:31:37Thank you, Gracias. Next question comes from Gustavo Faria from Bank of America. First one, he says, how do you see the demand for gas export in the second half of this year? And could you give a little disclosure on the export prices in the second half of twenty twenty four? Speaker 300:31:56Okay. For the second half of twenty twenty four, we have committed 600,000 cubic meters per day to Chile through Gasandes. The minimum price and the price at the same time that was approved by the Secretary of Energy is 7% of Brent, which turns out to be around 5.5 per million BTU well ahead. Operator00:32:24Thank you, Gracias. Next question from Gustavo. He says, we saw an important drop in the lifting cost in the second quarter of twenty twenty four. Do you see any room for additional lifting cost improvement in the gas upstream segment or do you consider the current level as the plateau? Speaker 300:32:43JOSE No, consider that what we reached this is probably the plateau. We won't be seeing any substantial decrease in the future. VALLE:] Operator00:32:53Thank you, Bornacio. Next question comes from Ignacio Schniotowski from Emertiram Bolsa. First one, he says, regarding future increases in regulated prices, do you have any estimation of when these hikes will finally translate into effectively higher income for the company rather than merely substituting subsidies? Speaker 100:33:22CAROLINA It's a good question. So less subsidies means less dependence on commercial delays, and it's more reliance on the demand. Basically, the higher hikes on the electricity, the famous electricity raw price in the final bills. That means lesser subsidies. That means lesser subsidies for CAMMESA, and then CAMMESA can pay us faster, for example. Speaker 100:33:54It's not going to be materially we getting more money. We, as a company, are getting more money, but that's meaning we getting a better quality on the collections, on payment side, on the receivables. This is mainly the biggest, importance here, behind the lowering of subsidies. And our fee that is very important is that the other regulated prices, the gas price and the final deals. The higher the gas price for retail, the lower the subsidies it is. Speaker 100:34:30So we collect the less plant gas compensation. But again, we collect it for the distribution. So I mean it's getting a better credit profile and lesser dependence on the government's divestments. Just to notice, the government just passed a few actually, they passed last June the regulated prices until the end of this year for electricity and for gas. They already put their outlook for what's subsidies until the end of the year as well for what's if what kind of subsidies will be for those that are under retail social tariff or middle income as well as the government just passed just a few days ago, the monthly increment monthly increase for inflation, 6% for transmission, for TransEnerg, 4% for TGS and 3% for legacy prices legacy energy. Operator00:35:46Thank you, Ole. Next question from Ignacio is about gas production volumes going forward. Do you see these levels of production being sustained in the forthcoming quarters? Or was this peak due to an exceptionally cooler quarter? I Speaker 300:36:04think we covered that. Operator00:36:05Okay. So the final question is, are there any M and A opportunities being considered or all the cash will be devoted to CapEx in order to accelerate and ramp up Rincon de Rana. Speaker 200:36:22Okay. So we know that our financial position and level of indebtedness allow us to grow inorganically, And we have been analyzing all the opportunities that have been in the market recently, particularly in our core segments, including unconventional areas. But unfortunately, no attractive opportunities in terms of price have appeared yet. So currently, developing our best gas fields such as El Mangrullo and Sierra Chadda and now Rincon Aranda in oil, along with all the necessary infrastructure, is much more profitable for Pampa and paying a high entry price for new assets. So as always, we remain open to potential opportunities that may appear in the market and are always evaluating what is best for the company, but we haven't found anything interesting so far. Operator00:37:27Thank you, Nico. Next question comes from Fernando Puerredon. He asks, have you discussed alternatives with the government regarding the canceled Genelba 3 Greenfield and Barragan expansion projects? Speaker 100:37:53So as Nico, if it goes here. We have presented two projects. The big one, the 300 megawatts, of course, it's not going to pursue because this would cancel. But the other one, actually, we did present that we won it. Well, the telecom auction is canceled, but we're doing it anyways. Speaker 100:38:14This is a way to improve the efficiency even further, the efficiency of the plant. And we are doing this very small. CapEx is $15,000,000 or increasing 100 and megawatts. So we are doing it. Operator00:38:30Thank you, Uly. Next question comes from Walter Chiarvesio from Santander. First one says, can you please update on Rincon De Rana, total regional and production curve, evacuation capacity, etcetera? Speaker 300:38:45I think we already covered it. Operator00:38:49Next one, any update on potential energy price regimes to be introduced by the regulator? Speaker 300:39:00No, we cover that. Okay. Operator00:39:04Next question comes from Florencia Machuora from MetLife. She says the deterioration. Speaker 100:39:12She told me that it's okay. Okay. Operator00:39:23Next question comes from Pedro Leculiera. He wants to know, do you have some color related to export in terms of restrictions? Can you sell that you want abroad? All that you want abroad, sorry. We Speaker 300:39:41are talking about oil, gas or electricity, but I'm not sure about it. If it is oil, there's no restriction whatsoever. And in terms of gas, it's the same thing. We are restricted by the transportation capacity. But there's no regulatory restriction under the new lay the buses in order to export. Speaker 300:40:02It's a free market. Operator00:40:06Thank you, Oracio. Now, yes, from Feliccia Massocca from Medline. Regarding hydros, we are recognizing a provision of termination of Maran Dozo hydros, which was the value? Any update on next steps? Speaker 100:40:37Yes, we've been making provisions. If you can see quarter on quarter in light of this very close expiration. The only update we have is that we'll be granted a twelve month extension. So there's this is complicated because there's two concessions in India that is hydro. That is one is the provincial and one is the national one. Speaker 100:41:06The provincial one has been granted for twelve months, but the state, the national one, is only for six months, extended for another six months. So in light of this, it looks like it's going to INESA, in ULEs will be expiring if there's no extension provided granted on November of this year. We'll see. That's how it is. DYBECK Operator00:41:33Thank you, Olli. Next question comes from Ludovic Castroj. First one says, according to the press, some companies have signed export contracts of natural gas to Brazil. With the reversion of NORTH gas pipeline, could PAPA export gas to Brazil too? Speaker 300:41:56JOSE Yes, we could export gas to Brazil, absolutely. And we can also export gas to the North Of Chile, which is a market that will compete with Brazil. Definitely, we can do that. Operator00:42:13Thank you. And next question from Jorge Luis Mauro. After the recent increase in gas prices and electricity prices, how much of the cost is paid by end users for gas and electricity? DYBECK Speaker 100:42:32For electricity, the other day I got the number. The cost was $91 the average cost of the grid and the coverage was 61%. So it's it's Speaker 100:42:47pretty high. Last year, the coverage was 20%. So it's increasing. Still, we the government has to diverse the other 40%, right? Example, for users, retail users that are non subsidized such as me, I'm not subsidized at all. Speaker 100:43:08I am paying in my bills $72 per megawatt hour. Of course, again, against the real cost, 91,000,000 still subsidized, but I've been hike from $20 last year. So it's been increasing hike. Then in gas, gas, I don't remember the coverage because winter, it's the prices go up very much because of the liquids. It's difficult to assess. Speaker 100:43:35But for example, full non subsidized people like such such as me, I'm paying $3 $3.3 per MMBtu. Last year, I was paying 1 and a half dollars per MMBtu, so it's been increased. And low income people are paying instead of $00.3 $0.20 now they're paying $1.8 But just for a block, if they consume more than that, if they excess in consumption, they have to pay the full fare that's frequent free. So the idea is to lift it up, the prices, little by little. In the case of the people that can afford it, such as myself, it's the pool there. Speaker 100:44:22But still, a little bit lower than real cost, but very close, as you can see. Do we have more questions? Operator00:44:48So next question comes from Ludlow Viegas Ruz 2. You have just announced a share buyback program. Would you consider to return more cash to shareholders? Speaker 200:45:04So we just announced a program, and you're already asking for more. Now in the last five years, less than five years, we have repurchased almost $600,000,000 of shares at an average price of $22 per ADR. And now we are announcing a new program. So that's all for now. We are not considering anything more. Operator00:45:49So we don't have any more questions. Speaker 100:45:52MARIA I think I don't see more questions. If you have any questions about the financial statements or anything, you can just dig it. We just uploaded in our website the earnings. We have all the backup information there. I think we had hit the top of the hour. Speaker 100:46:13We appreciate very much you joining us on this call. Appreciate Horacio, Maloiso and Nico for joining us for the Q and A. Any questions you may have, please send us an e mail. We will be more than happy to help you. I hope I wish you a good day. Speaker 300:46:33Thank you very much. Have a good day.Read morePowered by