Pampa Energia Q1 2025 Earnings Report

Pampa Energia EPS Results

• Actual EPS: $2.81
• Consensus EPS: $1.92
• Beat/Miss: Beat by +$0.89
• One Year Ago EPS: N/A

Pampa Energia Revenue Results

• Actual Revenue: $414.00 million
• Expected Revenue: $487.63 million
• Beat/Miss: Missed by -$73.63 million
• YoY Revenue Growth: N/A

Pampa Energia Announcement Details

• Quarter: Q1 2025
• Date: 5/12/2025
• Time: Before Market Opens
• Conference Call Date: Tuesday, May 13, 2025
• Conference Call Time: 10:00AM ET

Pampa Energía S.A. 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.

Pampa Energia Q1 2025 Earnings Call Transcript

Key Takeaways

• Adjusted EBITDA rose 17% year-on-year to $220 million in Q1, driven by stronger spot power prices, higher gas deliveries for thermal generation, full commissioning of PT6 and PEPE6, and favorable tariff hikes.
• Post-quarter FID on the FLNG project (20% Pampa stake) paves the way for two vessels exporting 6 million tpy of LNG from late 2027, requiring 6 million m³/day of gas supply—nearly a 50% boost over current production.
• E&P adjusted EBITDA fell 39% to $41 million due to ramp-up costs at Rincon de Aranda, pipeline disruptions affecting TGS gas sales, softer exports to Chile, and a 20% rise in lifting costs to $6.9/BOE.
• Power generation EBITDA climbed 51% year-on-year to $130 million, fueled by higher spot energy prices, strong plant availability (96% thermal capacity), and contributions from a new wind farm, offset slightly by increased operating expenses.
• Total CapEx for 2025 is guided at approximately $1.1 billion (up 35% YoY), with $950 million allocated to E&P (mainly Rincon de Aranda development) and $120 million for power (including last-mile wind farm payments and maintenance).

Presentation

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Raquel. Hello, everyone, and thank you for joining our conference call.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

I will make a quick summary of the Q1 very quick so you can find more details in the earnings release and the financial statements. For today's Q and A, we have our CEO, Mr. Gustavo Mariani our Head of Oil and Gas and EVP, Mr. Horatio Turi and our CFO, Mr. Fito Survivor.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

So let's go to the first quarter twenty twenty five, and we saw a solid performance in power generation and utility businesses along with the higher gas deliveries for thermal generation. Also, a key highlight after the quarter end was the FID on the FLNG project where power holds a 20% stake. This milestone officially kicks off the project. The two charter vessels will export 6,000,000 tons per of LNG per year requiring 27,000,000 cubic meters of gas per day. Pampa will supply to 6,000,000 cubic meters per day through AGSA.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

This is almost a 50% increase from our current average production of 13,000,000 cubic meters per day. The first vessel is expected online by the end of twenty twenty seven, early '20 '20 '8. And the second, the MK2, will be a year later. This is a strategic move to monetize our Vaca Muerta reserves, position Argentina in the global LNG market and bring much needed foreign currency inflows, create jobs and boost local suppliers. In addition, last week, TGS and Transener reached a major milestone by completing their comprehensive tariff reviews. Their conditions now are set for the next five years until 02/1930, making and marking a real progress toward regulatory normalization in the Argentine utility in The U. S. So now turning to the numbers.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

The adjusted EBITDA for the quarter amounted to $220,000,000 This is 17% up from last year, driven by stronger spot prices in power, higher deliveries of plant gas, the full commission of PT6, PEPE6 and higher tariff hikes at TGS and Transcendent. It is also worth noting that last year's Q1 included a 20,000,000 haircut from CAMMESA, which didn't repeat this year. These gains were partially offset by higher operating costs and softer B2B gas sales. Compared to the last quarter, EBITDA improved a lot due to the seasonality and stronger peso linked margins in spot energy and utilities. The CapEx rose 35% year on year, mainly due to the progress that we're doing at Wynconi Aranda, which absorbed $114,000,000 out of the total $180,000,000 of CapEx in the quarter.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Moving on to the E and P business in the Slide four. Adjusted EBITDA was 41,000,000 in the Q1, down 39% year on year, largely due to the increased operating expenses, mostly related to Grenconi Aranda as we are preparing for production ramp up. Also, saw lower sales to industries because there was a partial disruption that already we enable at TGS Transportation System in March, following severe plots and soft exports to Chile driven by the weaker Brent prices. These headwinds were partially offset by stronger deliveries under plant gas supported by robust thermal power demand thanks to the hot weather and low hydropower water input. Higher costs due to the well testing and preliminary low output at Trincon De Arana drove lifting cost per BOE 20% yearly up to $6.9 per BOE.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Gas lifting cost also increased though monetarily, moderately up 17% year on year to $1 per millimetuel, mainly explained by higher treatment costs and partially offset by solid gas output. If you compare it, however, quarter on quarter, the lifting cost per BOE was down 20% explained by increased seasonal output and lower lifting cost expenses. Total production average nearly 73,000 bottles of oil equivalent per day. This is flat year on year, but higher quarter on quarter because of seasonality. Where we assuming the mix, the oil just accounted 4% of total output and 15% of the revenues of the segment explained by the divestment of Borgano de Oraxala and the decline in conventional oil blocks that we do not operate.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Total gas production remained flat year on year at just 12,000,000 under 12,000,000 cubic meters per day. However, it grew 21% versus the last Q4. This is explained by seasonality. And Mangrullo continue to lead the output, but its share production share fell to 55% of Q1 gas volume. Meanwhile, the Sierra Chata increased to 30% of total gas production with increased 51% year on year.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Both locks, however, didn't tie in any new wells during the quarter. As of today, we drilled three out of the 15 planned wells at Sierra Chata this year, which is all our operating gas drilling campaign for the 2025. This is reflecting the robust productivity, shell productivity at Sierra Chata. 50 6 Percent of the quarter's production was shell. Gas prices averaged around $3 per millimetuel.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

This is 6% down compared year on year because of B2B oversupply, which pushed the prices down and weaker Brent prices affecting exports. These effects were partially offset by improved retail prices. As you know, there's a lot of tariff increases. As you can see right below, most of our gas deliveries went to the thermal power generation to CAMMESA. Exports were steady year on year, that's or that's your flag in the last Q4 poll.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Since May, we've been increasing our flows through gas and more recently, we are doing it through Pacifico pipeline, now delivering 500,000 key meters per day to the Southern Chile. So in total, we are exploring 1,500,000 kilometers per day of gas to our neighboring country. In late April, we also made our first export our first shipment to Chile to Gassin, sorry, and covering a new frontier to Pampa. With this outlook, our 2025 export campaign is on track to double last year's volume export volume. Now let's zoom in in Pocono Nerana.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

In March, we completed the fracking and tidying the pad number two of four wells. Now beginning to ramp up the production and fill up the pipelines and the temporary production facility called which has a capacity of 20,000 barrels per day to treat it. Also, that same, we we are still creating out water. We see we just need more days to assess the final performance. Currently, the block is average averaging over 6,000 close to 6,500 barrels per day, all transported through pipelines, so no more trucking.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Therefore, lower transportation costs, lower costs in the area going forward. In terms of takeaway capacity, Pampa holds 8,000 barrels per day in its own right in the public car, plus another additional 12,000 barrels temporarily borrowed from third parties, giving us flexibility as production is ramping up. So far this year, we drilled five pads, cracked three of them and tied in one, the one I told you. We have two more in the two week, tied in plan in the next couple of weeks. Everything can be asked to mister Toric.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

We are also making progress in infrastructure, the temporary production facility or is online as I said. The local pipelines and all facility across the area are being built. Currently, we have two high spec rigs working and we have one frac fleet active in the field. So for 2025, we're targeting a total CapEx for this block of $800,000,000 And by Q4, we aim to hit the 20,000 barrels per day of production with eight pads online. So moving on to the power generation business on Slide seven.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

We posted an adjusted EBITDA of $130,000,000 in Q1. This is a 51% increase year on year, mainly explained by higher spot prices as those units have been getting more price updates than inflation of demolition. On top of that, we had strong contributions from newly commissioned PPC56 to wind farm and outstanding operating performance this quarter, especially from our PPA back units, partially offset by higher operating expenses. Generation volumes remained stable year on year despite the decline in the total national grade, mainly thanks to the six, higher gas supply, thanks to the Perito Moreno pipeline, stronger wind and reduced downtime in Loma La Lata. The outage that we experienced in Inissa, the new wheel less hydro due to heavy flooding and Barragan's program overhaul partially offset these variations.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Capacity payments, especially take or pay from the PPAs are the key part of the segment EBITDA performance. So once again, our thermal capacity delivered outstanding availability of 96%. The overall capacity availability dipped due to any windless floods, but the PEPE VI commissioning helped to offset that. In terms of maintenance, in March, we launched a major overhaul of Loma Loma Loma Loma CCGT gas turbine, including live extension works. Next month, we will begin the upgrading project in Barragan gas turbines to boost efficiency and increase by 11 per eight megawatts the capacity.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Okay, so moving on to Slide eight, looking at the cash flow, we show just the restrictive note just because that was the bond parameter. In Q1, we posted free cash flow of hundred and $18,000,000 mainly driven by higher CapEx resistant to the development of Rincon Garanda, which accounted for 71% of the total CapEx in the restricted group, plus a seasonal increase in the working capital. As a result, cash and cash equivalents ended in the quarter at $1,100,000,000 Finally, on the balance sheet, gross debt stood at $1,600,000,000 This is a 19% decrease compared to December 2024 due to the redemption of the 2027 notes. Net debt increased to $577,000,000 This is 0.8 times net leverage ratio, reflecting the decline in cash explained before. The issuance of the 02/1931 and the 02/1934 notes allow us to further extend our debt average life to five years and significantly improve our maturity profile.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

So this concludes our presentation. Now the floor is open for questions. If you have a question, please send it to Zoom Chat. We will read it and answer first seen results. Also, please make sure you put your name, your company, so we can introduce you to the audience.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Should you any participant have a problem, need assistance, just send us a chat or email us. Please hold while we poll for questions. So we have first question coming from Ignacio Cenichoski, Bernardino, Bolsa. I hope I pronounced well your last name. How is the situation today in Ecuador?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Hi. Good morning, everybody. Thank you, Ignacio, for the question. The situation in Ecuador is now we the concession ended at the end of last year. We gave it back in November of last year to the Valorian government.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

And since then, we have been trying to get rid of the get rid of this is not the to recover the guarantees that we're giving for these concessions. There are two guarantees of $50,000,000 each. One is an environmental guarantee and the other one is an operational guarantee. There is no reason at all for that these guarantees should not be released because the pipeline is operating in perfect conditions, and there has not been any environmental issue during our time as of the pipe. But so far, we have not been able to obtain the release of the guarantees.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

So a few weeks ago, we decided to initiate an arbitrage to recollect these guarantees, which we are very optimistic of the results. We don't know how how long is it gonna take, but but that is basically the the situation. Very optimistic about the outcome of of the of the arbitrage, but it will take some time.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Alright. Alejandro Delichelis from Jefferies. He's asking, please, can you update on the development of El Conde Aranda and what production exit rates you expect for this year?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Hey, good morning, everybody. Thanks for the question. Rincon de Ranga, so far, we drilled five pads. We fracked three. We have one tied in, which is part number two.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

The performance is pretty good. We are pumping approximately 6,005 barrels a day overall. And the as I mentioned, the well performance is what we expected and is very good. The what we are going to do in the coming days is tying in the next two parts, which are parts number three and number four. And, well, keep on with the fracking until we end up with six out of the seven parts being fracked by the end of twenty five.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Awesome.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

And tied in. I don't know if he asked about the production rates. Yes. Okay. The production rate, as you mentioned, today is 6,000 more than 6,000 barrels a day.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

We are supposed and we hope that we will get to 20,000 barrels per day by the end of twenty twenty five. And so far, so good.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Awesome. Thank you, Gracias. And the next question he asks, with investments in upstream and LNG, where do you see the CapEx requirement that in the next couple of years? So in the CapEx, I will give it to you.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Okay. CapEx for the LNG, you mean?

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

LNG and upstream sales.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Okay. LNG, well, we are hiring the two vessels. But for the Healy, we have a commitment of EUR 7,000,000,000 in the twenty years. Regarding CapEx, specifically for all of the facilities and ancillary services that we need for the boats, we are talking about EUR 700,000,000 until 2028, out of which EUR 150,000,000 are going to be paid by dollar. So we have a remaining of EUR $550,000,000, and out of which we have a participation of 20%.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

So it's a little bit more than EUR 100,000,000 for pump. Great.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And for upstream?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

And in the upstream, we're going to be developing Sierra Le Chata. Our estimation in order to supply the almost 6,000,000 cubic meters per day, that is our share of the two vessels. We envision around $400,000,000 from 2026 till 2028.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

And just to add that, in addition to the total $700,000,000 that you mentioned, we need to build a dedicated pipeline. We are quite optimistic that a midstreamer will build it, and the consortium will pay as a transportation tariffs as an OpEx.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And then I guess he's asking also what about the upstream investments in Rinconeranda, Royal, right, as you mentioned.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Okay. No problem. Rinconeranda for 2026, we envision around $500,000,000 4 60 million dollars to be more accurate, out of which $360,000,000 comes from drilling and completion and $100,000,000 out of facility.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Well, next question from.

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

No. I think he asked about the So no need for this will be So this year, we're planning to fund all our CapEx with the cash flow generated by power and gas businesses plus our, strong cash position. So we're not envisioning issuing more debt unless no more debt for CapEx. If there are very good market opportunities, we will always pursue an active liability management. But other than that, we're not seeking to increase our debt significantly.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Thank you, Pito. Next question is coming from Guido Mizzoceiro from Alaria. Regarding the Argentina FLNG project, how much of the $7,000,000,000 CapEx announced by Golar will be financed through project finance and how much by the 20% stake of Pampa in Cesar?

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

I think.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Well, the $7,000,000 of CapEx is not being financed at all by us. It's just a higher fee. So there's no finance there. And as I mentioned before, what we need to face in the future is that 20% of those are EUR $550,000,000, which is a little bit more than EUR 100,000,000. That's the Upstream.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

And again, as Gustavo mentioned, we are assuming that the new pipeline is going to be transportation capacity charge. Awesome.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

In order to achieve the 6,000,000, I think you already have mentioned, it's how much CapEx now already mentioned about. Do you have an estimation of the EBITDA contribution for this new project by twenty eight, twenty twenty nine, twenty twenty eight?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Okay. When the two vessels are online and we are already delivering the almost 6,000,000 cubic meters per day. We estimate approximately $150,000,000 of EBITDA for FOB price of $7.2 per million BTU. That's what our best estimation of EBITDA is.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Conservative?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Yes. I would say it's base case.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. Based on that price of Based

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

on price of 7.2.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Right. Well, considering the FLNG is now full year gas project for 2028, are you planning any other projects for the idle gas production in capacity during the summer period or the off peak period?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

I don't think I understand very well the question. I mean, demand for the vessels is flat.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

No, I think she had mentioned another project beyond FLNG like the example or

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

The only project that we have today on phasing us is the potential expansion of TGS through the IP that we already presented to the government. And that accounts for 40,000,000 additional cubic meters per day, out of which eventually we might get, I don't know, maybe 20 of that. So it's going to be around 3,000,000 cubic meters for one hundred and twenty days a year. So that's the only project that we have in the short term.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Guido is also asking, could you give us a little bit of color about the expected evolution for lifting cost and production, production we already talked, but lifting costs?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Sure.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Rinconeranda. No

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

problem. For Rinconeranda, we have like three different stages. One that's already we've already been through, which was a tracking, I would say, the tracking stage, which was obviously the most expensive. We were talking about $23 to $24 per barrel of lifting costs, which obviously is very expensive. Now we already tied in our first stage of our pipeline connecting Trincon De Randa with La Maria Chiga Norte, which reduced dramatically our lifting costs.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

We are now in the range of $8 per barrel. And the second or the third stage, sorry, is going to be the connection or the tying in of the pipeline, the oil pipeline to Kawanok, which is the interconnection with the Vaca Muerta system. And we see that after that, our lifting costs probably will go down to $5 per

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

barrel. Awesome. In the last conference call, you mentioned that part of a hedge, not you or

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

I did mention that.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

You didn't mention that, but someone did. From May to December, most of its crude oil production at 72 per barrel. Are you planning to continue with this policy in the future?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. Yes, we will continue with the policy of hedging oil prices when conditions are good.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

All right. And regarding power generation, Guido asks, although we do not know what will happen with the legacy carriers in the future, what will be the impact on EBITDA for 2026, twenty twenty '6, '20 '20 '7 when some of your PPA contracts will come to an end? Well, right now, in '26 we only have a small contract of 75 megawatts of TG four in Loma De Lata. And then we have three contracts under the resolution 21, Loma Lata TG five, and White. The four of them, they round account around a hundred million dollars of EBITDA.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Little bit. Yeah. A hundred million dollars of EBITDA yearly. I estimating that there's status quo. There's no changes and there will be because there are peakers.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

So they should be charging around, I don't know, $5,000 per per mail amount. I am account I am assuming drop in in EBITDA of around $70,000,000 or less. You see, the CN? A hundred to 20 something. I do it. I did the math.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

So you do Yeah. It's a little bit aggressive. But

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

You do three eighty times 5,000 times 12, which is the capacity. This is a rough number. Right? It gives you around $25,000,000 of EBITDA. And from a 25, I guess, the difference is 75.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

But I know it's too early to tell, but that's that's the the drop in the EBITDA. But again, very important, the PPAs on CAMMESA, they are meant to be to be repaid investment in in the tenure of of the PPA. So that's why can they need way to the spot market. That's unlike to the other B2B or PPAs that we have, yes, PPAs that we developed in the B2B world, Matteo for example, that doesn't have any maturity at all. They just keep rolling, right.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And the other question, which confirm the PPA, already said that. Next question, Anmio from Bank of America. Does Planta plan to bid the tender for the hydroelectric concessions in Iguiles and Yamante?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. Eventually, yes, we will look at them and eventually participate, not only in the Nimules and Diamante, we could eventually participate in any the hydro concessions that will be auctioned in the coming months. The first ones will be Chacon, the ones from the Comagua area. Pigre Del Agua and Chacon and Alicura. Those are the first three hydroelectrical concessions and will be in the auction.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Later, it it will be in Igudesigno and Diamante. And we will once the conditions are on the street, we will evaluate, and, eventually, we will decide whether to participate in which of them.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Alright. The second question she asked, is there a rough time frame for the CEREC complex of TGS to fully resume the NGL production?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. Seri Complex has already resumed production at full capacity. Although because of the floods, equipments are still not with the reliability that they had prior to this catastrophic situation. So they're still adjusting to they're still solving problems, but it's it's already fully fully online.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

She's asked about Vincolera, and we already talked about that. Standby considering calling the 29 bond given it has a high coupon and trading above the gold price.

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

Well, we definitely look all the time to weigh opportunities in liability management, as I said. But it's not only the coupon you have to factor in, all the costs of issuing a new bond. The prime is over $2 that you have to premium that you have to pay to call the bond, plus any new issue spread plus any spread in a longer bond. So when you factor all that in, you need to have a positive net present value of all that. And given the case, it might make sense to call the bond, but we are not there yet, but we will keep analyzing and searching for any market opportunities.

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

And basically, we don't have any need to do any liability management. If market conditions are good enough,

[Gustavo Mariani, EVP & CEO at Pampa Energía]

we will eventually do it, but not before.

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

If the net present value makes sense, it is because there is a very good market and bonds are trading tighter. We'll look at that in new moment.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Thank you, Fito. Next question comes from Gustavo Faria from Bank of America Equitial with fixed income. So do you have any estimate about the upside potential of the power sector deregulation in Argentina, including, let me give you first, higher margin of the fuel procurement in its own thermal power plants, Reservoir wire? That's the first

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Say say it again, please.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

So if there's any margin to the ones that do the self procurement of fuel?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Not currently. Nobody is still using that opportunity. It's complicated to explain in a minute. But we are still awaiting regarding the regulation of the power sector, we're still awaiting for the regulator to issue the new rules. As you know, I think it was late last year that they published the guidelines one point zero.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

And basically, they gave the industry, all the participants, large users, distribution companies, power generators, everybody in the industry to give feedback about these guidelines, which were already given. Now the regulator has been working on guidelines two point zero, which has not been released yet. So we are waiting for the the those new guidelines to come out and see what they look like.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And then he asked, well, if will they be higher prices for the legacy energy capacity?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Hopefully, but hopefully after this deregulation, there will no longer be legacy capacity and there will no longer be the regulator defining a price, but rather letting the market decide for that. But again, we are still awaiting for the new guidelines and totally guessing that I cannot give you any better answer than this.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Also you ask, what's the upside potential for pump and heat shock initiatives because we are gas producers and

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

power producers as well?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

As we always said, we are awaiting this regulation because as an integrated company, the it's music to our ears to be able to use our own gas in our own power plants. So we are very eager for this to this deregulation to happen and to be able to use our own fuels. What additional market margin this will bring us is very difficult to forecast at this point.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Well, I think we talked about this, the timeline, you don't know much the timeline to have We

[Gustavo Mariani, EVP & CEO at Pampa Energía]

are waiting for the second round of the guidelines to be published anytime, but this will not take effect. This will be, again, guidelines and the government has already announced that they expect the new rules to be implemented during the wintertime and to take effect by November by the end of this year, basically. After the winter, yes. After the winter, yes, in November of this year.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Thank you. Next question is coming from Bruno Montanari from Morgan Stanley. Well, I think we didn't cover this. With the recent decline in the oil price, do you expect any changes in the CapEx, in intensity, drilling intensity, in the round path schedule in Rincona Aranda?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

No. No. We are not foreseeing any any decline in in our rates of drilling or on completing the the wells. Steady faster. Yeah. We we keep the clear we keep the course.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Okay. And she's asking, well, a little bit more, Can you provide an update on your CapEx budget per business segment in 2025?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

CapEx of 2025? Per business.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Like power?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Per business. Yes. It's the E and P segment will be around $950,000,000 out of which $800,000,000 goes for the development of Rinco De Randa, all the infrastructure facilities plus the drilling of all the wells. The other $150,000,000 is basically some drilling in Sierra Chata for a few gas wells plus some maintenance of the King. So E and P, around $950,000,000 in total.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Power generation is in the right 100 20 million that is basically million dollars that is the remaining payments for the pesos for the last wind farm that we put online last year. And the other $90,000,000 is maintenance CapEx. It's a little bit above average of maintenance CapEx in Power Generation this year because we have some, as Severa mentioned earlier, signed life extensions. That's why it's a higher CapEx than the average. So all in all, it's about a $1,100,000,000 CapEx for Pampa this year.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Awesome. Regarding the Argentina LNG project, wait, it's the YPF. Do you will Pampa also seek to join the future phases being planned by YPF?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Eventually, yes. But still, we don't have much information about those projects. But definitely, as we have proven with the the first one with with the consortium that that we joined last year. This is a strategic it is strategic for Pampa, and it's a way to monetize our very competitive gas reserves. So we would definitely look at all the opportunities regarding LNG that will come out. Great.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And yes, finally, regarding the first phase, the FLNG project, is Pampa interested to take part on the midstream, the dedicated pipeline project? We have Pampa Viziers. Okay.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Pampa itself is not interested in participating in the midstream. That's not our corporate, but we have TGS whose core business, it's a midstream. And it has been proven to the market in the recent years with a lot of investment in the midstream area and the segment of the company that is growing very, very importantly. So, yes, TGS will definitely be interested in in participating and offering the construction and the operation of the pipeline of the dedicated pipeline that the floating LNG project will need.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Awesome. Well, now next question coming from Luca Cerrimedo from Quantum Finances. Any comments about broad though, any comments about Complico Petrochemical Samatin, our petrochemical complex? I guess, he's asking about petchem business, I guess, overall.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Okay. If the question goes for the petchem business, as we have been mentioning in previous call, it's this is a tough year for that business segment, which we expect to basically to breakeven or to have just small EBITDA margin this year. But because of international prices, because of basically higher dollar costs and lower sales and more competition from imports. So several factors that are affecting the business. So it's a tough year for the segment, but it's not going to be as good as the previous three or four years were.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Right. Awesome. Next question is coming from Jorge Moura from Fundamenta. I think we cover most of it. So supplying on gas, we talked about that.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Adjust I guess, adjustments in Energia Vasu prices, do you foresee more?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. I think the trend might continue. Increases has I think most of the increases have already been given or most of the catch up has already happened, but not all of it and still some some technologies like the still struggle to struggling to to make money. So there might be further adjustment down the road while we wait for the new regulation and the new rules.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

The deferral of Jorge was about the hydro options that we already covered. Next question is coming from Ignacio Lopez from Puente. He has one question about the outlook in the power sector, which I think we already talked about that. The outlook in the power sector, the deregulation, I think we covered. We have, have you made any investment decisions, like organic investment decisions in the power sectors.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

We are aware of the batteries tender launched by the Secretary of Energy. We will like also to know whether you are considering new renewal assets in this context.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Regarding the battery, the BES option, so battery, well, this auction that has been called by CAMMESA. We are studying that. We have recently requested suppliers. So we haven't taken a decision whether we will participate or not. It will very much depend on the cost of the equipment and the projected IRR of production.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

And the same can be said about the renewable project. At this point, we don't have anything, and we are awaiting the new regulation. We are not taking any decision on new renewable. We believe prices are quite tight. Competition is already tough in that segment.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

GB regulation might bring an additional competition from thermal units. So we are waiting to see how that market where the equilibrium prices land before deciding on building new renewable

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

power. Great.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Next, Andre Cardona from Citi. Is there any M and A opportunities that you're looking at?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. We are always analyzing M and A opportunities in several sectors, but nothing concrete that I can comment right now.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Awesome. Andre Cardona from CD and also Andre Cielindiano from Valenzas are asking together, can you provide any information about the status of the Ria project, how close is the FID?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

We are not the FID is far away. And we have a team. We have set up a team, and the team is working very hard to get an information to have suppliers providing us with firm quotations of the total cost of the project. We are several months away of obtaining that information. Hopefully, it will be before year end.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

But we hope to be able to make a decision by year end, first quarter of next year to decide whether to go forward with the project or not.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Well, next question, very oil and gasy oil actually from Daniel Guardiola from BDG. He's asking, could you share us an indication of expected trajectory of the production flowing from Rinconera in 2025, I guess,

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

the year. Throughout the year? Okay. Well, we as I mentioned before, we started with a little bit more than 6,000 barrels per day right now. We will go up to 12,000 barrels by August, September.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

And hopefully, by the end of the year, we will be reaching the 20,000 barrels per day.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And then share with us the total amount of PUCs you currently have and what is expected time it will take you to frac and put them into production, this inventory of drill out, but then complete wells?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Okay. Currently, only have one drill and completed well, which is part number five. We are currently drilling two more parts, parts number 10 and part number 11. And we still have to drill and frac part number five and then we will proceed. After that, we did fracking of parts ten and eleven.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

And this is basically because we have two other pads, which are Patch seven and eight that have been drilled up to the landing point in Vaca Muerta, but not the horizontal leg just to avoid interference between drilling and completion or the parent child as it's usually known. So to be more accurate, we have one DUC, which will be drilled in June. And then we will be drilling by September and November, patch number 10 and number 11.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And now it's getting more into the point and she's saying, can you share some data of Rinconera Rinconera like you are IP production, that's in cost that's in cost we cover, CapEx per well, and if possible if possible, any IRR you're expecting per well basis?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Okay. Easy, Titus. Regarding the IP and the EUR, we are talking about 1,600 barrels per well. And the EUR will be around 1,200,000, one point three million barrels. And cost per well, it's in the range of $16,000,000 to 17,000,000 Now, at this point, once we reach the factory model, which is hopefully going to happen by the end of this year, we hope that our CapEx per cost will go down to some figure around 15,000,000 to $14,500,000

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

He says, well, to better graph how resilient your oil operation, are you able to provide any indication of how much is the breakeven of Rinconeranda in terms of Brent and cash? Yes, cash breakeven and Brent.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

If we're looking at the factory model CapEx, the project has a breakeven of less than $40 per barrel. We are talking one hand. And regarding the CapEx per well, it's very important to notice that we are also adding to the total CapEx the flow lines because usually, oil companies tend to avoid the adding up of the flow line from the well to the treatment facility. And this is why some companies are showing costs of 12,500,000.0 to $13,000,000 per well. But you need the flow rate to get that oil out.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Thanks for the transparency. And then one more from one more. She's asking Daniel, what is the real potential of exploring gas to Brazil? And can you provide us an update on this infrastructure you're using to ship the gas to Brazil?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

With the current infrastructure, we are capable of exporting to Brazil around 4,000,000 to 5,000,000 cubic meters per day. Not million cubic meters per day. Infrastructure that we use is the infrastructure that is already there in place. Basically, the reversion of the Northwest pipeline plus the Bolivian infrastructure, plus the Brazilian infrastructure from the Bolivian border to Sao Paulo. A lot.

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

It's a lot, and it's very expensive. So far, it's very expensive. So we are very competitive with the alternative of the Brazilian industry, which is getting LNG from their reclassification terminals.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Awesome. And one more from Daniel, he's been getting up. He says, do you foresee any potential synergies of having YPF as a new partner in Ciabachata? Are you considering to accelerate the development of that field?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Well, having YPF with all the LNG projects that they have in their portfolio definitely helps us to accelerate the development of Cervechat. So I think it's good news.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

That was all from Daniel. Now we turn turning to someone, I don't know, but he's asking. Christian Andrews, good morning. Broly speaking. Is the recent five year carrier review for TGS Transcendent positive for your business.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

We were hoping or expecting for more favorable tariff increases. I think it was Credit One, right? So we were

[Gustavo Mariani, EVP & CEO at Pampa Energía]

not I would say that we were not surprised by

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

By the outcome.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

By the outcome of the regulatory revision, neither of Transcendental or TGS because, as you know, we the companies participate a lot in providing information and discussing with the regulators. So it didn't came as semi surprise. It was in line with with our expectations. Great. That that that was the question? Or

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Yeah. It was like, did you are you okay? You're I guess, in a nutshell, is are you happy to go?

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Happy. Yes. We're we're happy with them. Yes.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

You're welcome. And another question from Christian. He says, in power generation, have payments terms mostly normalized with Chimesa or you're still facing loan payment delays? He's not following for a long time.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yes. Now the CAMMESA, since the events of of April of yeah. March, April of '20 '20 fourth, Since that event, CAMMESA has very quickly begun to pay not exactly right on the date of the maturity of the invoice. But within the next three weeks, CAMMESA fully pays the invoice of the month. So within the month, we fully collect both from CAMMESA and Enarsa.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

So there are a few days of delays in the payment, but nothing relevant.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Like five days? Five days? In average, days. Yes. Coming from sixty or more.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yeah. Exactly. So so, yes, basically, Kamesa is The

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

best payer right now.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

With our resident payer today.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Another question coming from Mathias Catanuzzi from ADCAB Securities. Could you break down the expected timeline from the Phase one FLNG project?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Say again, please.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Like the milestones on the FLNG project, by end of this year, we

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

Well, the COD on the first vessel is expected for the last quarter of twenty twenty seven.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

In the meantime, what kind of

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

In meantime, we need to secure the gas transportation project for CESA. So I would say that plus the interconnections with the San Martin pipeline and the all the yoke and ancillary services that we need for the vessel, basically. Explain the yoke. The yoke is the The mooring system. The mooring system that allows the ship to deal with tides and with wind and with the normal movement of the emotion of the ocean five kilometers away from the coast.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Okay. Well, we'll have to better keep it up. So he is asking about volume revenues EBITDA. We already talked about that. So you can see in the rewatch.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And then another question coming from Valentino Caramucci. Do you see further needs on Brazil gas imports from Pampa?

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

We see Brazil as a very big and relevant potential market. But as we mentioned before, it has to we have to deal with the transportation tariffs that are imposed all over the world, by way. If that is reduced, definitely it's going to be an opportunity for new exports to Brazil. But taking into account this cap of 5,000,000 cubic meters per day, in order to do more than that, you need additional investments.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Yes.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Sorry. One relevant thing to mention here that has been published here is that beginning in May 1, we have begun exporting gas through gas to a facility to Chile to To a Viollira region. We are currently exporting almost 500,000

[Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía]

meters per day Shell. And it's the first I mean, it's the first export that takes place through that pipeline apart from what YPF was doing for the past years.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Very good. Yes. Well, Valentino Caramucci is also asking from Guitelia. Are you planning to raising more debt in the short, medium term?

[Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía]

I think we saw that, but we don't have to raise new debts. We are okay with the level of debt we have, but we're always looking for market opportunities and we are very active in our liability management, but not for any of these projects or for CapEx.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

And the last one, because we are in the the top of the hour. Jorge Mouro asking if the in the upcoming sale of Citadel by ENRSA, can you participate, would you? I mean, I guess, Transener sale. Right? The sale Transener's share of

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Yeah. And our site is working in a in a process of divestment divesting Citelec, which is a controlling their 50% ownership of Citelec, which is a controlling company of Transcendental. Regulatory wise, you are a distributor or a power generator, you cannot control transmission. So we currently have the co controls together with the government of transmission. We cannot go beyond that.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

So we cannot acquire a NASA stake in Zidec. So that is the answer.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Great. Awesome. So we are 12 o two. This is completing our q and a section. Thank you for joining us and taking time to join this call.

[Lida Wang, IR & Sustainability Officer at Pampa Energía]

Take care. Should we have any questions, please let us know. Write us to Rachel or me to to anything, and have a good day. See you next August. Bye.

[Gustavo Mariani, EVP & CEO at Pampa Energía]

Alright. Thank you very much for joining.

Participants

Analysts

• Lida Wang, IR & Sustainability Officer at Pampa Energía
• Gustavo Mariani, EVP & CEO at Pampa Energía
• Horacio Turri, EVP & Executive Director - Exploration and Production at Pampa Energía
• Adolfo Zuberbuhler, Executive director of finance (CFO) at Pampa Energía