Pampa Energía Q4 2025 Earnings Call - Rincón de Aranda ramp and record CapEx reshape cash flow and margins

Raquel Cardasz, Investor Relations, Pampa Energía: Good afternoon, everyone, and thank you for waiting. I’m Raquel Cardasz from IR, we would like to welcome everyone to Pampa Energía’s fourth quarter of 2025 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. After the company’s remarks, there will be a Q&A session. Questions can only be sent in writing through Zoom. Should any participants need assistance, please send us a chat message. Before continuing, please read the disclaimer on the second page of our presentation. Let me mention that forward-looking statements are based on Pampa Energía’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.

Investors should understand that general economic and industry conditions and other operational factors could also affect the future results of Pampa Energía and could cause results to differ materially from those expressed in such forward-looking statements. I will turn the video conference over to Lida. Please go ahead.

Lida, Presenter/Moderator, Pampa Energía: Hello, Raquel. Thank you very much. Hello, everyone. Good afternoon. Thank you for joining our call. I will make a really quick summary so we can spend more time on questions with the management today. Q&A, we have our CEO, Mr. Mariani, our CFO, Mr. Zuberbuhler, and our Head of Oil and Gas, Mr. Turri. Let’s go ahead with the first slide, where we make a quick summary of 2025. November 25, 2025 marked our 20th anniversary, Pampa, from the creation of Pampa. Back in 2005, we did not produce any oil or gas or did not generate any single megawatt-hour of generation electricity.

Twenty years later, Pampa accounts for 9% of the country’s total natural gas production and reached a record daily production of 104,000 barrels of oil equivalent during the winter of 2025. This year also marked a steep change in our upstream profile. Our black flagship shallow development at Rincón de Aranda began the year producing less than 1,000 barrels of oil per day, and now reach a 20,000 barrel goal by December of last year. As a result, total annual average production exceeded 84,000 barrels of oil equivalent per day. This is 8% higher than last year and 73% up since 2017, the year after we acquired Petrobras Argentina, reflecting the sustained organic growth and disciplined capital allocation.

In the power segment, we consolidated a 15% share of Argentina’s net electricity output, achieving an outstanding 94% thermal availability rate in 2025. We affirm our position as the country’s leading IPP and demonstrating a reliable, efficient fleet cooperating under a gradually normalizing market framework. At a consolidated level, the EBITDA grew 8% year-on-year, surpassing the $1 billion mark, mostly driven by power, gas, and Rincón de Aranda. While oil and gas and power each represent half of the EBITDA, we expect that ongoing growth at Rincón de Aranda will further expand oil and gas footprint in the EBITDA. Pampa and its subsidiaries are deeply committed to the country’s energy development.

In 2025, we hit a new record high of $1.4 billion in CapEx, of which roughly half was destined to Rincón de Aranda, the largest single project development investment in our 20-year history. In 2026, we expect to set a new record high, allocating $770 million in Rincón de Aranda, very similar to last year, to reach production plateau, plus another $400 million for maintenance across our operations and around $600 million for TGS revenue initiative project. Moving on to the Q4 results. The quarter’s adjusted EBITDA amounted to $230 million. This is a 26% year-on-year increase.

Power generation was the main contributor, where since November, the new guidelines for the wholesale electricity market have allowed power producers to operate under a more decentralized scheme, improving price signals and enabling us to capture operational efficiencies and synergies with our E&P gas. Rincón de Aranda was the second key driver, with its production ramping up, ramp up, accounting for 23% of the quarter’s EBITDA, supported by 10 active pads as of today. Our capital structure, it continues to strengthen, following the issuance of our 12-year international bond. We closed the year with a net debt to EBITDA ratio of 1.1 times, an average debt life of almost 8 years. Quarter-on-quarter, EBITDA decreased due to the gas seasonality, sorry, offset by Rincón de Aranda and the steady contributions from our utilities, TGS and Transener.

CapEx surged 81% year-on-year to $371 million in the quarter, of which $249 million were invested in the development of Rincón de Aranda. Okay, moving on slide 6. The oil and gas segment adjusted EBITDA was $77 million in Q4, more than doubling last year’s, driven by Rincón de Aranda, increased gas exports, and industrial demand. Higher transport and treatment costs partially offset this gain. Compared to Q3, EBITDA declined due to the gas seasonality, was smoothed by Rincón de Aranda. Lifting costs averaged $8 per barrel of oil equivalent, slightly below last year due to higher crude oil output and stronger gas demand, offset by increasing gas treatment costs and the lease of temporary facilities at Rincón de Aranda. Quarter-on-quarter, lifting costs for BOE increased due to this gas seasonality.

Gas lifting costs remained flat year-on-year at $1.2 per mil BTU, an average of $1 during the 2025. Rose quarter-on-quarter, again, because of the gas seasonality, while oil declined sharply to below $11 per barrel from $36 last year’s Q4. This is because, mainly because of Rincón de Aranda’s ramp up and the divestment of mature conventional blocks. Remind you all that last year, Q4, Rincón de Aranda was really a greenfield, produced only from one well. On top of that, we were recording trucking expenses, testing expenses, and we also held a lot of mature blocks that today are divested. Total production averaged more than 81,000 barrels of oil equivalent per day, up 32% year-on-year.

This is led by Rincón de Aranda and Sierra Chata, partially offset by decreases at El Mangrullo and in non-operated blocks, as well as the divestment of El Tordillo. Quarter-on-quarter, production dropped 18%, again explained by the gas seasonality. The production mix continues to evolve, with oil rising to 22% of total outputs, driven entirely by Rincón de Aranda. Crude oil prices averaged nearly $61 per barrel in Q4. This is 10% lower than last year due to the weaker Brent prices. Without the hedging at Rincón de Aranda, our realized price would have been $53 per barrel. Focusing now exclusively on Rincón de Aranda, the ramp-up stays on track.

In Q4, we reached the first goal of 20,000 barrels per day after tying 2 pads, 2 new pads, with an average quarterly production of 17.1 thousand barrels per day. This is a 19% increase quarter-on-quarter. As of today, 10 pads are online, of which 3 of them are currently undergoing testing, well testing, plus we have another 2 pads, DUC pads, and 2 other pads are under fracking. In 2025, Rincón de Aranda contributed $126 million of EBITDA. Infrastructure build out, thanks to the RIGI incentive regime, continues in parallel with the field development. Next month, we are installing an additional temporary processing facility with a focus on reaching 28,000 barrels by mid-2026, a key milestone towards the final production target of 45,000 barrels expected in 2027.

Moving to gas. Sales grew 10% year-on-year, but dropped 23% from Q3. This is again explained by seasonality. El Mangrullo continued to lead the output, though its share shrank to 46%, while Sierra Chata grew to 48% share, with production up 39% year-on-year, supported by a new pad that we tied in during the quarter. Together, they accounted for 84% of the total gas production. Gas prices averaged $3 per mil BTU, flat year-on-year. Industry sales supported the pricing, offset by lower export prices due to the Brent underperformance and a drop in residential due to the lagged tariff pass-through of the devaluation.

In Q4 this year, 72% of our gas was sold under the Plan Gas TSA commercial retail, down from the 81% Q4 last year due to the transfer of certain rounds of the Plan Gas volumes to fuel self-procurement in power, which represented 4% of the total sales in Q4 2025. Now, in December, we started to formally be doing the self-procurement of gas in Esquinela and Loma de la Lata. The self-procurement increased to 41% on average in January 2026. As a result, Plan Gas.Ar exposure shrunk to 37%. With the new guidelines in place, we expect 40% of this year’s production to supply our own gas or our own power generation, capturing margins and leveraging synergies between these two core businesses.

Before moving from E&P, I wanna just do a quick update on reserves. Total proven reserves rose 20% to 296 million BOE, driven by our increased activity in Sierra Chata and specifically in Rincón de Aranda. Shale reserves grew by 55% year on year to 204 million barrels, and with shale oil now accounting for 19% of total reserves. The reserve replacement ratio was 3.2 times, extending the average life to 10.2 years. Since 2019, proven reserves have increased 118%, with the most significant expansion coming from shale since 2023, was the year when we started to actively develop Vaca Muerta formation. Okay, moving to power generations.

We posted an EBITDA of $111 million in Q4, up 28% year-on-year, mainly driven by stronger stock prices under the new guidelines, especially, partially offset by power dispatch at Genelba CCGT due to the program maintenance. Total availability declined to 91% due to the scheduled maintenance in Loma de la Lata and the ongoing outage that we are experiencing in Isa since January. However, Pampa Energía’s thermal availability continues to outpace the national grid under the new framework. Also, Energía Plus B2B contracts were discontinued, though we managed to recontract in the B2B market, so contract capacity remains stable year-on-year. With the new framework also, performance balances between contracted capacity and physical margin. Value creation also can be driven by efficiency and fuel management.

Those units with high load factors and self-procure fuel will achieve higher margins. Turning to cash flow on slide 11, we show the parent company figures because this is aligned with our bond parameter. Despite the higher CapEx at Rincón de Aranda, we posted a limited $20 million free cash outflow in Q4, offset by strong EBITDA and working capital inflows, mostly from winter collections. As a result, cash and cash equivalents stood at $1.1 billion at the quarter end. This is $210 million more than September close. Finally, on the balance sheet, gross debt was nearly $1.9 billion, down 9% since 2024 December. In November last year, we issued a $450 million international bond maturing 2037 with a record 20-year tenure.

This is the first loan data issuance by an Argentine corporate over a decade, and extending our average life to almost eight years. The proceeds from this issuance and the 2034 notes that we issued in May were used to redeem all the outstanding international bonds, the 2026, the 2027, the 2029 notes, and some of the local dollar bonds. As a result, net debt reached to $101 million. This is 1.1 net leverage, maintaining a conservative capital structure while funding growth. This concludes the presentation. Thank you for hearing me. Now the floor is open for questions. If you have a question, please send it through Zoom chat. We will read it and answer them in the order received.

Make sure your name and your company is displayed so we can correctly introduce you to the audience. Should any participant need assistance, please send us a chat message. Please hold while we pose the questions. Thank you. All right, we start. Alejandro de Micheli from Jefferies, "How do you see the evolution of production? Please split between oil and gas and of drilling and completion and listing costs in 2026." Production, drilling D&C, listing costs.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Okay. Good afternoon. Thank you, everybody, for joining. Regarding production, let’s go first to oil. We are, as Lida mentioned, currently in around 19,000 barrels per day. Our target is to reach 25,000 barrels per day by the end of March, beginning of April, and then keep on ramping up to 27,000, even 28,000 barrels per day as of the half of the year. All of this is coming out of Rincón de Aranda. In terms of natural gas, we just closed February, around 14 million cubic meters per day. We will probably be reaching a peak of around 18 million cubic meters per day during the winter.

Mr. Turri, Head of Oil and Gas, Pampa Energía: An average of approximately 13.5 million cubic meters per day compared to 12.5 million cubic meters per day in 2025. In terms of drilling and completion, in Rincón de Aranda, we drilled 20 wells. We’re going to be drilling 20 wells and completing 35. In Sierra Chata, we will be drilling and completing 8 wells each. I’m missing lifting costs, which will be in the range of $10 per barrel.

Lida, Presenter/Moderator, Pampa Energía: Mm-hmm. Yeah. Until we get the PPF.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Until we get the PPF. We’re talking about 2026.

Lida, Presenter/Moderator, Pampa Energía: Yeah.

Mr. Turri, Head of Oil and Gas, Pampa Energía: A little bit less than $1 per million BTU in our gas operations.

Lida, Presenter/Moderator, Pampa Energía: Great. Let’s go to the next question. Next question comes from Guido Vicenzaro from Adcap. About the hedging. How are the royalties settled? Are they including the hedge or is that independent and settled at the market?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No. Royalties do not have any connection to the hedging. They are set at the market price.

Lida, Presenter/Moderator, Pampa Energía: All right. Next question. Alejandro Christensen from Latin Securities. How much impact have you seen so far from Resolution 425/2025? How much additional impact do you expect in 2026, would you provide some color on the EBITDA growth outlook for this segment next year? Next year, I guess 2027, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: This year. Hi, good afternoon, everybody. Thank you for joining in. The impact of the resolution so far, it’s, I think what we have been saying in previous calls is between 10% and 15% vis-a-vis the EBITDA generation that we had in 2025.

Lida, Presenter/Moderator, Pampa Energía: Yeah. Yeah, rough.

Mr. Turri, Head of Oil and Gas, Pampa Energía: More or less. That is what we expect for the segment as a whole, when you compare 2026 vis-a-vis the previous year.

Lida, Presenter/Moderator, Pampa Energía: I guess 2027 is too early to say, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Say again?

Lida, Presenter/Moderator, Pampa Energía: 2027. It’s early to say.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Too soon to say. Yes.

Lida, Presenter/Moderator, Pampa Energía: Yeah.

Mr. Turri, Head of Oil and Gas, Pampa Energía: What this resolution brings is also an improvement in our E&P business, and that is thanks to the fact that now we are self-procured. Well, the gas and power thermal power use is provided by our E&P segment. Again, we are expecting here, but it’s so far what we have seen in January and February, a 10% increase in quantity in the natural gas produced by the segment. That is thanks to the fact that we are self-procuring in our thermal plants.

Lida, Presenter/Moderator, Pampa Energía: We cannot not put a match number of that profit, right? The number you said is only for power generation, but the fact that we are self-procuring, this vertical integration, we are now putting a number so far. An effect, right? An impact.

Mr. Turri, Head of Oil and Gas, Pampa Energía: That’s correct. That’s... In our projections, we expect on the power generation segment at around 10%-15% increase in EBITDA. Another increase coming from the fact that the total gas produced by the E&P segment will also go up by around 10%.

Lida, Presenter/Moderator, Pampa Energía: That’s right. All right. Next question coming from Alejandro. Alejandro says, have you signed any PPAs with private counterparties for energy or capacity?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yes. We have been very active since November, that this new resolution is... Our commercial team has been extremely active. If I remember correctly, I think that we have sold like $70 million. Now you can sell energy and capacity. We’ve been active in both. Signed more than 100 and something contract for a total of around 70 megawatts. Yes, we have been very active there.

Lida, Presenter/Moderator, Pampa Energía: All right. How are you seeing natural gas demand and price in the industrial sector, evolving during Q1 2026?

Mr. Turri, Head of Oil and Gas, Pampa Energía: We see the industrial demand is stable. It accounts for less than to around 10% of our overall production. Given the changes in the self-procurement, it’s not a segment that we are not that interested. It wouldn’t have an effect in Pampa Energía.

Lida, Presenter/Moderator, Pampa Energía: All right. Next question coming also from Alejandro. What % of oil production remains unhedged throughout 2027?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Throughout 2027 means until or until the end of 2027?

Lida, Presenter/Moderator, Pampa Energía: Throughout, it means until 2027.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Oh.

Lida, Presenter/Moderator, Pampa Energía: In English, right? I don’t know.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Basically, we are fully hedged 1 year going forward. Until 1st quarter of next year, we are fully hedged.

Lida, Presenter/Moderator, Pampa Energía: All right. Next question coming from Bull Market, Felipe Collazo. Following the deregulation, has Pampa been able to start acquiring gas from its own wells? I think it’s all self-answered. Can you give a guidance of what the savings in fuel costs will amount during 2026? Savings in fuel costs. I don’t see savings.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Si. We’re making profit out of it.

Lida, Presenter/Moderator, Pampa Energía: We are vertically integrating.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Exactly.

Lida, Presenter/Moderator, Pampa Energía: Yeah. We are producing more than before, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: That’s right.

Lida, Presenter/Moderator, Pampa Energía: January, we produced.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We will be particularly producing more during 2026 in the wintertime.

Lida, Presenter/Moderator, Pampa Energía: Yeah, it will be more like.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We’ll be at a flat curve.

Lida, Presenter/Moderator, Pampa Energía: Yeah. Q1 is already higher than Q1.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We already said that, yeah, that, February ended up with almost 14 million cubic meters per day.

Lida, Presenter/Moderator, Pampa Energía: Well, yeah, last year, first quarter, it was a little bit different because Q4, it was very bad, and they CAMMESA took more gas. Even that, the production-

Mr. Turri, Head of Oil and Gas, Pampa Energía: Just take into account that the overall average of 25 was 12.5.

Lida, Presenter/Moderator, Pampa Energía: Mm.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We’re saying that only February is around 14 million cubic meters per day. Our estimation is that we will be producing around 13.5 to 14 million in 2026.

Lida, Presenter/Moderator, Pampa Energía: How long do you expect the RIGI approval to take for the Rinconada treatment plant? We used to think that application had been filed by mid-2025 when it was first announced, but some news articles from a month ago suggest it was just done last January. Could you clarify that?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yep. I don’t recall when we filed the RIGI for that stream, but it was definitely fourth quarter of last year. We haven’t been approved yet, but recently, they have. There was a new decree adding upstream of oil to the RIGI, so we are starting to file for an addition, yeah, an overall RIGI for the full development of Rinconada.

Lida, Presenter/Moderator, Pampa Energía: All right. Do you plan to fund the CapEx by via new debt issues?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Hi, everyone. The base case scenario is the answer is no. The idea is we have a big cash position that we have been acquiring with our free cash flow, and last year, net issuance. The base case is that we use part of that cash to complete our CapEx investment of this year. That being said, if we decide to embark in new projects or any other new investments, we’ll have to revalue that decision, that base scenario. Of course, there’s always. We’re very opportunistic, so if spreads keep tightening, that is something that we will look. The base case scenario is that we will face the capital investments with our cash position.

Lida, Presenter/Moderator, Pampa Energía: Thanks. Next question comes from Juan Ignacio Lopez, from Puente. I think we haven’t re-answered this yet. What’s the guidance about CapEx for 2026 on gas and power?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Around total CapEx?

Lida, Presenter/Moderator, Pampa Energía: sorry. Before that, we don’t give guidance. What I will give you, we will share with you what our board approved by the budget, for the budget, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: I mean, the, as Irina says, the restricted group only, you know. It’s basically, it’s around $1.1 billion, basically $1 billion, the E&P segment, and less than $100 million on power generation because it’s only maintenance CapEx. We don’t have any projects, any new projects going on that, on the power generation segment. That answers?

Lida, Presenter/Moderator, Pampa Energía: Oil? No, no.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Oil, almost around $1 billion.

Lida, Presenter/Moderator, Pampa Energía: $1 billion. Awesome. Next question, he says, specifically, how much is, of that is maintenance and how much is scheduled for thermal plants this year? It’s pretty much-

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah. It’s around $80 million, and it’s all.

Lida, Presenter/Moderator, Pampa Energía: Maintenance

Mr. Turri, Head of Oil and Gas, Pampa Energía: ... maintenance CapEx. Yes.

Lida, Presenter/Moderator, Pampa Energía: Second, guidance regarding free cash flow, which again, we don’t do guidance, but we can share with you the, what it’s, approved by the budget. What crude realized price are you assuming for your base case scenario?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: We expect total CapEx, including maintenance CapEx, investment CapEx, and the equity that we will deploy to our joint ventures. All that will imply more or less, $500 million negative cash flow after our investment. That is what will bring the cash position from $1.2 billion to $700 million, roughly.

Lida, Presenter/Moderator, Pampa Energía: All right. What else? The price of oil.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Yeah.

Lida, Presenter/Moderator, Pampa Energía: The price of oil assumed for the budget.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Ah.

Lida, Presenter/Moderator, Pampa Energía: Which I think was, less than 68.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: That’s the one assuming the budget. I think what is relevant here is the hedge price that is around $66.

Lida, Presenter/Moderator, Pampa Energía: Mm-hmm. Yeah, that’s right. A little bit above $66, right?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Mm-hmm.

Lida, Presenter/Moderator, Pampa Energía: The hedge is Brent, right?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Yeah.

Lida, Presenter/Moderator, Pampa Energía: After discounts and export duty, which is 8%, is roughly a little bit lower than... It’s roughly a little bit above $58, depending on the discount.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Well, hedge you mean?

Lida, Presenter/Moderator, Pampa Energía: The world hedge is realized FOB.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Okay.

Lida, Presenter/Moderator, Pampa Energía: Because world hedge, you have to account the.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Transportation.

Lida, Presenter/Moderator, Pampa Energía: Okay. Next question. Someone. We’re never doing this 6:30. We are never doing this 6:30 again. This is that. Caterusi Mati-Matthias from ASCA. How should we think the quarry production ramp up through 2026, particularly toward the around 24,000 barrels per day level by second quarter of 2026 and around 28,000 by third quarter of 2026?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: We’ve been through that.

Lida, Presenter/Moderator, Pampa Energía: Mm-hmm. Yeah.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: That is the last step.

Lida, Presenter/Moderator, Pampa Energía: That is exactly. He’s answering the question.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Yeah. He’s answering.

Lida, Presenter/Moderator, Pampa Energía: After the 8, 28 hole. In the chart we put, it’s 28 and then sharply goes up to the plateau.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: No, that’s not gonna happen.

Lida, Presenter/Moderator, Pampa Energía: What do you think?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: It doesn’t go up like that.

Lida, Presenter/Moderator, Pampa Energía: Vertically down.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Unfortunately.

Lida, Presenter/Moderator, Pampa Energía: It’s not asking.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: No. It’s not financially efficient. It’s probably gonna be a ramp up curve going from 28,000 to 45,000 in around five to six months.

Lida, Presenter/Moderator, Pampa Energía: Okay. Matthias is asking.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Joyero.

Lida, Presenter/Moderator, Pampa Energía: Joyero.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Joyero, yeah.

Lida, Presenter/Moderator, Pampa Energía: Given that Pampa has more gas reserves that it can currently monetize, would you consider monetizing part of your gas aggregate volume through farm out or farm downs or asset sales?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: We could consider, but we are not actively seeking to do so.

Lida, Presenter/Moderator, Pampa Energía: Could you update us. Another from Matthias. Could you update us on Southern Energy FLNG project, specifically timing, expected volumes, and potential EBITDA CapEx contribution from Pampa, and what the LNG FOB price assumption? It’s basically the Coca-Cola. Everything.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Yes. Coca-Cola. In terms of timing, we are expecting the first boat by second half of 2027, and second one by the second half of 2028, for a total demand of 6 million tons per year. That’s around, roughly around 24-25 to 26 million cubic meters per day. We have 20% out of that. And the biggest capital or the biggest CapEx involved in the project now is the construction of the dedicated gas pipeline from Tratayén to San Antonio Este, which will account for probably around $1.5 billion. Hopefully less than that.

Lida, Presenter/Moderator, Pampa Energía: Hopefully less than that. From $1.3 billion-$1.5 billion. Out of which we could consider that 60% will be financed and maybe 30%-40% is gonna be equity. Out of that we have 20%. That’s the major CapEx that we’ll be facing. Francisco Cascarón from Santander. He’s asking what new opportunities do you foresee in the generation segment, if any? Do you expect.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: I’m sorry. Just to add something that’s relevant. We signed our first long-term contract with SEFE, the German agency, for 2 million tons per year.

Lida, Presenter/Moderator, Pampa Energía: It’s binding? Is it binding?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: It’s already binding.

Lida, Presenter/Moderator, Pampa Energía: It’s binding.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Yeah. More than binding.

Lida, Presenter/Moderator, Pampa Energía: Great. Awesome. Never fail.

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: Binding for both. For both sides.

Lida, Presenter/Moderator, Pampa Energía: Great. All right. Shifting to power generation. Francisco Cascarón from Santander, he’s asking, do you foresee any opportunities there? Do you expect to increasing installed capacity this year or in the near term?

Mr. Mariani, Chief Executive Officer (CEO), Pampa Energía: To increase this year impossible because these projects take several years to be installed. What could be done in the short term could be something like batteries. Today

Mr. Turri, Head of Oil and Gas, Pampa Energía: Tanisa, our Secretary of Energy, announced new options of batteries similar to the one that was done.

Lida, Presenter/Moderator, Pampa Energía: Last year.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Last year.

Lida, Presenter/Moderator, Pampa Energía: Right.

Mr. Turri, Head of Oil and Gas, Pampa Energía: The one done last year was within the Buenos Aires area, and this one is all around the country. Has been published today. Honestly, I didn’t have time to take a look at it. Usually these are more projects, very competitive. We have colleagues, very aggressive on pricing. Not sure whether we are gonna be actively in this, in this option.

Lida, Presenter/Moderator, Pampa Energía: Right. Well, that’s it. Okay. Austin Pacheco from Maria, he’s asking, given the improvement in power prices under the new wholesale electricity market framework, are you now seeing higher returns in power generation relative to shale oil? What a question.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Relative to shale oil.

Lida, Presenter/Moderator, Pampa Energía: Possible.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We are seeing higher returns on the power generation, but vis-à-vis previous year, relative to shale oil. We have the power generation margins have improved. I still think that shale oil provides a higher expected returns than power generation.

Lida, Presenter/Moderator, Pampa Energía: They are two animals, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah, two different animals. Exactly. Different risk. Exactly. Despite these changes, we are very comfortable with the development of that we are doing in Rinconada and adding the oil segment to Pamp. That is where the question is put. I don’t know.

Lida, Presenter/Moderator, Pampa Energía: Talk about. Yeah.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yes.

Lida, Presenter/Moderator, Pampa Energía: With the recent extension of the RIGI, are you thinking to apply? I think we answered that.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yes, we are starting to apply for the upstream part of Rinconada.

Lida, Presenter/Moderator, Pampa Energía: He’s asking, I think it’s sort of to answer, but expected impact on project economics and timing. We can give him a quick summary of the RIGI, if I may. It’s basically, after the first year, you get export duties abolished, removed, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Mm-hmm.

Lida, Presenter/Moderator, Pampa Energía: The first year. The tax break rate goes down from 35% to 25%. Accelerated depreciation, so the imposable amount, it’s smaller as well, so that helps through the first years of the operation. VAT credits can be monetized. What else? If I can remember.

Mr. Turri, Head of Oil and Gas, Pampa Energía: I think that’s pretty much...

Lida, Presenter/Moderator, Pampa Energía: I think it’s pretty much that, right? It’s a, it’s a three-year, time that they give you, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yes.

Lida, Presenter/Moderator, Pampa Energía: The RIGI. Of course, free disposal of all the proceeds abroad. If you export, you can keep it. I think that’s the key takeaways from RIGI.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Sorry.

Lida, Presenter/Moderator, Pampa Energía: That’s not AI who produced that. I have to think about it. He said, well, congratulations, from Thais Abadia, from Proficio. He’s asking the RIGI upstream, how broadens the scope of the Rinconada project, and how could accelerate the development? He’s asking about how it impact.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Okay. The RIGI or the possibility of the RIGI is gonna give a significant help to develop the northern part of Rinconada, which will have an impact both in the ramp-up curve and also in the total amount of oil to be recovered from the area. We think that this is a major change in the overall economics of the project.

Lida, Presenter/Moderator, Pampa Energía: He’s asking, should we expect any updated production guidance and timing, meaning adding rigs or drilling capacity or having more capacity contracted?

Mr. Turri, Head of Oil and Gas, Pampa Energía: It will probably happen. It’s not gonna change the short-term curve, but it’s gonna have impact in the medium term. Something we’re still analyzing and obviously is contingent to the, to the RIGI application.

Lida, Presenter/Moderator, Pampa Energía: All right. Someone I don’t know, like, its name is Armando Moretti, which is very rare. He’s asking a question that we will usually answer. Do the company planning distribute any dividends in the near future?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No. We’re not planning to distribute dividends in the near future. As Peter explained, we have a negative free cash flow this year, and we expect still 12 to save. That’s something that, Even so, slightly positive in 2027. We still see a lot of opportunities to continue growing. Because of this situation, we are not planning dividends in 2026.

Lida, Presenter/Moderator, Pampa Energía: From Moneda Patria, Ignacio Irrazabal asking, he wants to double check the CapEx estimates. For Rincón de Aranda $70 million budget for this year, how much is wells versus infrastructure?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah. It’s approximately $500 million in wells. The difference will be facilities.

Lida, Presenter/Moderator, Pampa Energía: Great. How much in maintenance for generation is $80 million that we set. TGS, what we said is considering Perito Moreno expansion and maintenance. Yes. It’s $600 million of the expansion of the Perito Moreno.

Mr. Turri, Head of Oil and Gas, Pampa Energía: This year. Okay.

Lida, Presenter/Moderator, Pampa Energía: This year. Yeah, this year. No, no. Total is over $700 million.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Okay. We haven’t talked about TGS CapEx.

Lida, Presenter/Moderator, Pampa Energía: Very briefly.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Uh-huh.

Lida, Presenter/Moderator, Pampa Energía: evolves chart.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Okay.

Lida, Presenter/Moderator, Pampa Energía: Evolution chart.

Mr. Turri, Head of Oil and Gas, Pampa Energía: I missed it.

Lida, Presenter/Moderator, Pampa Energía: Maintenance on TGS, like $90 million per year, more or less. Total, right? The trunk, the regulated trunk, the liquids and the what is left from midstream. That’s $90 million per year. What should we expect for next year’s? Whoa. That’s for Rincón de Aranda, when we reach plateau, it’s just maintenance.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah. I mean, it’s just drilling and completing to fill out the decline.

Lida, Presenter/Moderator, Pampa Energía: Mm-hmm. Gas, we.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Gas, we already reached our-

Lida, Presenter/Moderator, Pampa Energía: Plateau

Mr. Turri, Head of Oil and Gas, Pampa Energía: ... our peak, our plateau.

Lida, Presenter/Moderator, Pampa Energía: When we have CESA, we will

Mr. Turri, Head of Oil and Gas, Pampa Energía: When we have CESA, we need to decide whether we’re gonna be supplying all of the demand above CESA, or we will be replacing some of our demand with CESA. It’s something that we need to...

Lida, Presenter/Moderator, Pampa Energía: In power generation, we don’t have any projects in the pipeline.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Mm-hmm.

Lida, Presenter/Moderator, Pampa Energía: That’s it. Next question from Ignacio is, what are the conditions of the B2B PPA that you signed? Which is very, very broad. Like, we have some in Isa, some in.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah. You provide some better, information, but I think the volume is around 70 megas.

Lida, Presenter/Moderator, Pampa Energía: Yeah.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Prices for energy in the mid-fifties.

Lida, Presenter/Moderator, Pampa Energía: Yeah, we are doing summer, winter. We are doing peak of peak. Yeah.

Mr. Turri, Head of Oil and Gas, Pampa Energía: They are one-year contracts.

Lida, Presenter/Moderator, Pampa Energía: 1-year contracts. We have mostly of that 70 megas is first year, which is meaning, it’s mandatory, but we have some second tier. That’s it.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah. In terms of capacity for the regulation has in order to incentivize the contractualization is that industries pay a higher capacity charge than what we collect. That incentivize contractualization because we sell our capacity a little bit better than what we sell to CAMMESA, and industries get a reduced price from what CAMMESA charged them.

Lida, Presenter/Moderator, Pampa Energía: Yeah. Well, Andres Emiliano from Balanz, the liberalization of the power market contemplates self-procurement energy by distributors. When do you consider this will be fully implemented, and how do you expect to impact your power segment? I guess the B2C conference is what he’s asking. That we haven’t done any of it.

Mr. Turri, Head of Oil and Gas, Pampa Energía: No, we haven’t done any yet. Probably some of our colleagues, especially the, probably the hydro, the recently. The hydro units have that, but that is not yet public information. That is a market that we need to see how it will evolve. I don’t have any clarity right now.

Lida, Presenter/Moderator, Pampa Energía: Another question comes from Andres Cardona from Citi. Regarding power generation, we already an answer. This, the second question, is there any short to mid-term M&A opportunity? Is there more likely to be for upstream or for power generation?

Mr. Turri, Head of Oil and Gas, Pampa Energía: There’s nothing in the short term, there’s nothing in the pipeline. That is a question that we are studying, neither in E&P or power generation. Harder to see how that is going to evolve going forward, but we are not actively engaged in any M&A opportunity.

Lida, Presenter/Moderator, Pampa Energía: This question was answered in previous calls, well, There’s always new audience, so.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Exactly.

Lida, Presenter/Moderator, Pampa Energía: Yes. Do you have any information about Rincón de Aranda, specifically in the type curve, like for example, whether estimated UR’s, IP flurry, D&C cost per barrel?

Mr. Turri, Head of Oil and Gas, Pampa Energía: We don’t give any guidance.

Lida, Presenter/Moderator, Pampa Energía: Very good. I don’t think doing it. Other than it’s like around $1.5.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Okay. It’s probably around 1.1 million barrels of EUR. In terms of cost, we should be hitting $15 million per well, approximately.

Lida, Presenter/Moderator, Pampa Energía: Your well is fully, consider the whole thing.

Mr. Turri, Head of Oil and Gas, Pampa Energía: All of it. All of it.

Lida, Presenter/Moderator, Pampa Energía: Ah.

Mr. Turri, Head of Oil and Gas, Pampa Energía: All the way to the, to the collecting pipeline.

Lida, Presenter/Moderator, Pampa Energía: Correct. Which, sometimes is different from the measures from other players.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah. Of course, of course.

Lida, Presenter/Moderator, Pampa Energía: Another question from someone I don’t know. It’s called Guillermo Gugu. How is Pampas involved in Transener sale?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No, we are not involved.

Lida, Presenter/Moderator, Pampa Energía: From Santiago Herrera, Hilaria, can you give us some color from the next maintenances in power plants program the power plants? Usually we do it when it’s off-peak, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No. Obviously, we do it either in autumn or in fall. It’s. I think there are plan. This year I don’t have anything in my mind for this fall.

Lida, Presenter/Moderator, Pampa Energía: Mm-hmm.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Probably during, Well, sorry.

Lida, Presenter/Moderator, Pampa Energía: Spring.

Mr. Turri, Head of Oil and Gas, Pampa Energía: For spring.

Lida, Presenter/Moderator, Pampa Energía: Spring.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Spring or fall. I don’t recall at this moment which plant has a significant maintenance. Most probably would be Genelba, Loma de la Lata. Those are the two relevant ones.

Lida, Presenter/Moderator, Pampa Energía: The legacy, right? The legacies. All right. Is there any change in 2026 CapEx considering the oil prices? This is a or recent price appreciation. No, nothing at all. Guido Visocero, his boss, he’s asking, urea project. Is there any further information to share about this project?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No, not at this point. Not at this point. We’re still working a lot. As it usually happens, there are delays. It will take at least another semester to have more information about this project.

Lida, Presenter/Moderator, Pampa Energía: Gustavo Faria from Bank of America. He’s asking, a little bit different from the hedge, but he said, "How does..." Wait. Brandon. how does the Pampas oil prices hedge works in this new environment of high oil prices?

Mr. Turri, Head of Oil and Gas, Pampa Energía: I would say that last year we realized like in average $7 profit.

Lida, Presenter/Moderator, Pampa Energía: Per barrel, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: $7 per barrel profit from our hedge strategy. This year, since today, we are probably losing $4 or $5 per barrel in our hedge strategy. We will see how prices evolve throughout the remaining of the year.

Lida, Presenter/Moderator, Pampa Energía: Gustavo is also asking, are you open for new investments outside power and gas, oil and gas within Pampa structure?

Mr. Turri, Head of Oil and Gas, Pampa Energía: As long as within the scope of energy of Pampa, we are open to anything. We are not studying, apart from the urea project, we’re not planning any different investment.

Lida, Presenter/Moderator, Pampa Energía: Okay. Jonathan Swartz from Debtwire is asking, why did you retire production from Plan Gas.Ar, round 1 and round 3? Why the capacity-

Mr. Turri, Head of Oil and Gas, Pampa Energía: To reallocate our power generation.

Lida, Presenter/Moderator, Pampa Energía: To vertical integration.

Mr. Turri, Head of Oil and Gas, Pampa Energía: To vertical integration.

Lida, Presenter/Moderator, Pampa Energía: Yeah. We still have some from the last round, the 4.2, right?

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah, we still have that.

Lida, Presenter/Moderator, Pampa Energía: Which we don’t.

Mr. Turri, Head of Oil and Gas, Pampa Energía: With ENARSA.

Lida, Presenter/Moderator, Pampa Energía: With ENARSA, which, no news.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We are still negotiating, eventually the handing over of that gas back to Pampa to be able to say, again, decide what to do with that gas rather than selling to ENARSA.

Lida, Presenter/Moderator, Pampa Energía: Well, he’s asking also, could you explain about the $55 million positive impairment, so recovery from impairment in generation? Yeah. Central Piedra Buena, our 620 megawatts in Bahía Blanca, it’s a true steam turbine that load factor is very low. Last year was high because it was a dry year, but usually it’s low. Under the legacy scenario, under the old regulation remuneration, they have an impairment. Now that we have this new scheme that also recognizes a big, Like a big, it’s a 30% boost in the capacity because Central Piedra Buena can also operate under alternative fuels. This is way better than any money can pay. Just because of that flexibility, it’s cashing more money and cashing more cash flow. That’s why we reversed that impairment.

I hope that was clear.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Yeah.

Lida, Presenter/Moderator, Pampa Energía: Okay, next. News on the fertilizer plant. Does the sale of Profertil to Adecoagro affects your decision?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No, it does not.

Lida, Presenter/Moderator, Pampa Energía: okay. The one-off, off the agreement mentioned by César. No, the Germans.

Mr. Turri, Head of Oil and Gas, Pampa Energía: The CEFA.

Lida, Presenter/Moderator, Pampa Energía: The price maturity.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Okay. It’s a nine-year contract until 2036. The pricing has to do with a formula that takes into account TTF and Brent.

Lida, Presenter/Moderator, Pampa Energía: Henry Hub and Brent.

Mr. Turri, Head of Oil and Gas, Pampa Energía: Sorry, Henry Hub and Brent.

Lida, Presenter/Moderator, Pampa Energía: No, that’s it.

Mr. Turri, Head of Oil and Gas, Pampa Energía: No. 50/50.

Lida, Presenter/Moderator, Pampa Energía: Fifty-fifty.

Mr. Turri, Head of Oil and Gas, Pampa Energía: With certain percentages of discount, and...

Lida, Presenter/Moderator, Pampa Energía: I think we did it all, it’s 7:26. I can’t believe it. Let me check. She’s pulling for new, higher questions. We are doing this because we have agenda constraints. All the people that ask why the stock was halted in IC, because Argentina closed and we were not allowed to file after 6:00 P.M. Argentina, and that’s 4:00 P.M. New York, and we are not allowed. It’s trading hours in New York. That’s why we were halted. No speculations here, because people ask me a lot of things. No questions? No more questions. Gus, Rocio, Fito, would you like to add something else that we didn’t talk about?

Mr. Turri, Head of Oil and Gas, Pampa Energía: No.

Lida, Presenter/Moderator, Pampa Energía: No.

Mr. Turri, Head of Oil and Gas, Pampa Energía: We covered it all. Thank you all for joining. I hope it was useful.

Lida, Presenter/Moderator, Pampa Energía: All right. Thank you very much. See you next May. Bye.