Pampa Energy Inc. Q1 FY2025 earnings call

• FLNG Project: Pampa holds a 20% stake in the FLNG project, with FID achieved. Vessels to export 6 million tons of LNG per year, Pampa to supply up to 6 million cubic meters per day. First vessel expected online end 2027/early 2028, second a year later.
• Tariff Reviews: TGS and Transener completed 5-year tariff reviews, moving toward regulatory normalization in the Argentine utility universe.
• CapEx: CapEx rose 35% year-on-year, with $114 million for Rincon de Aranda out of $180 million total CapEx in Q1.
• Rincon de Aranda: Drilled 5 pads, fracked 3, tied in 1. Targets 20,000 barrels per day of production with 8 pads online by Q4 2025. 2025 CapEx for this block targeted at $800 million.
• Power Generation: Strong EBITDA due to higher spot prices, PEPE VI wind farm, and PPA contributions. Thermal capacity delivered 96% availability, with maintenance activities planned for Loma de la Lata and Barragan.

E&P Business

• Adjusted EBITDA for Q1 was $41 million, down 39% year-on-year. Driven by increased operating expenses, lower sales to industries, but offset by stronger deliveries under Plan Gas. Production averaged nearly 73,000 barrels of oil equivalent per day, flat year-on-year but up quarter-on-quarter. Lifting cost per boe was $6.9, up 20% year-on-year but down 20% quarter-on-quarter.

Power Generation Business

• Adjusted EBITDA was $130 million in Q1, a 51% increase year-on-year. Driven by higher spot prices, contributions from newly commissioned PEPE VI wind farm, and strong operating performance. Generation volumes remained stable despite national grid decline, thanks to PEPE VI and higher gas supply.

Cash Flow and Balance Sheet

• Free cash outflow was $118 million in Q1, mainly due to higher CapEx for Rincon de Aranda and seasonal working capital increase. Cash and cash equivalents ended the quarter at $1.1 billion. Gross debt stood at $1.6 billion, net debt at $577 million.

• FLNG: First vessel expected online end 2027/early 2028, second a year later. Estimated EBITDA contribution of ~$150 million by 2028 based on $7.2 per million BTU FOB price.
• Rincon de Aranda: Targets 20,000 barrels per day of production with 8 pads online by Q4 2025. 2025 CapEx for Rincon de Aranda targeted at $800 million.
• 2025 CapEx: E&P segment CapEx ~$950 million (including $800 million for Rincon de Aranda), power generation CapEx ~$120 million, total Pampa CapEx ~$1.1 billion.

• Ecuadorian Guarantees: Guarantees not released by Ecuadorian government, arbitration initiated to recover them.
• Petchem Business: Tough year ahead due to international prices, higher dollar costs, lower sales, and competition from imports, expected to breakeven or have small EBITDA margin.

Q: How is the situation today in Ecuador?

A: The concession ended last year, guarantees not released, arbitration initiated to recover them.

Q: Can you update on the development of Rincon de Aranda?

A: Drilled 5 pads, fracked 3, tied in 1. Pumping ~6,500 barrels a day, targeting 20,000 barrels per day by Q4 2025 with 8 pads online.

Q: Does Pampa plan to bid the tender for the hydroelectric concessions in Nihuiles and Diamante?

A: Yes, will evaluate and potentially participate in hydro concessions as they are auctioned.

Q: Is Pampa considering calling the '29 bond?

A: Analyzing market opportunities for liability management, but not a priority currently.

Q: With the recent decline in oil price, any changes in CapEx in Rincon de Aranda?

A: No, will keep the course on drilling and completing wells as planned.