Pampa Energía S.A. (PAM) Earnings

Management highlights

• Core Operational Milestones - Q1 2026 total production exceeded 100,000 BOE/d, reaching a new all-time quarterly high, driven by the sustained ramp-up at Rincon de Aranda and higher gas output under the new power generation regulatory framework - Rincon de Aranda averaged 18,200 barrels of oil per day (bopd) in Q1 2026 (up 7% quarter-on-quarter, from less than 1,000 bopd in Q1 2025), with an exit rate of over 21,000 bopd at quarter end; current production as of the call is ~25,000 bopd - Drilling efficiency at Rincon de Aranda improved over 50% year-over-year to 330 meters per day, and completion activity improved over 30% to 9 stages per day - Gas production grew 17% year-on-year and 28% quarter-on-quarter to almost 14 million cubic meters per day, with export volumes up 65% year-on-year to 1.5 million cubic meters per day • Financing and Balance Sheet - In April 2026, Pampa Energia successfully issued $200 million in 3-year bullet notes at a competitive 5.49% fixed rate - As of quarter end, gross debt was nearly $1.9 billion (flat from end-2025), net debt rose to $1.2 billion, for a net leverage ratio of 1.5x (trailing twelve months EBITDA) - Free cash flow was negative $404 million in Q1, driven by oil hedge collateral requirements, intensive Rincon de Aranda CapEx, and prior year CapEx payments • Infrastructure and Strategic Projects - Pampa secured 3.2 million cubic meters per day of capacity in the first tranche tender for the Perito Moreno gas pipeline expansion (2/3 of the first tranche, 27% of total expansion capacity), with a 35-year take-or-pay transportation contract requiring $330 million (VAT-inclusive) in prepayments spread across 4 installments through April 2027; the expansion is expected online in winter 2027 - The company submitted a Rincon de Aranda northern area development project application to the RIGI incentive program in March 2026, with total proposed investment of $4.5 billion covering new wells and infrastructure; approval is still pending - The urea project is in advanced development, with engineering work, EPC negotiations, environmental permitting, and project finance discussions ongoing; a final investment decision is expected by end-Q3 or Q4 2026

Guidance

• Production guidance for Rincon de Aranda: The company expects to tie in an additional 20 wells in the remainder of 2026, reach 28,000 bopd by mid-2026, and hit a production plateau of 45,000 bopd once the central processing facility and Vaca Muerta Oil Sur pipeline are completed. The 45,000 bopd plateau is expected to be sustained for approximately 15 years with full field development. • EBITDA contribution from Perito Moreno pipeline capacity: Management estimates a conservative total annual EBITDA contribution of ~$150-$160 million, with ~$100 million from power generation and ~$50-$60 million from the E&P segment. • Leverage guidance: Net leverage is expected to remain around 1.5x through 2026, then gradually decline as Rincon de Aranda ramps up and investments begin generating returns; if no new large projects are pursued, net leverage is expected to fall to 0 within 2-3 years. • Hedging strategy guidance: Going forward, as production stabilizes, Pampa will reduce its hedged volume from the current 100% of production to ~50% to retain more upside from oil price movements. • Budgeted 2026 EBITDA: Parent company EBITDA is budgeted at ~$1 billion ($600 million from E&P, ~$400 million from power generation), with consolidated EBITDA (including equity shares of TGS and Transener) at ~$1.3 billion; 2026 free cash flow is budgeted to be a net outflow of ~$400 million including the Perito Moreno prepayments.

Segment performance

1. Oil and Gas: Adjusted EBITDA was $104 million in Q1 2026, 2.5x higher than Q1 2025, and up 36% quarter-on-quarter. Rincon de Aranda contributed 54% of the segment's total EBITDA, up from 15% in Q1 2025. Total production averaged over 100,000 barrels of oil equivalent per day (BOE/d), with oil accounting for 19% of total production, entirely driven by Rincon de Aranda. 2. Power Generation: Adjusted EBITDA was $144 million in Q1 2026, an 11% increase year-on-year and 30% increase quarter-on-quarter. Total segment availability fell to 90% due to planned and unplanned outages, but still outperforms peer availability on the national grid. 3. Consolidated: Total adjusted EBITDA was $325 million, up 48% year-on-year and 41% quarter-on-quarter. Rincon de Aranda alone represented 17% of total Q1 EBITDA, with EBITDA 8x higher than Q1 2025. Total CapEx rose 36% year-on-year to $242 million, of which $163 million was allocated to Rincon de Aranda development.

Risks & headwinds

• Forward-looking statements and projections depend on future commodity prices (Brent crude, LNG, diesel), natural gas and electricity marginal pricing, and seasonal weather patterns, which are highly uncertain and can materially impact actual results. • Final approval of the RIGI incentive program application for Rincon de Aranda is pending, and regulatory timelines are uncertain; approval is currently expected to take multiple months. • The final investment decision for the urea project has not been made, and project execution, pricing, and demand outcomes remain uncertain. • Pampa only has visibility into capacity allocation for the first tranche of the Perito Moreno expansion; second tranche allocation depends on gas distribution company take-up, so additional capacity is not guaranteed. • Working capital can face temporary pressures from collateral requirements for oil hedging and delayed receivable payments, even if these pressures are expected to be temporary.

Analyst Q&A

• Q: What annual EBITDA contribution do you expect from the secured 3.2 million cubic meters per day Perito Moreno pipeline capacity, and can you get a similar allocation in the second tranche? /

  A: Management estimates a conservative total annual contribution of ~$100 million from power generation plus ~$50-$60 million from E&P. The estimate accounts for the full dispatch margins enabled by new pipeline capacity under the new regulatory framework. Gas distribution companies have priority in the second tranche, so Pampa may only get capacity for whatever volumes distributors do not take; the company could secure a similar percentage share as the first tranche if capacity is available.

• Q: When will you make a final investment decision on the urea project, and what is the project rationale? /

  A: The final investment decision will likely come by the end of Q3 or Q4 2026, after engineering, permitting, and project finance due diligence are completed. The project is attractive because 75% of urea production cost is natural gas and electricity, two inputs Pampa produces at competitive rates in Argentina. The proposed 2 million ton per year plant addresses a 10 million ton annual regional deficit, so demand exists for both domestic and export volumes.

• Q: What is the $4.5 billion RIGI project for Rincon de Aranda, and how does it fit into your existing development plans? /

  A: The $4.5 billion is the total estimated full-field development cost for Rincon de Aranda, covering all drilling, completion, and midstream infrastructure for the entire project life. It includes development of both the producing southern area and the northern block, which will extend the 45,000 bopd plateau by 6 to 8 years compared to development without the incentives. RIGI approval is expected to take multiple months, not weeks.

• Q: How will you finance upcoming large projects, and what will leverage look like over the next 2-3 years? /

  A: Pampa has multiple open financing channels, including the international bond market (where its bonds trade well) and the local market, where it recently issued low-cost debt. If no new large projects like urea are approved, net leverage will fall to 0 within 2-3 years as EBITDA grows. If the urea project is approved, leverage will rise in the short term, but the full project financial structure has not been finalized, so no specific guidance is available yet.