Pampa Energy Inc. Q4 FY2024 earnings call

• Gas production in Q4 rose 11% year-on-year, with shale gas share shifting to nearly 50% from 32% in 2023. - PEPE 6 Wind Farm was commissioned, adding 140 MW of clean energy. - Net debt fell to $410 million, the lowest since 2016. - Rincon de Aranda’s shallow ramp-up starts in early April with 4 drilling rigs and 1 frac fleet, targeting 20,000 barrels per day by December 2025. - Total proven reserves increased 16%, shale reserves up 60% year-on-year, with shale oil now 9% of shale reserves.

E&P Segment: In Q4, adjusted EBITDA was $36 million, down 26% year-on-year, largely due to lower sales to industries in Chile and higher operating costs. Gas production averaged nearly 62,000 boe per day, 9% higher than last year. Shale gas share in 2024 was nearly 50% (down from 32% in 2023). Total proven reserves rose 16% to 231 million barrels of oil equivalent, with shale reserves up 60% year-on-year. Power Segment: Adjusted EBITDA was $86 million in Q4, up 7% year-on-year, driven by contributions from PEPE 6 Wind Farm and PPA performance. Power units had a 94% availability rate. Net debt fell to $410 million, the lowest since 2016.

• Rincon de Aranda is expected to contribute ~$180 million to EBITDA in 2025. - Total CapEx for 2025 is around $1.1 billion, with ~$750 million allocated to Rincon de Aranda. - Hedge price for oil is around $72 per barrel.

• Uncertain impact of regulatory changes on fuel self-procurement and pricing. - Potential costs associated with de-moving frac fleet if drilling pace changes. - Damage to dams affecting power capacity, but marginal impact on EBITDA.

Q: How do you expect regulatory changes introduced by the Secretary of Energy to impact Pampa, particularly regarding the ability for generators to self-procure the fuel?

A: Gustavo Mariani said it's too early to tell, no significant impact expected in the next quarter with new changes expected by November.

Q: With growth plans including investments in Rincon de Aranda, how do you expect leverage to evolve?

A: Gustavo Mariani said 2026 and 2027 would see significant free cash flow generation, with net indebtedness expected to increase in 2025 due to Rincon de Aranda CapEx.

Q: When could we expect to see more meaningful reserve addition in Rincon de Aranda?

A: Horacio Turri said significant reserve addition in Rincon de Aranda would be seen by the end of 2025 with 28 wells drilled and completed.

Q: What are the management expectations regarding further resolutions allowing generators to sign new PPAs?

A: Gustavo Mariani said they are not currently analyzing new investments in power generation, but are studying a battery package in Buenos Aires and renewing maturing PPA contracts.

Q: Can you provide more color on the increase in cost of sales and lower gross margin?

A: Horacio Turri said it's mainly due to higher lifting costs and seasonality, with less production leading to fixed costs being spread over fewer units.