Pampa Energía S.A. Q3 FY2025 earnings call

• Rincón de Aranda production ramp-up is translating to strong EBITDA with 7 active pads; oil now makes up 34% of E&P EBITDA.
• In power generation, self-procured gas for Loma de la Lata plant during winter boosted margins, with winter gas production hitting a new high.
• The company repurchased 1.5% of its share capital at ~$59 per ADR.
• Adjusted EBITDA was $322 million, a 16% year-on-year increase, driven by Rincón de Aranda, shale oil growth, B2B sales, and PP6 wind farm.
• CapEx surged 183% year-on-year to $332 million, with $174 million invested in Rincón de Aranda development.

Oil and Gas

• Adjusted EBITDA in Q3 was $171 million, a 40% year-on-year increase. Driven by Rincón de Aranda, increased exports, strong industrial demand, and sub procurement margin in Vaca Muerta. Lifting cost per BOE was $6.4. Production averaged nearly 100,000 barrels equivalent per day, up 14% year-on-year. Oil accounts for 34% of EBITDA in E&P.

Power Generation

• Posted EBITDA of $120 million in Q3, an 8% year-on-year increase. Due to PEPE 6 wind farm, fuels procurement margin in Loma de la Lata, and higher seasonal capacity payments. Generation down 9% due to weaker demand.

• Best expectation for Q4 2025 oil production is between 18,000-19,000 barrels per day.
• In 2026, lifting cost for oil expected to drop from ~$10 to ~$9.1-$9.2 per barrel, overall lifting cost to ~$6.2 per BOE.
• Expect EBITDA improvement in power generation segment by 10-15% due to deregulation, pending details of energy secretary's resolutions.
• 2026 CapEx expected similar to 2025, around $1-1.1 billion, with balanced cash flow next year.

• Volatility in Argentine macroeconomic conditions affecting financial positions and projections.
• Uncertainty in energy market deregulation details and their impact on revenue streams.
• Dependence on specific projects (e.g., CPF, LNG project) and their timely completion.

Q: Considering that during Q3 2025, inventories of crude oil were sold by approximately 2,800 barrels per day and that since October, the 1,600 barrels per day contribution from El Toro will not be anymore. How do you expect total oil production to evolve in the upcoming quarters?

A: Our best expectation for the fourth quarter of 2025 is between 18,000 and 19,000 barrels per day.

Q: We noticed a sequential improvement in lifting costs from $7.6 per barrel per BOE to $6.8-6.4. How do you expect to evolve during 2026 until the CPF is ready?

A: In 2026, ramping up of Rincón de Aranda from year-end ~19,000-20,000 bpd to 28,000 bpd in second half will reduce oil lifting cost to ~$9.1-$9.2 per barrel, driving overall lifting cost to ~$6.2 per BOE.

Q: How do you expect to evolve the gas market during the summer season considering the lack of local demand, export market to Chile, and more associated gas from oil fields?

A: There is seasonality; take-or-pay clause in contracts (75%) matches summer demand. Associated gas influence on spot market is limited as not in that market.

Q: When do you see that the net debt peaking?

A: Expected net debt to peak around current levels (~1.1-1.3) next year, with more EBITDA from full-year oil production balancing cash flow.

Q: What was the amount of noncash deferred income tax that was recorded in this quarter?

A: Occurs when there's a big gap between devaluation rate and inflation in pesos; hard to project future quarters as depends on uncontrollable variables like inflation and devaluation