Q1 2025 Pampa Energia SA Earnings Call
Yeah.
[music].
Unknown Executive: You have joined the meeting as an attendee and will be muted for the rest of the event. Good morning, everyone, and thank you for waiting.
Raquel Cardasz: I'm Raquel Cardasz from IAR, and we would like to welcome everyone to Pampa Energia's first quarter of 2025 results video conference. Let me mention that forward-looking statements are based on Pampa Energia'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 operating factors could also affect the future results of Pampa Energia and could cause results to differ materially from those expressed in such forward-looking statements.
Speaker Change: And we would like to welcome everyone to bumping is just the first 2025 Besides video conference.
Before continuing.
Good.
Speaker Change: Let me mention that forward looking statements are based on management's.
Speaker Change: 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.
Speaker Change: Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of our balance sheet and good cost results to differ materially from those expressed in such forward looking statements.
Lida Wang: Now I will turn the video conference over to Lida. Please go ahead.
Leah: Now I will turn the videoconference over to Leah. Please go ahead.
Lida Wang: Thank you, Raquel.
Leah: Thank you Hello, everyone and thank you for joining.
Lida Wang: Hello, everyone, and thank you for joining our conference call. I will make a quick summary of the Q1, very quick, so you can find more details in the earnings release and the financial statements.
Leah: Our conference call.
Leah: I will make a quick summary of the Q1 very quick so you can find more details in the earnings release and the financial statements for today's Q&A, we have our CEO, Mr Mariani hours and oil and gas and Edp you still has the authority and our CFO Mr. Vito soybean.
Lida Wang: For today's Q&A, we have our CEO, Mr. Gustavo Mariani, our Head of Oil and Gas and EVP, Mr. Horacio Turri, and our CFO, Mr. Fito Suburbia. So let's go to the first quarter, 2025. And we saw a solid performance in power generation and utility businesses, along with the higher gas deliveries for thermal generation.
Leah: So let's go to the first quarter when it can be five and we saw a solid performance in power generation and utility businesses, along with the higher gas deliveries for thermal generation.
Lida Wang: Also, a key highlight after the quarter end was the FIV on the SLNG project, where Pampa holds a 20% stake. This milestone officially kicks off the project. The two charter vessels will export 6 million tons of LNG per year, requiring 27 million cubic meters of gas per day. Pampa will supply to 6 million kilometers per day through HSA. This is almost a 50% increase from our current average production. of 13 million kilojoules per day.
Leah: Also a key highlight after the quarter end, what the if I D.
Leah: S. LNG project, we're bound by both our 20% stake this milestone officially kicks off the project the.
Leah: The two charter vessels will export 6 million tons of LNG per year.
Requiring 27 million cubic meters of gas per day.
Leah: <unk> will supply two 6 million kilometers per day through our TSA.
Leah: This is almost a 50% increase for.
Leah: And our average production.
Leah: All 14 million King gears pretty.
Lida Wang: The first vessel is expected online by the end of 2027, early 2028, and the second, the MK2, will be a year later. This is a strategic move to monetize our Vaca Muerta reserves, position Argentina in the global LNG market, and bring much needed foreign currency inflows, create jobs, and boost local suppliers.
Leah: The first vessel is expected.
Leah: Online by the end of 2027 through early 2028 and the cycle.
Leah: The MK two will be a year later.
Leah: This is a strategic move to monetize our Bakken water reserves position in Argentina, and the global LNG market and bringing much needed foreign currency inflows to create jobs and boost local suppliers.
Lida Wang: In addition, last week, TGS and TransEnergy reached a major milestone by completing their comprehensive career reviews.
Leah: And in Asia.
Leah: Last week, TGF and trends and now reached a major milestone by completing their comprehensive Cara reviews there.
Lida Wang: Their conditions now are set for the next five years until 2030, marking a real progress toward regulatory normalization in the Argentine utility universe. So now turning to the numbers. The Adjusted BDA for the quarter amounted to $220 million. This is 17% up from last year, proven by stronger, stronger spot prices in tower, higher deliveries of plant gas. full commission of BP-6, BP-6, and higher tariff hikes at TGS and Transenet. It is also worth noting that last year's Q1 included a 20 million haircut from Kamesa, which didn't repeat this year. These gains were partially offset by higher operating costs and softer B2B gas sales.
Leah: Their conditions now are all set for the next five years until 'twenty, Bernie Mac, making a marquee a real progress towards where we were not doing not only acknowledged station in the Argentine utility in years.
Leah: So now turning to the numbers.
Leah: Adjusted EBITDA for the quarter amounted to $220 million in this setting.
Leah: 17%.
Leah: And last year.
Leah: By stronger stronger spot prices in tower higher deliveries planned gas.
Leah: The full commission of PT, 656, and Hyatt Paris.
Leah: T G I, sometimes in that it is also worth noting that last year's Q1 included a 20 million haircut for Gamesa.
Leah: Which didn't repeat this year.
Leah: This gains were partially offset by higher higher operating costs and softer <unk> gas cells compared to the last quarter EBITDA improved blah due to the seasonality and stronger peso linked margin.
Lida Wang: Compared to the last quarter, it did improve a lot due to the seasonality and stronger pay-as-go link margins in Spinergy and Nicosia.
Leah: By energy and utilities.
Lida Wang: The CAPEX rose 35% year on year, mainly due to the progress that we're doing at Rincón Yaranda, which absorbed $114 million out of the total $180 million of CAPEX in the quarter.
Leah: The capex roll, 35% year on year, mainly due to the progress that we're doing that we can get under which absorbed a holler and $14 million out of the total 180.
Leah: Million dollar for Capex in the quarter.
Lida Wang: Moving on to the EMP business in the slide four. Adjusted BDA was $41 million in the Q1, down 39% year-on-year, largely due to the increased operating expenses, mostly related to Rincon Yaranda, as we were, and we are, preparing for production ramp-up. Also, we saw lower sales to industries because there was a partial disruption that already fully re-enabled at TGS Transportation System in March. Following severe plots and soft exports to Chile driven by the weaker brand prices. These headwinds were partially upset by stronger deliveries under plant gas. supported by robust thermal power demand thanks to the hot weather and low hydropower water input.
Leah: Moving onto the <unk>.
Leah: Business in slide four.
Leah: Adjusted EBITDA was $41 million in Q1 down 49% year on year, largely due to the increased operating expenses.
Leah: Mostly related to Logan called me out on that as we were and we are preparing for production ramp up also we saw lower sell.
Leah: Industries, because there was a partial disruption that maybe it will.
Leah: We'll be we naval TGF transportation system in March.
Leah: CBF Bluff and soft exports to Chile rebuilt by the weaker Brent prices.
Leah: This headwinds were partially upset by stronger living levies on the blend that.
Leah: Supported by robust.
Leah: <unk> power man, thanks to the hot weather Allo hydropower worrying, but.
Lida Wang: Higher costs due to the world testing and preliminary low output at Trincon Garanda's road-listening costs per VOE, 20% EOE up. $6.9 per VOE. Gas listing costs also increased. Though monetarily, up 17% year-on-year to $1 per million BTU, mainly explained by higher treatment costs and partially offset by solid gas output. If you compare it, however, four and a quarter, the list and cost per VOE was down 20%. Explained by Increased Seasonal Output and Lower Lifting Cost Expenses. Total production averaged nearly 73,000 barrels of oil equivalent per day. This is flat year-on-year, but higher quarter-on-quarter because of seasonality.
Leah: Higher costs due to the wall testing and preliminary low I'll vote upstream hung around Nashville lifting cost per Boe a.
Leah: 20% yearly.
Leah: $269 per Boe.
Leah: Gas lifting call false increase.
Leah: We'll monitor Lee will give out the leap up 17% year on year to $1 per million Btu, mainly explained by higher equipment cost and partially upset by salvi gap outlet is.
Leah: Compare it however, foreign quarter the lift in cost per V O E.
Leah: Was down 20%.
Leah: Explained by increased seasonal volt and lower lifting cost expense.
Leah: Total production averaged nearly 73000 bottles.
Leah: A photo of equivalent per day, this is flat year on year, but higher quarter on quarter because of seasonality.
Lida Wang: where we still mean. The oil just accounted for 4% of total output and 15% of the revenues of the segment, explained by the divestment of Gobernador Ayala and the decline in conventional oil blocks that we do not operate. Total gas production remains flat year-on-year. just under 12 million cubic meters per day. However, it grew 21% versus the last Q4. This is explained by seasonality. El Mangrucho continued to lead the output, but its share in production share fell to 55% of Q1 gas volume. Meanwhile, with Sierra Chata, increased to 30% of total gas production with increased 51% year-on-year.
Leah: Where we saw me.
Leah: The mix the oils is accounted for 4% of total.
Leah: And 50% of the revenues of the segment.
Leah: Blaine by the divestment of pulling all of that Sheila and the decline in conventional oil locks that we do not operate.
Leah: Total gas production remained flat year on year.
Leah: Just 12 media on their 2000 12 million Cumulus per day.
Leah: However, it grew 21% versus the last Q4. This is explained by seasonality.
Leah: Among social continues to lead the outlook for sure and sharing production share fell to 65% of Q1 gas volume. Meanwhile, we shared our charter increase to 30 person approval gas production.
Leah: <unk> increased 51% year on year.
Lida Wang: Both locks, however, didn't tie in any new walls during the port. As of today, we drilled three out of the 15 plants, well for Sierra Chata this year, which is all our operating gas drilling campaign for the 2026. This is reflecting the robust productivity, shale productivity at Srirachata. 56% of the quarter's production was shale. CAF prices averaged around $3 per million BTU. This is 6% down compared year on year because of B2B reverse supply, which pushed the prices down and weaker rent prices affecting exports. This effects were partially upset by improved retail prices. As you know, there's a lot of CAF increases.
Leah: Both blocks, however didn't tie in any new wells during the quarter.
Leah: As of today, we drill free out of the 15 plan well for silver shut down this year, which is our all our operating gas drew.
Leah: Drilling campaigns with the <unk> five.
Leah: This is reflecting the robust productivity shelf productivity is C&I charter.
Leah: 56% of the quarter's production was shale.
Leah: Gas prices averaged around $3 per millimeter you.
Leah: There's a 6% down compare year on year, because of the b to b, where supply, which pushed the prices down and weaker Brent prices affecting exports.
Leah: This effects were partially upset by improved retail prices as you know, there's a lot of tariff increases.
Lida Wang: As you can see right below, most of our gas deliveries went to the thermal power generation to Camisa. Exports were steady year-on-year, but as Horacio flagged in the last Q4 poll, since May, we've been increasing our flows through Gasández, and more recently, we are doing it through Pacifico Pipeline, now delivering half a million cubic meters per day to the south of Chile. So, in total, we are exporting 1.5 million cubic meters per day of gas to our neighboring countries.
Leah: As you can see right below most of our gas deliveries.
Leah: Then to the thermal power generation Cammisa exports were steady year on year.
Leah: But us.
Leah: Or as you flagged in the last Q4 pool since may we've been increasing our flows.
Leah: Sunday and more recently.
Leah: We aren't doing it for Pacific pipeline, now delivering half a million kilometers per day to the southern Sheila. So in total we are exploring 1.5 million seniors per day of.
Leah: Of guests to tour, our new in country.
Lida Wang: In late April, we also made our first export, our first shipment to Chile, to Brazil, sorry.
Leah: In late April we also made our first export our first shipment to cheat eight legacy sorry, I'm covering a new frontier to pharma.
Lida Wang: I'm covering a new frontier to Pampa. With this outlook, our 2025 export campaign is on track to double last year's volume.
Leah: With this outlook our 2025 export campaign is on track to double last.
Leah: Last year's volume excellent.
Leah: Exactly.
Lida Wang: Now, let's zoom in in Benconderana. In March, we completed the fracking and tidying the pad number two of four wells, now beginning to ramp up the production and fill up the pipelines and the temporary production facility called TPS. which has a capacity of 20,000 barrels per day to treat it. Also, that same, we are still creating out water. We see we just need more days to assess the final performance. Currently, the block is averaging over 6,000, close to 6.5,000 barrels per day, all transported through pipelines, so no more trucking, therefore, lower transportation costs, lower costs in the area going forward.
Leah: Now, let's selenium.
Bingo Nana in March we completed the fracking and tightening the Pat number two or four wells.
Leah: Now beginning to ramp up the production.
Leah: And feel all the pipelines and the temporary production facility called TPS.
Leah: Which has a capacity of 20000 barrels per day, a two treated.
Leah: Also that say, we were still carrying out water. We see we just need more of this to assess the final performance.
Leah: Currently the block is average outraging over 6000 close to $6 5000 barrels per day, all transported through pipelines. So normal trucking, therefore, nor transportation costs lower costs in the meat area going forward in terms of takeaway capacity.
Lida Wang: In terms of takeaway capacity, Pampa holds 8,000 barrels per day in its own right in Duplicar, plus another additional 12,000 barrels temporarily borrowed from third parties, giving us flexibility as production is ramping up. So far this year, we drilled five pads, fracked three of them, and tied in one, the one I told you.
Leah: <unk> Pampa holds 80000 barrels per day in its own right and they'll be gone.
Leah: Plus another an additional 12000 barrels temporarily borrow from third parties.
Leah: Giving us flexibility as production is lumpiness.
Leah: So far this year, we drilled bypass frac three of them.
Leah: And tidy one the one I told you we have two more in the two week pace.
Lida Wang: We have two more in the queue with tie-ins planned in the next couple of weeks.
Leah: In the next couple of weeks.
Lida Wang: Everything can be asked to Mr. Turri. We are also making progress in infrastructure. The Temporary Production Facility, or TPS, is online. As I said, the local pipelines and other facilities across the area are being built. Currently, we have two high-spec rigs working, and we have one freight plate active in the field.
Leah: Everything can be asked to Mr. Students.
Leah: We are also making progress in the infrastructure of the temporary production facility with UBS is online as I said.
Leah: Local pipelines and other facility a courtyard area are being built.
Leah: Currently we have two high spec rigs working and we have one frac fleets active in the field.
Lida Wang: So for 2025, we're targeting a total capex for this block of $800 million, and by Q4, we aim to hit the 20,000 barrels per day of production with 8 paths a month.
Leah: For 2020, if I were targeting a total capex for this block of $100 million and by Q4, we aim to hit the 20000 barrels per day of production with a pass online.
Leah: So.
Lida Wang: Moving on to the power generation business on slide seven, we posted an adjusted BDA of $130 million in Q1. This is a 51% increase year-on-year, mainly explained by higher spot prices. Those units have been getting more price updates than inflation.
Leah: Moving on to the power generation business.
Leah: On slide seven.
Posted an adjusted EBITDA of $130 million in Q1. This is a 51% increase year on year, mainly explained by higher spot prices those units have been getting more precise update than inflation.
Leah: All of them.
Lida Wang: On top of that, we had strong contributions from newly commissioned PP6, the wind farm, and a pending operating performance this quarter, especially from our PPA-back units, partially upset by higher operating expense. Generation volumes remain stable year-on-year, despite the decline in the total national grid, mainly thanks to PEPES-6, higher gas supply thanks to the Perito Moreno Pipeline, stronger wind, and reduced downtime in Loma La Lata. The outage that we experienced in Inisa, in Inuit-less hydro, due to heavy flooding and Barragan's program overhaul, partially upset this variation.
Leah: On top of that we had strong contributions from newly commissioned P. P type of six wind farm and outstanding operating performance this quarter, especially from our PPA back units.
Leah: Partially upset by higher operating expenses.
Leah: Generation volumes remained stable year on year, despite the decline in the total national rate.
Leah: Mainly thanks to the six higher gas supply thanks to the <unk> line stronger wind.
Leah: And we do use downtime in normal Alaska Yelp.
Leah: The outage that we experience in Aesop, you Willis hydro due to heavy flooding and BARDA program overhaul partially upset this.
Leah: Variations.
Lida Wang: Capacity payments, especially take-or-pay from the BPAs, are the key part of the segment EVTA performance. So once again, our thermal capacity delivered outstanding availability of 96%. The overall capacity availability dipped due to any windless floods, but PEPES-6 commissioning helped to upset that.
Leah: Capacity payments, especially take or pay on the PPA or the T V.
Leah: Key part of the segment EBITDA performance. So once again, our thermal capacity delivered I'll scan the availability of 96%.
Leah: The overall capacity availability fifth due to that.
Leah: Willis.
Leah: But the basics commissioning helped offset that.
Lida Wang: In terms of maintenance, in March, we launched a major overhaul of LOMA, Loma de la Lata CCGT gas turbine, including live extension work. Next month, we will begin the upgrading project in Barragan gas turbines to boost efficiency and increase by 11.8 megawatts the capacity.
Leah: In terms of maintenance March we launched a major overhaul of noma.
Leah: I'm going to let us see CGT ghastful buying including live station worked.
Leah: Next month, we will begin the upgrading project, but on gas turbines to boost efficiency and increased by a 11 megawatts the capacity.
Lida Wang: Okay, so moving on to slide eight, looking at the cash flow, we show just the restricted group, just because that requires the bond perimeter. In Q1, we post a free cash flow of $118 million, mainly driven by higher CAPEX, resistant to the development of Princon de Aranda, which accounted for 71% of the total CAPEX in the restricted group, plus a seasonal increase in the working capital. As a result, cash and cash equivalents ended in the quarter at $1.1 billion.
Leah: Okay. So moving onto slide eight looking at the cash flow. We showed just the restrictive move just because that request the bond perimeter in Q1, we posted free cash flow hundreds 18 outflow of a high and $18 million, mainly driven by higher capex resistant.
Leah: To the development of Pringles, net under which accounted for 71% of the total capex in the restricted group.
Leah: A seasonal increase in the working capital.
Leah: As a result cash and cash equivalents ended the quarter at $1 $1 billion.
Lida Wang: Finally, on the balance sheet, gross debt stood at $1.6 billion. This is a 19% decrease compared to December 2024 due to the redemption of the 2027 notes. Net debt increased to $577 million. This is 0.8 times net leverage ratio, reflecting the decline in cash. 24.
Leah: Finally on the balance sheet gross debt stood at $1 $6 billion. This is a 19% decrease compared to December 2024.
Leah: Due to the redemption of the 'twenty 'twenty seven no net debt increased to $577 million. This is sealed many times.
Leah: Net leverage ratio, reflecting the declining cash explained before.
Lida Wang: The issuance of the 2031 and the 2034 notes allow us to further extend our death average life to five years and significantly improve our maturity process.
Leah: The issuance of the 'twenty two 'twenty three one in a 2034 notes allow us to further extend our debt average life to fight nurse and significantly improved our maturity profile.
Lida Wang: So this concludes our presentation. Now the floor is open for questions. If you have a question, please send it to the Zoom chat. We will read it and answer first hand. Also, please make sure you put your name, your company, so we can introduce you to the audience.
Leah: So this concludes our presentation now the floor is open for questions. If you have a question. Please send us with some chat we will with it and answer first seeing herself.
Leah: Also please make sure you put your name your company. So we can introduce it to the audience show you any parties. They have a problem need assistant just send us the chat or email us.
Lida Wang: Should any participant have a problem, need assistance, just send us a chat or email us. Please hold while we poll for questions.
Leah: Please hold while we poll for questions.
Ignacio Sienichowski: So We have first question coming from Ignacio Sienichowski, Invertir en Bolsa. I hope I pronounced well last time.
Leah: Mhm.
Leah: So.
Leah: We have first question coming from.
Speaker Change: Next year, she just key Magneto invoice I hope I pronounced will be laughing.
Ignacio Sienichowski: How is the situation today in Ecuador?
Leah: Hoist to suit situations.
Leah: The situation today in Ecuador.
Speaker Change: That's cool.
Unknown Executive: Sponsored ADR Hi, good morning, everybody.
Speaker Change: A little bit the.
Speaker Change: Literature.
Speaker Change: Okay.
Speaker Change: Hi, good morning, everybody.
Gustavo Mariani: Thank you, Ignacio, for the question. The situation in Ecuador is, you know, we... The concession ended the end of last year, we gave it back in November of of last year to the Ecuadorian government, and since then.
Speaker Change: Thank you Matthew for your question.
Speaker Change: Distribution of that whether it's no we.
Speaker Change: Jim.
Speaker Change: The concession ended at.
Speaker Change: The end of last year, we gave them David back in November.
Speaker Change: Well last year too by the way on government.
Speaker Change: And since then.
Speaker Change: <unk>.
Gustavo Mariani: We have been trying to Get rid of the, get rid of, it's not the, to recover the guarantees that we're giving for these concessions. There are two guarantees of $50 million each. One is an environmental guarantee and the other one is an operational guarantee. There is no reason at all for that. These guarantees should not be released because The pipeline is operating in perfect conditions and there has not been. Any environmental issue. during our time on Earth. Yes, as operators of the of the pipe. But so far, we have not not been able to obtain the release of the guarantees.
Speaker Change: We have been.
Speaker Change: Going too.
Speaker Change: Get rebuilt.
Speaker Change: This is Doug.
Speaker Change: Do you have to.
Speaker Change: To cover recover the guarantees that were giving.
Speaker Change: For these concessions there to guarantees of $50 million each one is.
Speaker Change: Environmental guarantee and the other one you said an operational guarantee.
Speaker Change: There is no reason at all for that.
Speaker Change: But he said guarantees should not be relief because.
Speaker Change: Operator.
Speaker Change: Perfect conditions.
Speaker Change: So it has been.
Speaker Change: Any environmental issue.
Speaker Change: Yeah.
Speaker Change: During the our dialogue.
Speaker Change: Yes, operator.
Speaker Change: Of the pipe.
Speaker Change: But so far we have not been able to obtain the reuse of the guarantees. So a few weeks ago, we decided to initiate.
Gustavo Mariani: So a few weeks ago, we decided to initiate an arbitrage. Andres Gmez, Anne Milne, Lida Wang, Gustavo Mariani, Horacio Turri, Marina Mertens, Lilyanna Yang, Pampa Energia SA Sponsored ADR But that is basically the situation. Very optimistic about the outcome of the...
Speaker Change: And arbitrage.
Speaker Change: To recollected.
Speaker Change: These guarantee which we are very optimistic.
Speaker Change: The results, we don't know how long is it going to take.
Speaker Change: But that is basically.
Speaker Change: Very optimistic about the outcome.
Gustavo Mariani: RB TRASH but it will take some time.
Speaker Change: We arbitrage.
Speaker Change: It will take some time.
Alright.
Unknown Executive: Well, it comes a little chilly from Jeffrey. He's asking.
Speaker Change: And it comes with a mutually from Jefferies. He's asking.
Horacio Turri: Please, can you all say on the development of Lincoln-Granada and what production exit rate you expect for this year? Good morning, everybody. Thanks for the question. Rincón de Aranda so far, we drilled five pads, we fracked three. We have one tied in, which is pad number two. The performance is pretty good. We are pumping approximately 6.5 thousand barrels a day overall. And as I mentioned, the well performance is what we expected and is very good. going to do in the coming days is tiny tying in the next two parts, which are parts number three, and number four.
Speaker Change: Please can you update on the development or even going down I'm, not and what production exit rate you expect for this year.
Speaker Change: Hey, good morning, everybody. Thanks for the question.
Speaker Change: They can go in there and so far we drilled five bets.
Speaker Change: We fracked three we have one Titan, which is slide number two.
Speaker Change: The performance is pretty good we are pumping approximately six five.
Speaker Change: <unk> thousand barrels a day overall.
Speaker Change: As I mentioned, the well performance is what we expected and is very good.
Speaker Change: <unk>.
Speaker Change: What we are.
Speaker Change: Going to do in the coming days is tiny tiny in the next two bonds, which are bus number.
Speaker Change: Three and number four.
Speaker Change: And.
Horacio Turri: Well, keep on with the fracking until we end up with six out of the seven parts being fracked by the end of 25. I don't know if he asked about the production rate. Yeah. Okay. The production rate, as you mentioned, today, more than 6,000 barrels a day. We are supposed and we hope that we will get to 20,000 barrels per day by the end of 2025. And so far, so good.
Speaker Change: Well keep on with the fracking until we.
Speaker Change: And that's with <unk>.
Speaker Change: Six out of the seven thats being dragged by the end of 'twenty one.
Awesome dieting.
Speaker Change: I don't know if he asked about the production rates yeah. Okay. The production rate as we mentioned today 6000 more than 6000 barrels a day.
Speaker Change: We are supposed and we hope that we will get to 20000 barrels per day by the end of 2005.
Speaker Change: So far so good.
Unknown Executive: Awesome. Thank you, Horacio.
Speaker Change: Awesome. Thank you what else you on the next questions yes.
Unknown Executive: And the next question here. with investments in upstream and LNG. Where do you see the CAPEX requirement that in the next couple of years?
Speaker Change: With investments in upstream and LNG, and where do you see the capex requirement.
Speaker Change: That's in the next couple of years, so the Capex <unk> capex for the LNG LNG in Austin.
Unknown Executive: So in the CAPEX, I'll leave it to you. OK, CAPEX for the LNG? LNG and upstream cells. OK, LNG. Well, we are we are hiring the two the two vessels.
Speaker Change: Okay LNG.
We are hiring the two the two vessels, but for the Healy we have a commitment of 7 billion in the 20 years regarding capex, specifically for all of the facilities.
Unknown Executive: But for the Healy, we have a commitment of seven billion in the 20 years regarding CAPEX, specifically for all of the facilities and some ancillary services that we need for the for the boats. We are talking about 700 million until 2028, out of which 150 are going to be paid by dollar. So we have a remaining of 550, and out of which we have a participation of 20 percent. So it's a little bit more than 100 million dollars for Pampa. Correct.
Speaker Change: In our services that we need for this for the Bulks.
Speaker Change: We are talking about 700 million until 2028 out of which 150 deadline to be paid by Golar. So we have a remaining 550 on out of which we have a participation of 20%. So it's a little bit more than $100 million football.
Unknown Executive: And for upstream?
Speaker Change: And for upstream and in the upstream we're going to be developing seven agenda.
Unknown Executive: And in the upstream, we're going to be developing Sierra Chata. Our estimation in order to supply the almost six million cubic meters per day, that is our share of the two vessels. We envision around 400 million dollars from 2026 to 2028.
Speaker Change: Our estimation in order to supply the almost 6 million cubic meters per day that is our share of the two vessels.
Speaker Change: The ambition around $400 million from 2026 till 2028.
Unknown Executive: And just to add that, in addition to those $20 million that you mentioned, we need to build a dedicated pipeline. We are quite optimistic that a midstreamer will build it, and the consortium will pay it as a transportation tariff as an OPEX.
Speaker Change: No just to add that.
Speaker Change: Addition to the silicon image that you mentioned.
Speaker Change: We need to view the dedicated pipeline.
Speaker Change: We are quite optimistic that our midstream oil.
Speaker Change: Will will be live.
Speaker Change: The consortium will paid.
Speaker Change: Just sort.
Supervision.
Unknown Executive: And I guess he's asking also, what about the upstream investments in Gondarana Royal, right? If you mentioned. OK, no problem.
Speaker Change: Opex and I guess, he's asking also what what about the upstream investments in and going out on the Royal right because you mentioned.
Speaker Change: Okay no problem.
Unknown Executive: Rincón Garanda for 2026, we envision around $500 million, $460 million to be more accurate. Out of which $360 comes from drilling and completion and $100 million out of facility.
Speaker Change: Re <unk> four.
Speaker Change: 2026.
Speaker Change: We envision around $500 million.
$460 million to the more accurate.
Speaker Change: Out of which 360 <unk> comes from.
Speaker Change: Drilling and completion and a $100 million out of a facility.
Speaker Change: Yeah.
Unknown Executive: Well, next question from Guido Bittig. No, I think he asked about the. Other than that, I don't know. So this will be. So.
Next question from diesel take no.
Speaker Change: Hey, Jessica.
Speaker Change: Uh huh.
Speaker Change: Hi, this is Vince.
Speaker Change: So the local needs. So this will be.
Speaker Change: So.
Fito Suburbia: This year we're planning to fund our capex with The cash flow generated by power and gas businesses plus our strong cash position. So we're not envisioning issuing more debt unless No more deaths for CAP. If there are very good market opportunities, we will always pursue an active layer in management. But other than that, We're not seeking to increase our debt significantly.
Speaker Change: This year, we're going to fund the lower Capex with.
Speaker Change: The cash flow generated by power and gas business is plus awards.
Speaker Change: Long cash positions.
Speaker Change: We are not envisioning issuing more debt and less.
Speaker Change: No more of this with Capex, if they're a very good market opportunities with low risk there sure.
Speaker Change: <unk> management.
Speaker Change: But other than that.
Speaker Change: We're not seeking to increase our debt significantly.
Fito Suburbia: Thank you, Fito.
Speaker Change: Okay.
Guido Mitzosero: Next question is coming from Guido Mitzosero from Alaria regarding the Argentina SLNG project.
Speaker Change: Next question is coming from Geely Sato from Alethia regarding the Argentina LNG project.
Fito Suburbia: How much of the $7 billion CAPEX announced by GOLAR will be financed through Project Finance and how much by the 20% stake of SAMPA in CESA? Well, the $7 billion of CAPEX is not being financed at all by us. It's just a higher fee. Yeah. So there's no finance there.
Geely Sato: How much of the $7 billion Capex announced bipolar will be financed through.
Geely Sato: Finance and how much by the 20% of stake of <unk>, Inc. The $7 million of Capex is not.
Geely Sato: Finance at all by but.
Geely Sato: Just a higher fee so theres no finance, there and as I mentioned before what we need to.
Fito Suburbia: And as I mentioned before, what we need to... to phase in the future is a 20% of those 550 million, which is a hundred more than a hundred million dollars. That's the upstream. And again, as Gustavo mentioned, we are assuming that the new pipeline is going to be a transportation capacity charge.
Speaker Change: Uh huh.
Speaker Change: Two phase in the future is a 20% of those are 550 million, which is a 100 mile or is it a bit more than $100 million.
Ravi: Yes, Ravi yesterday.
Ravi: Again as I mentioned, we are assuming that the new pipeline is going to be tough.
Ravi: Transportation capacity charge.
Ravi: Awesome.
Fito Suburbia: In order to achieve the six million, I think you already have mentioned it's how much capital is already mentioned about.
Ravi: In order to achieve the 16 out I think you already have mentioned, it's how much capex you already mentioned about.
Fito Suburbia: Do you have an estimation of the EBITDA contribution for this new project by 2028-2029? OK, when the two vessels are online and we are already delivering the almost six million kilograms per day, we estimate approximately one hundred and fifty million dollars of EBITDA for a FOB price of seven point two dollars per million BTU. That's what our best estimation of EBITDA is. It's because, yeah, it's yeah, I would say it's a base case. Yeah, but based on that price of seven point two. I don't know.
Do you have a summation of the EBITDA contribution for this new project.
Ravi: By 28 2923 acres in right.
Ravi: When the two vessels are online and we are going to go and we are already delivering.
Ravi: Almost 6 million cubic meters per day.
Ravi: We estimate approximately $150 million of Ami.
Ravi: EBITDA for us.
Ravi: <unk> price of $7 two per million Btu, that's what.
Ravi: Best estimation of every day's conservative.
Ravi: Yes.
Ravi: Yeah, I would say, it's a base case based on that price.
Ravi: And the rate of seven point too right.
Ravi: I'm well.
Unknown Executive: Since here the SLNG is now a full year gas project for 2028, are you planning any other projects for the idle gas production in capacity during the summer period or the off-peak period? I don't think I understand very well the question. I mean, the demand for the vessels is flat.
Speaker Change: Xena DSI and she is now full year gas projects for 2028 are you planning any dollar project for the Idaho gas production and capacity during the summer period or the off peak period.
Speaker Change: I don't think I understand very well the question I mean, the the.
Speaker Change: The demand for the best dose is flat no I think he meant it means on another project beyond ethylene do you like the <unk>.
Fito Suburbia: No, I think he means another project beyond SLNG, like TGS, for example. The only project that we have today facing us is the potential expansion of TGS through the IP that we already presented to the government, and that accounts for 40 million additional cubic meters per day, out of which eventually we might get, I don't know, maybe 20 percent of that, so it's going to be around 3 million cubic meters for 120 days a year. That's the only project that we have in the short term.
Speaker Change: Sample or what the only project that we have today.
Facing us is the potential expansion of PGS.
Speaker Change: Through the IP that we already presented to the government.
Speaker Change: $440 million.
Speaker Change: <unk> cubic meters per day out of which eventually we might get maybe 20% of that so it's going to be around <unk> mall medium cubic meters for 120 days.
Speaker Change: Year.
Speaker Change: So that's the only project that we have in the short term.
Fito Suburbia: Great. Guido is also asking, could you give us a little bit of color about the expected evolution for lift and cough and production, well production we already talked about, but lift and cough. Yes, sure.
Speaker Change: Great.
Speaker Change: Gisela fulfill asking could you give us a little color about the expected evolution will lift in cost and production while production, we already talk about lifting costs.
Speaker Change: Yes sure.
Fito Suburbia: For Rincón de Aranda, we have like three different stages. One that's already, we've already been through, which was the tracking, I would say the tracking stage, which was obviously the most expensive. We were talking about $23 to $24 per barrel of lifting costs, which obviously is very expensive. Now we already tied in our first stage of our pipeline connecting Rincón de Aranda with La Marga Chica Norte, which reduced dramatically our lifting costs. We are now in the range of $8 per barrel. And the second, the third stage, sorry, it's going to be the connection or the tying in of the pipeline, the oil pipeline, to Cabo Noc, which is the interconnection with the Bacamorta system.
Speaker Change: Right.
Speaker Change: No problem.
Speaker Change: <unk>, we have like three different stages, one that's already we already.
Speaker Change: Okay.
Speaker Change: <unk> been through which wasn't trucking I would say targeting states.
Speaker Change: Which was obviously the most expensive we were talking about 23% to $94 per barrel of lifting cost, which obviously is very expensive now we already did in our first stage.
Speaker Change: Pipeline connecting drink on their end.
Speaker Change: And how might that you cannot detect.
Speaker Change: Which reduce dramatically our lifting costs we are now.
Speaker Change: Now in the range of $8 per barrel and the second the third.
Speaker Change: Stay sorry.
Speaker Change: The connection for the time.
Speaker Change: <unk> of the pipeline the oil pipeline to <unk>, which is the interconnection with the back I'm honored that system and we.
Fito Suburbia: And we see that after that, our lifting costs probably will go down to $5 per barrel.
Speaker Change: We see that after that our leasing cost priority will go down to $5 per barrel.
Speaker Change: Awesome.
Fito Suburbia: In the last conference call, you mentioned that Pampa Hedges from May to December, most of its crude oil production at $72 per barrel. Are you planning to continue with this policy in the future? Yes, we will continue with the policy of hedging all prices. when conditions are good.
Speaker Change: In the last conference call you mentioned that followed by hedge.
Speaker Change: You already mentioned you have mentioned that but some of it.
Speaker Change: From May to December and most of its crude oil production at $72 per barrel are you planning to continue with this policy in the future.
Speaker Change: Yes.
Speaker Change: We will continue with the potency of catchy in oil prices.
Speaker Change: But when conditions are good.
Speaker Change: Okay.
Fito Suburbia: All right, and we don't empower generation, you know, I I Although we do not know what will happen with the legacy carriers in the future, what will be the impact on NBDA for 2026-2027 when some of your BPA contracts will come to an end? Well, let me, right now, you know, in 27, 26, we only have a small contract of 75 megawatts of TG4 in Loma de la Lata. And then we have three contracts under Resolución 21, Loma de la Lata, TG5, Parque Pilar, and by Ingeniero White. So the four of them, they around account around $100 million of EBDA, a little bit, yeah, $100 million of EBDA yearly.
Speaker Change: Alright, and regarding power generation kiosk.
Speaker Change: Asks although we do not know what happened what will happen with the legacy carriers in the future what will be the impact on EBITDA for 'twenty six 'twenty 'twenty six 'twenty 'twenty seven when some of your PPA controls contracts will come to an end.
Speaker Change: Well I mean right now in 27 26, we only have a small contract of 75 megawatts of T. G. Four even though my laptop.
Speaker Change: And then we have three conference one of the reasons beyond 'twenty one.
Speaker Change: And another <unk> five market loss and income.
Speaker Change: And and buy in you need to wait so it does for all of them. They around account around $1 million EBITDA literally $100 million third D. D. A yearly I S.
Fito Suburbia: I, estimating that there's status quo, there's no changes and there will be, because there are peakers. So they should be charging around, I don't know, $5,000 per megawatt month. I am assuming a drop in EBDA of around $70 million, more or less. You see the $100 to $20 something. I did the math. So you do- It's a little bit aggressive, but- You do 380 times 5,000 times 12, which is the capacity. This is a rough number, right? It gives you around $25 million of EBDA. And from $125- The difference is 75, but I know it's too early to tell, but that's just the drop in the EVDA.
Speaker Change: Estimating that there is status quo, there's no changes and there will be because there are peters so they shouldn't be charging at around INR $5000 per.
Speaker Change: Her male now I am I kind of I am assuming are dropping in EBITDA of around $70 million unless.
Speaker Change: Do you see this year.
Speaker Change: I went to 20, something I believe I did the math. So you know, it's a little bit aggressive.
Speaker Change: Creating time.
Speaker Change: <unk> 5000, <unk> 12, which is the capacity. This is a rough number right. It gives you around $25 million or so EBITDA in 'twenty.
Speaker Change: 25.
Speaker Change: Yes, the <unk>.
Speaker Change: 75.
I know, it's too early to tell but that's a just a drop in the EBITDA, but.
Fito Suburbia: But again, very important, the PPAs on Kamesa, they are meant to be to be repaid investment in the tenure of the PPA. That's why they migrate to the spot market. That's unlike to the other B2B or PPAs that we develop in the B2B world, like Mater, for example, that doesn't have any maturity at all. They just keep rolling. And the other question, which confirmed the PPA sending I already said.
Speaker Change: Very important the PPA unconvinced that they are meant to be to be repaid investments in the tenure of the PPA.
Speaker Change: That's why on the.
Speaker Change: The neat way to the spot market, that's unlike to the other <unk>.
Speaker Change: <unk> ppas that they have yet to be ppas that we develop at Davita, we weren't like myself for example that that doesn't have any machines in all day. They just keep all right.
Speaker Change: And the other question Ossetia.
Speaker Change: Which confirmed the Ppas I mean, I already said that <unk> next question.
Anne Milne: Next question, Anne Milne from Bank of America.
Speaker Change: Neil from Bank of America.
Anne Milne: There's another plan to be the tender for the hydroelectric concessions in the Willis and Yalanda. Yeah, eventually, yes, we will. We will. look at them and eventually participate. Not only in the Nibules and Diamante, we could eventually participate in any of the... of the hydroconcessions that will be. Auction. in the coming months.
Speaker Change: So as part of the plan to be the tender for the hydroelectric concessions mean winter Sunday or Monday.
Speaker Change: Yes.
Speaker Change: Actually yes, we will we will lose.
Speaker Change: Bill.
Speaker Change: Look at them on.
Speaker Change: Truly participate not only in the new list in your monthly we would eventually participating in.
Speaker Change: In any of the.
Speaker Change: Yeah.
Speaker Change: The hydro coefficient.
Speaker Change: Will it be.
Speaker Change: Auction.
Speaker Change: In the coming months, the first one will be.
Anne Milne: The first ones will be Chocón, the one from the Piedra del Aguila, El Chocón, Ana Litura of the First, three hydroelectrical concessions will be in the auction. Later, it will be in Iguazú and Diamante. And we will, once the conditions are on the street, we will evaluate and eventually we will decide whether to participate. in which of them?
Speaker Change: On the one from.
Michael: Well Michael malware.
Speaker Change: B Riley.
Speaker Change: And <unk> got another two goals.
Speaker Change: The <unk>.
Speaker Change: First three hydroelectric alco officials within the auction.
Speaker Change: Later, it would be and you would have for you on the amount that we would.
Speaker Change: Once the conditions.
Speaker Change: Or on the Street, we will evaluate and eventually we will decide whether to participate.
Speaker Change: And which of them.
Speaker Change: Great.
Anne Milne: All right, the second question she asked, is there a rough time frame for the CERI complex of TGS to fully resume the NGL production? Yes, CERI complex has already resumed production at full capacity, although because of the floods, equipment are still not with the reliability that they had prior to this catastrophic situation. So they're still...
Speaker Change: The second question shafts instead, a rough timeframe for the salary contracts what is yet to fully resumed your NGL production.
Speaker Change: Okay.
Speaker Change: Yes, sorry complex stuff.
Speaker Change: Already with you.
Speaker Change: Production.
Speaker Change: Okay.
Speaker Change: Capacity.
Speaker Change: Although because of the fluids equipments are still valid.
Speaker Change: Reliability they had prior to the B C.
Speaker Change: Sure.
Speaker Change: Situation, so there's two of them.
Speaker Change: No.
Anne Milne: Adjusting to the desertion. Solving problems. But it's already fully online.
Adjusting to their field.
Speaker Change: So solving problems.
Speaker Change: But it's already fully fully on it.
Unknown Executive: She's asked about incumbent and we already talked about that. Spend by considering calling the 29 bond given it has a high coupon and trading above the call price. Well, in We definitely loop all the time to... to any opportunities in liability management, as I said, but It's not only the coupon, you have to factor in all the costs of issuing a new bond. The prime is over two dollars that you have to premium that you have to pay to call the bond, plus any new issue spread, plus any spread in a longer bond. So when you factor all that in, you need to have a.
Speaker Change: She says evolving Kona I don't know, we don't really talk about that.
Speaker Change: This comeback consuming calling the 'twenty nine bombed keven each has a high cost home coupons and treating evolved the coal price.
Speaker Change: Yeah.
Speaker Change: Well.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: Yeah.
We definitely look all the time.
Speaker Change: Good.
The way opportunities in diabetes management as I said, but.
Speaker Change: Not only the coupon and you have to factor in.
Speaker Change: All the cost of issuing a new bond.
Speaker Change: The prime.
Speaker Change: Over $2 that you have the premium that you have to pay to call the bonds.
Speaker Change: Yes.
Speaker Change: New issue spreads glass in the spread in a longer bonds. So when you factor all that in you need to have.
Unknown Executive: A positive net present value of all that.
Speaker Change: A positive net present value for that.
Unknown Executive: Andres Gmez, Anne Milne, Lida Wang, Gustavo Mariani, Horacio Turri, Lilyanna Yang, Pampa Energia makes sense to call the bond but we are not there yet but we will keep analyzing and searching for any market opportunities. We don't have any need to do any liability management if market conditions are good enough we will eventually do it but not before. If the net present value it makes sense and it is because there is a very good market and bonds are trading tighter and well we look at that in the new moment.
Mike: Given the case Mike.
Mike: It makes sense to call upon but we're not there yet, but we keep analyzing.
Mike: Searching for any market opportunities.
Mike: We don't have any need to do any liability my best man if market conditions are good enough. We will eventually do it.
Mike: Not before Ethernet percent valuation makes sense.
Mike: It is because there is a very good market once are driving tighter.
Mike: We look at that.
Mike: <unk> moment.
Mike: Yes.
Speaker Change: Great. Thank you <unk> next question comes from Gustav <unk> from Bank of America equity dealing with fixed income. So do you have an yesterday about the upside potential of the power sector deregulation in Argentina, including let me give you the first half.
Gustavo Faria: Next question comes from Gustavo Faria from Bank of America Equitibia and with fixed income. So do you have any estimate about the asset potential of the power sector deregulation in Argentina, including?
Unknown Executive: Let me give you first. higher margin on the fuel procurement in its own thermal power plant. This is what wire. That's the first. Should I say it again, please? So if there's any warning to the ones that do the sub procurement of fuel. Eh, not currently. Eh, nobody is, uh, Still using that opportunity. complicated to explain in a minute. But we are still awaiting regarding the regulation of the power sector will still awaiting for the regulator to issue the new rules. And as you know, think was late last year, they published the guidelines 1.0. And basically, they gave the industry all the participants, large users, distribution companies, power generators, Everybody in the industry to give feedback about these guidelines.
Mike: Higher margin on the fuel procurement in its own thermal power plants.
Mike: That's a lot wider.
Mike: That's the first specific T cell. If there is any margin to the ones that do the sub procurement of field.
Mike: Not currently.
Mike: The novelty.
Mike: Yes.
Mike: Using that.
Mike: That opportunity.
Mike: That's a complicated to explain it.
Mike: Got it.
Mike: But we are still awaiting regarding the deregulation of the power sector. We are waiting for the regulator to issue the new rules.
Mike: As you know.
Mike: I think it was late last year that you published.
Mike: The guidelines one zero.
Mike: Basically they gave the industry.
Mike: Participants are users distribution companies power generators.
Mike: I know everybody in the industry to get feedback about these guidelines.
Unknown Executive: which were already given. Now the regulator has been working on guidelines 2.0, which has not been released yet. So we are waiting for those new guidelines to come out. See what they look like. And then he asked, well, if will they be higher prices for the legacy energy capacity? Hopefully, but hopefully after this deregulation, there will no longer be legacy capacity and there will no longer be the regulator defining a price, but rather letting the market decide for that. But again, we are still waiting for the new. guidelines and totally get it and I cannot give you any.
Mike: Which were already given.
Mike: Now the regulator has been working on guidelines to zero, which has not been released yet so we are waiting for good.
Mike: Those new guidance to come out.
Mike: Let's see what they look like.
Mike: And then yes, well will they be higher prices for the legacy energy capacity.
Mike: Hopefully, but hopefully after this deregulation there will no longer be legacy capacity and that will no longer be the regulator defining if price, but but rather leading.
Mike: The market.
Mike: But again, we are still awaiting for the new.
Mike: Guidelines.
Speaker Change: Totally get it.
Mike: I cannot give you any.
Unknown Executive: Better answer than this.
Mike: Better for Wendy's.
Unknown Executive: And Gustavo will ask, what's the upside potential for Pampa and each of the initiatives? Because we are gas producers and power producers as well. As we always said, we are awaiting this new regulation because As an integrated company that music to our ears to be able to use our own gas. in our own power plants. Um So we are very eager for this to. is the regulation to happen and to be able to use our own fuels. What additional market margins this will bring us is very difficult to forecast at this point.
Mike: And we'll tell you I'll ask what's the upside potential for pump and each of these initiatives because we own castle a broker.
Mike: Users.
Can you just.
Mike: As we always said we are awaiting DC regulation because.
Mike: As an integrated company.
Mike: Okay.
Mike: Music to our years to be able to use our own gas.
Mike: Hum.
Mike: The power plant.
Mike:
Mike: So we are very eager for this too.
Okay.
Mike: The regulation to have enough to be able to use our own fuels.
<unk>.
Mike: What additional market margin this will bring us is very difficult to.
Mike: Our focus at this point.
Unknown Executive: And well, I think we talked about it, the timeline, you don't know much, the timeline to have this. We are waiting for the for the second round of guidelines to be published anytime. But this will not take effect, this will be again guidelines and the government has already announced that they expect the new rules to be implemented during the wintertime and to take effect. by November, by the end of this year, basically, after the winter, after the winter, in November of this year. Thank you.
Mike: And well I think we you talk about is the timeline.
Mike: Much of the timeline to have as we are waiting for the for the second rollover guidelines to be published anytime, but this will not take effect. This would be again guidelines on the government is willing to give us that they expect.
Mike: New rules to be.
Mike: Implemented during <unk>.
Mike: Winter time.
Mike: Take effect.
Mike: Okay.
Mike: By November by the end of this year.
Mike: After the winter after that.
Mike: In November of this year.
Mike: Thank you.
Unknown Executive: Next question is coming from Luna Montanari from Morgan Stanley. I don't think we didn't cover this, but the recent decline in the oil price, do you expect any changes in the capex, in the intensity, in the round path schedule, in Rincon Yaranda? No, no, we are not foreseeing any. Any decline in our rates of drilling or on completing the wells? It's getting faster. Yeah, we keep the course.
Mike: Next question is coming from <unk> from Morgan Stanley.
Speaker Change: I think we didn't cover this this is a system with the recent decline in the oil price or do you expect any changes in the capex and the intensity really intensity around past casual lincolniana no no we're not foreseeing any.
Speaker Change: And a decline in our rates of drilling or completing the wells steady fast ericsson's, yes, we keep we gave you of course.
Unknown Executive: Okay, and he's asking, well, a little bit more boots.
Speaker Change: Okay, and she's asking ball a little bit more.
Unknown Executive: Lucas, can you provide an update on your capital budget through business segment in 2025? ethics of 2025. The purpose is my power or business. Yeah, it's The EMP segment will be around $950 million, out of which $800 goes for the development of Rincón de Aranda, all the infrastructure facilities, plus the drilling of the... of all the wealth. The AR-150 is basically... Some drilling in Sierra Chata for a few gas wells, plus some maintenance of the kiln. So EMP around 950 in total. Power generation is around $220 million. That is basically... $30 million that is the remaining payments for PPSA for the last wind farm that we put online last year.
Speaker Change: Local is can you provide a nowadays on your capex budget per business segment in 2025.
Speaker Change: Okay.
Speaker Change: Capex opportunity 75 purposes.
Speaker Change: Power.
Speaker Change: Yes.
Speaker Change: The E&P segment will be around <unk>.
Speaker Change: <unk> hundred $50 million out of which 800 goes forward the development of <unk>.
Speaker Change: Infrastructure facilities plus.
Speaker Change: Greeting.
Speaker Change: Although the wealth.
Speaker Change: PST basically.
Speaker Change: Some breathing chat that for.
Speaker Change: If you.
Speaker Change: Gas wells.
Speaker Change: Plus some of the month.
Speaker Change: <unk>.
Speaker Change: So E&P around 950 in total.
Speaker Change: Power generation is.
Speaker Change: It kind of entered immediately.
Speaker Change: Is it basically.
Speaker Change: Yes.
Speaker Change: So the medium that it's there.
Speaker Change: The remaining payments for an <unk>.
Speaker Change: It is safe for the last wind farm that we put online last year and the other maybe Vijay on the orders you said Monday Das Capex.
Unknown Executive: And the other $90 million is maintenance capex is a little bit above average of maintenance capex in power generation this year because we have some similar mentioned earlier, some life extensions. And that's why it's a higher capex. The app. So all in all, it's about a $1.1 billion complex for Pampa this year.
Speaker Change: A little bit.
Speaker Change: Average.
Speaker Change: Monday announced Capex empowers generation this year, because we have some.
Speaker Change: You mentioned earlier some.
Speaker Change: Extensions.
Speaker Change: That's why I tended to higher Capex.
Speaker Change: The average.
Speaker Change: So all notice about a one $1 billion capex for this year.
Speaker Change: Okay awesome.
Unknown Executive: Regarding the Argentina LNG project. Wait, it's the YPFS.
Speaker Change: Regarding the Argentina LNG project.
Speaker Change: It's the white PFS will also seek to join the future basis being planned lot by wipe yes.
Unknown Executive: Do you, will Pampa also seek to join the future phases being planned by YPFS? Andres Gmez, Anne Milne, Lida Wang, Gustavo Mariani, Horacio Turri, Lilyanna Yang, Pampa that we have proven with the... with the first one, with Cesar. The consortium that we joined last year, this is a strategic... This is strategic for Pampa and it's a way to monetize our very competitive gas reserves. So we would definitely look at all the opportunities regarding LNG that will come. And yes, finally, we are in the first phase.
Speaker Change: Eventually yes.
Speaker Change: Still we don't have much information about.
Speaker Change: So those project, but definitely.
Speaker Change: Okay.
Speaker Change: Frugal.
Speaker Change: And.
Speaker Change: With the first one would say so.
Speaker Change: Okay.
Speaker Change: LNG consortium that we joined.
Speaker Change: Last year.
Speaker Change: This is.
Speaker Change: It's strategic.
Speaker Change: It is strategic for bond funds the way to monetize.
Speaker Change: We're very competitive gas reserves. So we would definitely look at all the opportunities regarding.
Speaker Change: And as you do that well.
Speaker Change: And finally.
Speaker Change: And the first safety S. LNG project is pump interested.
Unknown Executive: The SLNG project is Pampa interested to take part on the mystery, the dedicated pipeline project. Lida, Pampa DJ. Okay.
Speaker Change: To take car on the midstream.
Speaker Change: The dedicated pipeline project.
Speaker Change: Somebody here.
Unknown Executive: Pampa itself is not interested in participating in the midstream. That's not our core, but we have TGS, whose core business is midstream. And it has been proven to the market in the recent years with a lot of investment in the midstream area and a segment of the company that is growing very, very importantly. So yes, TGS will definitely be interested in. Participating in offering The construction and the operation of the pipeline. of the Dedicated Pipeline that the Floating Millionship Project will need.
Speaker Change: Okay.
Speaker Change: Hi.
Speaker Change: But by itself is not interested in participating in the midstream.
Speaker Change: Our corporate we have TGF.
Speaker Change: <unk> core business is.
Speaker Change: Midstream.
Speaker Change: <unk>.
Speaker Change: Dean.
Speaker Change: Proving to the market.
Speaker Change: In the recent years with a lot of investments in the midstream area or segment of the company that is growing very.
Speaker Change: And very importantly.
Speaker Change: So, yes, <unk> will definitely be interested in.
Speaker Change: Participating offering.
Speaker Change: The construction and the operation of the pipeline.
Speaker Change: The dedicated pipeline that the floating LNG project.
Unknown Executive: Oh, well, no.
Speaker Change: Awesome.
Speaker Change: No.
Luca Cerimedo: Next question coming from Luca Cerimedo from Quantum Finanzas. Any comments about, very broad though, any comments about Complejo Petrochemical Samatín, our petrochemical complex? I guess he's asking about PEPCAN business, I guess.
Speaker Change: Next question coming from new customer email from quantum.
Speaker Change: And answer any.
Speaker Change: Any comments about very broad, though any comments about complex petrochemical, but some of the our petrochemical complex.
Speaker Change: I guess, he's asking about pet Chem business I guess.
Speaker Change: Okay.
Unknown Executive: Okay, if the question goes for the PetCam business, as we have been mentioning in previous call, it's... This is a tough year for. for that business segment, which we expect to basically to break even or have just small EVDA margin this year, but because of international prices, because of basically a higher dollar cost. lower sales and more competition from from imports. So several factors that are affecting the business. So So it's a tough year. for the segment, but it's not going to be as good as the previous. in a three or four year square. Right, awesome.
Speaker Change: Okay. Yeah. So the question goes for the can business.
Speaker Change: As we have been mentioning in previous goal.
Speaker Change: <unk>.
Speaker Change: Sure.
Speaker Change: This is a tough year for <unk>.
Speaker Change: For that business segment.
Speaker Change: Which we expect to.
Speaker Change: Yes.
Speaker Change: Basically to breakeven.
Speaker Change: Small.
Speaker Change: The EBITDA margin this year, but because of international prices because basically.
Speaker Change: Hi.
Speaker Change: All our costs.
Speaker Change:
Speaker Change: <unk>.
Lower sales and more.
Speaker Change: Competition from from imports so.
Speaker Change: Several factors are.
Speaker Change: Affecting the business so.
Speaker Change: So.
Speaker Change: It's a tough year.
Speaker Change: For the segment that is not going to be as good as the pre.
Speaker Change: <unk>.
Speaker Change: Three or four years worth.
Speaker Change: Alright Awesome next question is coming from sort of the motor from Amanda.
Jorge Mauro: Next question is coming from Jorge Mauro from Fundamenta. I think we covered most of it. So supplying on gas, we talked about that.
Speaker Change: Inc would cover most of that so supplying on gas we talk about that.
Unknown Executive: Adjust, I guess, adjustments in the energy of asset prices. Do you foresee more? Yeah, I think that the trend might might continue increases has a I think most of the increases have already been been given or most of the catch up has already happened but not All of it, and a few of some. Some technologies like that still struggle to struggling to make money.
Speaker Change: Just I guess, just the adjustments and a shelf off the pregnancy enforcing more.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes, I think the trend my my continue increasing.
Speaker Change: I think most of the increases have already been being given most of the catch up.
Speaker Change: Already happened, but not.
Speaker Change: Not.
Speaker Change: All of it in the field.
Speaker Change: Yeah.
Speaker Change: Some technologies like the.
Speaker Change: A few.
Speaker Change: <unk> struggled to struggling to make money so there might be further.
Unknown Executive: So there might be further adjustment down the road while we wait for the new regulation and the new of Jorge was about the hydro options that we already covered.
Speaker Change: Adjustments down the road, while we await for the new regulation and the new rules.
Speaker Change: So far of Jorge Luis about the hydro auctions that we already cover.
Ignacio Lopez: Next question is coming from Ignacio Lopez from Puente. has one question about the outlook in the power sector, which I think we already talked about that. The outlook in the power sector, the deregulation, I think we covered.
Speaker Change: Next question is coming home.
Speaker Change: Nope it from Wednesday.
Speaker Change: He has one question of all the.
Speaker Change: The outlook in the power sector, which I think we already talk about that download in the power sector.
Speaker Change: 'twenty with nation I think we covered.
Unknown Executive: We have, have you made any investment decisions? Organic Investment Decisions in the Power Sectors. We are aware of the batteries tender launched by the Secretary of Energy. We will like also to know whether you are considering new renewal assets in this context.
Speaker Change: How have you made any investment decisions.
Speaker Change: Like organic investment decisions in the power sector. We are aware of the batteries tender launched by the secretary of energy.
Speaker Change: We will I like also to know whether you are considering new renewable assets in this context.
Unknown Executive: Thank you. Regarding the battery, the BESS, BESS option of the battery. Well, this auction has been called by by Kamesa. We are studying that we have recently requested suppliers So, we haven't taken a decision whether we will participate or not. It will very much depend on the cost of the equipment and the projected IRR. And the same can be said about a renewal project. At this point, we don't have anything. and we are awaiting the deregulation. We are not taking any decision on new renewable. We believe Prices are quite tight, competition is already tough in that segment.
Speaker Change: Thank you.
Speaker Change: Regarding the battery B S.
F O B S auction.
Speaker Change: <unk>.
Speaker Change: Yes.
Speaker Change: Well.
Speaker Change: This option has been caused by the by Gamesa. We are studying that we have recently requested.
Speaker Change: Suppliers.
Speaker Change: So we havent taken that decision, whether we will participate or not it will very much depend on the cost of equipment on the projected IRR Wolf.
Speaker Change: Yeah.
Speaker Change: And the same can be said about Rio project at this point, we don't have.
Speaker Change: Anything.
Speaker Change: And we are awaiting the deregulation.
Speaker Change: We have not taken any decision on new renewable.
Speaker Change: We believe.
Speaker Change: Prices are in flight.
Speaker Change: Right.
Speaker Change: Traditionally for really tough.
Speaker Change: Segment.
Unknown Executive: the new regulation might bring an additional competition from thermal from thermal unit So we are waiting to see how that market is. where the equilibrium prices land before deciding on building new renewables.
Speaker Change: <unk> regulation might bring additional competition from Ferro model.
Speaker Change: From thermal unit, so we're awaiting to see how the <unk>.
Speaker Change: Market.
It could even when prices land before deciding on building new renewable.
Speaker Change: Okay.
Andres Cardona: Next, Andres Cardona from Citi. Is there any M&A opportunities that you're looking at? Yeah, we are always analyzing M&A opportunities in several sectors.
Speaker Change: Next and then it goes on us and CD is there any M&A opportunities that you're looking at.
Speaker Change: Yes, we are always analyzing M&A opportunities and several.
Speaker Change: Sectors.
Unknown Executive: But nothing concrete that I can comment right now.
Speaker Change: But nothing concrete that I can pull in.
Speaker Change: Right now.
Speaker Change:
Andres Cardona: Andres Cardona from CIVI and also Andres Indiano from BALA and SASA are asking together, can you provide any information about the status of the RIA project? How close is the FID? We are not, the FDF ID is far away.
Speaker Change: And they've kind of gone from CD and also undertaking nano from bonuses are asking together can you provide any information about the status of the <unk> project, how close is the city.
Speaker Change: We are not the FDA.
Speaker Change: <unk>.
Speaker Change: Far away in.
Unknown Executive: We are, we have a team, we have set up a team and the team is working very hard to and to get all the information to have a supplier. and providing us with firm quotations of the total cost of the project. We are several months away of obtaining that information. Hopefully it will be before year end, but We hope to be able to make a decision by year end. first quarter of next year to deciding on whether to... Go forward with the project or not.
Speaker Change: We are we.
Speaker Change: We have a team we have set up the team and the team is working very hard to.
Speaker Change: Together, the informations to have suppliers.
Speaker Change: Biting us with firm quotations of the.
Speaker Change: Total cost of the project, we are several months a way of thinking that information hopefully will be.
Speaker Change: Before year end, but.
Speaker Change:
Speaker Change: We hope to be able to make a decision by year end.
Speaker Change: First quarter of.
Speaker Change: Next year.
Speaker Change: Deciding on whether to.
Speaker Change: Go forward with the project or not.
Speaker Change: Alright, well next question Mary and Cathy.
Daniel Guaviola: Well, next question, very old and gassy, well, actually from Daniel Guaviola from BDG. He's asking, good morning, could you share an indication of the expected trajectory of the production flowing from Rincon de Aran in 2025? I guess for all the year. For the year? OK. Well, we, as I mentioned before, we started with a little bit more than 6,000 barrels per day right now. We will go up to 12,000 barrels by August, September, and hopefully by the end of the year, we will be reaching the 20,000 barrels per day.
Speaker Change: I'll actually from that and you don't want me on that from BTG.
Speaker Change: He is asking the morning, what's your share of indication of the expected trajectory of the production flowing from <unk> 25.
Speaker Change: I guess to Florida, Florida year through the year Okay.
Speaker Change: Well, we as I mentioned before we started with.
Speaker Change: A little bit more than 6000 barrels per day right. Now we will go up to 12000 barrels by August September.
Speaker Change: Hopefully by the end of the year will be reaching the 20000 barrels per day.
Daniel Guaviola: and then share with us the total amount of DUCs you currently have. And what is expected time it will take you to frack and put them into production, this inventory of drilled-out part-and-complete wells? Okay. Currently, we only have one drilled-and-completed well, which is part number five. We are currently drilling two more parts, part number 10 and part number 11. And we still have to drill and frack part number five, and then we will proceed. After that, we did fracking of parts 10 and 11. And this is basically because we have two other parts, which are parts number seven and number eight, that have been drilled up to the landing point in Bagamorta, but not the horizontal leg, just to avoid interference between drilling and completion, or the parent-child, as it's usually known.
Speaker Change: And then share with us.
Speaker Change: Put all the Puc's you currently have.
Speaker Change: And what is expected timing will take you to frac and put them into production. This inventory of drill out patent complete well okay.
Speaker Change: Currently we only have one drill uncompleted well, which has bought number five.
Speaker Change: We are currently drilling two more bust, but number 10 and number 11, and we feel to drill and Frac, but number five and then we will proceed after that we did fracking of plus 10 and 11.
Speaker Change: <unk>.
Speaker Change: This is <unk>.
Speaker Change: Basically because we.
Speaker Change: I have two other paths, which are past the number seven and number eight that have been drilled to the landing point in BRCA Monotype another horizontal leg.
Speaker Change: Just to avoid interference between drilling and completion.
Speaker Change: Parent child.
Speaker Change: Usually known.
Daniel Guaviola: So, to be more accurate, we have one DUC, which will be drilled in June, and then we will be drilling by September and November, parts number 10 and number 11.
Speaker Change: So to be more accurate. We have won deals do you see which will be drilled in June and then we would be drilling by September and November but number 10% number 11.
Speaker Change: Great.
Daniel Guaviola: And yet now it's getting more into the point and he's saying, can you share some data of Rincón de Aranda like you are, IP production, less than cost, less than cost we cover, CAVX per well, and if possible, if possible, any IRR you're expecting per well basis? Okay, easy titles. Regarding the IP and the UR, we are talking about 1600 barrels per well, and the UR will be around 1.2, 1.3 million barrels, and cost per well is in the range of $16 to $17 million. Yeah, at this point, once we reach the factory model, which is hopefully going to happen by the end of this year, we hope that our capex per cost will go down to some figure around 15 to 14.5 million.
Speaker Change: And now it's getting more into the point in saying can you share some data of Rincon del <unk>.
Yeah lingering around the like you are IP production lifting costs lifting costs with copper.
Speaker Change: Capex per well and if possible if possible any IRR youre attacking per well basis.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: The easy Davis.
Speaker Change: Okay.
Speaker Change: Regarding the IP in the U R.
Speaker Change: Talking about.
Speaker Change: How about 16 16, Android virus per well.
Speaker Change: And <unk>.
Speaker Change: <unk> will be around 121 3 million barrels.
Speaker Change: And the cost per well is in the range of $16 million to $17 million Mcf.
Speaker Change: At this point.
Speaker Change: Once we reach the factory model, which is hopefully going to happen by the end of this year.
Speaker Change: Hope that our Capex for cost will go down to some figure around 15 to $14 $5 million.
Daniel Guaviola: says, Well, to better graph how resilient your oil operation is, are you able to provide an indication of How much is the break-even of Gringo Miranda in terms of brands and cash? Marissa Cash, Frank Gaylin and Brend Yeah, if we're looking at the factory model, CAPEX, the project is has a break even of less than $40 per bar. We are talking what? And regarding the capex per well, it's very important to notice that we are also adding to the total capex the flow lines. Because usually, oil companies tend to avoid the adding up of the flow line from the well to the treatment facility.
Speaker Change: He says well do better to graft, how we sill leant oil.
Speaker Change: Oil operation.
Speaker Change: Are you able to provide any indication of how.
Speaker Change: How much is the breakeven of ink on that on that in terms of brands.
Speaker Change: And cash.
Speaker Change: Yes, cash breakeven and Brent.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Yes.
Speaker Change: If we're looking at the factory model.
Speaker Change: Capex.
Speaker Change: The project is.
Speaker Change: I had a breakeven.
Speaker Change: Less than $40.
Speaker Change: As for Lennar.
Speaker Change: We are doing well head Andrew.
Speaker Change: And regarding the Capex per well, it's very important to notice that we are also adding to the total capex the flow lines, because usually oil companies tend to avoid the adding of the flow line from the well to the trade.
Speaker Change: Treatment facility and this is why some companies are showing cost of $12 $5 million to $15 million per well, but youll need to Florida to get that.
Daniel Guaviola: And this is why some companies are showing costs of $12.5 to $13 million per well. But you need the flow line to get that oil out. Great. Thanks for the transparency.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Great. Thanks for the transparency.
Daniel Guaviola: And then one more.
Speaker Change: And then one more from well more she's asking Danielle what is the real potential of exploring gas in Brazil, and can you provide us an update on it.
Daniel Guaviola: He's asking, Daniel, what is the real potential of exporting gas to Brazil? And can you provide us an update on the infrastructure you're using to ship the gas to Brazil? With the current infrastructure, we are capable of exporting to Brazil around $4 to $5 million. million cubic meters per day. The infrastructure that we use is the infrastructure that is already there in place. Basically, the reversion of the Northwest Pipeline, plus the Bolivian infrastructure, plus the Brazilian infrastructure from the Bolivian border to San Pablo. A lot. It's a lot. And it's very expensive. So far, it's very expensive.
Speaker Change: Infrastructure, you're using to ship the gas in Brazil.
Speaker Change: With our current infrastructure, we are capable of exporting to receive around $4 million to $5 million.
Speaker Change: Maybe Greg meters per day, mainly agree we just late breaking news per day. These restructure that we use is the sector that is already there in place basically the reversion of the northwest pipeline, plus <unk> plus the Brazilian infrastructure from them or even Florida to some volume.
Speaker Change: It's a lot and it's very expensive so far it is very expensive. So we havent been fairly competitive with Delta is evil the Brazilian industry, which is.
Daniel Guaviola: So we are very competitive with the alternative of the Brazilian industry, which is getting LNG from their regasification terminals.
Speaker Change: Getting LNG from their Regasification terminals awesome and one more from Danielle.
Daniel Guaviola: Awesome.
Daniel Guaviola: And one more from Daniel. He can't get enough. He says, do you foresee any potential synergies of having YPF as a new partner in Tierra Chata? Are you considering to accelerate the development of that field? Well, having YPF with all the LNG projects that they have in their portfolio definitely helps us to accelerate the development of Sierrachat. So I think it's good news.
Speaker Change: And get it all.
She says do you foresee any potential synergies of having <unk> as a new partner and see how much of that I mean, you can see in two accelerating the development of that Hill.
Speaker Change: Well, having wide VF with all of the LNG projects that they have.
In their portfolio are definitely helps us to accelerate the development of <unk>.
Speaker Change: So I think it's a good.
Speaker Change: Neil.
Speaker Change: Right.
Daniel Guaviola: Well, that was all from Daniel.
Speaker Change: Well our fault from money now.
Unknown Executive: Now we should turn into someone, I don't know, but he asking Christian Andrews. Good morning. Broly speaking.
Speaker Change: Turning to someone I don't know, but he asking question Andrew This morning.
Christian Andrews: Is the recent five-year carry review for TGS Transcender positive for your business? We were hoping or expecting for more favorable increases. I think it was pretty lame, right? We went up. I would say that we were... Not surprised by... by the outcome by the outcome of the internal time revision neither of Transenedo or TGS because as you know, we, the companies participate a lot in providing information and discussing with the regulator so it didn't came as a surprise. It was in line with our expectations. But then that was a question. Yeah, it was like, are you OK?
Berlin: <unk> Berlin speaking is that recent slight year carrier with you for Tcs trent's enough positive for your business.
Berlin: When you were hoping or expecting for more favorable tax increases.
I think it was quite in line with what we got.
Speaker Change: Uh huh.
Berlin: We went up.
Speaker Change: I would say, though that we were.
Speaker Change: <unk>.
Speaker Change: Not surprised by the body.
Maybe the outcome by the outcome of the integral tariff revision neither of tomato halt this year because as you know we the companies participate a lot in.
Speaker Change: In providing information on and discussing with the regulator so.
Speaker Change: You didn't gave us.
Speaker Change: Pricing was in line with Ah.
Speaker Change: Our expectations.
Speaker Change: Right, but that was the.
Speaker Change: Question.
Speaker Change: It was like up in June.
Speaker Change: Okay I guess in a nutshell is are you happy to happy if we're happy with them.
Christian Andrews: You're happy, I guess. In a nutshell, is are you happy to go? Happy, yes. We are happy with the outcome.
Christian Andrews: Yeah, another question from Christian. He says, in power generation, have payments terms mostly normalized with Kemesa or are you still facing long payment delays? He's not following for a long time. Yes.
Speaker Change: Another question from Christian He says and power generation have payments terms, mostly normalized with gamesa, whereas still facing lump payment delays.
Speaker Change: Now following for a long time now.
Speaker Change: Got gametes of.
Christian Andrews: Kamisha in the event of of April, yeah, March, April of 2024. Since that event Mesa has very quickly began to pay not exactly right on the on the date of the maturity of the of the invoice. But within the next three weeks, Kamesa fully pays the invoice of the month. So within the month, we fully collect both from Kamesa and Enarsu. So there are a few days of delays in the payment, but nothing relevant. Like five days. five days in average five days. Yes, coming from 60 or more. Yeah, exactly. So so yes, they basically come inside.
Speaker Change: <unk> events.
April March April of 'twenty, two enforced since that event.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: Very quickly begun to pay or not.
Speaker Change: Exactly.
Speaker Change: Right on.
Speaker Change: On the date of the.
Speaker Change: Majority of the of the invoice, but within the next three weeks.
Speaker Change: Our fully paid.
Ingalls: The Ingalls.
Ingalls: The months so within the month, we fully collect both from companies.
Ingalls: So there are a few days of delays in the payment, but nothing relevant by five days.
Ingalls: In averaged five to eight years coming from fixed lot more second pillar basically company size.
Christian Andrews: The best player right now. With our best player today.
Ingalls: The best high right now.
Ingalls: Dollar S beta today.
Matias Cataruzzi: Ummmm Another question coming from Matias Cataruzzi from ADCAP Securities. Could you break down the expected timeline from the Phase 1 SLNG project? Say again, please. The, like, the milestones on the SLNG project, like, I don't know, this year, we do some... The CO, well, the COD of the first vessel is expected for the last quarter of 2027. In the meantime, what kind of... In the meantime, we need to secure the gas transportation project for CESA. So I would say that, plus the interconnections with the San Martin pipeline and all the yoke and CESA services that we need for the vessel, basically.
Ingalls:
Ingalls: Another question coming from.
Scott that we would see from US cap securities could you break down the expected timeline.
Ingalls: From the phase one as LNG project.
Ingalls: Hey, again.
Ingalls: The milestones from the ethylene <unk> project.
Ingalls: This year, we just found this year on the <unk> on the first vessel is expected for the last quarter of 2027. The meantime, what's kind of the timeline, we need to secure the gas transportation.
Ingalls: Project for <unk>, So I would say that plus the interconnections with some of the pipeline on the other.
Ingalls: Yields.
Ingalls: And Saturday Sip services that we need for the vessel basically explained to you.
Matias Cataruzzi: Explain the yoke. The yoke is the mooring system that allows the ship to deal with tides and with wind and with normal movement of the motion of the ocean five kilometers away from the coast.
Ingalls: Yoga is that Youll hit the.
Ingalls: Moving to Canada mooring system.
Ingalls: It allows the ship to deal with.
Ingalls: Ties in with winning them with them.
Ingalls: Norman movement of the emotion of the of the Ocean $50 away from the Gulf.
Matias Cataruzzi: Okay, well, we have to better keep it up. So he is asking about volume revenues every day. We already talked about that. You can see in the WeWatch.
Ingalls: Okay.
Ingalls: To better keep it off so he is asking about volume revenue 78, we already talk about that.
Ingalls: You can see now we watched and then I have a question coming from London Dino got a multi.
Valentino Caramuti: And then another question coming from Valentino Caramuti. Do you see further needs from Brazil, gas imports from Pampa? We see Brazil as a very big and relevant potential market. But as we mentioned before, we have to deal with the transportation tariffs that are imposed all over the way. If that is reduced, definitely it's going to be an opportunity for new exports to Brazil. But taking into account this cap of five million cubic meters per day. In order to do more than that, you need additional investments.
Ingalls: Do you see further need some Brazil gas imports from pump.
Ingalls: We see Brazil as a very.
Ingalls: Big Red.
Ingalls: Irrelevant of that potential market.
Ingalls: As we mentioned before it has to we have to deal with the transportation tariffs that are imposed.
Ingalls: Anyway.
Ingalls: That is we use definitely is going to be an opportunity, Florida for new experts to Brazil.
Ingalls: Got it.
Speaker Change: <unk> 5 million cubic meters per day.
Ingalls: To do more than that.
Ingalls: Do you need additional investments yes.
Valentino Caramuti: Sorry, one relevant thing to mention here that has been published here is that beginning on the 1st of May, we have begun exporting gas through Gasoducto de Pasillo to Chile, to the region. We are currently exporting almost half a million cubic meters per day to Shell. And it's the first export that takes place through that pipeline, apart from what YPF was doing for the past years.
Ingalls: Sorry.
Ingalls: One thing to mention here that has been published youth.
Ingalls: Beginning first of May we have begun exporting gas through vessel <unk>.
Ingalls: <unk> already region.
Ingalls: We are currently 14 almost half of immediately immediate Greek meters per day.
Ingalls: To shell.
Ingalls: It says the FERC I mean, it's the first.
Ingalls: Expert that it takes place.
Ingalls: Through that pipeline.
Ingalls: From what <unk> was doing so for the for the past years very good.
Valentino Caramuti: Very good. Valentino Caramuti is also asking, are you planning to raise more debt in the short-medium term? I think we've talked about that, but... We don't have to raise new debts. We are okay with the level of debt we have, but we're always looking for market opportunities and we are very active in our liability management, but not for any of these projects.
Ingalls: Yes, well.
Speaker Change: Okay I won't influence walking from getting you are you planning to raising more debt in the short medium term.
Ingalls: Okay.
Ingalls: I think we saw that but.
Ingalls: Ed.
Ingalls: We don't have to raise new debt. We are okay with the level of that we have but we're always looking for market opportunities and we are very active in our region.
Ingalls: Management.
Ingalls: But not floors for any of these projects will put capex.
Jorge Mauro: And the last one, because we are in the top of the hour, Jorge Mauro asking if the in the upcoming sale of CITADELF by Enarsa, can you participate, would you?
Ingalls: And the last one because we are in the top of the hour Waterscape modal asking if the upcoming cell C to live by a non stocking you participate would you.
Jorge Mauro: I mean, I guess transnational, right? Philip and Finesse share. NRSA is working in the process of divesting Citelec, which is a controlling, they have 50% ownership of Citelec, which is the controlling company of TransCenter.
Ingalls: I mean, I guess, that's a net of sales right.
Ingalls: The sale of <unk> sure yes.
Ingalls: Good.
Ingalls: And assay is working.
Ingalls: Proceeds of the divestment divesting Cedar Lake, which is controlling their 50% ownership of <unk>, which is the controlling company of.
Jorge Mauro: Regulatory wise If you are a distributor or a power generator, you cannot control transmission. So we currently have the co-control together with the government of transmission, we cannot go beyond that.
Ingalls: Turning to the.
Ingalls: Regulatory wise.
Ingalls: Okay.
Ingalls: If you are a distributor or a power generator do not you cannot.
Ingalls: Control transmission.
Ingalls: We currently have the co control together with an older adults for emission we cannot go beyond that so we cannot.
Unknown Executive: So we cannot acquires a NASA stake in Citadel. That'd be… Great, awesome. So we are at 12.02.
Ingalls:
Ingalls: Why is it not as a stake.
Ingalls: You did it.
Ingalls: Two.
Ingalls: Yes, great awesome. So we are <unk>.
Unknown Executive: This is completing our Q&A section.
Ingalls: <unk>.
Speaker Change: This does conclude our Q&A section. Thank you for joining us and taking time to join this call.
Unknown Executive: Thank you for joining us and taking time to join. Thank you for this call.
Unknown Executive: Take care. If you have any questions, please let us know. Write us to Raquel or me.
Speaker Change: Call take care should we have any questions. Please let us know right is to have scale.
Speaker Change: Me too.
Unknown Executive: See you next August! I thank you very much for joining.
Speaker Change: So anything on that.
Speaker Change: <unk>.
Hi.
Speaker Change: Alright, Thank you very much for joining.
Unknown Executive: Goodbye.
Speaker Change: Goodbye.