Q2 2025 Pampa Energia SA Earnings Call

Good morning, everyone and thank you for waiting.

From here I would like to welcome everyone to bump in a single quarter of 2025 results Media conference.

We would like to inform you that this is being recorded all participants will be in listen only mode. During the presentation. After the company's remarks, there will be a Q&A session questions can only be sent in writing those home should any participant need assistance. Please send us adjust message.

Before continuing please read the disclaimer on the second page of our presentation. Let me mention that for looking statements are based on company's Jeff management's 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.

This stuff should understand that general economic and industry conditions and other operating factors could also affect the future results of bump out of <unk> and could cause results to differ materially from those expressed in such forward looking statements now ill turn to Lisa. Please go ahead.

Thank you and again Hello, everyone and thank you for joining our conference call.

We will make a real quick summary of the Q2. So we got more time for questions with the management today for the Q&A. We have we feel we still follow the money on our head up oil and gas you said, what I said already and our CFO Mr. Ali for some of you there.

So I'm going to the slide three real key developments Mark the second floral 20 tween five first.

Foremost is the successful production ramp up and bring on that on that.

Thanks to the tight enough new paths in coordination with the commissioning of supporting infrastructure such as a temporary.

Processing facility.

<unk> and from pipelines and so on so also the contribution of the new 140 megawatts wind farm Pip is six and the higher spot prices boosted the quarter's figures. However, cooler temperatures started in June so delayed the spike of the winter.

Their winter Spike in both power and gas men pet Chem contributed a positive EBITDA continue gradually recovering returning to a positive EBITDA.

Lee in a proactive and and liability management transaction, we extended to 2029 notes through 'twenty 44, we got.

$140 million, we tap issued at the lowest spread over U S treasuries in pampas history.

Well, that's moving to the quarter's financial results.

Just to be a amounted to $249 million. This is up 17% decline year on year, driven by soft gas sales fall in pet Chem prices.

Higher operating expenses weighted on the performance.

The headwinds were partially upset by contributions from the new P. P. Six no wind farm.

Increased goshawk exports to Chile, and higher production at <unk>.

Quarter on quarter, EBITDA improved due to the seasonality and growing outputs at single get on that.

Capex search are reporting 34% year on year, reaching two $354 million.

The majority, which is $249 million was invested in the development of single near them.

Moving on to slide four the all in our adjusted EBITDA was up $87 million down 28% year over year, largely due to reduced domestic gas sales to retail and thermal power off the cooler weather.

Later than usual for us.

Exploration of winter peak contracts between May and September under the plan gas GSA also impacted the results.

Though in June that perform very strongly at the GSA remain in place.

Higher lifting costs are especially from ringel net on that also affected EBITDA performance, However increase gas exports to Chile, and stronger crude oil production, having gone down enough help to balance does decline.

The lease of temporary facilities that we can get on that and gas treatment.

Yes.

Push the lifting cost up to $76 per Boe.

Particular gas.

Gosh lifting costs rose to one one dollar.

For Nuomi deal. So influenced also by the lower output.

Quarter on quarter lifting cost per Boe.

<unk> mother really Billy.

Explained by the transition from trucking to Ehealth and leased facilities.

Offset by the seasonality.

Total production averaged 84000 barrels per day. This is down 7% year on year due to the alcohol decreases at the mongrel Shaw and nonoperating loss.

Partially upset by it and go get them not unseal quite shocked Argos.

Where where the production is up 16% again explain had a seasonal effects and shale oil.

The production mix continues to shift.

With oil right.

Two 9% of the total production output and contributing 18%.

The oil and gas revenues.

Entirely entirely due to England, yet on that one up.

Also we tightening to shell wells.

Targeting back on what about Rio Neuquen block.

Blocks first shale development of onsite new tight gas wells.

It's not operated by bump.

Crude oil prices average nearly $62 per barrel in Q.

Two this is 14% lower than last year, mainly explained by the rent on the performance.

Acting exports mostly.

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However, our hedging strategy around we can can get on the rising production help to mitigate the price drop.

Total golf sale sales fell 11% year on year.

Almost routine meeting 10 years per day.

But rose 10%.

From Q1 loss Asaf Wayne recently again by seasonality the mango Shaw.

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Locke continue to leave at Yelp, what's though its share declined to 58% of the total golf ball in Q2.

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Meanwhile, she might chat though.

Increased its share to 29% of the gas output in Q2 with a 14% production game you're only.

Yeah that chart that we drilled four wells and fighting for year.

You have joined the meeting as an attendee and will be muted throughout the meeting.

Two days so 57%.

After Q2 output is considered a shale gas.

Now in line with our commitments with the exploratory rock data here.

15% decline, your mirror driven by Soft gas sales falling pet, comp prices and higher operating expenses. Weighted on the performance.

We drill a horizontal shale well, which is currently awaiting for.

For completion and testing bombard extended borrowing need us if the license exploratory license until 2027.

Um, the Hat wings were partially offset by contributions from the new pp6 the wind farm, uh, increased gas exports to Chile, and higher production at Wanda.

Yeah.

In the gas prices the average 4% to $4 40 per millimeter during the quarter remaining steady year on year due to the Brent prices that affected export prices.

A quarter on quarter, a BDA improves due to the seasonality and growing outputs at Finland.

Topic search 140 144% year on year, which into 354 million.

And upset by improve.

Retail prices and and improve marginally in the industrial segment.

The majority, which is 249 million with investors in the development of finana.

Half of our gas was delivered to commit some for power generation on the playing as you say if you see the national wide gosh, we contributed 17%.

After the gas consumed totally in the country for power generation.

Since may we have increase our flows to Chile for two nights.

Moving on the slide 4, the oil and gas, adjusted FDA was 87 million down. 28% year on year, largely due to reduced domestic gas sales to retail and thermal power as the cooler weather and write later than usual. The expiration of winter Peak contracts between May and September under the plane gas, GSA also impacted the results.

<unk>.

Got some this cyclical I spoke the pacifico capitalizing the competitiveness of our gas related or that there's two LNG.

Uh, though, in June that performed very strongly. Uh, as if the GSA remain in place,

By June exports have reached one 1 million kilometers per day same as today.

Hi, your listing costs, uh, specifically from Ringo Miranda. Also affected FDA performance,

Okay.

Though Q2 gas sales were soft to rebound sharply with the colder temperatures on July 24, we hit a new all time high daily production high.

However, um, increased gas exports to Chile and stronger cruel. Oil production helped to balance this decline.

That's a $17 4 million commuters per day, driven by the <unk> shale wells at C&I chart them the.

The most recent tightening pad a free Welch, we peaked at $2 seven LNG meters per day.

The lease of temporary facilities at wanna and gas treatment uh fees um push the listing costs up to 7.6% to 1.1 dollars per millimeter. This is influence also by the lower output.

Hum.

19 be solid productivity and competitiveness.

So focusing now being called me out on that we have five path, having drill four of which are in line. During Q2. The block produce an average of $5 3000 barrels per day accident in June at eight 8000 barrels per day.

Query on quarter lifting cost per Boe increase moderately um explained by the transition from tracking to in house and Lease facilities.

Upset by the seasonality.

This quote was mainly driven by the pet's number two and number four.

To the production average, 84,000 barrels per day. This is down 7% year on year, due to the output decreases at the mango and not operating blocks.

The ladder began really producing late June.

Uh, partially upset by Wanda and Ciara tagasi.

So and you see them by then completely clear all the water so what's interesting.

The production is up, 16% again, explained that the seasonal effects and Shale oil.

Currently been going there are nice and delivering almost 16.016 million barrels per day from four paths.

The last two paths, where tidy due in July and there still is on the wall testings.

The production mix continues to shift with oil Rising uh to 9% of the total production output, and contributing 18% of the oil and gas revenues.

For 2025, we budget a home a million dollars in total capex, having already invested over $360 million year to date.

Entirely, entirely due to Ringo lump up.

We expected to reach two.

220000 barrels per day.

Also we tidy 2 Shale Wells, um, targeting bakam morta, at Rio, new Ken Block, uh, the blocks first shell development, alongside new Thai gas, Wells, leoan. It's not operated by pump.

In Colombia, right now by Q4.

And aim to reach a target of 45000 barrels per day by 2027 when back on water sewer oils were pipeline is online.

So again to support this ramp up to secure from pipeline transportation agreements embark on more vessels.

Crude oil prices. Averaged nearly 62 dollars per barrel in queue. Uh, 2. This is 14% lower than last year. Maybe we explained by the brand on the performance affecting exports mostly

However, uh, our hedging strategy around.

And they must and will be gone in June we apply to.

Race in production helped to mitigate the price drop.

The really Rishi.

Framework for the central processing facility.

Hey.

Cps.

And all related.

Infrastructure needed to live up ways of target production level as shown in the video on the screen the Cps slow lines pipelines water treatment pools and all require investment.

He is a person is only off a $426 million of which the CP emphasis later to begin next year.

But roles 10% uh from q1 last as such as explained recently Again by seasonality The musho Block continue to leave the output though. It's share decline to 58% of the total gas volume in Q2.

Switching to power generation on slide nine we posted an adjusted EBITDA of $112 million Q2, 5% increase year on year.

Meanwhile Shiva uh increase its share to 29% of the gas output in Q2 with a 14% production gain year on year.

Are mainly explained by the best six performance on higher spot prices.

Measure it in dollars, partially upset by increased operating costs and schedule outages.

We drill 4, Wells, and Tiding, free year to today. So 57%, uh, of the 22 output is considered Shell gas.

Duration volumes declined 7% year on year, and a visit to that 92%.

Due to the maintenance man and woman Atlanta awkward works in Maryland, CGT for efficiency and lower gas emissions and the hydro's Willis outages in two out of the free them since January of this year Phil.

Okay. Now, in line with our commitments with the exploratory Block in the data, we drill uh, horizontal shell. Well, which is currently awaiting. Uh, for completion in testing pumpa extended license exploratory, I license until 2027

Phil increased gas supply on BBC helped to offset the.

In in the gas prices. Uh, they averaged 4% $4 sorry per millimeter in the quarter remaining in steady year on year, uh, due to the Brand's prices that affected export prices.

The decreases capacity payments, particularly under the take or pay ppas.

To support 70% of the segment's EBITDA.

Uh, not fed by improve uh retail prices and and and improve marginally in the industrial segment.

So turning to the slide 10 about the cash flow, we only show a restricted group figures because they are aligned with our bone peramivir.

In Q2, we posted free cash flow outflow.

$307 million. This is mainly driven by the Capex that we're doing that we can understand that.

Half of our gas was delivered to kamsa for power thermal generation. Underlying gas should say, if you see the Nationwide gas, we contributed 17% of the the gas consumed, totally in the country for power generation.

Which accounted for 75% of the total investment along with the uptick in seasonal working capital gas.

since May, we have increased our flows to Chile for 2.99,

Gas sales peaked during the Q2 and Q3 right.

As a result cash and cash equivalents stood at a home and $79 million at the courted them.

Right. Um, gas and this, and the Pacific capitalizing on the competitive of our gas relative to LNG.

Finally in the balance sheet, our gross debt was nearly $1 $6 billion down 23% since.

By June, the exports had reached 1.1 million kilometers per day, same as today.

December 24 banks, the redemption of the 27 and the 29th notes.

That debt rose to 770 $712 million. This is one one times net leverage ratio, reflecting the cash outflow for capex and the working capital.

Though, Q2 gas sales were stopped 2 rebounds sharply with a color uh temperatures on July 24th. We hit a new all-time high daily production high at 17.4 million kilometers per day, created by the outstanding Michelle Wells at Sierra Chata

Our successful liability management efforts extended net debt the debt average life to six to six two years from four three years significantly improving the maturity profile and the high.

The most recent Tiding path of free wills, we peek at 2.7 million km per day.

In June highlighting a solid productivity and competitiveness.

Me the high draw down cash from <unk>.

So this concludes our presentation now.

So focusing. Now on we have 5 paths have been real 4 of which are online during Q2 the block produces, an average of 5.3 thousand miles per day, exiting June at 8.8 thousand miles per day

Now the floor is open for questions. If you have a question. Please send it to the assumed chat well weighted and answer them in.

This quote was mainly driven by the path number 21, number 4, um, the latter uh, began really producing in late June.

Order receipts.

Make sure your name and the company.

Is correctly display to introduce you to the audience should any participants need assistance just a rider.

So and and it didn't buy, then completed clear out the water. So what's it tested?

Currently Lana is delivering almost 16 million, 16,000 bars per day.

So there's some chatter.

We were fully for questions. So please wait a little bit thank you.

From 4 paths, uh, to the last 2. Paths were Tiding during July and they're still on the world testing.

Alright.

Let's hit it off.

All of them.

No no we have already received questions okay well.

Let's go go go.

What else is open yet.

None of the rest of it.

But because the FERC question goldfield.

So unless you guys, let's say, 99% of target to Odessa, Abilene, which is could you give us more color from joining us work from from that wire could you give us more color on the Cps and wrinkle net on that lease.

Um, for 2025 with budget 800 million dollars in total cafes, having already invested over 36060 million dollars here to date. We expected to reach, uh, 200, uh 20,000 barrels per day at Lana by Q4 and in to reach a target of 45,000 bars per day. Um by 2027

Pipeline, it's online.

So, again, to support this ramp up in secure front pipelines, Transportation agreements in mam.

Yes.

Well good morning, everybody. Thanks for joining the meeting.

The Cps.

As far as central processing facilities and basically those three.

<unk> different.

and in June, we apply uh to the rigi rigi um framework for the central processing facility AKA uh CPS

I would tell you purposes, one obviously the oil.

Water separation.

And the disposal of that flowback water.

And all related uh, information needed to evacuate the target production level. As shown, in the video on the screen, the CPS flow lines pipelines, water, treatment pools, and all required investment.

The possibility of having the oil ready to be dispatched to the wiper facility.

To give you a spec for injection in the in the main pipeline.

And also the sort of person I'm not sure I guess, we're just going to be sent through a gas pipeline to the beast.

Facility, but video base, which has already been connected.

Switching to power generation on slide 9. We posted an adjustability of 112 million, you know, Q2 this is 5% increase year on year, mainly explained by Pepe 6 performance and higher spot prices.

These processing centers processing facility has a total output.

Uh measuring dollars partially upset by increased operating costs and schedule. Outages

Output of 7000 cubic meters per day, and we expected to be finished by the end of 2026, which.

Generation volumes declined, 10% year, on year, in availability to that maybe 2%.

Which is 45000 barrels per day, we gave 40, yes, a little bit less than 45000 barrels per day 42 or something.

Which is all or part of our our expected plateau.

I'll try this one awesome well. The next question, yes, it's for Stylo have you already started producing with our own fault, meaning stopped producing power right.

Due to the maintenance at week Works in Barragan ccgt for efficiency and and lower gas emissions, and the hydro's new less outages in 2 out of the 3 them since January of this year.

Our your own fuel if not when do you expect to begin and which is the spread between commenced this reference price and your own procurement price.

Still increased gas supply and V6 helped to upset the the decreases capacity payments, particularly under the take or pay ppas uh continue to support 70% of the segments, epda.

Okay.

Good morning, everybody, yes, we have.

We haven't begun to sell for Q.

The attorney to the slide 10 about the cash flow. We only show restricted group figures because they are aligned with the bond parameter.

An hour.

One gas to.

I need you to repost a free cash flow outflow.

Through our facilities.

The.

On a marginal basis, because as you know the regulations has not occurred yet but.

There are some opportunities for us to self procure.

Our fuel on some of our facilities those that do not require firm.

Of 307 million dollars. Uh, this is mainly driven by the capex that we're doing at recent Sanda, uh, which account is 75% of the total investment along with a uptick in seasonal uh, working capital uh gas sales Peak during the Q2 and Q3, right?

Our fourth Asian, or whether those base, we fine our firm transportation.

As a result cash and cash, equivalents is 2.879 million at the quarter end.

Capacity so.

The answer is yes, we have.

Began to to do it on a.

Finally, in the balance sheet, uh gross debt was nearly 1.6 billion dollars down 23% since.

On a margin basis.

Yeah.

December 2024, thanks to the Redemption of the 27 and the 29th notes.

You ask about is the price.

Yeah.

Rice.

What's the spread against the plan gas price I guess.

Yes.

Yeah.

Currently our revenue for them at $9 is is what.

That that Rose to 777 712 million. This is 1.1 times. Net leverage ratio reflecting the cash flow for capex and the the working capital uh, needs.

Oh no.

Oh, no it's not a garden currently is eight yes.

Pardon me, if I have been a change in visa them.

Regulation lowered oil all of this pricing that has been.

Initially you have allowed.

Generators, Dubai natural gas up to $11 per million Btu, then to $9 for mid June we'll get to you on this group.

Our successful liability management. Efforts extended net debt, the debt average life to 6 to 6.2 years from 4.2 years significantly, improving the maturity profile and the High. Um you need the the the high uh, draw down in cash from ring on the end.

In two weeks because it's so.

So Houston.

Changes every two weeks.

So this concludes our presentation. Uh 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 them in order receive

$8 Birmingham routine.

So the spread to winter gas prices above $3, and a half or something like that or winter gas price work or metrics around 450.

Uh, make sure your name and the company is, is correctly. Displayed to introduce you to the audience, should any participants need assistance? Uh, write a, uh, from the zoom chat.

It's in no manner right.

Just quickly.

We we are fully for questions so please, wait a minute, thank you.

That's where that's the facility there we are able to take advantage of this opportunity because it doesn't require cost transformation.

Awesome next question comes from Quito Metro fatal for malaria and he ask again.

All right, cool. Let's head it off. No, no, we have already received questions, okay.

What else you're regarding wrinkle Nidana could you give us any color on the expected evolution of the lifting cost throughout the second half of the year and 2026, considering the ramp up expected in production and until the processing plant is constructed.

Second quarter of 2005, we were a little bit below $16 per barrel.

No, no, no, no. So, because the first question goes to you and 99% Target to which is, could you give us more color from Jonathan's work from from that wire? Could you give us more color on the cpf in wrinkle and at least,

Boro.

Basically view to the fixed cost of the GPS of a temporary production facility, which has a lease S rebate annually and it's fixed and the production rates in the second quarter of 2005 was 5000 barrels per day. So that explains the high lifting cost moving into the two.

Well uh, good morning everybody. Thanks for joining the meeting. Um,

The cpf.

First half of 2025 due to increasing production we estimate.

I mentioned before we are close to 50000 barrels per day.

Stands for central processing facility. And basically just uh, 3 different. Uh, I would say, purposes 1. Obviously, is the uh, oil and water, uh, separation. And um, the disposal of that, uh, Flowback water.

We are reaching around $8 five per barrel in terms of lifting cost.

We also reduced significantly the figure from the first quarter due to the connection of our always by Glenn you were integrating oils through trucks at the very beginning.

By.

2026 with.

With the.

The increase in production to 20000 barrels per day, we should be hitting around $7 per barrel on the final stage would be the installation and construction of the Cps and that will move down.

The, um, possibility of, uh, having the oil ready to be dispatched, to the ypf facility in order to get, in, in a spec for, uh, injection in the, in the main Pipeline and also the separation of natural gas, which is currently being sent through a gas pipeline to the Vista, uh, facility in bar, which has already been connected.

The lithium goes to $5 per barrel.

Output of 7,000, cubic meters per day and we expected to be finished by the end of 2026.

With the glut of 45000 barrels per day.

Awesome.

You mentioned the average price will have been $58 $5 per barrel, we delta hedging strategy in Q2 25.

Which is 45,000 bucks per day, which is 40. It's a little bit less than 45,000 bars per day 42 or something.

I mention that despite the 67 five brand that rich in the period are you planning to hedge production during 2026.

This mental NATO and metals and mining.

And going into Manhattan.

Which is our plot. This is our our expected, uh, platform. That is 1 awesome. Well, the next question is, yes, it's for mavo. Have you already started self producing with our own full? Meaning self producing power, right? We our your own fuel is not. When do you expect to begin and which is the spread between chemists reference price and your own procurement price?

Oh yeah.

But I think that the difference the main difference is that the brands are still there.

Okay, good morning everybody. Yes, we have

Discounts in order to be.

We have began to self-procurement.

Thanks.

Format in the World.

Our own gas to.

To our facilities.

Well, Brian Web price.

but uh,

The wellhead price, but one is the export tax which is 8% and also theres a premium format I need the quality, which range is ready to go around is around two to $1 $5 per barrel at least cause pneumonia.

on a marginal basis because as you know, the the regulations has not occurred yet but

Meanwhile.

Negative.

There's some opportunities for us to solve procure our fuel on some of our facilities, those that do not require.

Yes.

So.

This is basically the explanation regarding the hedging for JD logistics, we already started hedging now we are already catch them feel one system September about July is the.

Firm got Transportation or whether those days we find firm Transportation capacity. So the answer is yes. We have began to uh to do it on

a on a marginal basis.

They exercised but yes, I mean basically we have.

Um,

One year for <unk>.

and just about this the price, uh,

We are hedged.

Price.

Uh huh.

Currently our 70, 75% of our expected production.

Uh, what's the spread again? The plan gas price, I guess.

Yes. Uh,

At a price of $69.

Yeah.

Do you expect better prices, what else, you'll close I mean less discount versus Brent.

And when you reached 20000 barrels production targets.

Currently correct me, it's a 9 is is what a can of Maintenance and 8 know. Now it's not a current currently is 8. Yeah. The, the were

Target by year end.

Literally for Gorilla glass.

has been changed in this um, regulation or, or this pricing has been

Yeah.

It's impossible to predict at all we don't feel that we can predict so when you look at the future.

initially has allowed, uh,

Prices off of rent plus the best.

generators to buy natural gas up to 11 dollars per million of BTU then to 9 dollars per medium PTU and this current

Indication of where prices are going to be.

That's why we cannot say anything better than that.

Uh, two weeks because it's, uh, it's a system that changes every two weeks. Uh, it's $8 per million of BTU.

What their future market curves.

Friday.

Great.

And Regal asks about the sysop, Russia, which is the salary and energy.

So the spread to winter gas prices about $3 and a half or something like that. And winter gas, price for cannas around 450 I would say

LNG floating LNG project do you expect any participation in the construction and the opinions of the required gas yoga Pikeman for Tds.

It's a lot, right? Specifically

What we are still in discussions and trying to.

that that's where that's the facility that we are able to take advantage of this opportunity because it doesn't require gas transportation.

Put together the best solution for that but eventually tedious.

That could be part of the consortium to build and operate that gas pipeline.

Awesome. Next question comes from gido. And he asked again.

Oh much gas me Pampa additive sales for these two ships in 2007 and 28, how much capex do you need to achieve it okay.

So the total amount of gas at the end of the two.

Two vessels being operation I think Argentina is around 6 million cubic meters per day.

That is by the end of 2028.

The capex associated is before.

Before the ramp up on the construction of a new facility that we're talking about 400 million orders out of which 50% facility 50% each.

Perforation drilling and completion and then we would have around a $60 million to $80 million per year on a plateau basis to keep up with the 6 million. The six main areas breakdown between 'twenty of half or the first ship. That's in total amount at the end of it although it will be.

Regarding could you give us any color on the expected? Evolution of the listing costs throughout the second half of the year and 2026 considering the ramp up expected in production and until the processing plan is constructed, okay? Um, second quarter of 25, we were a little bit below 16, dollars per per per barrel, uh, basically due to the fixed cost of the DPF of the temporary production facility, which has at least has 3 paid annually and it's fixed and the production rate at the second quarter of 25, was 5,000 dollars per day. So that explains the the high lifting cost, moving to the uh to the first half of 2025, due to the increase in production. We as I mentioned before, we are close to 15,000 barrels per day. H, we are reaching around 8.5 per

The two vessels being operational niche approximately 40%.

First vessel, then 60% with the savings.

Awesome and he asked the last question is about the Tcs private initiative, so how much EBITDA analog EBITDA contribution for <unk> expect for this project.

No I don't have that figure in my mind ascribed to harm human.

If that's what it is but you can see that through the year.

Barrel in terms of lifting cost. Um we uh also reduced significantly. The figure from the first quarter due to the connection of our oil pipeline. We were evacuating oil through trucks at the very beginning uh by uh 2026. Uh with the uh increasing production to 20,000 bars per day. We should be hitting around 7 dollars per barrel and the final stage would be the installation on construction of the cpf and that will move down the uh the lifting cost to 5 dollars per barrel.

Once it's done.

With a plateau of 45,000 barrels per day.

It's awarded Yeah, Alex because they award it in October, but it's the sole bidder. So I don't know if they're going to wait until October.

And how much cash.

Tampa a pop.

And the production considering the 14 million kilometers per named new capacity for the.

They don't want in our pipeline.

Oh.

That despite the 67.5 brand average, the period are you planning to hedge production during 2026?

Eventually bump as reserves due to supply all that gas, but how much of what market share of that the new market will will bump again, it's a question that we still don't have an answer.

We expect that that is.

These are increasing the capacity of the pipeline.

Yeah.

So these 14 million cubic meters of natural gas.

Are they there.

They're going to be us.

For a short period of time, something like around 100 days per year during wind multi use during wintertime.

So it will replace imports of LNG diesel on the country to us.

No. Yeah, go ahead. I think that the the the main difference is that the brand has 2 uh discounts in order to be uh, you know, transforming in in in the uh, well, yeah, well price, well price. So they will hit price, 1 is the, uh, extra tax, which is 8%. And also there's a premium for Megan quality, which ranges, but it go around its around 2 to 1.5%.

Much higher prices.

So pricing for these guests should be close to that import parity.

But we will see was that market develops.

Sure.

Oh no.

So, um, this is basically the, uh, the explanation and, uh, regarding the, uh, the hedging for 2026 we already started hedging. Uh, we are already hedged until 1 September by July is the, uh, the exercise conference. Yeah. Basically, we have 1 year forward. We, we are hedge at, uh,

Uh huh.

Hum.

Yeah.

Sorry, this is unused rooms in their room.

Currently around 70, 75% of our expected production at a price of $69.

And she says well something that we always ask in every quarter. It's what prices of natural gas you are forecasting for this project.

I mean, let's just compare brands.

Uh huh.

Okay.

and when you reach the 20,000 barrels production, uh, targets by year end,

Then I'll, let any Chinese from Jefferies He's asking.

a little bit hydrology, but

Something about the lifting cost in drilling cost that we already have answers right.

Drilling costs, we didn't announce our developments of that drilling costs, we didn't answer okay. She's asking how the drilling culinary Boeing okay drilling costs are going down specifically talking about drilling.

it's impossible to predict. We don't feel that we can predict, so we look at the future.

uh, prices of of Brands as

the best.

Indication of where prices are going to be. So that that is

We moved from a drilling efficiency of around 500 to 600 meters.

<unk> per day to around 900 units per day. So we are.

We cannot say anything better than that. Than what the future market curves.

Predict.

Great.

Improving significantly in our drilling efficiency.

On top of that we also.

Made some improvements in our state in the stage.

Then uh, we will ask about the 6 approximately, um, LNG full in LNG, project. Do you expect any participation in the construction and maintenance of the required gas, you gas pipelines for TGs?

Fracking per day, moving from six six or seven to around 810 to 11, So ito.

With the broad improvements in completion and drilling we should be able to use our total cost per well.

Uh, what we are still in discussions. And I'm trying to uh, put together the best solution for that. Uh, but eventually dgs uh uh could be part of the Consortium to build and operate that gas pipeline.

From 15.5 to something around $50 million, but this when it takes some more time, probably a one year.

Okay, and what level of shale oil production do you expect from <unk> come down as we already mentioned that I already mentioned.

How much gas me pump, add in sales for these 2 ships in 27, and 28, how much capex do you need to achieve it? Okay. Uh, the total total amount of gas at the end of the, the 2 vessels being operation and in Argentina is around 6 million, cubic meters per day.

Quarterly I guess, but now next quarter. This next quarter next quarter next quarters, Okay No problem.

We are currently in.

In the range of 15000 barrels per day, and we should be.

Increasing our production in order to reach 18.

<unk> per day by the end of the year later last quarter, So that's more or less what we have in our minds as they ramp up.

We could say that.

Before we were expecting to reach that by year end and now we are above the average of the fourth quarter is going to be around that notice like the group results, what we're going to run back up yes anticipated well.

Uh, that is by the end of 2028. Uh, the capex associated is, uh, for the ramp up and the, uh, construction of a new facility is SATA. We're talking about 400 million dollars out of which 50% facility, 50% is, uh, preparation Drilling and and completion. And then, uh, we will have around, UH, 60 to 80 million dollars per year, on a plateau basis, to keep up with the 6 million, right? The 6 million million, it's, um, breakdown between 20 and a half for the first shift. And yeah, that's the total amount at the end of the of the of of being the 2 Guys, is being operational, this approximately uh 40% or the for with the first vessel than 60% with the second person, right?

Yes.

There is a mixture there but.

All in all.

We were gonna be reaching the.

Eight.

<unk> thousand or 19000, 20000 barrels per day by year by year end and there might be a gap.

Awesome and he asked us last questions about the TGs private initiative. So how much a BDA, uh, annual MBTA contribution for tjs? Do you expect for this project?

In the next quarter.

But at the end of the year, we should be definitely to reaching the.

Getting to 20000 barrels per day.

So there's a little asking that evolution of Rio Neuquen I don't know, we understand in terms of shale oil showing them. The real negotiate our project is very very I mean, you said the very early stage is extraordinary.

No, I I I don't have that fear in my mind. Should I ask that to for a million? That's what is it? Yeah, but you can I should ask that to to TGs once the, once it's done. Once it's it's it's awarded. Yeah. Well, it's because the award it's in October, I think so, but it's the sole bidder. So I don't know if they are going to wait until October.

And how much cash?

It was drilled two wells have been drilled already.

in the production, considering the 14th of the

no pipeline.

And.

Still a long way to go I mean this is not a project is just a pilot isn't a border of our commander right. It's about the <unk>.

We have not been that bad I mean, it's okay.

But we see still a long way to go.

<unk> to decide whether to move.

um,

Okay.

Well, if we hadn't gotten funding securities also ask although less than trend. So we already have him answer that.

we expect that, that is this um,

increasing the capacity of the of the pipeline.

We don't want that are you from Morgan think needle. He is asking can you comment on expectations for cash generation in second half of 2025 in particular should you should we see any the same capex intensity I think on that on that.

uh,

So, this 14 million kilometers of natural gas.

Um, per day, they're going to be used.

What about the working capital.

Should we be anyway, let herself from the pressure observed in the second half of 2025.

Uh huh.

For a short period of time, something like around 100 days per year during wind mostly during winter time. Uh so it will replace Imports of LNG. And this oil that the country does at much higher prices.

Yeah.

The cash generation in the second half of 225, it's going to be negative so.

Uh, so pricing for this gas should be close to that incorporated.

We have been saying for them.

If you or tariffs.

But we will see once that market develops.

2025.

In 2026 are going to be years, where basically because of the money that we will be deploying and bring on that I'm not.

No, no, no no.

Mind, you, it's going to be $1 $5 billion between.

Turning to the filing in 2026.

Sorry, this is a new stream in room, um, and he says well something that we always ask in every quarter is what prices of natural gas and forecasting for this project.

We will be having negative free cash flow inbound parcels investing in exists.

That is a transformation, okay?

Of our free cash flow.

Then from Jeffrey, he's asking.

Generation for the density will continue.

In the second half of.

This year.

In the first half of next year.

Should be expecting.

Negative free cash flow.

Anything else you see us working capital.

What do you think about working capital.

Actually it gets better in the second half of the year right.

Sure Peter.

I know you'd like to come in.

Capital.

We don't predict.

Um, something about the lip and cotton brilliant colors that we already answered, right? Um, during cost within an answer though, really in cost, we didn't answer, he's asking how the trillion covers are evolving. Okay. Drilling costs are going down specifically talking about drilling. Uh, we moved from uh, drilling efficiency of around 500 to 600 M, uh, per day to around 900 m per day. So uh, we are, um, improving significantly in in our drilling efficiency

Capital should we recover all the productions in the third quarter and the fourth quarter.

Should evenings.

And because.

Our sales will increase so there will be a little bit more.

Uh, on top of that, uh we also uh made some improvements in our state in the stage uh, fracking per day. Moving from 6,

Working capital involved yeah.

In the coming quarters, but that's something that because of the increase in sales.

Yes, I remind you all that Allah, it's it's a it's.

Golf cart right.

This is our peak moment Q2 on Q3.

Also can you comment on the company's Marine Corps in operating shale oil.

6 or 7 to around 8 10 to 11. So in all uh with the Improvement improvements in uh completion and drilling, we should be able to reduce our total cost per well. Uh from 15.5 to something around 13 million, uh but this is going to take some more time probably 1 year

Oh.

Yeah, well, we are definitely learning a lot.

And as I mentioned before we were able to take advantage of this productivity increase both in drilling and completion and we are now trying to understand a little bit better weather.

Whether it will be.

Long range sand versus the short range sand.

Spacing meeting.

Absolutely and gone sand or something that we can keep on trying to understand better and eventually improve some some more dollars in our total web protocols that goes through it.

Okay, and uh, what level of shale oil, uh, production, do you expect from Green containers? This is what we already mentioned. Already mentioned poorly, I guess, but no, next quarter. It says, next quarter. Next quarter next quarters. Okay, no problem. Uh, we are currently in, uh, I mean, in the range of 15,000 bars per day and, uh, we should be, uh, increasing our production in order to reach 18,000 bars per day by the end of the year, by the last quarter.

So that's more or less what we have in in our minds at the Grand path. But we, we could say that

Also what were positive surprises have you been seen or any main challenges since the beginning of the operation in Canada. Okay.

Okay.

I would say that the most interesting surprise we had in Angola.

Originally we had two landing zones, the casino and even video.

We got some.

Expectations on the organic superiority, but with a lot of uncertainty we drilled.

Number six we drilled that well to be out of any of those will be our target.

We had a very very good performance and that opens up the possibility of developing as well a third layer than what's not.

Before we were expecting to reach that by year end. And now we are the average of the fourth quarter is going to be around that. No, it's like the the good results of ring that have yes, anticipated well before. Yeah. Um, the there is a mixture there. But uh, all in all, uh, we will, we're going to be reaching the uh, 8 18000 or 19,000, 20,000 bars per day by year by year end, there might be a gap uh, in the next quarter, uh, by the by the end of the year, we should be definitely reaching the

Before taking into account right.

Well, so basically cut the company's come get in with the growth profile to reach peak production as planned.

Alright next question comes from me I'm from HSBC and she asks for ICL could you give us more color on the free LNG did the free right.

15 to 20,000 marks per day, asking the Devolution of Rion, I don't know in terms of shade oil. The the real project is is is very, very, uh, I mean, it's at the very early stage, it's exploratory. There have been 2. The real 2 words have been drilled already uh, and, um,

Projects going on in Argentina, specifically on the timing and you're interested in participating.

The incremental northern was participating in the other the other.

Two projects are widely of projects in there.

Rather ask them, what they're going to do all of that yeah chefs.

Still a long way to go. I mean, it's not a project it's just a pilot. Isn't the border of, right? It's a border of a, the results have not been that bad. I mean, it's okay. Uh, but we still still a long way to go in order to the to decide whether to move stadia.

We are interested in participating.

Is also asked about the listing trends. So we already answered that. Okay.

We have as.

We always face lower say very competitive gas reserves.

No.

We are always interested in.

Projects that will.

Allow us to develop this.

Same capex intensity as we can get.

Extraordinary gas reserves.

We have a.

Today, we are tendered.

Uh, what about the working capital? Uh, should we expect any reversal of the pressure observed in the second half of 2025?

100% focused on the <unk>.

Project, the one that it's.

Yeah.

Already.

On the way.

We are.

Discussing with with YDF and the other partners.

The cash generation is the second half of 2025 is going to be negative. So we have we have been saying for

<unk>.

There's not much to say there.

She asked where do you see high upside potential power TGF RMP very straightforward.

I think there is upside potential in all the three segments obviously in the next.

uh, a few quarters, uh, 2025 and and 2026 are going to be years, were basically, because of the money that we will be deploying in Randa that I remind you, it's going to be 1.5 billion dollars between

In the near term <unk>.

Is where the growth on the EBITDA bump is going to come from in a very significant way.

Uh, in 2025 and 2026, we will be having negative free cash flow in Pampa, so we are investing in excess.

In terms of.

Because of the development.

Comment on that.

In the case of power, we are waiting for the deregulation.

Of our free cash flow uh generation. So the intensity will continue uh in the second half of of this year and in the first half of of next year, you should be expecting a negative free cash flow.

No no.

<unk>.

There, but we are awaiting.

Anything else working capital?

For that.

It's not something as we said that's going to be a game changer for bump up but we expect.

Um, what do you think about working capital? Usually, it gets better in the second half of the year, right? Yeah, I don't know if we do like to come in.

An improvement in the power business because of the deregulation.

Capital.

We don't project to have more Capital. Should we recover? All the production from the third school, on the fourth? Cool. And

In the short term, we should be also expecting.

Should we?

The need of our vision of an increasing.

Capacity.

All of the country.

On big projects that takes a long time to develop a three years so.

Yeah, and because and as sales will increase so there will be a little bit more working, capital involved? Yeah. In the coming quarters. Like that's something natural because of the increase in sales.

There's going to be an opportunity for pump to continue growing empower scenarios.

Yes, I remind you all that PA. It's a golf curve, right? This is our pick moment for Q2 and Q3.

After the deregulation.

Um also can you comment on the company's learning core in operating show oil?

Yes, and it also has a lot of infrastructure project on the on the pipeline to continue growing so we see upside potential in order for these segments.

Oh, and then obviously the more synergies between power and gas.

This.

That's quite small.

Yes.

Hi, there.

Very into the.

Yes.

D boundary energy storage, if you have other voluntary storage.

Auction that we participated with a project of 50 megawatt.

Yeah. Uh, well, we are definitely learning a lot. And uh, as I mentioned before we, we were able to take advantage of this uh, productivity increase both in grilling and, and completion. And uh, we are now trying to understand a little bit better, whether the uh, long range sand versus the short range sand. Uh, and the spacing between, uh, stages, uh, how to remain constant or something that we can keep on, trying to understand better and eventually improve some

Some uh, more dollars in our total welfare costs, the cost per 1.

Rather than waiting to see whether we will be awarded or not is a very competitive project.

Three times.

More all first.

Commercial was requesting.

In the specific case of our project is even more competitive because.

Yes also. What what positive surprises. Uh, have you been seen or any any main challenges since the beginning of the operation? I think on that? Okay, uh, I would say that the most interesting surprise we had in regular, is that originally, we had 2 landing zones, the Cosina and the organic inferior.

We are competing with.

Six or seven perfect. So it's very very competitive we don't know whether we're going to be awarded.

Great.

Sure. So nicoski fronting again Blitz SaaS is asking about the hedging strategy, we already talk about vessel.

You bet.

The second question is regarding increasing dollar denominated costs within the oil and gas segment, particularly on lifting costs as well as some of them will S journey.

Uh, we had uh, some uh, expectations on the organic superior. But, uh, with a lot of uncertainty, we drilled, uh, in the part. Number 6, we drilled as well to the organic of superior Target and uh, with with a very, very good, uh, performance and uh, that opens up the possibility of uh, developing as well. The third layer that was not uh,

before taking into account, right?

Is this trend primarily driven by the FX dynamics and inflationary pressures or it's another factor might be overlooking.

Oh, so basically cut the companies confident with the growth profile to reach the peak production as well. Yeah.

While we will discuss the lifting cost what would've gone Diana Chang Scott, yes, but it's I'm just asking is.

The peso share my friends in high dollar inflation right. Yeah, we had a lot of inflation, yet we do happen to be with you on that it's.

All right, next question comes from Lilian from HSBC and she asked well for Russia. Could you give us more call or the free LG the free? All right, LNG projects going on in Argentina. Specifically on the timing and your interest in participating.

Smaller than other companies.

No sense that we are now in the sense that we are not Ah Ah.

<unk> company special cost company that will be worse.

Gentlemen, only the who was participating in the other the other 2 projects are ytf projects and rather ask them what they're going to do about that. Yeah she has uh if we are interested in participating

My first question is about the renewal of the hydro electric concessions.

What is the current status of the process, having that be there any developments regarding the terms of the timing of the hydro electrical efficiency.

I guess, the big ones the ones that want to be 10 or not the in Asia, I mean Asia, yes.

We we have, that's all we always says, don't always say very competitive, gas reserves. So we are always interested in uh, projects that will could allow us to develop this, uh, extraordinary gas reserves, that that we have. Today we are

The first.

They should go the tenders are all of the new.

100% focused on the cisa project, the 1 that it's

Hydro conditions, who go.

First with the Kumamoto concessions the ones there.

Already on the way, and we are.

Basically you are going to be that are lagging and equally.

Passing with with ypf and the other partners, the other possibility.

Along those lines.

But it's not much to say there.

Those are the ones are going to be offshore first because they were the first but that's mature after is going to come the auction for me, where do you see them on this which will impact us.

Chef, where do you see high upset potential Tower TGs or EMP? Very straightforward?

I I I think there is a upside potential in all the 3 segments, obviously, in the next,

But we don't have any clarity on the timing of the of this process.

Uh, in the near term, EMP as...

Four question goes to demos are the syndicated loan has been granted are when our diverse months expected to begin.

Is.

And what is the private time after that.

The projected timeline.

The start of construction integrations.

Yeah the.

The financing was already is already deployed around 400 million loaders.

where the growth on the evda of pump is going to to come from in a very significant way, uh, in terms of because of the development of of spring Corner um in the case of power, we are waiting for the the regulation there are no

<unk> already started the use of cash of different housing.

News, uh, there. But we we are waiting uh, for that.

The advancement of the project schedule is the first different stages. The first stage for some advancement of 2% the second third stages or alone.

I don't remember exactly 10.

It's not something as we said that's going to be a game changer for for pump up, but we expect uh, an improvement in, in the power business because of the the the regulation.

uh, and

But the broader base every skolkovo in as planned.

Well he is asking the wishing operations are regarding the acquisition of 10% of Peel back the purchase of the.

The deaths.

In the sermon that was a release out there what's the strategic objectives are driving this transactions.

In the short term we should be also expecting the need of additional an increasing the capacity um of of the country on big projects that takes a long time to to develop like 3 years.

So there's going to be an opportunity for PA to continue growing in power generation.

Lovely.

We've talked about this in the previous quarter, there's no strategic.

After the deregulation, uh, and this year also has a lot of infrastructure.

Objective on neither of these investments their financial health.

Yeah financial investments so it's part of our.

Project on the on the pipeline to to continue growing. So we see upside potential in all the 3 segments 8,

And the portfolio management that we do on our on our cash position.

Well, and then obviously the more synergies between power and gas.

So there's not much to say.

Sure.

The financial transactions very thorough strategic ones and there are really really tiny autumn percentage on our one the old close to $1 billion cash right.

Absolute.

Yeah, we compared to the ES battery energy storage. Yeah. But there is storage.

Well this question always come out and its coming from Francisco Guy I've got one from Dawn cap.

He asking are you looking to change their capex oil production forecast due to the weaker oil prices.

Auction that we participated with the project of 50 m. What, uh, we are waiting to see whether we will be awarded or not. It's a very competitive project.

Again.

No you go ahead.

We are undergoing right now.

And we are and then we.

3 times um, more offers than what kamsa was requesting.

Yeah, no no it definitely does.

Yeah.

Additionally, this is why we are hedging our production.

um, in the specific case of our project is even more competitive because

So we have some more.

Less uncertainty regarding the future of the project.

uh we are competing with like 6 or 7 projects so it's very very competitive. We don't know whether we're going to be awarded or or not.

If I can add to it.

I would say that we are not surprised by current prices because.

Natural fee.

A year ago, when you were looking at.

He's asking, uh, about the hatching strategy. We already talked about that, so we're going to skip it.

Future.

Gerber of rent was forecasting.

Lower prices than last year. So this is not a surprise for us and it's a profitable project.

At these levels.

We are.

We will say what else, you'll say well reached a plateau of 'twenty.

Uh, the second question is uh, regarding the increase in dollar denominated cost within the oil and gas segment, particularly less than cost as well as selling or FN. Uh, is the stream primarily driven by the FX Dynamics, and inflationary pressures, or it's another factor, I might be overlooking.

Close to 20000 barrels not a blocker, we will reach a production of 20000 barrels of oil per day by year end.

well, we, we discussed the lifting cost of ring see

Yeah. But um, it's um

Once we have the central processing facility by the end of 2026.

Double more than double.

Have a dollar inflation, right? Yeah, we had another inflation. Yeah, we do have in its smaller than other companies.

That production.

Even at these prices, we are evaluating whether to reach.

Uh, in the sense that we are, no, in the sense that we are not a, a facial company pixel cost company, that will be worse.

Another step in production into me as intermediate step before.

My first question is about the renewal of the hydroelectric concessions.

We haven't taken a final decision on that but we are evaluating whether.

Having in an intermediate step and.

Next year before.

As a temporary.

And each of our temporary facility before.

Uh, what is the current status of the process? Uh, have you be there any developments regarding the terms of the timing? So can you the hydro electric concessions? Ah, I guess, I guess the, the big ones. The ones that want to be ten are not in Isa IA. Yeah, the, the

Definitive facilities are online by year end 2026.

The first.

Alright.

<unk> <unk> from Bank of America, She's asking local news mentioned that presented a bit for total assets in Argentina, and you plan to bid for new brownfield projects oil projects or the focus on all Shaw relied solely on think on that.

They should go the, the tenders of the new of the hydro Constitution should go.

What were the synergies with totals of Athens.

First with the comma with concessions, the ones that are basically. And those are the ones that are going to be auction first, because they were the first that,

Yes.

As you know.

The M&A transactions, we always fine mbas that restricted us above the median.

The timing of the of this process.

Much information.

So I don't want to breach.

We have filed for.

For question goes to beos. Uh, the sikhi the loan has been granted? Our when are the diverse months expected to begin?

What I can say is that we are interested in increasing our.

and what is the project timeline for the

Our acreage of ore reserves.

The projected timeline, including the start of construction and operations.

Yeah, the

Where we are.

the financial was already.

We'd like to continue.

Increasing production beyond where.

Already employed around 400 million dollars. So we we already started the use of cash of the financing.

<unk> going to leave us.

On an opportunistic basis.

Yeah.

So.

Uh the advancement of the project is a schedule, the first and a different stages. The first stage has an advancement of 25%, the second, and the third stages are around.

We will continue we will look to participate in any opportunity that.

I don't.

Exactly, 10. And

May arise in the future.

The like, but but the project is everything is going as planned.

Well Tony.

Yeah, and regarding synergies I wouldn't say, there's any synergies between totals.

Between Alaska, and bringing it out and I'll tell you another field to develop without any synergy there.

Um, well, he's asking the original operations, uh, regarding the acquisition of 10% of kobach, the purchase of uh, the death.

They are pretty far away actually FRE 70 kilometers or 70 kilometers.

Alright, well.

In the 7 that was, uh, released out there, what strategic objectives are driving these transactions?

Completing another nature of question is about the power sector.

<unk>.

This does have a could.

Could you give us any update in the timetable.

Hum.

I was in, I think we, we talked about this in the previous quarter that there's no strategic objective on on neither, on this Investments. They are Financial.

Yes every corner. Thank you question on for the Secretary of energy.

I don't have any idea on the timetable.

And we owe them.

Well.

Yeah, financial investments. So it's part of our, the portfolio management that we do on our, on our cash position.

Last year, when the issue or not I don't recall the number of the.

Yeah.

The resolution body was before November of this year was supposed to be published on the when.

Uh, so this is not much to to say their financial transactions, very strategic ones. There's really really tiny Autumn uh, percentage on our 1, the all close to 1 billion dollar cash, right?

The new rules so we.

Absolutely.

We are optimistic that in the next few months, we will have news.

The upcoming relocation.

Yes, what's the marginal cost of operation.

Well, this question always comes up, and it's coming from Francisco. Caca Kakkar from Don Cap. He's asking, are you looking to change the CapEx or production forecast due to the weaker oil prices?

Terms are in dollar per mile an hour for Pampa assets, what do you estimate is an uptick potential.

Potential for history of upside potential in Chile for the stream.

I guess, that's a question for you if you happen to know I guess, Paul we have the deregulation is for the thermal right for the thermal units is not.

Again. No, we are. We're going. We are not and, uh, we and then we. Yeah, no, no definitely not. And that's, uh, additionally, that's why we are hedging. Our production in the, uh,

So we have some more less uncertainty regarding the future of of the project.

The met markets.

if I can have a,

Martino system is for the thermal units, obviously, the peaking of the peak crushing them has to be got to open cycles.

I would say that we are not surprised by current prices because

Wait out the Lee normal day, right normal Argentina as normal dates around.

A year ago, when you were looking at what? Um,

Future. Uh, curve of of rent was forecasting was

For it sometimes the Irish causes.

uh,

$70 last year, but I guess with more gas supply less importance along he should be going down, let's say the long term for Peter tiny $60.

lower prices than than, than last year. So this is not a surprise. It's a profitable project at at this, uh, at this levels and we are

In a normal day with no true whether it should be around 40 or $50 marginal cost marginal cost.

More or less.

We will as or as you say, we will reach the plateau of 20 close to 20,000 barrels and not a lot. We will reach a production of 20,000 barrels of oil per day, by, by year end.

Right now, it's like too high rent.

We are 10 degrees Celsius right. This is winter season, and that's the opportunity in line for.

once we have the central processing Facility by the end of 2026, we will double more than double

The <unk> the one I didn't know whether or not that it's a free $35 per megawatt hour of margin with the average cost variable cost and then the other ones are there.

One day, it's a very closest can deliver.

And then a little bit out of the league, but it's still competitive at Centinela.

But totally out of the league.

In a normal day should be the pickers.

That's it.

Seymour.

A lot of information online information to Digest, yes.

That production. And even at this prices, we are evaluating whether to reach, uh, uh, another step in production, intermediate intermediate step before, uh, we haven't taken a final decision on that but we are evaluating whether uh having a an intermediate step next year before the as a temporary with with a with an initial and a temporary facility before the definitive facilities are online by year end 2026.

My guess that I don't see from Ofcom, He's asking now of EFI veto proof on the MK two no floating LNG project what are the key milestones. The next key milestones for the sake of project.

All right.

Can you share more details from Pampa as expected equity and EBITDA contribution.

From Bank of America, he's asking local news mentioned that you presented a bit for total assets in Argentina. Do you plan to bid for New Brownfield projects oil projects or the focus on oil should rely solely on?

For an upswing at the project itself.

What were the synergies with total assets?

And from the LNG project once it's operational I guess.

Um,

First person, what what kind of next movements in this approach it I guess.

We are.

We're in the process of building the.

As you know, in all the emanate transactions, we always sign NDAs that restrict us from giving much information.

The pipeline into did they give you that.

so, I don't want to reach uh,

Got it.

But the first of the interconnection with the somewhat of the buyback.

What we have signed. So um what I can say is that we are interested in increasing our, um,

So we are now in the in the construction of the interconnection with the summer being brought down the duration of the compression plan. So for states that should be.

Our, our acreage of all Reserves.

we would like to continue, uh,

Ready by 2027 in order to be able to feed the the first trials of the <unk>.

Increasing production Beyond where is going to leave us.

Uh,

The Healy precision the Healy is moving from committing to a shipyard in Singapore by mid next year and will be a coin toss out to Argentina by September 27.

On an opportunistic basis know. And so

We will continue, we will look participate in any opportunity that may arise in the future.

Reef buildup in AR.

What total and, yeah. And regarding seniors, I would say that any synergies between total, uh,

Or in the shipyard.

It's.

Doing the project is advancing as expected.

As expected and should be online by again, a third quarter of 2008.

Between like colonel and it's another field to develop without any synergy, but they're pretty far away actually definitely. Mhm. 70 kilometers.

Well.

Completely another.

At the same time, we should.

Question is about the power sector liberalization.

Make a final decision regarding the construction of the dedicated by buying from I know again.

This is a very um, could you give us any update in the timetable?

Two the order for some of the U S, which is currently under consideration.

Consideration.

Great and EBITDA and an aggregate equity at 20%, 20% and EBITDA well until this is home run right.

Uh about the yes every quarter. Next question for the Secretary of Energy. You know. I I don't have any idea on the time table 1

but,

Obviously the.

The EBITDA will depend very much on LNG prices. So it's worse.

And it's impossible.

Impossible to say at this moment.

Well, she's asking any chance of shareholder distribution were assuming in 2027 I guess he is talking about the buybacks.

Last year, when the issue—I don't recall the number of the ruling or the resolution—but it was before November of this year, it was supposed to be published, all the new progress.

We are optimistic that in the next few months, we will have news.

Even snow in 2027, one capex levels are normalized and yes, our free cash flow turns positive.

About the the upcoming regulation.

We are far away from 2027, but.

I'm sure there's going to be a little.

The new thing is going on by by by 20 to 87 zone.

Yes, what's the marginal cost of operation in in dollar terms, uh, in dollar per mail what our 4 pound assets and what do you estimate as an update? Uh, potential for this real upside potential, it should be for the 3.

Too early to answer that.

We have to keep it up because we have a follow up question Safra I don't kind of from a NATO from soft now she's asking.

I guess that's a question for you if you didn't understood it. Yeah, I guess Paul, we have, um, the deregulation is for the thermal right, for the formal units. It's not uh, the black market.

We saw high level crop possible new projects.

And development.

No contact will participate later application that we need.

Uh, marginal system. This is for the common units, obviously, the picking of the pickers, you know, not the pickers, the open Cycles.

For the Cps the bes the bathrooms tender the G P M.

Are weight of the league in a normal day, right? In a normal Argentina's normal day. It's around.

Can you comment on the next possible infra infrastructural projects that can materialize in Tampa.

That's right.

Yeah.

14. Sometimes the Irish causes the 70s last year but I guess with more gas supply less important so on it should be going down. Let's say in the long term for a period of time is 60 dollars.

Eventually if we move ahead with our what we are moving ahead with the LNG project, we would have to supply those 6 million cubic meters per day.

but um, in a normal day, with no extreme, whether it should be around 40, 50 dollars marginal costs marginal costs,

yeah, more like

So the vessels. So we will have to increase our treatment facilities in Seattle et cetera.

To reach those 6 million per day, and that would definitely be a possibility for a filing for the reason for that.

Investment projects as we did for a drink on that on the midstream projects.

Uh right now it's like 200. I think we are 10 degrees Celsius, right? This is winter season and that's the opportunity line for um the CC GTS. Our ccgt is the 1 that is in the Malala. It's uh 3035 per minute hour of marginal, the average cost variable cost. And then um the other 1 the the the 1 that it's very close is ha

Awesome and the second question I don't know of.

Currently its about its in house, we already talk about it.

and then a little bit out of the league, but it's still competitive. It's another

And.

But 2 out of the league, uh, in a, in a normal day should be the pickers.

So there wasn't enough for malaria, she is asking what level.

That's it.

I can say more.

Our debt and leverage ratios are projected for 2026 and 2027, considering the projects already approved and underway.

A lot of information, a lot of information to digest. Yes.

Yeah.

For for this year, we are actually.

One one times net delivery of EBITDA.

We're expecting to maintain.

Well, um, he's asking now the fids approved for the MK2 in the floating LNG project. What are the key Milestones? The next key milestones for the setup urgent, um, can you share more details on campus expected, equity, and a BDA contribution?

Around this level of de risk this year.

For an offspring and the project itself.

Okay.

And hopefully by next year.

And from the LNG project once uh its operational I guess.

By the end of next year.

The decrease a little bit this level of leverage us.

Yes continue to generate.

No.

To the company. So I think we will reach the peak of that deleverage all things being equal was doing.

The next quarter or by year end.

Well. The other question is about the scheduled maintenance works at the power plants that will take place in 'twenty five 'twenty six.

We are going.

A big one right now the operate more interesting in <unk>.

Okay.

Oh, that's great.

Oh, Okay, so until keeps asking whether buses usually wait till maintenance overhauls in the.

First first thing, what, what kind of next movements is in the Sessa project I guess? Well, we are, we are in the process of, uh, building the, uh, the pipeline in to, uh, the dedicated, the dedicated Department. Yeah. But the first, the interconnection with the Sardine Piper. Sorry. Yeah. So we are, we are now in the, in the construction of the interconnection with the sarine project, and the installation of the compression plant. So, for first stage, that should be, uh, ready by uh, 2027 in order to be able to feed the the first Trials of the, uh, of the Hill. The hilly is, uh, moving from Cameroon to, uh, Shipyard in Singapore by mid next year and uh, will be uh,

Tober area when the there's also usually you.

Argentina by uh, September 27th.

During the April wasn't done before.

The screening that's wrong.

Build in.

And somebody already that's asking a question what do you see the opportunity for improvement in the discount versus.

Already building the shipyard.

Uh it's uh doing. I mean the project is advancing as uh was uh

Fred on Brent.

Yeah.

So you asked me that discount is $1 1515, you see shrinking.

It's really difficult to say as a market it's not.

Or at least when we reached to the year end targets.

Again, yeah.

Expected and, uh, should be online by again, uh, third quarter of 28, uh, at the same time. We should, uh, make a final decision regarding the construction of the dedicated pipeline from Ken to the Gulf of Saint madias, which is currently under under consideration.

It's nothing related to all of our production is it's a market discount that are ideal for.

My only top quality I don't know maybe it depends on them at any demand around the world It improved though.

Great and the evda and and Equity Equity is 20%. Yeah, 20% and maybe de well until this is online, right?

A three to one five now we May go again back to <unk> to whether or not we don't know it ranges between three of the deal.

Obviously Eva will depend very much on on LNG prices. So it's very, very, very variable and yeah.

Impossible to see at this moment.

Yeah.

We're about three on one they take let's see.

It was fine I think.

Maybe you can go to five seven first more fear over some time now.

Well, um, he's asking any chance of shareholder distribution? We're assuming in 2027, I guess he's talking about the buyback.

Well call him out of them from them and that she's an investor and he's asking my question is regarding Oprah other operating income in oil and gas segment. This was $12 million versus 28 last year can you comment.

Because you didn't snow in 2027. Once capex levels are normalized and you have free Castle, turns positive,

We are far away from 2027, but, uh,

Can you explain.

Why well because just because of the planned us income.

I I'm sure there's going to be a lot of

The higher.

new things going on by, by, by 2027. So,

The prices to retail that we charge in itself doesn't know where the compensation to the to the plan gas price now we agree.

Last year was the what because of the tariff increases were a midway.

too early to, to, to answer that, we have to keep it up because we have a lot of questions safer Carol, from Cairo from Safari, she's asking,

It was $2 per million Btu Wow.

Uh, we saw highlights of possible new projects, uh, and developments.

The winter was four I have all the subsidy Congress that gap between four and a half or two now that there is constant and frequent tariff increases to the retail that gap shrinks.

That's why you have to have the older homes.

Uh, pump participate like the application to the rigi, uh, for the CPS, the best, the battery standard the GPM. Um, can you comment on the next possible? Infra infrastructure. Project that can materialize in ba.

Congo.

How much do we how.

How much should we expect going for all issues trying to issue. This year right with this government's targeted at all no physical.

uh,

Changes will have roughly because of the tariff increases.

There is a monthly increases in.

The terrorists regulated side and also on the floor and the cost of energy and a cost of gas it's not so frequently.

It's pretty pretty often.

Often.

Eventually, if we, uh, if we move ahead, uh, well, we are moving ahead with the, uh, LNG project. We will have to supply those 6 million cubic meters per day to the vessels. So, uh, we will have to increase our treatment facilities in SATA to reach those 6 million per day. And that, uh, will definitely be a possibility for.

We're down.

Okay. It's helpful.

Gas production for an languished for this quarter is around 19%, we expect peak gas production until <unk> comes online in 2028.

Finding for the really uh for that uh investment project as we did for uh ring as a Midstream project.

We expect Oregon.

Awesome. And the second question of Carol is about it because we already talked about it. Okay.

He says well theres, a lower production in Russia this quarter.

We expect to repeat when Fiesta come from 1920, 28, I think I guess, he's asking that sweat them unusually increasing production when csa's online yeah. Well. This is something that you see a need to understand because obviously youre going to be feeding says that we're the most.

she's asking what level um of debts and leverage ratios are projected for 2026 and 2027 considering the projects already approved and then the way

Efficient.

She got gosh, we have now.

Oh.

For, for this year, we are actually, uh, 1.1 times. Net level of the GTA we are expecting to maintain

Works for but he can he asked can you tell us what is the actual strategy of the company, where do you see more value I think they're saying, we already talked about the three segments of the company.

Around this level of leverage this year.

Well in gosh, what are the plans. So you want more exposure to oil and gas we already talk about them.

And hopefully by next year, or by the end of next year, we will see a decrease in this level of leverage as we're going around.

I'll take the second.

Continue generates.

Alright.

Corning nutshell, nobody is the point that from one day.

Self-congratulation something called net on that and then.

New new abda to the company. So I think we will reach the peak of of net Leverage. What other things being equal during the next quarter or by year end?

He asked about the Capex and the free cash flow guidance when you talk about that.

Hum.

Yes, although the cooler placement after this romp auspices specifically how much are you, placing locally and how much are you exploring okay well.

Well, the other question is about the scheduled maintenance works at the power plants that will take place on the 25th and 26th.

Well, we are going through a big one right now. The outbreak works in... in... in, mhm.

Sure.

Oh.

Bye bye.

By the time, we reached the.

The big vertical at the adult production, we will be exploring all through 100% of the other direction.

Okay, it keeps asking, but usually we do maintenance overhauls in the October area.

Until that.

We are in a mixture between local market and export market. Because we are we don't have enough transportation capacity of our own. So we are buying transportation capacity to third parties and those third parties don't sell transportation capacity by the possibility of setting a crude oil export by the price.

When the there's a phone you usually either in in during the April yeah before or the, the spring spring. That's right.

And Santi already is asking another question. What do you see the opportunity for improvement in the discom versus spread on brands?

So we are setting a mix whereby the price no we don't know whether that's.

1.5 1.5. Do you see shrinking?

That oil is being exported or is being re.

It's very difficult to say it's just a market and it's not, it's going to me.

Direct into the local market.

Or at least when we reach to the year ends Target.

Yes.

But honestly speaking as is.

We were exporting yes.

Yes that is.

Food I think that the main point to clarify there is no difference between the local price.

Again. Yeah. All right. It's not related to our production. It's it's a market discount that uh, that is something

Oh group vis vis the export market.

Yeah actually this quarter, we exported most yes, that's right.

And our question is from what he know luchini from Bradesco Yeah.

Recently, we're seeing news, we're mentioning as potential slowdown in oil production growth in Argentina due to the financial equipment constraints.

I don't know. Maybe it depends on the manager. Demand around the world. It improves though. It was 3 to 1.5. Now we may go again back to 2.2, I don't know. We don't know it ranges between 3 and 3 and 0. Yeah. 3 not zero, but 3 and 1 let's say last year was 5 I think. Well maybe it go to 57 for a small period of time. Yeah.

He is an in.

Financial and Quintin equipment guys.

We have finished the whole base.

We've been equivalent to an equivalent number how that spar view this trend.

We are not selling at all.

It is not our case, but but we do agree and we do see that there might be a reduction in the second half of 2025 of.

Drilling and completion activity there might be some reduction actually you forecast them before you said it it's not going to be he said that they do believe got a project towards not gonna be failed completely and this is happening now for cashless.

Is regarding Opera other operating income investment. This was 12 million versus 28 last year. Can you comment? Uh, can you explain? Uh, why? Well, this is because of the plan, gas income, you know, the higher the, the prices to retail that we charge in the sales, the lower the compensation, to the, to the plan gas price that we agree last year was, uh, the white because the the Tariff increases were in Midway. I think it was 2 dollars per million btu while in in in the winter was 4 and a half. Well, the subsidy covers that

Right.

24 and a half and 2 now, that's

I agree with it and that is why we went forward we've been going down.

Even without Harbin secure transportation capacity.

There's constant and frequent tasks increases to the retail that Gap shrinks, that's right.

But we felt that it was going to be used for capacity.

After the Blue Creek project came.

Came online.

Well, but she's asking them the oil prices what do you think it could be the potential factors of this has slowed down in Latin America.

Calm now uh, how much do we uh uh how much should we expect going forward? Well, it should be shrinking. It should be serious, right? With this government's? Uh targeted of no physical.

No off with of course, but what does the Hawaii has happened.

There are some.

And this is.

Just a personal view, where there are some companies that are.

Changing some abruptly because of the Tariff increases, you know, there's a monthly increases uh in the tariffs in the regulated side and also in the well in the cost of and the cost of gas is not so frequent. But it's it's pretty pretty uh often.

Go through.

Our process of acquiring new blocks and those new blocks needs to be developed.

Where down?

And it takes time to plan and to deploy that so maybe that's what.

Black.

Yeah.

Yeah, it's a lower gas production for a mush for this quarter is around. 19%. Should we expect Peak gas production until Sessa comes online in 2028?

I would say are making.

No.

Not so fast slowing the the increase in drilling and completion there is still a drag with agents when they already acquired alright.

Again, he says, well there's a lower production in this quarter. Um,

And probably a lower Brent price.

The speed of the growth is going to be slower.

Tina will continue.

Growing production of oil probably at the slower.

should we expect to repeat when cesa comes online in 2028? I think I guess he's asking that. Well, the manager will increase in production when says it's online. Yeah. Uh, well, this is something that we still need to understand. Because, uh, obviously, you're going to be feeling Sessa with the most, uh, efficient. Uh, she does. She does we have? Yeah.

Lower space because of the.

And oil prices.

And for polymer from I don't know, where if you have a power generation do you see an increase in the spot prices.

Any change in your imagery matrix I guess, what he's asking the spot prices is the <unk>.

Works for. But he can, you ask, can you tell us what is the actual strategy of the company? Where do you see more value? I think the same. We already talked about the 3 segments of the company.

<unk> so far in this.

Scheme cannot be higher than inflation and devaluation.

So far so far has been funded.

Last 12.

12 months or year and a half has been so many donor increases because of the.

Based on prices have been.

Increase.

Um, since congratulations. And then yeah about the capex and the free cash flow guidance. We already talked about that.

About the.

um,

Devaluation of the exchange rate.

Particularly this month.

It happened.

Perfect.

I don't know.

Kia's um about the cooler placement after this 1 pass, specifically how much are you placing locally and how much are you exploring okay. Well,

I don't expect any significant change.

Going forward.

Then another question from payroll at the theater.

Which I don't remember where he worked for Mattel are you interested in the stake that the government wants to selling tons in that is there any priority or ship holistic we wind up four four given that you are controlling partner co controlling partner.

I mean, by, by the time we reach the, uh, the big product or the Plato production, uh, we will be exporting Almost 100% of the, of the production, uh,

It's not an issue of.

Shareholders' agreement is that it's an issue of the law.

Electricity lower in Argentina that restrict us from controlling.

The transmission if you are either.

The power generator or a distributor you cannot fully control. The transmission you can have co control that is what we currently have while we cannot go beyond that.

Until that, uh, we are in a mixer between local market and Export Market, because we are we don't have enough Transportation capacity of our own. So we are buying Transportation capacity to third parties and those third parties don't sell Transportation capacity. But the possibility of selling a crude oil at the export party price. So we are selling an extra party price. Now, we don't know whether that uh, that oil is being exported or is being re directed to the local market. But economically speaking is as we if we were exporting,

Alright, what those other yes young from Santander, She has strict for any chance that pump a lifestyle Anita.

Local price of of crude Visa is the export variety.

No.

Yeah.

Yeah.

Right.

It reached all our questions.

Go celestial Vito would you like to comment on something else that we didn't cover in this very real session.

another question is from Murrow reini from Radko, he asked

Session.

Nothing more nothing more.

Alex that does to our next call is in November So I hope we have.

Then or gleaned from England. There are not any questions. You may have please let us know if I can and I can live with for you how at what time.

um, recently we see news, we mentioned in as potential slowdown in oil, production growth, in Argentina, due to the financial equipment, constraints, the financial and equipment, we have already

Alright, thank you.

An equipment. Double? How does Panka view this friend? No, we are not selling at all.

No, it is not our our case, but but we do agree. And we do see that there might be a reduction in the second half of 2025 of, uh, Drilling and completion activity. There might be some reduction, actually you, forecast that before you said it, it's not going to be. He said that the duplicate project was not going to be filled completely. And this is happening, that forecast was uh accurate. Yeah it was accurate in terms of that. That is why we went forward with Randa we even without having secure Transportation capacity,

But we felt that there was going to be super capacity after the duplicate project came online.

Um, well but he's asking beyond the oil prices. What, what do you think? It could be the potential factors of this is slow down in mamura.

No of, of course, but as a whole, why is happening?

There are some and this is just a personal view, but there's some companies that have go through a, a process of acquiring new blocks and those new blocks need to be developed.

And it takes time to plan and to deploy that. So maybe that's what's uh, black and Ria.

I would say, uh, making a little bit, uh, low not so fast, the slowing, the

The increase on in in in drilling and competition. They're still trying to digest what they already acquired. All right.

I'm probably lower brand price gives a the the speed of the growth is going to be slower. We are Argentina will continue uh growing its production of oil, probably at a slower at a at a lower space because of the

And lower price.

From. I don't know where he has power generation. Do you see an increase in the spot prices? Um,

any change in your energy Matrix?

I guess what? He's asking the spot prices is the increases so far in this uh scheme going to be higher than the inflation and evaluation

So far, so far, has to be the last.

12 months or a year and a half has been there. Been dollar increases because of the, the pace of prices had been increased.

Above the devaluation of the of the exchange rate. Uh, particularly this month, it happened, the the opposite.

I don't expect any significant change going forward.

Then another question from Pedro, which I don't remember where he works for. But, uh, are you interested in the state that the government wants to sell into? Is there any priority or shareholders agreement that for for given that you are a controlling partner call controlling partners?

It's not an issue of a shareholders' agreement. It's an issue of the law, specifically the electricity law in Argentina, that restricts us from controlling.

The the transmission if you are either.

The power generator or distributor, you cannot fully control the transmission. You can have code control. That is what we currently have, but we cannot go beyond that.

All right. Well from Santan there he has strict for any chance that PA Vice no manager.

No.

That's it.

They reach all the questions to all of them. Um, go for AIO. Would you like to comment something else that we didn't cover in this very World Q&A session? Nothing.

More well except us to our next call is November. So I hope we have a

A better Glimpse on Bingo. Any questions you may have please. Let us know Raquel and I are fully available for you. Have a good time.

Bye. Thank you.