Q3 2025 Pampa Energia SA Earnings Call
Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting .
Speaker #2: Hi everyone . Good morning . Thank you for waiting . I'm Raquel Cardasz from my and we would like to welcome everyone to Pampa Energia SA third quarter of 2025 results .
Speaker #2: Video conference . First , we would like to inform you that this event is being recorded all participants will be in listen only mode during the presentation .
Speaker #2: After the company's remarks , there will be a Q&A session . Questions can only be submitted by writing through zoom . Should any participant need assistance , please send us a chat message .
Speaker #2: Before continuing , please read the disclaimer on the second page of our presentation . Let me mention that forward looking statements are based on Pampa Energia SA .
Speaker #2: 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 #2: Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampa Energia SA and could cause results to differ materially from those expressed in such forward looking statements .
Speaker #2: Now I will turn the video conference to leader . Thank you Raquel .
Speaker #3: Hello everyone and thank you for joining our conference call . I will make a quick summary of Q3 so we can spend more time on Q&A with the management .
Speaker #3: Today we have our CEO , Gustavo Mariani , our head of Oil and Gas . Mr. Horacio Turri , and our CFO , Mr. Rodolfo Zuberbühler .
Speaker #3: The quarter is a stand out performance came from Ringo Miranda where the production ramp up translating into strong EBITDA , supported by six at seven active paths today , oil is emerging as a meaningful contributor is accounting for 34% of our everyday in the MP and therefore 18% of total MP in the quarter .
Speaker #3: In power generation . After six years and amid the ongoing deregulation , the winter and winter , we saw procure gas for our power plant , boosting both power and MP margins .
Speaker #3: Winter demand pushed us to a new all time high in production , almost 18,000,000m³ per day of gas delivered smoothly without any disturbance and disruptions , and following the September market volatility , management demonstrated confidence in the company's fundamentals by repurchasing 1.5% of the company's share capital at 59 , close to $59 per ADR .
Speaker #3: Today , the stock is trading nearly $90 , so let's move into the quarter . Financial results the adjusted EBITDA amounted to two $322 million .
Speaker #3: This is a 16% year in year on year increase . This is mainly driven by Rincon de Aranda steady shell oil growth , high higher B2B sales and the contribution of Wp6 wind farm quarter .
Speaker #3: Also improved due to Rincon de Aranda and gas seasonality . CapEx surge 183% year on year , reaching to $332 million , of which $174 million were invested in the development of Rincon de Aranda .
Speaker #3: Moving on to the slide for the oil and gas adjusted EBITDA , adjusted EBITDA was $171 million in Q3 . This is a 40% year on year increase , largely due to Rincon de Aranda .
Speaker #3: Again increased exports and strong industrial demand , as well as procurement margin in well for low . The power plant . This variation were partially offset by soft retail demand .
Speaker #3: In September and due to mild weather and the end of the peak winter peak contracts under the planned gas GSA , higher gas treatment costs and the lease of temporary facilities at Rincon de Aranda , offset by the higher production , highly increase the lifting costs to $6.4 per boe quarter , lifting costs per boe actually sharply decrease due to the higher output and stable total cost .
Speaker #3: Gas lifting costs remained flat year on year at $0.90 dollars per million BTU , but drop 17% , while oil saw significant cuts thanks to Rincon Aranda .
Speaker #3: We will address that later . Total production averaged nearly 100,000 barrels , equivalent of oil equivalent per day . This is a 14% increase year on year led by Rincon de Aranda and Sierra Chata , but partially offset by decreases in Mangrullo and Non-operated blocks .
Speaker #3: Production rose 18% , again explained by Rincon de Aranda and gas seasonality . The production mix continues to evolve , with oil rising to 17% of the total output , driven entirely by Rincon de Aranda .
Speaker #3: Ramp up crude oil prices averaged $61 per barrel in Q3 . This is a 15% decrease than last year due to the brand underperformance .
Speaker #3: However , our hedge in Rincon de Aranda's production helped mitigate the price drop . Without the hedge , our realized price will have been $60 per barrel .
Speaker #3: Excluding this , this number is excluding quality or logistics discounts and any duties export duties . This is a sort of a FOB price focusing now on the slide five in Rincon , Aranda .
Speaker #3: As you can see on the chart above , the ramp up remains on track during Q3 , average production reached 14.4 thousand barrels per day .
Speaker #3: This is almost three times Q2 levels , driven by the three new paths that we tied in during the quarter post quarter . A seventh new path was connected , elevating output to 16,000 barrels per day .
Speaker #3: Currently , we have one frac fleet in the block ready to tidy free ducks and we have two high spec rigs drilling . The next , another free paths for the next year's campaign .
Speaker #3: We expect to exit 2025 , producing 20,000 barrels of oil equivalent per day to support further growth and leverage idle capacity from a capacity in the pipeline .
Speaker #3: We plan to install an additional temporary facility next year, increasing production to an average of 28,000 barrels per day by the second half of 2026.
Speaker #3: Our target is 45,000 barrels per day by 2027 . Once back to all sewer pipeline and our central processing facility as known as CPF or Volvo Line , another important highlight this quarter is a drop in lifting costs per barrel as anticipated , when we announced Rincon de Arandas development .
Speaker #3: Our goal is to stabilize at $5 per barrel in line with our peers . With the CPF playing a key role in achieving this .
Speaker #3: This milestone . Okay , slide six . Moving to gas sales held steady year on year at 14,000,000m³ per day . This is 80% higher than Q2 .
Speaker #3: As explained earlier by seasonality and Russia continued to lead the output , though its share shrunk to 50% . While Sierra Chata grew to 38% of total output , with a year on year production increase of 33% .
Speaker #3: In July , we hit a new all time high in gas production of 17.6 million kilometers per day , driven by Sierra Chata peak of six point 3,000,000m³ per day .
Speaker #3: The most recent tightening path of free wells deliver two point 7,000,000m³ per day , so imagine per well how much it is highlighting its solid productivity .
Speaker #3: A new for , well pad is now undergoing fracking . Shale accounted for 64% of the Q3 output . Gas prices averaged at $4.4 per barrel per millimeter .
Speaker #3: This is flat year on year . Fuels are procurement for low . The power plant during the winter , and industry sales supported this price .
Speaker #3: So upset by lower export prices affected by the brand underperformance , 72% of of our gas was sold under plant gas . GSA retail this is down from 86% last year .
Speaker #3: This is due to the sell procurement , which accounted 6% of the total gas output and gas sales . And improve deliveries of B2B sales and exports .
Availability declined to 94% due to scheduled maintenance and Anova alata in September, as well as the ongoing outages related to Nissa in January.
New energy, particularly Undertaker, pay ppas, continue to support 66% of the segments of ETA. We will discuss expectations of this new framework. Uh, during the Q&A.
Turning to cash flow on slide 8. We show the restrictive group figures because this is a line with our bomb perimeter.
Amid high capex and at crinkle naranda, we generated 6 million dollars, free cash flow in Q3 driven by the strong nbda generation and improved working capital.
Q3 Free Mark, our peak in avenue and sales during the second half of the year, working capital typically moves as we collect with ourselves.
Uh, so the results, the cash and the cash equivalents to that 881 million at the quarter, end in line with Q2.
Finally, in the balance sheet, um, because that was nearly 1.8 billion dollars. This is 16% down since December 2024 following the Redemption of the 2027 and 2029 notes that were funded with proceeds from the
uh, 2034 notes, uh, net debt, Rose to 874 million.
1.3 times net leverage ratio reflecting the capex, outflows and collaterals on oil hatch.
Uh however post quarter. We we pay 47 million in export pre-financing loans and ex recover 84 million from ocp Ecuador. A guarantees
Been released back in March.
Therefore, we maintain a 1.1 time, leverage and a strong cash position, approximately 920 million.
However, our availability management efforts extended, the average life to 5.6 years of strengthening, our financial profile profile and reducing near-term maturities and meet ring kolya andaz development.
Well, this concludes the presentation now, I turned the floor. Uh it's open for questions. If you have any question, please send through Zoom chat.
We will read it and answer them in the order received. Make sure your name and your company is displayed correctly. So we can do introduce yourself to the audience.
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Please hold while we await questions. Thank you.
Okay.
Well, let's go first.
the first 1 is
from Italy. He's asking considering that during Q3 2025 inventories of cool oil were sold by approximately 2.8 thousand barrels per day. And that since October the 1.6000 barrels per day contribution from Elisha will not be any more.
How do you expect to Dollar reproduction to evolve in the the
Upcoming quarters are best expectation for the fourth quarter of 2025 is between 18 and 19,000 bars per day, you know? So ramping up from Q3, that's right, that's right.
Because of the coming online of part. Number 11, great, awesome.
So basically going going forward is going to be ra plus Associated oil from gas Fields, but very little, very little. I mean, the main driver is ring,
Good second question from we notice sequential Improvement in lifting costs from 7.6.
Dollars per V for VOE to 6.8.
6.8 or 6.4? No, 6.4 6.4.
How do you expect to evolve during 2026 until the cpf is ready? This is per Boe. All right? Yes, I understand the question.
uh,
The again, the the main change in 2026 is going to be the, uh, ramping up of ring Ganda, uh, from the, uh, ending year end of around, 19 to 20,000, barrels up to 28,000 barrels, uh, on the second half. Therefore, we will see a reduction in our lifting cost for oil from 10 to around 9. 1, 9, 2.
Um, I wouldn't say so I would say that probably that's going to be once we keep stable. Um we are pretty much uh keeping more or less the same expectation of uh production so far. If it's going to be an additional production to come online. Probably those lifting costs will be reduced. Yeah,
great.
How do you expect to evolve the gas market during the summer season? Because here in the lack of local demand, export Market, to Chile and more Associated gas from oil fields,
Okay. Uh, there's always seasonality, obviously in the agent Argentine Market, uh, good news is that we do have a take or pay, uh, close in our contracts of 75% and more or less that matches with the real demand during the summer. So, we will be delivering what we already have. Uh, contracted as a take or pay regarding the associated gas. I would say that that will have much more influence in the spot Market in the gas spot market and we are not in that market. That's right. So it's not going to be. It's not going to have any influence on on our overall price. Yeah.
Consistently, increasing our experts to Chile. We compared with last year. Uh, we will we come from around half a million cubic meters per day uh to around 1.2 1.3 million cubic per day this year uh that has to to do to
2 main uh drivers drivers 1 is the uh, launching of the expert to the gas Pacific. Uh, the Pacific region pipeline, uh, with around 400 to 500,000, uh, million kilometers per day. And uh, also has to do with higher demand, uh, on the gas Andes region from from the, from the Chilean, uh, the Chilean side. So it matches to Santiago right to the, it's not only Santiago, but all the central region of Chile. Yeah.
So you expect that it could continue around 1 million; it's going to be around, yeah, a little bit more than that, probably 1.2 to 1.3 million kilometers per day.
Great basically, maintain what?
Basically, maintaining what we do have today and eventually increasing a little bit in the the Pacific.
Awesome.
Ford, could you give us any color on how you expect to improve during 2026 revenues and evda in the power generation segment? Considering the new framework established by the resolution 400? This question is also addressed by Alexander's franchise. I want to say
and others. Yeah. Another another people. Sorry. Yeah.
um,
We basically expect.
That the EBD of the segment?
Will improve.
By at least 15% next year, due to this, uh, resolutions. But there's still a
This is based on several assumptions.
Uh, now, the market has become much, much more complicated to to predict now that we are moving into kind of a marginal price uh system. Uh, it will also depend on how successful we are on the B2B market and how many uh, how much of our energy, we are able to, uh,
To sell it with higher margins than kamsa to the B2B Market, but that's going to be very competitive.
so,
The other relevant thing that they said is that the Creator still needs to publish the details on how.
Producers of gas can take out their contracts from Kamea. So, in order for us to fulfill our power generation unit, we need to...
Cancel or extinguish our obligation with Kamea. The Secretary of Energy is working on that resolution; the details of that Russia solution will impact on.
Will will impact on this matter.
so, um,
Still too early to to be precise on what to expect. But I would say that you should be expecting at least.
Uh, 15% 10 to 15% Improvement in the segment.
All right.
Of course.
What levels of capex and leverage. Are you forecasting for 2026? Are you planning to finance it?
Well, level of capex for 2026.
It's going to be more or less similar to uh capex of of this year of around uh, 1 to 1.1.
Uh, billion dollars.
In terms of how we are planning to finance, our leader showed our...
Beautiful, flight leader, show our cash position. The cash that we are showing their
does not take into account the cash that we have posted as collateral for the, the Hedge, the hedges of what for hedging, the, the brand that's something that is
For us is also cache that we can.
By the accounting rules.
So, um, we have a very large cash position. We have a very good, uh, debt profile that we always like to.
Improve even better than than than what it is. Um, Argentina. As you have seen, it's a volatile country. So we always like to
To play it on the on the, on the safe side know with a very comfortable financial position.
we will add
Here we have a full year of oil production that this year we didn't have, we have full year of an average of 24/22 2024 hours per day that will add additional cash flow that we did this year. We we had to face with our own cash position.
Right. Awesome. Well, moving on to, um,
Alejandra michelis from chef.
The first question is that it wasn't exactly the same as scheduled. About the the regulation we talked about it.
Second question is with increased capex from the social areas and the capex. Requirement uh what what do you see when do you see that the net debt peeking?
When and where?
um,
as you can see in the in the last slide, our net debt have had remained very, very low around 1.1.
As we've been speaking with, with investor, this question was was repeated many times. Um,
We expected to have reached.
Uh, the highest peak by now at around 1.2 1.3. We were saying that uh because this year was the as I said before the year with a lot of capex and production of, or it just started
next year, the production of oil will be
constant the whole year. So we shouldn't increase.
Net leverage, much or or above this current levels of around 1 1 1 1 Point, 2 1.3. Uh next year, we probably have more debt but we will have more evda. So so the ratio will keep uh, around these levels and this is a level that we feel uh very comfortable and and very prudent.
Good.
Great. Thanks for the question. Comes from George. Gestalt from Latin securities.
I know that pompous free Castle was positive this quarter.
Despite the ongoing expansion that we linga.
How is the rest of the year? Looking on this front? Are you expecting any reductions in the DNC costs to help over the next few quarters?
Okay, uh, we are working permanent permanently in the reduction of the DNC costs. Uh actually in 2025, uh, we were successful in reducing uh our drilling time in, in around 15% and our completion time in around 13%.
That uh, resulted in a overall reduction, on our world costs of around 6, to 7% going from 16 million dollars to a little bit of about 15 million dollars. And, uh, in 2026, we expect to keep on going this way and, uh, eventually, uh, rate, um, sorry, uh, achieve, uh, reductions, uh, in in the range of 5% in the overall, cost of the wells.
Great know. I would add that the reason why the free cash flow was positive. This quarter is because this this is the best quarter of the year for uh, for pmpa. But this year, over overall, as you know, we have
We are investing a lot in in bringing the so our capex. This year are above our evda generation. So, definitely a year of negative free cash. And that's why our net debt went up
and next year,
that because of the reasons that fto explain, it's going to be reducing significantly because next year our evda is going up, our capex remain flat so they will it's going to be a more balanced year than than 2025
Capital.
What was the amount of? What? What, what? What about the amount of non-cash deferred income tax?
uh, that it was I guess, uh,
recorded in this quarter, and we expect an impact of this account of this size in Q4, 2025 want to answer or I mean,
This.
This happens from time to time when there is a
A big gap between the developer and the inflation in pesos.
so, whenever this happens we might have
This.
Cashier income tax in in, in 1 quarter that that's what happened in the last. In this quarter, it's very hard for us to
Project if it's going to happen in the following quarters because it will depend of this variables that are out of our control. Whenever the inflation and the evaluation move uh together. This won't happen. But if they if they
if they wide the, the difference between them is is
Increased or widened, then we will have again. So we cannot predict only.
No 1 know, but but
if a micro variance is remain normal, it should happen again.
Great.
Great, awesome. Louis from Morgan Stanley, what should we expect in terms of Rhea? Is it really on pace for Q4 2025? And how was the production during the month of October?
Production doing a month of October was around a little bit more than 15,000 barrels.
And uh, we will be uh, in the next quarter, we will be drilling. Um,
4 parts. We are reading Parts, number 7, and number 12, and we will be, uh, reading uh, in short time. But number 13 and what we call number 10 Beats,
Drilling. Yeah. Drilling are more but completing still completing this year? 7 pets. We are. Yeah. We the the only part that will is going to be completed. Uh, and short time is part number 81 1. More part to be complete. Yeah, sure. Sorry. Sorry. I was muted. Oh wow, did you see that? Wow, I don't know. I did. Yeah, but did I don't know. Well, well, well, well start from
Correct. Sorry about that. Well again, uh, the production for, uh, October was around 6 more than 16,000 barrels. Uh, we will be drilling in the last quarter, uh, 4 Parts. Uh, we are currently drilling Parts, number 7. And number 12, we will be drilling number, uh, Parts number 13 and we are almost starting to to drill, uh, part number 10 bees.
Uh, with or or the an additional 3, more Wells to the organic inferiority in path 10. That's uh, regarding the uh the drilling, what Gustavo mentioned um around about our uh activity and how how many uh um rigs we have uh currently we have 3 highspeed Rigs and uh but it's going to be for a short time until we finish with the uh 3 words of the organic inferior in part. Number 10. Then we will remain with 2 2 2, high-spec drills, uh, Rigs and 1 uh Elite.
Great.
Second question is, in terms of Investments, should we expect a maintenance in free in 2025, expectations for capex?
Uh, how should we evolve going into 2026? So, we talked about $1 billion.
Yeah, pretty similar, right?
And did this year is basically what we projected on the budget or slightly lower than what we projected on the budget because of...
Very small delays in the deployment on some payments that are not going to be done this year, but are going to be done early next year. So it's going to be around 1.1 billion dollars.
And next year, we expect roughly $2 billion to maintain that level of capex.
Great. That is basically until we finish the ramp up of Reno because
we sir takes
70.
70 707, 75% of
Of that number. Yeah.
okay, so when in given the recent launch,
For the power market and the explicit focus on free Contracting through, be bilateral or B2B ppas.
And cost-reflective marginal pricing. What is Pampa's commercial strategy to navigate this transition?
And how do you plan to maximize the opportunities presented by this new scheme, particularly regarding securing long-term private contracts.
Okay. Uh,
fortunately, we have a very well seasoned commercial team because we have always been active on whatever B2B Market was available, uh, for us. And we always been a very active player on the B2B market. Now that this Market,
Increases. We we have a very good uh, uh, muscle.
Uh,
And obviously we are going to try to uh, gain uh, a good market share in in, in this B2B market for 2 Reasons, basically. Because, uh, we expect to
Improve our margin Visa is selling our energy to kamsa and second to diversify our sources of clients. So, being less dependent, uh, on kamsa and uh, a diversified portfolio of industrial clients and distribution companies.
Power distribution companies.
Right, she's asking. Well, it's a beautiful bro, question. But it's good to ask is, can you comment on the new roles published for the wholesale electricity Market?
Uh, if there's any next step that you talk a little bit about, that impacts for the companies. Well, first thing's first, you have to read the summary I previously laid out.
What we previously laid out in the earnings release, but basically, in a natural, is a marginal system, right cap we cap. Mhm, whereas this period of time, right? Um there's going to be a B2B market. So the good news is that Pampa is around in the power sector and power generation, right? It's 20% of our FDA is B2B and 80% is Kamsa. Now, that's going to shift.
Luck. It will be more than 20. I don't know how much will be, but, uh, surely it will be more than 20%. B2B, this is a good diversification.
and um,
Well, that's basically more. And then, of course, for the first time, we will be able to well actually, we just started this winter, but we can continuously sell procure fuel to our own, uh, power units. And it's a great chance for our cjts. Yes bye. Bye again, they're still rules to be published by the Secretary of Energy. We are not able to withdraw the contracts from kamsa uh, yet and serves.
And provide the fuel to our plants yet.
we hope that at any moment and the sooner, the better that would be published and you will allow us to serve fulfill
Our power generation plant at the same, we need to see the Open Season for the transport, the, the transport. Exactly. So this is not only gas or so. Also Transportation capacity that the Secretary of initially has to decide.
Out of the 21 million kilometers of gas of gas Transportation. Contract that kamsa have, how much will remain in kamsa? How much will be transferred to Gas Distribution companies? So there are a few things that need to
Be clarified.
Before having a better visibility of what's going to happen in 2026. The good news is already out there. It's a really kind of implemented. It's just we need a, some the details. Yeah, small details. That's right.
Updates on that we already talked about it. So let's move on now from app.
Upstream, uh, PA hit 17.3 thousand dollars per day in Q3 25 in lingo with numbers above the guidance.
What is the 4 quarter 2025 exit rate? Target, we already talked about that.
20,000 dollars per day and 2026 quarterly quarterly ramp up because we put it like quarterly 26. Okay. 2
Uh, we will be exiting 2025 around 20,000 bars. As we mentioned by February next year. Uh, and February beginning of March, we should have the additional temporary production facility. So we'll be able to uh, have their ramp up around.
4,000 bars of additional oil, it's going to 24,000 barrels by the second quarter of 2026. And by the third quarter of 2026, we should be reaching uh a peak of around 28,000, bars per day.
And then by uh January February of 27. Once the central processing facility is in place, our plan is uh very quick ramp up, from those 28,000 barrels to 455,000 barrels. Which is the uh overall Target.
Cool. Great.
He's talking asking for DNC, which we already talked about listing costs. We are ready to talk about that.
This. This as soon as this call is done in 10 minutes, it's uploaded to the cloud so you can access to the replay easily. So
Keep soon, 10 minutes. And then he's asking, well, this is a more, uh, detailed question but uh, the lifting cost breakdown between Shale gas, and Shale oil.
Um, I will say Shell gas is what we have. We are seeing today it's $0.80.
Yeah, make sure, yeah, between manga, but it's around 80 cents. Cheaper cheaper than mangu amazingly, it was the opposite. That's right.
Given the productivity right and then Shalo well it's lingo and we already talked about that that right now, it's 9 but it's around 10. It's going to be going down to 9 by with the installation of the second temporary production facility.
Well and then in power he's asking something like kind of similar. But with the normalization, what um, how quickly can PA migrate Legacy Farmers? Basically, how how quickly we can get B2B ppas? We already talked about that about the muscle of, or commercial team. Yep, that's a
Question that I don't have an answer. We we, we will have to
We have a handicap but it doesn't mean exactly. It doesn't mean that we are guaranteed.
um, and then, uh,
This is a very odd question. Is this, what is your 2026 2027 spot? Price range under the new dispute rules. How sensitive is power abda to an increase of 5 per hour?
I think he's asking for the marginal cost because now it's that is
The higher, the marginal cost, the higher the vda, right? Mhm.
What what marginal costs are you seeing?
The question? Yeah, it's a difficult question. I don't have all the...
Numbers on. On top of my head, it is very difficult. Very different summer, and, uh, like summer prices could be in the $30-$40 range.
Summer and, and winter.
In the lower Demand on the summer and they all pick a peek. Yeah. And in the winter, probably in the 80s or 90s or or or 100 next year,
uh, there should be any significant change from from current year.
Hopefully, in 2027, the system will see a decrease in the marginal spot prices.
Because there's going to be new gas available in the market as I think, I don't know, when we we mentioned but our subsidiary is yes, has been awarded to increase the transportation capacity of the gas Moreno.
By 14 million cubic meters of natural gas per day. So that will have an impact during uh winter times because we will be as a country. We will be able to replace
Imports of LNG. Um, and even more important import and consumption of DSL oil in thermal plants.
With local natural gas, this will have an impact on reducing spot prices in 2026.
This shouldn't be any significant change. Yeah. Well, this is not a lot of variables, like whether of course, of course, but hydrology. Exactly. Renewable penetration, right?
anyways, um,
from saffra.
Is there any other projects or infra auctions? Gas pipeline, batteries, renewables PPAs that the company may be interested in?
Well, that is the the auction of the komawa power plant.
That we are studying all the the opportunities.
uh, that is something that is there is
Yeah, there's no new delays. It's going uh going to take place this coming from Friday.
Um,
I don't have any other infrastructure auction on top of my head.
Do you know? No.
uh, the second trench of the
I don't I don't see it. You don't see it. No I don't at this point with the initial initial private initiative, you think like it's kind of related to
But the good news is that that private initiative gives gas to the Eastern side of Argentina, where a lot of the most sufficient power plants are located.
Good.
10.
then Daniel Guardiola,
Btg.
He's asking. Well, the first question is about the new regulation. Answer broadly, answer, I think
well, at least he's asking
Second question is about the hydro action but, uh, zooming in on the potential capex, that you might uh, engage my my commit.
If you get awarded and what kind do you envision, uh, the remuneration, how do you envision the remuneration of these plants?
I guess if it's going to happen or not because it's uh the premonition itself. It's a fixed dollar regulation with a for
A 30 year contract. Yeah. Um and and the
The upside is on.
An increase portion of your energy production that can be sold.
To the B2B market. So initially, the first 2 years is only 5% of your energy can be sold to the B2B market. Then it goes for another 2 years at 10% 15.
Until the year 20, it reaches that 100% of your energy can be sold to the.
Uh, B2B Market.
Meanwhile, you you are selling your energy to Kessa at this, uh,
Fix.
Uh, dollar price adjusted by, by inflation, my US inflation.
Um, do you? It does involve in any capex if awarded.
But there are maintenance capex. So, but, but in most of the plants, those topics because these are fairly, uh, new and very well-maintained, plant those capex.
Come at.
23 of the, in the last 10 years of the, of the concession. So from here, 20 to year 30, most most of capex have to be done.
Right.
Then he's asking about well about lifting costs DNC we already covered. Yeah but he's asking a more interesting question is, do you foresee any additional m&a opportunities in baka morta?
If so, what would be the priority: oil or gas?
Uh,
There, there has been many opportunities and I'm sure there's going to be many opportunities in the future as well.
Our Focus if if any would be increasing our reserve of um of shale oil.
uh, we have
research of shale gas.
uh,
in excess of our, uh, expected production over the
Next, so we don't need any additional um, gas reserves and we if there's a good opportunity, but as you know, we are price sensitive. We
um,
so,
we, we are
we will be waiting for what we consider a good opportunity to increase our
uh,
portfolio of reserves of oil.
Any other question from Danielle. He's asking, can you share with us to expect the IRS of the LNG project that you're currently developing I guess? Sorry, and energy.
And if it's possible, what will be the incremental abda for Pampa link to this project?
Okay, let's go to the incremental evva the best part. Uh, so
We There are 2, say segments of this uh business the uh system side regarding the um legal liquefaction of the LG and uh the sale of the LG itself and then there is the Upstream uh segment. Which is basically supplying those 6 million cubic meters per day. That the, the vessels will be needing from uh, from Pampa from our participation of 20%.
The evda related to the Upstream, uh, segment of the business is around 140 million dollars per year. Once we reach the 6 million, uh, cubic meters per day,
Of the overall project is going to depend on the a4b price of the LNG. That that that we sell. Yeah.
And I think we mentioned this in the previous call.
About, if we are able to save above $7 and a half, is going to be a very good project. Uh,
If if we are selling below its going to be lower irr return that we expect, we know, we are going to have good years, regular years and so but but years but we are very optimistic.
In the overall project on the average is going to be fine.
All right.
From that cap has come a hedge in a portion of its 2026 production.
If so, what percentage was covered and at what average price, those Hedges were executed
um,
Okay, uh, we hatched um almost uh, 100% of our production.
um,
For 2026. I mean,
I have this.
Oh. Oh pretty much very a good portion of it. Right. A very important portion of it.
That's okay.
And 68. No.
Sorry, I'm here. So, I, I would say it's around 80% of next year. And, and the average price is
Including this year. So what is left of this year? And the rest of next year is around 68, over 68 uh,
Dollars per hour.
This is brand, right? Then translating to Bombay. We have a lot of stuff, like we have to update export duties. There's some discounts very minor though uh, for Logistics and and um, Quality and then
Other stuff if we sell locally transportation fees, and so on.
Right.
Um,
Jonathan's work from that wire. Are you applying to cancel the 0.8 million adrs? That you bought back is 0.8 million. All you have on your own shares so you have more
I don't recall if we have. Do we have a shares from previous buyback know, we can sell it all. I will. So no. I
We have to but there there's no.
uh,
as of today, most probably that we are going to cancel this, uh, shares as well. No, we have to do by law.
Well, eventually we could do a convert to all or use it for something. But uh, this this
We are not.
Studying that about that opportunity. So most probably that they are going to be canceled in the in the next shareholders assembly.
What is the status of your plan to build a fertilizer urea plan?
We are waiting from, um,
There's been some delays on the original.
Our original schedule. So now we are expecting by the end of the year.
to have a we have already received the
the yeah. But the the the technical part of the and we are studying from the suppliers, the technical part of of the project, what we are still haven't received the prices we are
We should receive that by by year end. And uh,
So, we are expecting that that number.
Great.
Okay. Um Felipe colaso from bull market. What is the current state of the payment days in gas from narsa? What is Pampas exposure to this?
Peter, do you have a exposure? Okay, well in NASA has has been improving Terror.
Significantly over the past, uh, few, yeah months. So, at 1 point, it had like almost 2 months of uh, of delay and now it has less than a month, right? Yeah, yeah. It's only 20 days.
That's right. And then the that it's shrink a lot right now, the that it's like less than 60 million if around 60 million dollars, okay? So it's like in pesos is like 90 90 billion pesos
And exposure is we just sell those those 19 billion pesos that you mentioned, that's see, no, but the exposure know where we sell NASA. So why is a client on ours? Uh, we sell on the replying gas but a fractional applying glass.
To them.
The the last round that we want, uh, it's it's uh, our off take is in Ara.
Next question. I better keep it up regarding the free. Do you see pads plus the free that you are? Currently. Drilling is, is it part of your policy to maintain the inventory of that type of wealth? Or is it due to the limitation related to the facilities capacity?
I guess why do we have duc's this question? Well, we we have duc's because we need to as you as, as he's mentioning, we need to anticipate the, uh, ramp up. Once the facility is in place.
So if we are going to be installing a facility in March 2026, increasing around 7 to 8,000 bars per day, we need to anticipate uh those deals duc's so we we can complete those quickly and uh, hit the, the ramp up rate.
Well, some questions have been answered, um, from 9, UM, nice to meet you. Any further bump placement on the cross border markets?
well, um,
As you know, I'm sorry, I'm going to extend a little bit in the question. But as you know on 2024 we started
Uh, process of refinancing all our debt, we issued to bonds, we called another 2 uh, as leader explained that show that we were and we are very active.
In international bond market. And
as we've been explaining, we we've been funding our capex with our own cash position and our free cash flow.
so,
All these.
Issuance were opportunistic.
Rather than a need to finance any capex or any m&a. They were all we tap the market in, in very opportunistic manners, and and that will be the case, going forward. So we don't need to issue bonds. We don't need, uh, to finance any specific out of the ordinary cost of business, but if we see an opportunity,
We will jump in, we will we will take it, we will get take it if we can improve our debt profile. Uh it what can issue a very long-term Bond? Or if we can issue on a very low rate, that is something that we might do always in the spirit of
uh,
That. Yeah, that is something that we might do, uh,
and we are always very active and we execute our transactions, very fast. So this can have an overnight, um,
I think that that answers the question.
He's asking about the remaining stake PA has in Hill Park. As far as I know, it is nearly 4% now. Are you planning to sell?
Uh, currently we don't have any position in Hill Park. We sold it, and we made a small profit. It's basically a... I think we finished selling the stake in September after the...
Significant sell down in the errant thyme Market with decided to to switch if so. So the the, the main the main goal is was we saw our our stock very cheap and
We launched, uh, a share buyback program, as you all know. So, with this investment in your park and at $58, we decided to buy back our shares with that capital. It was a better investment—yeah, even significantly more than what we spent in the… We spent $48 million, and the job park trade was $33.34. No profit from that trade was the…
Two dividends we collected during the holding period, and overall, the price was more or less neutral. But, in general, that was.
Our strategy.
Regarding CP, the warranty was $100 million. Are there any changes to collect the remaining?
No, we yeah. The the the guarantee was a hundred million dollars, but but we had cash collateral of 84 million. The rest was
Uh, based on, yeah, based on the balance sheet of of Pampa. So
The, the guarantee is completely collected, so there's nothing remaining there.
Awesome. And that's it.
12:59, we ended all the questions. Some of them, they they already been answered so you can access the replay and check it out, but thank you for being here. Um, Eutaw oracio, do you have any
Anything to say, everybody. Thank you for joining.
Hope it was useful.
See you next time. Bye. Bye, bye.