Q1 2026 Pampa Energia SA Earnings Call

May 7, 2026

Raquel Cardasz: Q1 2026 results video conference. We would like to inform you that this event 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. Please send your questions in writing through Zoom chat. If anyone needs assistance, please send us a message in the Zoom chat. Before continuing, please read the disclaimer on the second page of our presentation. Let me mention that forward-looking statements are based on Pampa Energía's management beliefs and assumptions and information currently available to the company. They involve risks, uncertainties, and assumptions because they are related to future events that may or may not occur.

Speaker #2: First quarter of 2026, results video conference. We would like to inform you that this event is being recorded. All participants who will be in listen-only mode during the presentation.

Speaker #2: After the company's remarks, there will be a Q&A session; please send your questions in writing through Zoom chat. If anyone needs assistance, please send us a message in the Zoom chat.

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 Energy's management beliefs and assumptions and information currently available to the company.

Speaker #2: They involve risks, uncertainties, and assumptions because they are related to future events that may or may not occur. Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampa Energy and could cause results to differ materially from those expressed in such forward-looking statements.

Raquel Cardasz: Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of Pampa Energía and could cause results to differ materially from those expressed in such forward-looking statements. I will turn to Lida. Thank you. Lida.

Speaker #2: Now, I will turn to Lida—thank you, Lida.

Lida Wang: Hi. Thank you, Raquel. Hello, everyone, and thank you for joining us. I will make a quick summary so we can spend more time on the Q&A with the senior management. Today, we have our CEO, Mr. Gustavo Mariani, our Head of Oil and Gas, Mr. Horacio Turri, and our CFO, Mr. Adolfo Zuberbuhler. In Q1, production exceeded 100,000 BOE per day, reaching a new quarterly all-time high, driven by the sustained ramp up at Rincón de Aranda and higher gas outputs under the new power generation framework. Rincón de Aranda, which began ramping up a year ago, is now producing approximately 25,000 barrels of oil per day today.

Speaker #3: Hi, thank you, Raquel. Hello, everyone, and thank you for joining us. I will make a quick summary so we can spend more time on the Q&A with the senior management today.

Speaker #3: We have our CEO, Mr. Gustavo Mariani, our head of oil and gas, Mr. Horacio Turri, and our CFO, Mr. Adolfo Zuberbuhler. So in Q1, production exceeded 100,000 barrels of oil equivalent per day, reaching a new quarterly all-time high driven by the sustained ramp-up at Rincón de Aranda.

Speaker #3: And higher gas output under the new power generation framework. Rincón de Aranda, which began ramping up a year ago, is now producing approximately 25,000, right?

Speaker #3: Barrels—1,000 barrels of oil per day, today. We—with the new regulatory framework, we also had a positive impact on our power generation segment as our non-PPA CCGTs benefited from stronger spot margins dispatch margins.

Lida Wang: With the new regulatory framework, we also had a positive impact on our power generation segment as our non-PPA CCGTs benefited from stronger spot margins, dispatch margins. Also, leveraging our solid balance sheet, in April, we successfully issued $200 million in 3-year bullet notes at a highly competitive rate of 5.49% fixed rate. Adjusted EBITDA amounted to $325 million. This is a 48% up year on year. As mentioned before, Rincón de Aranda gas operations and power generation were the main contributors. Rincón de Aranda alone represented 17% of the quarter's total EBITDA, increasing 8 times versus Q1 last year. Quarter on quarter, EBITDA grew 41%, supported by synergies between gas and power businesses. As Loma La Lata and Genelba CCGTs self-supply gas for thermal dispatch, enhancing spot margins.

Speaker #3: Also, leveraging our solid balance sheet in April, we successfully issued 200 million dollars in three-year bullet notes at a highly competitive rate of 5.49 fixed rate.

Speaker #3: Adjusted BDA amounted to 325 million dollars. This is a 48% up year on year. As mentioned before, Rincón de Aranda, gas operations, and power generation were the main contributors.

Speaker #3: Rincón de Aranda alone represented 17% of the quarter's total BDA, increasing eight times versus Q1 last year. Quarter on quarter, a BDA grew 41%, supported by synergies between gas and power, businesses, as Loma la Lata and Genelva CCGTs self-supply gas for thermal dispatch, enhancing spot margins.

Speaker #3: The CapEx rose 36% year on year to 242 million dollars during the quarter, of which 163 million were invested in the development of Rincón de Aranda.

Lida Wang: The CapEx rose 36% year on year to $242 million during the quarter, of which $163 million were invested in the development of Rincón de Aranda. Moving on to slide 4, the oil and gas adjusted EBITDA was $104 million in Q1, 2.5 times last year, driven by Rincón de Aranda, higher gas production for self-supply to our thermal power plants, exports, and industrial demand. These factors were partially offset by lower realized crude oil prices and higher royalties, transport, and treatment costs associated with the production growth. Rincón de Aranda contributed 54% of the segment's EBITDA in this quarter, up from the 15% last year. Quarter on quarter, EBITDA increased by 36%, mainly due to higher gas demand for CCGT self-supply and exports to Chile.

Speaker #3: Moving on to the slide four, the oil and gas adjusted BDA was 104 million dollars in Q1, two and a half times last year, driven by Rincón de Aranda, higher gas production for self-supply, to our thermal power plants exports and industrial demand.

Speaker #3: These factors were partially offset by lower realized crude oil prices and higher royalties transport and treatment costs associated with the production growth. Rincón de Aranda's contributed 54% of the segment's BDA in this quarter, up from the 15% last year.

Speaker #3: Quarter on quarter, a BDA increased by 36%, mainly due to higher gas demand for CCGT self-supply and exports to Chile. As we mentioned before, total production averaged more than 100,000 barrels equivalent per day, primarily contributed by Rincón de Aranda and Sierra Chata, partially offset by lower output from our non-operated blocks.

Lida Wang: As we mentioned before, total production averaged more than 100,000 barrels equivalent per day, primarily contributed by Rincón de Aranda and Sierra Chata, partially offset by lower output from our non-operated blocks and in Mangues. The production mix continued to diversify, with oil accounting for 19% of total production, entirely driven by Rincón de Aranda. Lifting cost averaged $6.1 per BOE. This is down 11% last year and 23% sequentially, explained by higher oil and gas output, outpacing a stable cost base and the divestment of mature non-operated oil assets. Gas lifting costs decreased 10% year on year to $0.90 per million BTU, and 23% quarter on quarter lower. This is supported by higher gas output.

Speaker #3: Anel Magrucho. The production mix continued to diversify with oil accounting for 19% of total production entirely driven by Rincón de Aranda. Left-hand cost averaged 6.1 dollars per BOE; this is down 11% last year and 23% sequentially, explained by higher oil and gas output, outpacing a stable cost base and a divestment of mature non-operating oil assets.

Speaker #3: Gas left-hand cost decreased 10% year on year to 90 cents dollars per million BTU, and 23% quarter on quarter lower. This is supported by higher gas output.

Lida Wang: Oil lifting costs declined sharply to below $10 per barrel from 41 in Q1 last year, thanks again to Rincón de Aranda's ramp up and the divestment of mature fields. Focusing on crude oil, output multiplied by 6 year-on-year to 19,500 barrels per day as Rincón de Aranda ramp up following the commissioning of the Duplicar Trunk Pipeline last April, last year's April. Realized prices averaged $58 per barrel in Q1. This is 15% lower than last year due to the oil hedge. Without the hedge, realized prices will have been more than $69 per barrel, resulting in approximately $21 million of additional revenue. Exports accounted for 55% of total volume sold in Q1. At Rincón de Aranda, the ramp-up continues to progress as planned.

Speaker #3: Oil left-hand cost declined sharply to below 10 dollars per barrel from 41 in Q1 last year, thanks again to Rincón de Aranda's ramp-up and the divestment of mature fields.

Speaker #3: Focusing on crude oil, output multiplied by six year on year to 19 and a half thousand barrels per day as Rincón de Aranda ramp-up following the commissioning of the duplicate trunk pipeline last April, last year's April.

Speaker #3: Realized prices averaged 58 dollars per barrel in Q1; this is 15% lower than last year due to the oil hedge without the hedge realized prices would have been more than 69 dollars per barrel.

Speaker #3: Resulting in approximately 21 million of dollars of additional revenue. Exports accounted for 55% of total volume sold in Q1. So at Rincón de Aranda, the ramp-up continues to progress as planned.

Lida Wang: Average production during Q1 reached 18.2 thousand barrels per day across 43 producing wells, up 7% quarter-on-quarter. In Q1 last year, production was below 1,000 barrels per day. During Q1 this year, 6 wells were drilled and 15 wells were tied in, of which 7 came online last March, bringing the quarter's exit rate to more than 21,000 barrels per day. For the remainder of the year, we expect to tie in an additional 20 wells and reach 28,000 barrels per day milestone by mid this year, mid 2026, supported by the second temporary facility that was commissioned in late March. We target a production plateau of 45,000 barrels per day once the central processing facility and the Vaca Muerta Sur pipeline are online.

Speaker #3: Average production during Q1 reached 18.2 thousand barrels per day, across 43 producing wells. Up 7% quarter on quarter. In Q1 last year, production was below 1,000 barrels, per day.

Speaker #3: During Q1 this year, six wells were drilled and 15 wells were tied in, of which March. Bringing the quarter's exit rate to more than 21,000 barrels per day.

Speaker #3: For the remainder of the year, we expect to tighten an additional 20 wells and reach 28,000 barrels per day milestone by mid this year, mid 2026, supported by the second temporary facility that was commissioned in late March.

Speaker #3: We target a production plateau of 45,000 barrels per day once the central processing facility and the Vaca Muerta oil source pipeline are online. It is worth noting that Rincón de Aranda completed its first full year of operations.

Lida Wang: It is worth noting that Rincón de Aranda completed its first full year of operations, with clear efficiency gains already visible. Drilling performance improved from 200 meters per day on the first pad last year to nearly 330 meters per day on the most recent pad. This is more than a 50% improvement. Completion activity also improved from almost 7 to 9 stages per day, an increase of over 30%. This improvement reflects the team's consistent execution and shorter cycle times across the development program. On 9 March, we submitted the project's application to the RIGI incentive program, which is expected to accelerate the development in the northern area of Rincón de Aranda, support a fast ramp-up and sustained plateau production for a longer period.

Speaker #3: With clear efficiency gains, already visible. Drilling performance improved from 200 meters per day on the first pad last per day on the most recent pad.

Speaker #3: This is more than a 50% improvement. Completion activity also improved from almost 7 to 9 stages per day and increased of over 30%. This improvement reflects the team's consistent execution and shorter cycle times across the development program.

Speaker #3: Also, on March 9, we submitted the project application to the REHI incentive program, which is expected to accelerate the development in the northern area of Rincón de Aranda.

Speaker #3: Supported a fast ramp-up and sustained plateau production for a longer period. The estimated investment under the project amounts to $4.5 billion, including new shale oil wells and associated infrastructure.

Lida Wang: The estimated investment under the project amounts to $4.5 billion, including new shale oil wells and associated infrastructure. Approval remains pending. Moving on to the gas, production grew 17% year on year and 28% from Q4 to almost 14 million cubic meters per day, driven by gas self-supply to our CCGTs under the new power market framework, higher exports to Chile, and stronger industrial demand. Exported volumes increased 65% year on year from 900,000 thousand cubic meters per day to 1.5 million. We expect this level to continue throughout the remainder of the year. El Mangrullo and Sierra Chata, our two operated blocks, accounted for 88% of the total gas production.

Speaker #3: Approval remains pending. Okay, moving on to the gas production growth 17% year on year and 28% from Q4 to almost 14 million cubic meters per day.

Speaker #3: Driven by gas self-supply to our CCGTs under the new power market framework, higher exports to Chile and stronger industrial demand. Exported volumes increased 65% year on year from 900,000 cubic meters per day to 1.5 million and we expect this level to continue throughout the remainder of the year.

Speaker #3: El Magrucho and Sierra Chata are our two operated blocks accounted for 88% of the total gas production. No new wells were connected during the Q1, although a new path tied in during the Q4 at Sierra Chata explains the 70%, 70% year on year growth while El Magrucho just dropped slightly 7%.

Lida Wang: No new wells were connected during the Q1, although a new pad tied in during the Q4 at Sierra Chata explains the 70% year-on-year growth, while El Mangrullo just dropped slightly 7%. During the quarter, Sierra Chata drilled 3 new wells, so completed the 4-well DUC pad. For the H2 of the year, the plan includes drilling 2 additional pads and tie in 1 pad before the winter, aligned with the seasonal gas demand from our power generation business. At El Mangrullo, the plan is just to drill a 6-well pad, which will remain as a DUC inventory. Gas prices averaged $2.9 per million BTU, flat year-on-year due to the export, lower export prices offset by higher retail prices as tariffs increase above peso devaluation.

Speaker #3: During the quarter, Sierra Chata drilled three new wells, so completed the four-well DUC path for the second half of the year. The plan includes drilling two additional pads and tying in one pad before the winter, aligned with the seasonal gas demand from our power generation business.

Speaker #3: At El Magrucho, the plan is just to drill six well pads, which will remain as a DUC inventory. Gas prices averaged 2.9 dollars per million BTU, flat year on year due to the export, lower export prices offset by higher retail prices as tariffs increased above peso devaluation.

Lida Wang: In Q1, 47% of our gas was sold under a Plan Gas.Ar GSAs through commission retailers, down from the 82% exposure last year following the transfer of said GSAs to our CCGTs. As a result, interco consumption, or actually inter-segment consumption, increased to 32% of total sales, compared to just the marginal 2% last year. Under the new framework, we expect approximately 40% this year's production to supply our own power generation assets. As for power generation, in the slide 7, we posted adjusted EBITDA of $144 million in Q1. This is 11% year on year and 30% quarter on quarter increase. Mainly driven by stronger spot margins at our CCGTs under the new guidelines, in the wholesale electricity market, which operates under a marginal pricing system that benefit efficient units.

Speaker #3: In Q1, 47% of our gas was sold under a planned gas GSAs, through commissioned retailers, down from the 82% exposure last year following the transfer of SEF GSAs to our CCGTs.

Speaker #3: As a result, Interco consumption well, actually Inter-segment consumption increased to 32% of total sales compared to just their marginal 2% last year. Under the new framework, we expect approximately 40% this year's production to supply our own power generation assets.

Speaker #3: So as for power generation, the slide seven, we posted an adjusted PDA of 144 million dollars in Q1. This is 11% year on year and 30% quarter on quarter increase.

Speaker #3: Mainly driven by stronger spot margins at our CCGTs under the new guidelines. In the whole electricity market, which operates under a marginal pricing system that benefits efficient units.

Speaker #3: So total availability fell, though, to 90%, mainly due to the ongoing outages in the wheel list since January last year and the outage that we had in the gas turbine number four in Loma La Lata.

Lida Wang: Total availability fell, though, to 90%, mainly due to the ongoing outages in Genelba since January 2023, and the outage that we had in the gas turbine number 4 in Loma de la Lata, this is not a CCGT, which is expected to return to service in June, and a scheduled maintenance at Barragán. However, Pampa's thermal availability continues to outperform the peers in the national grid, as you can see in the chart. In addition, 32% of our installed capacity was contracted in the B2B market, whereas PPAs with CAMMESA or in the MATER, covering the levels before the implementation of the framework.

Speaker #3: This is not a CCGT. Which is expected to return in service in next month, in June. And it's scheduled maintenance at Barragán. However, Pampa's thermal availability continues to outperform the peers in the national grid, as you can see in the chart.

Speaker #3: In addition, 32% of our installed capacity was contracted in the B2B market, whereas PPAs with Camisa or in the MAT. Covering the levels before the implementation of the framework.

Lida Wang: Regarding the expansion of the Perito Moreno gas pipeline and its final sections toward Buenos Aires metro area, on 15 April, TGS awarded the tender's first tranche corresponding to 4.8 million cubic meters per day out of the 12 meters per day of expansion in the transportation capacity. This is 40% of the expansion. Pampa secure 3.2 million cubic meters per day, representing 27% of this expansion capacity and two-thirds of the first tranche tender.

Speaker #3: Regarding the expansion of the Perito Moreno gas pipeline and its final sections toward Buenos Aires metro area, on April 15, TGS awarded the tender's first tranche, corresponding to 4.8 million cubic meters per day out of the 12 meters per day of expansion in the transportation capacity.

Speaker #3: This is 40% of the expansion. Pampa Secure 3.2 million cubic meters per day. Representing 27% of the expansion capacity and two-thirds of the first tranche tender.

Lida Wang: The transportation contract is for 35 years, under take or pay, or in this context is ship or pay, and requires prepayment of the first 15 years of tariffs, which in our case amounted to approximately ARS 330 million, VAT included, payable in 4 installments with final maturity in next year, April. The expansion is expected to begin operations during the winter of 2027. Participation in this gas pipeline expansion is underpinned by a clear economic rationale. Under the new power market framework, electricity generated using gas transported through new infrastructure, such as the Perito Moreno and its final sections expansion, captures the full dispatch margin when sold in the spot market with a FRA equal to 1. Therefore, a new deregulation guidelines creates 2 key drivers of profitability for Pampa.

Speaker #3: The transportation contract is for 35 years. Undertaker Pay, or in this context, is Shipper Pay. And requires prepayment of the first 15 years of tariffs, which in our case amounted to approximately 340 million dollars VAT included.

Speaker #3: Payable in four installments, with final maturity in next year April. The expansion is expected to begin operations during the winter of 2027. Participation in this gas pipeline expansion is underpinned by a clear economic rationale.

Speaker #3: Under the new power market framework, electricity generated using gas transported through new infrastructure, such as the Perito Moreno and its final sections expansion, captures the full dispatch margin when sold in the spot market with a FRA or FRA equal to one.

Speaker #3: Therefore, a new deregulation guidelines creates two key drivers of profitability for Pampa. They secure additional transportation capacity for additional gas produced from our upstream operations for self-supply.

Lida Wang: We secure additional transportation capacity for additional gas produced from our upstream operations for self-supply, enable further monetization of our reserves. Second, it enhances the profitability of our power generation assets, particularly our CCGTs. Turning on to the cash on page eight, we show the parent company figures aligned with the bond parameter. Free cash flow was -$404 million in the Q1, explained by collateral requirements related to the oil hedge, extensive, intensive CapEx at Rincón de Aranda. On top of that, we have the payments associated with last year's CapEx, and a slightly higher days of sales outstanding, offset by strong EBITDA generation. As a result, cash and cash equivalents is stood at $677 million at the quarter end, $414 million less than Q4.

Speaker #3: Enable further modernization of our reserves. Second, it enhances the profitability of our power generation assets, particularly our CCGTs. So turning on to the cash-on-page eight, we show the parent company figures aligned with the bond parameter.

Speaker #3: Free cash flow was negative 404 million dollars in the Q1, explained by collateral requirements related to the oil hedge. Expensive intensive CapEx at Rincón de Aranda on top of that, we have the payments associated with last year's CapEx.

Speaker #3: And a slightly higher days of self-sustaining offset by strong ABDA generation. As a result, cash and cash equivalents stood at 677 million dollars at the quarter end, 414 million dollars less than Q4.

Lida Wang: Finally, on the balance sheet, gross debt as of March was nearly $1.9 billion, similar to the end of 2025. The net debt rose to $1.2 billion, representing a net leverage of 1.5x to the last 12 months EBITDA. Well, this concludes our presentation. Now the floor is open for questions. If you have a question, please send it through Zoom chat. We will read it and answer, and you will receive. Make sure your name and your company display correctly to introduce yourself to the audience. Should any participant have need help, please send us a chat message. Please hold while we poll for questions. Thank you. Okay, Guido Bizzozero from Alaria.

Speaker #3: Finally, on the balance sheet, gross debt as of March was nearly $1.9 billion, similar to the end of 2025. But the net debt rose to $1.2 billion.

Speaker #3: Representing a net leverage of 1.5 times to the last 12 months' ABDA. Well, so this is concludes our presentation. Now the floor is open for questions.

Speaker #3: If you have a question, please send it through Zoom chat. We will read it and answer in the order received. Make sure your name and your company is displayed correctly to introduce yourself to the audience.

Speaker #3: Should any participant have need help, please send us a chat message. Please hold while we pull for questions. Thank you. Okay. So Guido Vizosero from Alaria.

Lida Wang: Considering the awarded 3.2 million cumeters of gas capacity in the Perito Moreno pipeline expected for May, Well, yeah, in winter 2027, how much annual revenue and EBITDA contribution do you expect from this? Can we forecast a similar award? Well, first, how much do you expect?

Speaker #3: Considering the awarded 3.2 million cubic meters of gas capacity, in the Perito Moreno pipeline, expected for May well, yeah, in winter 2027, how much annual revenue and ABDA contribution do you expect from this?

Speaker #3: Can we forecast a similar award? Well, first, how much do you expect?

Adolfo Zuberbuhler: How much do we expect is, it's not a easy number to provide, because it will depend basically on what will be in the winter of 2027 and in future winters. What will be the prices, the marginal cost of the system. That will be dependable on prices of LNG and prices of diesel oil and how many days during the winter, those fuels will be setting the marginal price in the system. To give you a rough idea, again, this is dependable upon many estimate, but could be in the range of $100 million.

Speaker #2: Yeah. How much just to how much do we expect is it's not an easy number to provide. Because it will depend basically on what will be in the winter of 2027 and in future winters.

Speaker #2: What will be the prices of the marginal cost of the system? And that will be dependable on prices of LNG and prices of diesel oil.

Speaker #2: And how many during how many days during the winter those fuels will be set in the marginal price in the system. To give you a rough idea, we think it could be in the but again, this is dependable upon many estimates, but could be in the range of 100 million dollars.

Adolfo Zuberbuhler: That is basically what we are expecting because, as Lida explained, with this firm capacity of gas, we will be able to capture the full margin, not only the 15% margin, the 15% that the current regulation allow us to capture.

Speaker #2: That is basically what we are expecting because of us Lida explained. With this firm capacity of gas, we will be able to capture the full margin, not only the 15% margin the 15% that the current regulation allow us to capture.

Lida Wang: This year, though.

Speaker #3: This year, though?

Adolfo Zuberbuhler: This year. That. Yes.

Speaker #2: This year. Yeah. This 15% increases up to 35% by year.

Adolfo Zuberbuhler: This year. That. Yes.

Lida Wang: Yeah.

Adolfo Zuberbuhler: This 15% increases up to 35%.

Lida Wang: 2028.

Speaker #3: 2028.

Adolfo Zuberbuhler: 2028.

Speaker #2: 2028. No, I think it's 2030.

Lida Wang: Yeah.

Adolfo Zuberbuhler: No. Saying it's 2030, no?

Lida Wang: No, no. 2028.

Speaker #3: No, no, 2020.

Adolfo Zuberbuhler: Okay.

Speaker #2: Okay. So that is the rough estimate for power generation. And there is an additional increasing the EBDA coming from the EMP segment because of I don't know if you have the figure in El Otro.

Lida Wang: Yeah.

Adolfo Zuberbuhler: That is the rough estimate for power generation, and there is an additional increase in the EBITDA coming from the EMP segment. There are, as Lida and Gustavo mentioned, additional gas being dispatched into the market, and that would represent approximately $50 to 60 million of additional EBITDA for the EMP business.

Speaker #2: There are as Lida and Gustavo mentioned, additional gas being dispatched into the market. And that would represent approximately around 50 to 60 million of additional EBITDA for the EMP business.

Lida Wang: Very conservative, yes. Conservatively.

Speaker #3: Very conservative. Yes. Conservatively.

Speaker #2: Yeah.

Adolfo Zuberbuhler: Yeah.

Speaker #3: Yeah. And then, of course, from our affiliate, TGS.

Lida Wang: Yeah. Then, of course, from our affiliate, TGS.

Speaker #2: Yeah. That's right.

Adolfo Zuberbuhler: Yeah, that's right.

Speaker #3: That's the 27% of that, right?

Lida Wang: That's it. That's the 27% of that, right?

Speaker #2: That's right.

Adolfo Zuberbuhler: That's right.

Speaker #3: That's a package.

Lida Wang: That's a package.

Adolfo Zuberbuhler: Yeah. On the other hand, we are prepaying for this transportation capacity. Within four installments in the next 12 months, we will be paying to TGS, prepaying the transportation tariff to TGS for the next 15 years, and that amounts to $330 million. $280 plus VAT is exact figure.

Speaker #2: Yeah. On the other hand, we are prepaying for this transportation capacity. So within the in four installments, in the next 12 months, we will be paying to TGS, prepaying the transportation tariffs to TGS for the next 15 years.

Speaker #2: And that amounts to 330 million dollars. 280 plus VAT is the exact figure.

Lida Wang: Correct. Can we forecast a similar 30% award for the second tranche of 7.2 million cubic meters per the next June?

Speaker #3: Correct. Can we forecast a similar 30% award for the second tranche of 7.2 million cubic meters per day next June?

Adolfo Zuberbuhler: gas distribution companies has a preference over.

Speaker #2: Gas distribution companies has a preference over. A priority over power generators. Distribution gas distribution companies decided not to participate in the first tranche of the auction that was this with you have to prepay the tariff.

Lida Wang: Priority

Adolfo Zuberbuhler: A priority over power generators. Gas distribution companies decided not to participate in the first tranche of the auction. That was this with. You have to prepaid the tariff. That's where we were very aggressive on securing this gas transportation. In this second tranche, the gas distribution companies have a priority over us, so it will depend on the level, the amount of gas that they need to secure. On whatever is left from the distribution companies, then we can, we may be able to secure a similar percentage as we secure in the first tranche.

Speaker #2: That's where we were we were very aggressive on securing this gas transportation. But in this second tranche, the gas distribution companies have a priority over us.

Speaker #2: So it will depend on the amount of gas that they need to secure. On whatever is left from the distribution companies, then we can we may be able to secure a similar percentage as we secured in the first tranche.

Lida Wang: All right. Should we expect any results? Nothing, nothing to do with it. Any results for the expiration of last, the Los Nihuiles hydropower plant concession? If we have any money No, nothing.

Speaker #3: Cost. All right. Should we expect any results? Nothing to do with it. Any results for the expiration of the last Loma Willis hydropower plant concession?

Speaker #3: If we have any money no, nothing.

Adolfo Zuberbuhler: No, nothing.

Speaker #2: No, nothing.

Lida Wang: Yeah.

Speaker #3: Yeah. Likewise for Diamante.

Adolfo Zuberbuhler: Not-

Lida Wang: Likewise for Diamante.

Adolfo Zuberbuhler: Yes.

Speaker #2: Yes.

Speaker #3: Yeah. Both concessions is like we shake hands and that's it.

Lida Wang: Yeah. Both concessions is, like, we shake hands and that's it.

Adolfo Zuberbuhler: Basically.

Speaker #2: Basically.

Lida Wang: We noticed a decrease in power generation, EBITDA margin. It is explained by the sub-procurement gas and the new tariffs is key. How do you expect to evolve in the coming quarters?

Speaker #3: Basically. We know there's a decrease in power generation EBDA margin. It is explained by the sub-procurement gas on the new tariff scheme. How do you expect to evolve in the coming quarters?

Lida Wang: We noticed a decrease in power generation, EBITDA margin. It is explained by the sub-procurement gas and the new tariffs is key. How do you expect to evolve in the coming quarters?

Adolfo Zuberbuhler: Can you repeat the question?

Speaker #2: Can you repeat the question?

Lida Wang: It says, The EBITDA margin reduced in power generation. I know why. Let me tell you. Now, with the new regulation, right, we have more sales because we are selling gas on EMP through the electricity, right? Before, we didn't. Before, it was a passthrough, right? It's like, kind of like it was very low sales but the EBITDA normal. You know what I mean? Before, it wasn't like apples to apples. We have a bunch of things. Now, it's like what it should be like. You are selling electricity with the associated fuel, right? The right price. No, no longer something like a cost plus situation. Of course, the EBITDA represents that. It's not like we are losing profitability.

Speaker #3: It says the EBDA margin the EBDA margin reduced in power generation I know why. Let me tell you. Now with the new regulation, right, we have more cells because we are selling gas on EMP through the electricity, right?

Speaker #3: So and before we didn't. Before it was a pass-through, right? So it's like kind of like inflate it was very low cells but the EBDA normal.

Speaker #3: You know what I mean? So before it wasn't like apples to apples, we have a bunch of things. But now it's like what it should be.

Speaker #3: You are selling electricity with the associated fuel. Right? The right price. No longer something like a cost-plus situation. And then, of course, the EBDA represents that.

Speaker #3: It's not like we are losing profitability. It's just now it's more apples to life for life.

Lida Wang: It's just now, it's more apples to apple, like for like.

Adolfo Zuberbuhler: No. Actually, on the contract, no, the margins have increased.

Speaker #2: No, actually in the contract. No, the margins have increased.

Lida Wang: Increased. Yeah. That's right. The EBITDA.

Speaker #3: Increased. Yeah. That's right. The EBDA the what it matters is that the EBDA.

Adolfo Zuberbuhler: Yeah

Lida Wang: is that the EBITDA.

Adolfo Zuberbuhler: Nominal margins are increased, but the total sales-

Speaker #2: Nominal margins are increased, but the total sales have increased significantly more because now you have to deduct the cost of fuel. So nominal numbers are better.

Lida Wang: Yeah

Adolfo Zuberbuhler: have increased significantly more because now you have to deduct the cost.

Lida Wang: Right

Adolfo Zuberbuhler: of fuel. Nominal numbers are better, the ratio is worse.

Speaker #2: The ratio is worse.

Lida Wang: Worse. It's more comparable to another utility in the world.

Speaker #3: Worse, but it's more comparable to another utility in the world.

Speaker #2: Yep.

Adolfo Zuberbuhler: Yep.

Speaker #3: I hope it not let me know. Could you give some color about the increase in the working capital in the quarter with some increase in trade receivables of around 500 million dollars?

Lida Wang: I hope if not, let me know. Could you give some color about the increase in the working capital in the quarter with an increase in trade receivables of around ARS 500 million? No. Let me tell you. The working capital, as you can see, mostly of this ARS 343 million is like ARS 250 million is for the oil hedge, collateral requirements. Well, Ignacio and Gustavo can tell us better. Then 75% of ARS 75 million of payments of last quarter's, last year's actually, CapEx. We increased the PPA last year, we are paying it this year. Very little, ARS 20 million of higher DSO, days of sales outstanding, small delays on the payments.

Speaker #3: No. Let me tell you. So the working capital as you can see, mostly of this 343 million dollars, there's like 250 is for the oil hedge collateral requirements.

Speaker #3: That's you got well, you can Horacio and Gustavo can tell us better. And then 75% of 75 million dollars of payments of last quarter's last year's, actually, CapEx.

Speaker #3: We increased the PPA last year and then we are paying it this year. Then very little, 20 million dollars of higher DSO, Days of Sales Outstanding, small delays on the payments.

Speaker #3: But now it was last year's December, it closed at six days of delays. This quarter closed at 12 days. So it's at six-day deterioration, just merely six days.

Lida Wang: Now, it was last year's December, it closed at 6 days of delays. This quarter closed at 12 days, it's a 6-day deterioration, just merely 6 days. Now it's back to 7 days of DSO. Now it's back to normal, putting it in this way. You wanna add something? Well, let's move on. How do you expect to evolve the free-

Speaker #3: But now it's back to seven days of DSO. So now it's back to normal. Putting it in this way. You want to add something?

Speaker #3: Well, let's move on. How do you expect to evolve the.

Adolfo Zuberbuhler: That I would say is very normal with increasing sales that we have to have a higher.

Speaker #2: But I would say it's very normal with increasing sales that we have to have a higher. Working capital, no?

Speaker #3: Yeah. That is correct. How do you expect to evolve the free cash flow in the following 12 months considering the installments to be paying to TGS, the CapEx, plan for Rincón de Arana, and any other diversement for projects like CESA and UREA in the future?

Lida Wang: Yeah

Adolfo Zuberbuhler: working capital, no?

Lida Wang: That is correct. How do you expect to evolve the free cash flow in the following 12 months considering the installments to be paid to TGS, the CapEx, plan for Rincón de Aranda, and any other disbursement for projects like CIESA and urea in the future?

Adolfo Zuberbuhler: Gustavo Mariani, you wanna answer that?

Speaker #2: Quito, you want to answer that?

Speaker #1: Sure.

Gustavo Mariani: Sure.

Speaker #3: Está muteado, Quito.

Lida Wang: Fito.

Speaker #2: Quito, estás muteado.

Adolfo Zuberbuhler: Fito.

Gustavo Mariani: Sorry.

Speaker #1: Sorry. Good morning, everyone. As you can perfectly see, we are undergoing record investments. And this was reflected in our net leverage that increased to 1.5 as we expected.

Lida Wang: Okay.

Gustavo Mariani: Good morning, everyone. As you can perfectly see, we are undergoing regular investments, and this was reflected in our net leverage that increased to 1.5, as we expected. Going forward, EBITDA is growing as well. In fact, this is our record quarter, so we're very thrilled that our investments are paying back. The base case is if we continue with our base plan or base scenario, is that EBITDA keeps growing, so the company will naturally deleverage. In fact, if we don't pursue new projects, net leverage will go to zero in two or three years. That being said, we will probably need to increase gross debt to finance this high CapEx and, for example, the TGS expansion.

Speaker #1: Going forward, EBDA is growing as well. In fact, this is our record quarter. So we are very thrilled that our investments are paying back.

Speaker #1: And the base case is, if we continue with our base plan or base scenario, that EBITDA keeps growing. So the company will naturally deleverage and, in fact, if we don't pursue new projects, net leverage will go to zero in two or three years.

Speaker #1: So that being said, we will probably need to increase gross debt to finance this high CapEx and, for example, the TGX expansion. But the growth of debt will go in line with the growth of EBITDA.

Gustavo Mariani: The growth of debt will go in line with the growth of EBITDA. We expect net leverage to keep around 1.5 this year and gradually go down as Rincón de Aranda starts to ramp up and all the investments start to profit to deleverage again.

Speaker #1: So we expect net leverage to keep around 1.5 this year and gradually go down as Rincón de Arana starts to ramp up and all investments start to profit.

Speaker #1: To deleverage again. So going forward, and that is why that going forward we are going to have no leverage. We are pursuing or we are studying new investments and new alternatives to apply our future free cash flows.

Adolfo Zuberbuhler: Going forward, and that is why, that going forward we are going to have no leverage. We're pursuing or we're studying new investments and new alternatives to apply our future free cash flows.

Speaker #2: Thank ank you.

Speaker #3: Thank you. Quito? Next, Santiago Herrera from Alaria. Could you give us some color about the UREA project future deployment of CapEx and expected sales and EBITDA contribution beyond the year 2030?

[Analyst]: Thank you.

Lida Wang: Thank you, Pito. Next, Santiago Herrera from Allaria. Could you give us some color about the urea project future deployment of CapEx and expected sales and EBITDA contribution beyond the year 2030?

Adolfo Zuberbuhler: Let me say this about the urea project. As you know, we have been working for a while, and we continue working on several fronts. That includes engineering of the plant, negotiating the EPC with potential suppliers, environmental permit, the project finance. All of this takes a lot of time. The reason why the project had a lot of publicity lately was, we engaged IDB and IFC for the project finance. They published the environmental permits in their websites, and that gave publicity to. They need to. This is part of the process. They need to have this public for at least 6 months before being able to move forward.

Speaker #2: Let me say this about the UREA project. As you know, we have been working for a while and we continue working on several fronts.

Speaker #2: That includes engineering of the plan, negotiating the EPC with potential suppliers, environmental permits, the project finance. All of this takes a lot of time.

Speaker #2: And the reason why the project had a lot of publicity lately was we engaged IDB and IFC for the project finance. They needed they published the environmental permits in their websites and that gave publicity to but they need to this is part of the process.

Speaker #2: They need to have this public for at least six months before being able to move forward. That's why it was published a couple of, I think, like a month ago.

Adolfo Zuberbuhler: That's why, it was published a couple, I think like a month ago. All in all, the decision is not, has not been taken yet. This will be such an important move for Pampa that obviously the moment that we decide to move forward, we will do an IR day to fully explain why we are moving forward with this project. To give you some color why a urea project, I think we already went through in previous call about this. Probably Argentina is one of the few gas-producing countries in the world that imports urea. 65% of the cost of producing urea is natural gas. Another 10% or 15% is electricity. Two probes were Argentina and Pampa. It's very competitive.

Speaker #2: Only all the decision is not has not been taken yet. This will be such an important move for Pampa that obviously the moment that we decide to move forward, we will do an IR day to fully explain why we are moving forward with this project.

Speaker #2: But to give you some color why a new UREA project, I think we already went through in previous call about this. Probably Argentina is one of the few gas-producing countries in the world that imports UREA.

Speaker #2: 65% of the cost of producing UREA is natural gas. Another 10 or 15 percent is electricity. Two products where Argentina and Pampa it's very competitive.

Speaker #2: So developing UREA is a way to monetize our very competitive gas reserves. The other rationale is that not only Argentina is importing from the Middle East and from Russia and from the whole South America.

Adolfo Zuberbuhler: Developing urea is a way to monetize our very competitive gas reserves. The other rationale is that not only Argentina is importing from the Middle East and from Russia and from the whole South America. South America has a deficit of 10 million tons of urea per year that we are importing. The plant that we are envisioning is a 2 million tons per year of urea. In terms of sales, at normal historical prices, that would be sold for around $1 billion. Today, because of the disruption in the Middle East, at current prices of urea would be almost twice that much. But again, it's a project that makes a lot of sense for Pampa, that we are working on several fronts.

Speaker #2: South America has a deficit of 10 million tons of UREA per year that we are importing. The plant that we are envisioning is a 2 million tons per year of UREA.

Speaker #2: In terms of sales, at normal historical prices, that would be sales for around 1 billion dollars. Today, because of the disruption in the Middle East, at current prices of UREA would be almost twice that much.

Speaker #2: But again, it's a project that makes a lot of sense. For Pampa, that we have a that we are working on several fronts and we hope to take the final investment decision by the end of the third quarter or at some point in the fourth quarter of this year.

Adolfo Zuberbuhler: We hope to take the final investment decision, by the end of Q3 or at some point in Q4 of this year. Once we do that, you will be fully informed about all the details.

Speaker #2: And once we do that, you will be fully informed about all the details.

Lida Wang: As we always do. All right. Cool. Could you give us some color about the RIGI application for the northern area of Rincón de Aranda? What means this $4.5 billion investment about the already $1.5 billion plan for the area? Could you clarify that? How do you expect this may accelerate and sustain the plateau in the future?

Speaker #3: As we always do. All right. Cool. Could you give us some color about the RIHI application for the northern area of Rincón de Arana?

Speaker #3: What means this 4.5 investment about the already 1.5 billion plan for the area? Could you clarify that? How do you expect this may accelerate and sustain the plateau in the future?

Speaker #1: Okay. The full field development for Rincón de Arana it's in the range of 4.5 billion. That takes into account both the drilling and completion of our wells and all of the midstream infrastructure needed through the life of the project.

Adolfo Zuberbuhler: Okay. The full field development for Rincón de Aranda, it's in the range of ARS 4.5 billion. That takes into account both the drilling and completion of our wells and all of the midstream infrastructure needed through the life of the project. Basically that investment will de-develop both the south of Rincón de Aranda, which is so far the most productive rock we've seen in the area, and also the northern block of Rincón de Aranda, which will enable the production plateau to be sustained for approximately 6 to 8 more years.

Speaker #1: And basically, that investment will develop both the south of Rincón de Arana, which is so far the most productive rock we've seen in the area, and also the northern block of Rincón de Arana, which will enable the production plateau to be sustained for approximately six to eight more years.

Speaker #3: All right. Well, then the next question from Santiago is regarding Transener. Can you give us a dimension of what its power transmission grid expansion represents for the country?

Lida Wang: Well, the next question from Santiago is regarding Transener. Can you give us a dimension of what this power transmission grid expansion represents for the country? For Transener, if it was awarded regarding CapEx, revenues or EBITDA. Do you expect a significant change in prices versus the current framework scheme?

Speaker #3: And for Transener, if it was awarded regarding CapEx, revenues, or EBITDA, do you expect a significant change in prices versus the current frequency?

Adolfo Zuberbuhler: Say that again.

Speaker #2: So three?

Speaker #3: If you feel like, with the current frequency scheme, the wholesale prices of power will increase a lot, or not? Or decrease?

Lida Wang: If you feel like with the current framework scheme, the wholesale prices of power will increase a lot or not, or decrease?

Adolfo Zuberbuhler: Regarding grid expansion, high voltage grid expansions, I don't think there is anything new, other than some press. Nothing has been published lately by the Secretariat of Energy as I believe. We are expecting the government to do an auction for new power lines, basically to strengthen the supply of energy to the AMBA area.

Speaker #2: Regarding grid expansion, high-voltage grid expansions, I don't think there is anything new other than some press nothing has been published lately by the Secretary of Energy as I believe.

Speaker #2: We are expecting the government to do an auction for new power lines basically to strengthen the supply of energy to the Amba area, to the.

Speaker #3: Buenos Aires, basically.

Lida Wang: Buenos Aires.

Adolfo Zuberbuhler: Buenos Aires metropolitan area. That will be the first auction to be launched. Transener could participate as any other. The difference for Transener is, even if not awarded the construction of the line, Transener regulatory-wise has the supervision of, collects 3% of the total cost of the new line constructed. Obviously, Transener has very good competitive advantage to be awarded the operation and maintenance. Again, we are still awaiting, nothing has been decided yet by the Secretary of Energy on power transmission line.

Speaker #2: Buenos Aires metropolitan area. That will be the first auction to be launched. Transener will could participate as any other. The difference for Transener is even if not awarded the construction of the line, Transener regulatory-wise has the supervision of so it collects 3% of the total cost of the new line constructed.

Speaker #2: And obviously, Transener has very good competitive advantage to be awarded the operation and maintenance. But again, we are still awaiting and nothing has been decided yet by the Secretary of Energy on power transmission lines.

Lida Wang: Yeah. Until then, we are still curtailing the power generation, right? There is not much we can do.

Speaker #3: Yeah. Until then, we are still curtail in the power generation, right? There is not much we can do.

Adolfo Zuberbuhler: Yeah. A few hours or days in a year, there are some restrictions.

Speaker #2: Yeah. A few hours or days in a year, there are some restrictions.

Lida Wang: Yeah. Well, there's the next question coming from Alejandro Demichelis from Jefferies. With growing CapEx at both Pampa and the subsidiaries, could you please indicate how do you see financing for the projects and for the group, and the level of leverage do you see Pampa getting into the next 2, 3 years? 2, 3 years is a lot, but.

Speaker #3: Yeah. Well, so there's the next question coming from Alejandro de Michelis from Shefferis. With growing CapEx at both Pampa and the subsidiaries, could you please indicate how do you see financing for the projects and for the group and the leverage do you see Pampa getting into the next two, three years?

Speaker #4: Two three years is a lot, but. It's going back to the question I answered before. In two, three years, if we don't pursue any other new projects like the UREA plant, we will have no debt, okay?

Adolfo Zuberbuhler: Well, it's going back to the question I answered before. In 2, 3 years, if we don't pursue any other new projects like the urea plant, we will have no debt, okay? In the meantime, while we grow, we have open all the pockets for financing. Our bonds are trading greatly in the international market, we can tap that market if needed. We have the local market that recently we issued $200 million at 5.49%, which is a very competitive rate. As I explained before, we probably will increase our gross debt. However, in terms of leverage, we will keep the leverage because our EBITDA is growing fastly. As you can see, this is our record quarter.

Speaker #4: So in the meantime, while we grow, we have open all the pockets for financing our bonds are trading greatly in the international market, so we can tap that market if needed.

Speaker #4: And also, we have the local market that recently we issued 200 million dollars at 5.49%, which is a very competitive rate. So as I explained before, we'll probably will increase our gross debt; however, in terms of leverage, we will keep the leverage because our EBITDA is growing fastly.

Speaker #4: As you can see, this is our record quarter. So we will be you will see us issuing more debt, but keeping leverage levels in this area of around 1.5 and going down to zero in the coming years.

Adolfo Zuberbuhler: You will see us issuing more debt, but keeping leverage levels in this area of around 1.5 and going down to 0 in the coming years. That being said, if we pursue a new project like the urea plant, this might change. As Gustavo explained, this is very early still to give any guidance. We have to define the financial structure of that project and see how that will impact in the short-term leverage. It naturally will impact, but we have to have more clarity on the numbers to give any guidance. It's early to say.

Speaker #4: That being said, if we pursue a new project like the UREA plant, this might change, but as Gustavo explained, this is very early still to give any guidance.

Speaker #4: We have to define the financial structure of that project and see how that will impact in the short-term leverage. Naturally, it will impact, but we have to have more clarity on the numbers to give any guidance.

Speaker #4: So it's early to say.

Lida Wang: Cool. Next question comes from Matías Cattaruzzi from AdCap. He's asking Well, other questions about reheat, answered. Net debt leverage ratio, answered. The third question, though, it's Medanito Brent spread tightening material with the premium now, passes or moves. Is there room to capture this improved spread in the remaining quarters, or does the hedge effectively cap realization for the full year?

Speaker #3: Cool. So next question comes from Matías Catarusi from ADCAP. He's asking, well, other questions are already answered. Net debt, leverage ratio, answer. The first question, though, it's Medanito Rent Spread tightening material with the premium now, possible or moves.

Speaker #3: Is there room to capture this improved spread in the remaining quarters, or does the hedge effectively cap realization for the full year?

Adolfo Zuberbuhler: The hedge is related to the market, to Brent. Any premium on top of Brent will be captured by Pampa.

Speaker #2: The hedge is related to the market, to brand. So any premium on top of brand will be captured by Pampa.

Lida Wang: Cool. Well, next question comes from Gustavo Faria from Bank of America. He asks, power sector, new framework, how are the discussions with the clients, I guess, in the math, right, or in the B2B market, to fulfill the energy generation capacity available for PPAs, B2B PPAs? Are you being able to fulfill all the capacity available, or is there any some spare capacity?

Speaker #3: Cool. Well, next question comes from Gustavo Faria from Bank of America. He asks, power sector, new framework, how are the discussions with the clients?

Speaker #3: I guess in the math, right? Or in the B2B market, to fulfill the energy generation capacity available for PPAs, B2B PPAs, are you being able to fulfill all the capacity available, or is there any some spare capacity?

Adolfo Zuberbuhler: The new regulations separated the market into energy and capacity. For energy, for legacy capacity, generators are allowed to sell up to 20% of the expected energy production on B2Bs. We have already completed that very fast, very efficient, thanks to the strong commercial team that we have and something that we have always been used to because of our participation in the former Energía Plus market and the MATER market. We have always been very active. We have a huge, several hundred clients that we provide energy. I think we were the first one in Argentina to complete the sale of the 20% of energy available to sell.

Speaker #2: Okay. Yeah. The new regulations separated the market into energy and capacity. For energy, for legacy capacity, generators are allowed to sell up to 20% of the expected energy production on B2Bs.

Speaker #2: We have already completed that. Very fast, very efficient, thanks to the strong commercial team that we have and the and something that we have always been used to because of our participation in the former Energía Plus market and the Matter market.

Speaker #2: So we have always been very active. We have a huge several hundred clients that we provide energy. So I think we were the first one in Argentina to complete the sale of the 20% of energy available to sell.

Adolfo Zuberbuhler: Regarding capacity, we can sell all our capacity. I think we've sold around 30% or 30 something percent of our total capacity. That will take more time to be completed. Once we sell the capacity, it provides us an additional market, an additional margin to the price that we sell capacity to CAMMESA.

Speaker #2: Regarding capacity, we can sell all our capacity I think we are we've sold around 30% or 30-something percent of our total capacity. That will take more time to be completed.

Speaker #2: And once we sell the capacity, we provide us an additional market to the—an additional margin to the price that we sell capacity to Gamesa.

Lida Wang: Yeah.

Adolfo Zuberbuhler: That will take time because it's larger number.

Speaker #2: But that will take time because it's larger number.

Adolfo Zuberbuhler: That will take time because it's larger number.

Lida Wang: That was expected.

Speaker #4: That was expected.

Lida Wang: That was expected.

Speaker #2: Yes.

Adolfo Zuberbuhler: Yes.

Lida Wang: All right. Okay. Next question from Gustavo Faria, which is partially answered. It is about the fertilizers plan, but it is associated with you, Horacio, which he asks, how much CapEx comes from the higher gas production at the gas fields associated from the fertilizers project?

Speaker #3: All right. Okay. And next question from Gustavo Faria, which it's partially answered. It's about the fertilizers plant, but it's associated with you, Horacio, which he asks, how much CapEx comes from the higher gas production at the gas fields?

Speaker #3: From associated from the fertilizers project.

Speaker #2: How much will be the additional CapEx?

Horacio Turri: How much will be the additional CapEx?

Lida Wang: Yeah.

Speaker #3: Yeah.

Horacio Turri: Okay. The urea project will come in line in 2030. That will be after the Plan Gas.Ar ends. Therefore, we still need to understand what's gonna be our mix of sales by 2030. Eventually, it will, and that's why I'm mentioning, because the amount of CapEx needed will depend on how much additional demand Pampa would like to engage.

Speaker #2: Okay. The UREA project will come in line in 2030. So that will be after the plant gas ends. what's going to be our mix of sales by 2030.

Speaker #2: Eventually, it will and that's why I'm mentioning because the amount of CapEx needed will depend on how much additional demand Pampa would like to engage.

Adolfo Zuberbuhler: Service, yeah.

Horacio Turri: Exactly, to service. If we decide eventually to reduce our sales to the residential market and keep that gas to feed our urea project, then the CapEx is completely different as it, on the other hand, we decide to supply the urea on top of all of our additional demand.

Speaker #2: Exactly. To service. If we decide eventually to reduce our sales to the, let's say, residential market and keep that gas to feed our UREA project, then the CapEx is completely different as on the other hand we decide to supply the UREA on top of all of our additional demand.

Lida Wang: Yeah. Correct. Good answer. The next question is for you, Gustavo. What will be the commercialization strategy for the fertilizers in 2030?

Speaker #3: Yeah. Correct. Good answer. So the next question is for you, Gustavo. What will be the commercialization strategy for the fertilizers?

Speaker #4: In 2030.

Speaker #2: Okay. No, just Argentina currently consumes about less than 2.5 million tons per year of UREA and approximately half of that is locally produced by Pro Fertil.

Adolfo Zuberbuhler: Argentina currently consumes less than 2.5 million tons per year of urea, and approximately half of that is locally produced by Profertil. The first option will be local prices, local demand. Given the restraints on the project finance that require us to sell, to export a higher percentage, in the first few years, probably we will be exporting to the neighboring countries. All our neighbors consume urea from Middle East, Russia, and exactly the opposite side of the world. Again, too soon to tell what will be our commercial strategy, but it will be domestic and an export sales.

Speaker #2: So our first option will be local prices, local demand, but given the restraints on the project finance that require us to sell to export a higher percentage, in the first few years, probably we'll be exporting to the neighboring countries.

Speaker #2: All our neighbors consume UREA. From the Middle East, Russia, and exactly the opposite side of the world. So again, too soon to tell what will be our commercial strategy, but it will be domestic and export sales.

Lida Wang: Cool. All right. The people from Latin Securities, Axel Christensen and Jorge Gaztambide ask, how is the treatment plan on Vaca Muerta progressing and which quarter do you expect it will COD?

Speaker #3: Cool. All right. The people from Latin Securities, Alejandro Christensen and George Gastout ask, how is the treatment plan progressing, and in which quarter do you expect it will seal the?

Speaker #2: Okay. It's progressing with no problems at all. Some minor delays on the desalinization modules that were scheduled to come from the OEI. From Dubai.

Horacio Turri: Okay. It's progressing with no problems at all. Some minor delays on the desalinization modules that were scheduled to come from the OEI.

Lida Wang: From Dubai.

Horacio Turri: From Dubai.

Lida Wang: From the United.

Horacio Turri: Yeah.

Lida Wang: From Dubai.

Speaker #2: But to answer your question, the plan will be commissioned by the month of March 2027.

Horacio Turri: To answer your question, the plan will be commissioned by the month of March 2027.

Lida Wang: Cool. Have you, well, have you hedged any production beyond Q1 2027 so far this year, or do you plan to?

Speaker #3: Cool. Have you well, have you hedged any production beyond first quarter '27 so far this year, or do you plan to?

Horacio Turri: No, basically, we have 1 year forward. Yes, we probably will continue with the hedging strategy moving forward, probably not so aggressively as we've done this year. During the ramp-up, we wanted to ensure the stability of the results. That's why we decided to hedge 100% of our production. Going forward and as production continues to grow, we will be reducing the percentage of the quantity hedge to probably around 50%.

Speaker #2: Basically, we have one year forward. And yes, we probably will continue with the hedging strategy moving forward. Probably not so aggressively as we've done this year during the ramp-up.

Speaker #2: We wanted to ensure the stability of the result. That's why we decided to hedge 100% of our production. Going forward, and as production continues to grow, we will be reducing the percentage of the quantity hedge to probably around 50%.

Lida Wang: Cool. Next question. In the gas supply for the inter-segment procurement structure, is it structured as a fixed price contract? He's asking how much power generation is buying the gas from EMP.

Speaker #3: Cool. Next question in the gas supply for the intersegment procurement structure. Is the structure as a fixed price contract? He's asking, how much power generation is buying the gas from EMP?

Horacio Turri: Okay. How much, What amount of gas?

Speaker #2: Okay. How much? What amount of gas? Prices. Prices are regulated by Gamesa. There is a maximum price, which is linked to the, let's say, LNG FOB Argentina.

Lida Wang: No, prices.

Horacio Turri: Prices. Prices are regulated by CAMMESA. There is a maximum price which is linked to the, let's say, LNG FOB Argentina. It's 55% of that. That's the price at which we sell, quote, our gas to our own power plants.

Speaker #2: It's a 55% of that. And that's the prices which we sell "our gas to our own power plants."

Speaker #3: Yeah. And during the summer, it's just like the plant gas freed out.

Lida Wang: Yeah. During the summer, it's just, like the Plan Gas.Ar gas.

Horacio Turri: During the summer, it's the Plan Gas.Ar.

Speaker #2: During the summer, it's the plant gas.

Lida Wang: Yeah. Inter-segment-wise, it will be, like, very similar to the what is Plan Gas.Ar, right?

Speaker #3: Yeah. But in intersegment-wise, it will be like very similar to what is plant gas, right?

Speaker #2: No, no, no. It's significantly higher. I mean. The plant gas has a price for the summer and another price for the winter. It's approximately 2 point something and 5.

Horacio Turri: No, no. It's significantly higher.

Lida Wang: Oh, really? Oh, yeah.

Horacio Turri: The plant gas has a price for the summer and another price for the winter. It's approximately, let's say, two-point-something and five. Today, with the markers that we are looking at for the May, the month of May, we are looking at prices that are around $10 per million BTU for this generation segment.

Speaker #2: And today, with the markers that we are looking at for the month of May, we are looking at prices that are around $10 per million BTU for this generation segment.

Lida Wang: That we are capturing all.

Horacio Turri: It's almost twice the Pampa price, yeah.

Speaker #2: It's almost twice the plant gas price.

Speaker #3: Yeah. That we're capturing all of it.

Adolfo Zuberbuhler: Yeah.

Lida Wang: We are capturing all of it.

Horacio Turri: That we're capturing right now.

Speaker #2: That we're capturing right now. But it's just to allocate the.

Adolfo Zuberbuhler: Yeah.

Lida Wang: But the-

Adolfo Zuberbuhler: It's just to allocate.

Lida Wang: Who gets that?

Speaker #3: Who gets that?

Lida Wang: Who gets that?

Adolfo Zuberbuhler: revenues or margin between the-

Speaker #2: Revenues or margin between the power segment and the EMP segment is not a.

Horacio Turri: Yeah

Adolfo Zuberbuhler: the power segment and the EMP segment. It's.

Lida Wang: Cool. Then he says, Should we expect the variable cost component, known as CVP, recognized by CAMMESA, to remain broadly stable over the time, given this structure? Actually, the CVP is not stable because, as Horacio was saying, the seasonal. In winter, CVP shoots up because of the cost of gas, right?

Speaker #3: Cool. And then he says, should we expect the variable cost component known as CVP, recognized by Gamesa, to remain broadly stable over the time, given this structure?

Speaker #3: Actually, the CVP is not stable because, as Horacio was saying, it's seasonal. In winter, CVP shoots up because of the cost of gas. Right?

Horacio Turri: Yes. I would say that is the first time in many years that Argentina is showing the correct price signal in the gas market. This means that the price significantly escalates during the winter and is very, very cheap during the summer. This, if this continues, this should be reflected in the gas market.

Speaker #2: Yes. I would say that is the first time in many years that Argentina is showing the price take the correct price signal in the gas market.

Speaker #2: This means that the price significantly escalates during the winter and is very, very cheap during the summer. And if this continues, this should be reflected in the gas market.

Lida Wang: Is there a positive spread between the CVP you declare to CAMMESA and what your intercompany gas procurement costs? Actually, no. In order to be competitive, no.

Speaker #3: Is there a positive spread between the CVP you declared to Gamesa and what you intercompany gas procurement costs? Actually, no. In order to be competitive, no.

Lida Wang: Is there a positive spread between the CVP you declare to CAMMESA and what your intercompany gas procurement costs? Actually, no. In order to be competitive, no.

Speaker #3: He says.

Adolfo Zuberbuhler: No, no.

Speaker #2: No.

Lida Wang: Can we have like a spread against what we declare before CAMMESA, in CAMMESA, what the real CVP is? Actually, no.

Speaker #3: Can we have a spread against what we declare before Gamesa? In Gamesa, what the real CVP it is. Actually.

Lida Wang: Can we have like a spread against what we declare before CAMMESA, in CAMMESA, what the real CVP is? Actually, no.

Adolfo Zuberbuhler: No. It's part of our commercial strategy, the declaration of the CVP. That's something that we do every two weeks.

Speaker #2: It's part of our commercial strategy, the declaration of the CVP, that's something that we do every two weeks. And it's part of the commercial strategy, declaring your CVP is not necessarily the real CVP.

Adolfo Zuberbuhler: Um, and-

Lida Wang: So, so-

Adolfo Zuberbuhler: It's part of the commercial strategy, declaring your CVPs, not necessarily the real CVP. Well, there is a margin included in the CVP that you declare to CAMMESA, yes.

Speaker #2: There is a margin included in the CVP that you declare to Gamesa, yes.

Speaker #3: Yes. Yeah. It's a 25%. So.

Lida Wang: Yes. Yeah, it's a 25%.

Speaker #2: No, well, it depends. Every week is different.

Adolfo Zuberbuhler: No. Well.

Lida Wang: So-

Adolfo Zuberbuhler: depends.

Lida Wang: Yes.

Adolfo Zuberbuhler: Every week is different.

Speaker #3: It's different. Yeah. So Gamesa does declare does calculate theoretical CVPs. You cannot go very different from what you declare. So what you declare, you can go very different from what theoretically Gamesa calculates, for you.

Lida Wang: Different. Yeah. CAMMESA does declare, does calculate, theoretical CVPs. You cannot go very different from what you declare. What you declare, you can go very different from what theoretically CAMMESA calculates for you. You cannot say $1 CVP.

Speaker #3: So you cannot say $1 CVP.

Adolfo Zuberbuhler: If you declare expensive, you are not dispatched.

Speaker #2: If you declare expensive, you're not dispatching.

Adolfo Zuberbuhler: If you declare expensive, you are not dispatched.

Lida Wang: Yeah, no.

Speaker #3: Got it.

Adolfo Zuberbuhler: If you declare below the cost, you're.

Speaker #2: If you declare below the cost, you're not.

Adolfo Zuberbuhler: If you declare below the cost, you're.

Lida Wang: You're not earning money. Yeah.

Speaker #3: You're not earning money. Yeah. Yeah.

Adolfo Zuberbuhler: Sorry, I don't understand.

Speaker #2: Sorry. I don't understand it. But I think we answered that. Let's move.

Lida Wang: Yeah

Adolfo Zuberbuhler: I think we answered that. Let's move.

Lida Wang: How should we think about the release timing for collateral posts against the oil hedges? Has Pampa had to post any additional margin since 31 March?

Speaker #3: How should we think about the release timing for collateral posts against the oil hedges? Has Pampa had to post any additional margins since March 31st?

Adolfo Zuberbuhler: Uh-

Lida Wang: Good or no?

Adolfo Zuberbuhler: I think, not today because eventually, at one point during this time, we had to post higher collaterals then as prices came down, we recovered. I think today we are more or less at the same levels.

Speaker #2: I think not today because but eventually, at one point, during this time, we had to post higher collaterals. Then we as prices came down, we recovered.

Speaker #2: So I think today we are more or less at the same levels.

Lida Wang: Yeah, correct. Well, sorry, it's going to be 6 hours. Lillian Lou from Morgan Stanley, she asks, one of the easy ones: Could you give me some color from the gas export perspective in the coming quarters, Horacio, if there are any sales to Brazil? How is Chile evolving?

Speaker #3: Yeah, correct. Well, if I don't want to—sorry. It's going to be six hours. Luis Abel M from Morgan Stanley—she asks, under one of the easy ones, could you give me some color from the gas export perspective in the coming quarters?

Speaker #3: Horacio, if there's any sales to Brazil, how is Chile evolving?

Speaker #2: Okay. Our exports are basically to Chile, all of them. Both through the Gasandes pipeline and the Gasoducto del Pacífico pipeline. We are hitting 1.5 million of exports, and it's been pretty stable.

Horacio Turri: Okay. Our exports, basically to Chile, all of them, both through the GasAndes pipeline and the Gasoducto del Pacífico pipeline. We are hitting 1.5 million of exports, and it's been pretty stable, and that's what we foresee for the rest of the year.

Speaker #2: And that's what we foresee for the rest of the year.

Lida Wang: Well, this is a very, like I think we didn't answer is, do you expect the RIGI for Rincón de Aranda to be approved the next few weeks?

Speaker #3: Well, this is a very I think we didn't answer this. Do you expect the rehi for Rincón de Aranda to be approved in the next few weeks?

Speaker #2: I don't think so. No. If you take a look, initially riggies were approved in two, three months. The first few riggies that were approved, then for other riggies, it took six to seven months.

Horacio Turri: I don't think so.

Adolfo Zuberbuhler: No. If you take a look at, initially, RIGIs were approved in 2, 3 months, the first few RIGIs that were approved. Then for the other RIGIs, it took 6 to 7 months. Although we are pushing and trying to get the approval as fast as possible, I think it's, it will take a few more months.

Speaker #2: So although we are pushing and trying to get the approval as fast as possible, I think it's it will take a few more months.

Lida Wang: Once approved.

Speaker #3: And once approved?

Lida Wang: Once approved.

Horacio Turri: No.

Lida Wang: Yeah.

Speaker #2: No. Just one clarification. On what Gustavo said, is that even if we get approved, let's say, two months from now, the benefits will apply for the parts number 14 and 15 that have already been drilled and completed after the date of our presentation of the submittal of the request for rehi.

Horacio Turri: Well, no, just one clarification on what Gustavo said is that, even if we get approved, let's say, two months from now.

Adolfo Zuberbuhler: The benefits will apply for the parts number 14 and 15 that have already been drilled and completed after the date of our presentation of the submittal of the request for RE.

Speaker #2: So

Speaker #3: All right. So once approved, what's the next steps from there? Nothing. It's just working, right?

Lida Wang: All right. Once approved, what's the next steps from there? Nothing. It's just working, right?

Adolfo Zuberbuhler: Enjoy.

Speaker #2: Enjoy.

Lida Wang: Enjoying. Well, no, work. Work.

Speaker #3: Enjoy. Well, not work. Work.

Adolfo Zuberbuhler: Yeah, work.

Speaker #2: Yeah, of course.

Lida Wang: Francisco Cascarone from Doncap, he's asking, My question will be regarding the OCI or other comprehensive income results in the pesos balance sheet. We have also dollar balance sheet as well. Can you explain the loss approximately of, I don't know how much, ARS 300 billion, that's $13. Is it related to the losses not perceived for the production hedge for the rest of the year?

Speaker #3: Francisco Cascarón from DawnCab, he's asking my question will be regarding the OCI or other comprehensive income results in the pesos balance sheet. We have also dollar balance sheet as well.

Speaker #3: Can you explain the loss—approximately, I don't know how much, $300 billion pesos, but that’s in dollars. Is it related to the losses, not perceived for the production hedge for the rest of the year?

Adolfo Zuberbuhler: Yes. It's reflected in.

Speaker #2: Yes. It's reflected in.

Lida Wang: Other comprehensive income.

Speaker #3: Other comprehensive income.

Adolfo Zuberbuhler: Exactly. That will be offset with future physical sales of oil at higher prices. That's why this is an unrealized.

Speaker #2: Exactly. And that it's that will be offset with future physical sales of oil at higher prices. So that's why it's an unrealized yeah, but it's not reflecting EPA analysis.

Lida Wang: I know.

Adolfo Zuberbuhler: Yeah, but it's not reflecting in the P&L, it's reflecting.

Speaker #2: It's reflecting the patrimonial in the patrimonial netto in the network.

Lida Wang: Yeah.

Adolfo Zuberbuhler: The patrimonio neto.

Adolfo Zuberbuhler: The patrimonio neto, in the network.

Lida Wang: Equity network.

Speaker #3: In the equity network.

Adolfo Zuberbuhler: It will compensate with future higher sales of the physical oil.

Speaker #2: And it will compensate with future higher sales of the physical oil.

Adolfo Zuberbuhler: It will compensate with future higher sales of the physical oil.

Speaker #3: And also, can you give us explanation of the 184 million jump in financial derivatives instruments on current liabilities? This is exactly that, right? It's the mark-to-market.

Lida Wang: Also, can you give us explanation of the ARS 184 million jump in financial derivatives instruments on current liabilities? It's exactly that, right? It's the mark to market.

Speaker #2: Mm-hmm.

Speaker #3: The mark-to-market. All right. So Andrés Iriano from Balance, what price is Pampa hedge for the year going forward?

Lida Wang: Mark to market. All right. Andrés Irimia from Balanz, what price is Pampa Energía hedged for the year going forward?

Adolfo Zuberbuhler: The average price until April 2025 is ARS 65.

Speaker #2: The average price until April next year is 65.

Lida Wang: Sixty-six.

Speaker #3: Oh, 66. 65. Brent.

Adolfo Zuberbuhler: Sixty-five.

Lida Wang: 65. Brent.

Speaker #2: Of course. This is the brand marker.

Adolfo Zuberbuhler: Of course, this is the Brent marker.

Lida Wang: Yeah. Cool. Power gen, CapEx, just $2 million in Q1 versus $35 million quarterly D&A. Is this a Q1 timing effect, or should we recalibrate our maintenance CapEx assumption lower going forward? What normalized annual level do you consider appropriate for the current asset base?

Speaker #3: Yeah. Cool. Tim Pacheco from Banco Mariva, PowerGen CapEx just $2 million in Q1 versus 35 million quarterly DNA. Is this a 1Q timing effect, or should we recalibrate our maintenance CapEx assumption lower going forward?

Speaker #3: What normalized annual level do you consider appropriate for the current asset space?

Adolfo Zuberbuhler: I think it's in the range of 70, no?

Speaker #2: I think it's in the range of $70, no, $70–80 million average annually per year. But there are some years that are significantly higher, and some years that are lower.

Adolfo Zuberbuhler: I think it's in the range of 70, no?

Lida Wang: Correct.

Adolfo Zuberbuhler: ARS 70, 80 million average annually per year. There are some years that are significantly higher and some years that is lower. That depends on the major maintenance that the turbines need to go through every several years.

Speaker #2: That depends on the major maintenance that the turbines need to go through every several years.

Lida Wang: Cool.

Speaker #3: Cool.

Adolfo Zuberbuhler: Average, around $80 million. That's why it's just a coincidence that this Q was so low. This year it should be in the average range, no?

Speaker #2: Average around 80 million dollars. That's why it's just a coincidence that this Q was so low. But this year, it should be in the

Lida Wang: Yeah, yeah. It's $70 million budget. The quarterly D&A or the D&A actually, it's because we are a functional currency in dollars, so we are increasing PPE and we are, like, doing the D&A. That's why. We have increases in the past few years. It's a normal amount.

Speaker #3: Yeah, yeah. It's 70 million dollars budget. And the quarterly DNA or the DNA, actually, is because we are a functional increasing PPE, and we are doing the deep DNA.

Speaker #3: That's why we have increases in the past few years. So it's a normal amount.

Adolfo Zuberbuhler: Yeah. Probably the $35 million that he mentions in previous year, it's not only maintenance, but it's probably the end of the PEPE VI, the wind farm, and the end of, I think it was in Q1 of last year, payments related to the last.

Speaker #2: Yeah. And probably the 35 million that he mentions in previous year probably the end of the end of I think it was in the first quarter of this year.

Speaker #2: Payments related to the last wind farm that we built.

Lida Wang: Wind farm.

Adolfo Zuberbuhler: the last wind farm that we built.

Speaker #3: Correct. Álvaro Leyva from BTG, he's asking what are the expected losses from the hedging strategy in 2026 and 2027?

Lida Wang: Correct. Alvaro Obregon from BTG, he's asking: where are the expected losses from the hedging strategy in 2026 and 2027?

Speaker #2: Again, this is we don't consider that losses. The goal when we decided the hedging policy was to ensure stability of results, especially during the ramp-up and the first phase of the development of Rincón de Aranda.

Adolfo Zuberbuhler: Again, this is, we don't consider that a loss. The goal when we decided the hedging policy was to ensure stability of results, especially during the ramp-up and the first phase of the development of Rincón de Aranda. At the level that we hedge, we secure a very good profitability and IRR for the project. Obviously, now that prices are higher, it's something that we knew it could happen. It could go the other way as it did last year, and we profit from this strategy. Again, the strategy is to provide stability to the results. That was the goal, and so that's it.

Speaker #2: At the level that we hedge, we secure very good profitability. And IRR for the project. Obviously, now that prices are higher, it's something that we knew it could happen.

Speaker #2: It could have gone the other way, as it did last year, and we profited from this strategy. But again, this strategy is to provide stability to the results.

Speaker #2: That was the goal. And so that's it.

Lida Wang: Cool. It's 12 o'clock. We have, like, 3 pages of questions. Like, a lot of questions.

Speaker #3: Cool. It's 12 o'clock. We have three pages of questions, a lot of questions.

Adolfo Zuberbuhler: Different questions? No, different subjects?

Speaker #2: Different questions? No, different subjects?

Speaker #3: Yeah. Can you imagine? So Daniel Guardiola from BTG, he's asking main benefits on the deregulation. We already covered that. But he's asking when the first PPAs would commit are expiring.

Lida Wang: Can you imagine? Daniel Guardiola from BTG, he's asking main benefits on the deregulation. We already covered that, but he's asking when the first PPAs with CAMMESA are expiring and what is expected the impact in EBITDA. The first PPAs, the first one is expiring in July this year. It's a very small one, 75 megawatts. Next year, it's another 300 megawatts. Then until 2035, we have the 400 megawatt of CCGT in Genelba. I will say, roughly speaking, the most important amount is next year's 300 megawatts. In total, they represent roughly 400 megawatts together. They roughly represent $100 million EBITDA today.

Speaker #3: And what is expected the impact in EBDA? So the first PPAs the first one is expiring in July this year. It's a very small one, 75 megawatts.

Speaker #3: Next year is another 300 megawatts. And then until 2035, we have the 400 megawatt of CCGT in Caneria. So I will say roughly speaking, the most important amount is next year's 300 megawatts.

Speaker #3: In total, they represent roughly 400 megawatts together. They roughly represent 100 million dollars EBDA today, but with the deregulation and the fact that the east side of the country will get more gas transportation, and we don't know what's going to happen in a long time and depends on the international prices and so on, the impact because of the deregulation is smoother than before.

Lida Wang: With the deregulation and the fact that the east side of the country will get more gas transportation, and we don't know what's going to happen in a long time, and depends on the international prices and so on. The impact because of the deregulation is smoother than before. It's like it's lower EBITDA, of course, but it's not like a sharp drop like we used to preview before with the regulated peso spot market. urea business. What's the IRR level in dollars? No.

Speaker #3: It's lower EBDA, of course, but it's not a sharp drop like we used to preview before with the regulated peso spot market. Uriah business, what's the IRR on lever in dollars?

Speaker #2: No. I think we already covered Uriah.

Horacio Turri: Okay. I think we already covered urea.

Lida Wang: Yeah. If shares continue trading at these multiples, why not prioritize aggressive share buybacks instead of pursuing inorganic growth? What inorganic?

Speaker #3: Yeah. Is shares continued trading at this multiple? Why not prioritize aggressive share buybacks instead of pursuing even organic growth? What in organic?

Gustavo Mariani: Urea, I think it's mentioned.

Speaker #2: Uriah, I think he's mentioned.

Speaker #3: That's organic. Okay. You are doing it by yourself. So it's organic.

Lida Wang: That's organic.

Gustavo Mariani: Organic?

Gustavo Mariani: Because you are doing by yourself, so it's organic. You're not buying. Yeah, M&A is inorganic.

Speaker #4: You're not buying.

Speaker #3: Yeah. M&A is in organic.

Lida Wang: inorganic. Okay.

Speaker #2: in organic. Okay.

Speaker #3: We have a lot of things to do.

Lida Wang: We have a lot of things to do.

Speaker #2: Yeah. It's a question I have many answers. I think we've been very aggressive when there was an opportunity to be very aggressive. And in the future, if there is another opportunity to be very aggressive, we will be very aggressive again.

Gustavo Mariani: Yeah. It's a question that has many answers. I think we've been very aggressive when there was an opportunity to be very aggressive. In the future, if there is another opportunity to be very aggressive, we will be very aggressive again.

Lida Wang: Liquidity.

Gustavo Mariani: On the contrary, exactly. One point to take into account is the liquidity of the stock. Definitely, the buybacks that we did had an impact on the liquidity of the stock. There are several issues to take into account. Obviously, the attractiveness of the investments that we are doing we think are competing extremely well with the buyback of shares.

Speaker #2: Or on the contract, exactly. One point to take into account is liquidity of the stock. Definitely, the buybacks that we did had an impact on the liquidity of the stock.

Speaker #2: So there are several issues to take into account. Obviously, the attractiveness of the investments that we are doing within our competing extremely well with the possibility with the buyback of shares.

Speaker #3: All right. Gamsi, Alpar from Impera Capital from Turkey, she's asking what's the well inventory of Rincón de Arana, including the north? Can the production go over 45,000 barrels per day?

Lida Wang: All right. Gamze Alper from Impera Capital from Turkey. She's asking: What's the well inventory of Rincón de Aranda, including the north? Can the production go over 45,000 barrels per day?

Speaker #2: Okay. The total inventory is more than 300 wells. Out of which two-thirds is in the south ones, third is in the north. And obviously, the production can go up to more than 45,000 per day, but that's what we consider a reasonable plateau.

Horacio Turri: Okay. The total inventory, it's more than 300 wells, out of which two-thirds is in the south, one third is in the north. Obviously, the production can go up to more than 45,000 per day, but that's what we consider a reasonable plateau because that's what we dimension our CPF for. How many years, she asked? How many years of production?

Speaker #2: Because that's what we dimension our CPF for. And how many years? She asked. How many years of production?

Speaker #3: No, no. She says if it stays at 45,000, how many years can you keep up the plateau?

Lida Wang: No, no.

Lida Wang: Oh.

Lida Wang: She says, If it stays at 45,000, how many years can you keep up the plateau?

Horacio Turri: if we

Speaker #2: And if we. Yeah. Okay. So taking that into account, the size of our processing facility, we expect approximately 15 years of production at 45,000.

Horacio Turri: if we

Lida Wang: Taking account the north.

Horacio Turri: Yeah. Okay. Taking that into account the size of our processing facility, we expect approximately 15 years of production at 45,000.

Lida Wang: Daniel has more questions. He's asking: What's the expected EBITDA and free cash flow generation for 2026? Let me give you a disclaimer here. We don't give guidance. This is Argentina. We can share with you what our forecast of the budget it is, right?

Speaker #3: perhaps. Daniel Guardiola has more questions. He's asking what's the expected EBDA and free cash flow generation for 2026? And let me give you a disclaimer here.

Speaker #3: We don't give guidance. This is Argentina. But we can share with you what our forecast of the budget it is, right?

Speaker #2: Yeah. They open up with your pregunta.

Speaker #3: What's the expected EBDA and free cash flow generation?

Horacio Turri: For 2026.

Speaker #2: For 2026?

Lida Wang: Actually, no generation outflow for 2026, right? We don't give guidance, but we can share with you the budget, which is the EBITDA for the parent company, it's around $1 billion, composed by 600 from YPF and 400 and something from power generation. Beware that this is not including the JV with Paragam. A little bit over $1 billion, of course. Corporate and petrochemicals are negative, that's why it's rounding this $1 billion. In the consolidated level, it's including the TGS and Transener equity share. It's around $1.3 billion. In the free cash flow, this is including the prepayments of TGS, CIESA, San Matías, and VMOS.

Speaker #3: 2022. Actually, no generation. Outflow for 2026, right? We don't give guidance, but we can share with you the budget, which is the EBDA for the parent company.

Speaker #3: It's around $1 billion. Composed by 600 from EMP. And 400 and something from power generation. Beware that this is not including this is not including the JB with Barragán.

Speaker #3: A little bit over $1 billion, of course. Then corporate and petrochemicals are negative. That's why it's rounding is $1 billion. In the consolidated level, it's including the TGS and transcenders share equity share.

Speaker #3: It's around 1.3 billion dollars. Then in the free cash flow, this is including the prepayments of TGS, CESA, San Matías, and Bemos. It's around an outflow of around 400 million dollars free cash flow outflow.

Lida Wang: It's around outflow of around USD 400 million dollars, free cash flow outflow. Have you considered to grow inorganically in the oil window of Vaca Muerta? This question he always ask. He asked. Good. How is an inorganic Vaca Muerta oil project ranking in terms of risk-adjusted IRRs against the Rhea project or the San Matías pipeline? That's a good question, though.

Speaker #3: Have you considered to grow inorganically in the oil window of Acamuerta? This question he always asks. But he asks. Good. How is an inorganic Bacamuerta oil project ranking in terms of risk-adjusted IRRs against the Uriah project or the San Matías pipeline?

Speaker #3: This is a good question, though.

Speaker #2: It's a good question. We are permanently looking at opportunities in oil in the shale oil window. It's very hard to give an IRR because it will very much depend on the quality of the asset.

Gustavo Mariani: A good question. We are permanently looking at opportunities in oil, in the shale oil window. It's very hard to give an IRR because it will very much depend on the quality of the asset. I would say that for a good asset, definitely we will be tempted to go ahead into inorganically, Operation.

Speaker #2: So I would say that for a good asset, definitely we will be tempted to go ahead into inorganically operation.

Speaker #1: Yeah. Regarding San Matías, it's not a project itself. It's part of the. The investment of the floating LNG project. And it's done by the same shareholder structure of CESA, of the whole project.

Adolfo Zuberbuhler: Yeah. Regarding San Matias, it's not a project itself. It's part of the-

Gustavo Mariani: Investment

Gustavo Mariani: the investment of the floating FLNG project, and it's done by the same shareholder structure of CIESA, of the whole project. cool. </edited_transcript

Speaker #3: Cool. Another question from, I don't know how he pronounces it, sorry, but I guess it's Gurgulet from Scarlet Macao Capital. The first question about the hedge, he's answered.

Lida Wang: Another question from Gregorio from Scarlet Macaw Capital. The first question about the hedge is answered, but the second question is very funny. It's worth asking is, with abundant gas potential in Argentina, what about petrochemicals? It is barely profitable, or does it make sense to keep it, or would you consider selling it to simplify the company like you sold the mature oil fields?

Speaker #3: But the second question is very funny. But it's worth asking is with abundant gas potential in Argentina, what about petrochemicals? It is barely profitable, or does it make sense to keep it, or would you consider selling it to simplify the company?

Speaker #3: You sold the mature oil fields.

Gustavo Mariani: We are looking for alternatives. It's, but nothing is on the table at this point.

Speaker #2: We are looking for alternatives. It's but nothing is on the table at this point.

Gustavo Mariani: We are looking for alternatives. It's, but nothing is on the table at this point.

Speaker #3: Cool. Edward Palma, he's asking, given the negative cash flow generation, are you planning to raise additional debt, or it is a focus or improving working capital management?

Lida Wang: Cool. Edward Palmer, he's asking: Given the negative cash flow generation, are you planning to raise additional debt, or it is a focus on improving working capital management? A little bit was said by-

Speaker #3: A little bit was cut by my.

Speaker #2: No. We always have to like to have high liquidity to keep all our options open. So yeah, it could be the case that we decide to continue tapping the market in the medium term.

Adolfo Zuberbuhler: Well, we always have to like to have high liquidity to keep all our options open. Yeah, it could be the case that we decide to continue tapping the market in the medium term.

Lida Wang: Well, now with all this. Okay. Ignacio Sniechowski from Puente. He's asking. I would like to ask the outlook for gas segment, particularly considering the increase in production and the lower exposure to Plan Gas.Ar. Could you share your expectation for local gas prices this year, especially for volumes traded outside Plan Gas.Ar? I guess he's asking about all the industries or-

Speaker #3: Cool. Well, no, with all this, I would like to okay. Ignacio López from Puente, he's asking, I would like to ask the outlook for gas segment, particularly considering the increasing production and the lower exposure to plant gas.

Speaker #3: Could you share your expectation for local gas prices this year, especially for volume-traded outside plant gas? I guess he's asking about the industry or.

Horacio Turri: He's asking about the market in an overall view, I think.

Speaker #2: He's asking about the market overall view, I think.

Lida Wang: Mm-hmm. Yeah.

Speaker #3: Yeah.

Horacio Turri: Well, as we mentioned before, it's the first time in many years that they are giving the right signal to the market. Our view is that the gas prices for 2026 are gonna be higher than last year.

Speaker #2: Well, as we mentioned before, it's the first time in many years that they are giving the right signal to the market. So our view is that the gas prices for 2026 are going to be higher than last year.

Lida Wang: Indeed. Now with the war more. Yeah.

Speaker #3: Indeed. And now with the warmor, yeah.

Horacio Turri: Particularly in the domestic market, with the possibility of selling your gas at an alternative, at least a percentage versus the alternative import parity.

Speaker #2: With the war and with the particularly in the domestic market with the possibility of setting your gas at an alternative at least a percentage, but the alternative import parity.

Horacio Turri: Particularly in the domestic market, with the possibility of selling your gas at an alternative, at least a percentage versus the alternative import parity.

Lida Wang: Correct. Okay. Armando Moretti, he's asking: Do you plan to pay dividends?

Speaker #3: Correct. Okay. Armando Moretti, he's asking, do you plan to pay dividends?

Gustavo Mariani: No.

Speaker #2: No.

Speaker #3: Correct. Jorge Mauro, given that this is the last one, I swear. So listo. That's true. So okay. 10 minutes more. Sorry. Sorry for that.

Lida Wang: This is the last one, I swear. That's true. Okay, 10 minutes more. Sorry. Sorry for that. 12 minutes. It won't happen again.

Speaker #3: 12 minutes. It won't happen again. Thank you very much. I don't know if you would like to add some comments. Covered all. Next, Earnings is on August.

Gustavo Mariani: Thanks.

Lida Wang: Thank you very much. I don't know if you would like to add some comments.

Adolfo Zuberbuhler: We covered all.

Lida Wang: Covered all. Next earnings is on August. Okay. Thank you very much.

Speaker #3: Okay. Thank you very much.

Speaker #2: Thank you very much. Thank you for your attention. Bye.

Gustavo Mariani: Thank you very much. Thank you for your attention.

Speaker #1: Thank you. Bueno.

Lida Wang: Thank you.

Lida Wang: Bye.

Lida Wang: Have a good day. </edited_transcript

Adolfo Zuberbuhler: Bye.

[Analyst]: Goodbye.

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Q1 2026 Pampa Energia SA Earnings Call

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Pampa Energia

PAM

Earnings

Q1 2026 Pampa Energia SA Earnings Call

Thursday, May 7th, 2026 at 2:00 PM

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Pampa Energia

Earnings

Q1 2026 Pampa Energia SA Earnings Call

PAM

Thursday, May 7th, 2026 at 2:00 PM

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