Q1 2026 Central Puerto SA (Argentina) Earnings Call

May 13, 2026

Speaker #2: Good morning, ladies and gentlemen. Welcome to CENTRAL PUERTO S.A.'s first quarter of 2026 earnings conference call. A slide presentation is accompanying today's webcast, and it will also be available on the investor section of the company's website.

Operator 2: Good morning, ladies and gentlemen. Welcome to Central Puerto's Q1 2026 Earnings Conference Call. A slide presentation is accompanying today's webcast and will be also available on the investor section of the company's website, www.centralpuerto.com/en/investors. All participants will be in a listen-only mode during the presentation. After that, there will be an opportunity to ask questions. Please note this event is being recorded. If you do not have a copy of the press release, please refer to the investor relations support section on the company's corporate website at www.centralpuerto.com. In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of the Central Puerto's website.

Operator: Good morning, ladies and gentlemen. Welcome to Central Puerto's Q1 2026 Earnings Conference Call. A slide presentation is accompanying today's webcast and will also be available on the investor section of the company's website, www.centralpuerto.com/en/investors. All participants will be in a listen-only mode during the presentation. After that, there will be an opportunity to ask questions. Please note this event is being recorded. If you do not have a copy of the press release, please refer to the investor relations support section on the company's corporate website at www.centralpuerto.com.

Speaker #2: www.centralpuerto.com/en/investors. All participants will be in a listen-only mode during the presentation. After that, there will be an opportunity to ask questions. Please note this event is being recorded.

Speaker #2: If you do not have a copy of the press release, please refer to the investor relations support section on the company's corporate website at www.centralpuerto.com.

Speaker #2: In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of the CENTRAL PUERTO S.A.

Operator: In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of the Central Puerto's website. Our host today will be Mr. Fernando Bonnet, Central Puerto CEO, Mr. Enrique Terraneo, the company's CFO, Mrs. María Laura Feller, Head of Investor Relations, and Mr. Alejandro Díaz López, Head of Corporate Finance. María Laura, please go ahead.

Speaker #2: website. Our host today will be Mr. Fernando Bonet, CENTRAL PUERTO S.A. CEO. Mr. Enrique Terreño, the company CFO. And Mrs. María Laura Feller, Head of Investor Relations and Finance.

Operator 2: Our host today will be Mr. Fernando Bonnet, Central Puerto CEO, Mr. Enrique Terraneo, the company's CFO, Mrs. María Laura Feller, Head of Investor Relations, and Mr. Alejandro Diaz Lopez, Head of Corporate Finance. María Laura, please go ahead.

Speaker #2: María Laura, please go ahead.

Speaker #3: Thank you very much. Good morning and welcome everyone. We are joining you today from Buenos Aires with our management team to report on the results of the first quarter of 2026.

María Laura Feller: Thank you very much. Good morning and welcome, everyone. We are joining you today from Buenos Aires with our management team to report on the results of Q1 2026 and to answer any questions you may have. Before we begin, I would like to remind everyone that today's presentation, as referenced on slide 2, contains forward-looking statements and non-IFRS financial measures, including Adjusted EBITDA. These statements are based on management's current expectations and are subject to risks and uncertainty. Please refer to the full disclaimer in our slide deck and on our website for further information. The company has changed its functional currency from Argentine pesos to USD dollars effective 1 January 2026, so applicable to Q1 2026 financial figures.

María Laura Feller: Thank you very much. Good morning and welcome, everyone. We are joining you today from Buenos Aires with our management team to report on the results of Q1 2026 and to answer any questions you may have. Before we begin, I would like to remind everyone that today's presentation, as referenced on slide two, contains forward-looking statements and non-IFRS financial measures, including Adjusted EBITDA. These statements are based on management's current expectations and are subject to risks and uncertainty. Please refer to the full disclaimer in our slide deck and on our website for further information. The company has changed its functional currency from Argentine pesos to USD dollars, effective 1 January 2026, so applicable to Q1 2026 financial figures.

Speaker #3: And to answer any questions you may have. Before we begin, I would like to remind everyone that today's presentation as reference on slide 2 contains forward-looking statements and non-IFRS financial measures, including adjusted EBITDA.

Speaker #3: These statements are based on management's current expectations and are subject to risks and uncertainty. Please refer to the full disclaimer in our slide deck and on our website for further information.

Speaker #3: The company has changed its functional currency from Argentine pesos to USC. Dollars effective January 1, 2026, so applicable to 1Q26 financial figures. For previous quarters, figures are presented in US dollars.

María Laura Feller: For previous quarters, figures are presented in US dollars, converted from Argentine pesos using the reference exchange rate reported by the Argentine Central Bank at the end of each period. With that, let us move to the highlights of the quarter. Turning to slide 3. The Q1 2026 was a strong quarter for Central Puerto, characterized by outstanding commercial execution and continued progress in market normalization following Resolution 425. Let me walk you through our key metrics. Adjusted EBITDA reached $120.0 million, representing a 41.6% increase quarter-on-quarter versus $84.7 million in Q4 2025, and 33.4% year-on-year growth versus $89.9 million in Q1 2025. This result reflects the full benefit of new generation assets, commercial contracting gains, and the normalization of the wholesale electricity market.

María Laura Feller: For previous quarters, figures are presented in US dollars, converted from Argentine pesos using the reference exchange rate reported by the Argentine Central Bank at the end of each period. With that, let us move to the highlights of the quarter. Turning to slide three. The Q1 2026 was a strong quarter for Central Puerto, characterized by outstanding commercial execution and continued progress in market normalization following Resolution 425. Let me walk you through our key metrics. Adjusted EBITDA reached $120.0 million, representing a 41.6% increase quarter-on-quarter versus $84.7 million in Q4 2025, and 33.4% year-on-year growth versus $89.9 million in Q1 2025. This result reflects the full benefit of new generation assets, commercial contracting gains, and the normalization of the wholesale electricity market.

Speaker #3: Converted from Argentine pesos using the reference exchange rate reported by the Argentine central bank at the end of each period. With that, let us move to the highlights of the quarter.

Speaker #3: Turning to slide 3, the first quarter 2026 was a strong quarter for CENTRAL PUERTO S.A., characterized by outstanding commercial execution and continued progress in market normalization, following resolution for 125.

Speaker #3: Lemmy walk you through our key metrics. Adjusted EBITDA reached 120.0 million dollars, representing a 41.6% increase quarter on quarter. Versus 84.7 million dollars in 4Q25 and 33.4% year-on-year growth versus 89.9 million dollars in 1Q25.

Speaker #3: These results reflect the full benefit of new generation assets, commercial contracting gains, and the normalization of the wholesale electricity market. Revenues totaled 248.6 million dollars, up 43.8% to quarter on quarter versus 4Q25 and up 26.7% year-on-year versus 1Q25.

María Laura Feller: Revenues totaled $248.6 million, up 43.8% quarter on quarter versus Q4 2025 and up 26.7% year on year versus Q1 2025, driven by higher contracted and spot revenues, the contribution of Brigadier López combined cycle and the new solar farms added in 2025. Total generation for the quarter was 5,420 GW, a 54.2% increase quarter on quarter, largely reflected by Opsion by Solar and Amani. Seeing the restoration of Central Costanera combined cycle units and the addition of new installed capacity.

María Laura Feller: Revenues totaled $248.6 million, up 43.8% quarter on quarter versus Q4 2025 and up 26.7% year on year versus Q1 2025, driven by higher contracted and spot revenues, the contribution of Brigadier López's combined cycle, and the new solar farms added in 2025. Total generation for the quarter was 5,420 GW, a 54.2% increase quarter on quarter, largely reflected by Opsion by Solar and Amani. Seeing the restoration of Central Costanera combined-cycle units and the addition of new installed capacity.

Speaker #3: Driven by higher contracted and spot revenues. The contribution of Brigadier López combined cycle and the new solar farms added in 2025. Total generation for the quarter was 5,420 VHW, a 54.2% increase quarter on quarter, largely reflected by upside by solar and amani.

Speaker #3: Total generating the restoration of central costaneras combined cycle units and the addition of new installed capacity. Capital expenditure for the quarter amounted to 301.0 million US.

María Laura Feller: Capital expenditure for the quarter amounted to $301.0 million, including the $225.0 million transfer of Piedra del Aguila shares following the concession award renewal, and $66.0 million in BESS construction and maintenance works. Our net financial leverage ratio stands at 1.06x with net financial debt of ARS 390.8 million against the last 12 months Adjusted EBITDA of ARS 367.2 million. The funding member credit outstanding balance is ARS 105.8 million. On the credit rating front, we received an upgrade to triple A from Moody's Argentina.

María Laura Feller: Capital expenditure for the quarter amounted to $301.0 million, including the $225.0 million transfer of Piedra del Aguila shares following the concession award renewal, and $66.0 million in BESS construction and maintenance works. Our net financial leverage ratio stands at 1.06x with net financial debt of ARS 390.8 million against the last 12 months' Adjusted EBITDA of ARS 367.2 million. The funding member's credit outstanding balance is ARS 105.8 million. On the credit rating front, we received an upgrade to triple A from Moody's Argentina.

Speaker #3: Including the $225.0 million U.S. transfer of Piedra del Águila shares, following the concession award renewal, and $66.0 million U.S. in BSS construction and maintenance works.

Speaker #3: Our net financial leverage ratios stands at 1.06 times with net financial debt of 390.8 million against the last 12 months adjusted IVADA of 367.2 million.

Speaker #3: The fund investment credit outstanding balance is 105.8 million. On the credit rating front, we received an upgrade to 3PA from Moody's Argentina. From a strategic perspective, the concession renewal of Piedra del Águila for 30 years to January 2056 is a landmark achievement, securing a flagship hydro asset under a new long-term framework.

María Laura Feller: From a strategic perspective, the concession renewal of Piedra del Aguila for 30 years to January 2056 is a landmark achievement, securing a flagship hydro asset under a new long-term framework. Additionally, our BESS project at the Central Puerto facility is advancing well. With 60% of site works completed, 32 concrete pads finished, and phase I of the 132 kV work done. Market normalization continues under Resolution 425, and Central Puerto has achieved a leading commercial positions in the newly established term market. More on that on the next slide. Moving to slide 4. In Q1 of 2026, Central Puerto achieved a decisive commercial breakthrough under the new market framework established by Resolution 425.

Speaker #3: Additionally, our BESS project at the CENTRAL PUERTO S.A. facility is advancing well. With 60% of sidewalls completed, 32 concrete paths finished, and phase one of the 132 kVTR work done.

Speaker #3: Market normalization continues under resolution 425. And CENTRAL PUERTO S.A. has achieved a leading commercial position in the newly established term market. More on that on the next slide.

Speaker #3: Moving to slide 4. In the first quarter of 2026, CENTRAL PUERTO S.A. achieved a decisive commercial breakthrough under the new market framework established by resolution 400-25.

Speaker #3: Our contracting performance in the newly established term market, we could highlight that. CENTRAL PUERTO S.A. held number one market share in MATP. The contracted capacity segments for thermal and hydro FRAFES.

María Laura Feller: Our contracting performance in the newly established term market, we could highlight that Central Puerto held number 1 market share in MATP, the contracted capacity segments for thermal and hydro frac cap. In MATER, the contracted energy segment for thermal and hydro, Central Puerto held the number 2 market share. Overall, 44% of our Q1 2026 revenues were generated from contracted sales, demonstrating our ability to quickly capitalize the market opportunities. Turning to slide 5 for the earnings summary. Q1 2026 Adjusted EBITDA came in at $120.0 million, with an Adjusted EBITDA margin reflecting efficient operations and a better revenue mix. The 41.7% quarter-on-quarter increase was driven by higher spot revenues from market normalization under Resolution 425.

Speaker #3: In AMATE I, the contracted energy segment for thermal and hydro CENTRAL PUERTO S.A. held the number two market share. Overall, 44% of our 1Q26 revenues were generated from contracted saves.

Speaker #3: Demonstrating our ability to quickly capitalize the market opportunities. Turning to slide 5 for the earnings summary, first quarter 2026 adjusted EBITDA came in at 120.0 million US dollars with an adjusted EBITDA margin reflecting efficient operations and a better revenue mix.

Speaker #3: The 41.7% quarter on quarter increase was driven by higher spot revenues from market normalization under resolution 420-25. The contribution of the Brigadier López combined cycle, which achieved its COD in January 2026 with an additional gas turbine closing the CSEC configuration, adding 140 megawatts.

María Laura Feller: The contribution of the Brigadier López combined cycle, which achieved its COD in January 2026, with an additional gas turbine closing the C6 configuration, adding 140 MW. Full quarter contributions from my 2025 solar acquisitions, Cafayate and San Carlos, and the solid performance of our wind farms. On the revenue side, the 44% quarter-on-quarter increase to $248.6 million reflected contracted revenues growing from new PPA sales from Brigadier López, active participation in MAT contracting, and contributions from Piedra del Aguila. Spot revenues improving due to market normalization, restored volumes at Central Costanera following its Q4 2025 maintenance and $8 million from self-procured natural gas. On a year-on-year basis, the 33.5% EBITDA growth and 27% revenue growth underscore the structural improvement in our earnings profile.

Speaker #3: Full quarter contributions from May 2025 solar acquisitions, Cafayate and San Carlos, and the solid performance of our wind farms. On the revenue side, the 44% quarter on quarter increase to 248.6 million dollars reflected contracted revenues growing from new PPA sales from Brigadier López active participation in MAT contracting and contributions from Piedra del Águila.

Speaker #3: Spot revenues improving due to market normalization, restored volumes at CENTRAL COSTANERA following its 4Q25 maintenance, and 8 million dollars from self-procured natural gas. On a year-on-year basis, the 33.5% EBITDA growth and 27% revenue growth there scored the structural improvement in our earnings profile.

Speaker #3: Moving to slide 6 for a review of our generation and availability performance. Total generation for the quarter was 5,420 GWh, up 54% quarter on quarter.

María Laura Feller: Moving to slide 6 for a review of our generation and availability performance. Total generation for the quarter was 5,420 GW, up 54% quarter-on-quarter. This significant jump was primarily driven by the maintenance works of Central Costanera's Mitsubishi and Siemens combined cycle units, which had been under maintenance during Q4 2025. The addition of Brigadier López combined cycle, which contributed incremental generation since its COD in January 2026, adding +229 MW to our installed capacity on a quarter-on-quarter basis. In Q1, Central Puerto acquired 100% of the shares of Patagonia Energy S.A., or PESA, for a total consideration of $50 million. PESA holds a 10-year conventional exploitation license for the Aguada del Chivato and Aguada de Bocarey blocks in Neuquén Province, valid through 30 May 2031.

Speaker #3: This significant jump was primarily driven by the maintenance works of CENTRAL COSTANERA's Mitsubishi and Siemens combined cycle units, which had been under maintenance during 4Q25.

Speaker #3: The addition of Brigadier López combined cycle, which contributed incremental generation since its COD in January 2026, adding plus 229 megawatts to our installed capacity on a quarter on quarter basis.

Speaker #3: In the first quarter, Central Puerto S.A. acquired 100% of the shares of Patagonia Energy S.A., or PESA, for a total consideration of $50 million.

Speaker #3: PESA holds a 10-year conventional exploitation license for the Aguada del Chivato and Aguada de Bocaray blocks in Neuquén province. Valid through May 2031. The investment thesis is compelling for several reasons.

María Laura Feller: The investment thesis is compelling for several reasons. The blocks cover over 27,000 oil-focused acres in the northern area of the Vaca Muerta play, an area adjacent to blocks that have already de-risked the black oil window of this world-class formation. Low entry cost per acre and a limited exploratory phase plan with an existing oil treatment plant facility of 1,900 barrels per day already in operation. Solid geological evidence of unconventional hydrocarbon potential in target landing zones, assessed by qualified geologists based on existing conventional drilling data. Under a successful development scenario, this is a potential RIGI-related investment opportunity of up to $600 million to unlock the potential value of these assets. We are currently advancing a de-risking plan backed by international unconventional play experts. Our balance sheet remains solid, though the quarter was capital-intensive due to the Piedra del Aguila concession transaction.

Speaker #3: The blocks cover over 27,000 oil-focused acres in the northern area of the Huaca Muerta Play, an area adjacent to blocks that have already de-risked the black oil window of this world-class formation.

Speaker #3: Low entry cost per acre and unlimited exploratory phase plan, with an existing oil treatment plant facility of 1,900 barrels per day already in operation.

Speaker #3: Solid geological evidence of unconventional hydrocarbon potential in targo landing zones. Assessed by qualified geologists based on existing conventional drilling data. Under a successful development scenario, this is a potential REG-related investment opportunity of up to 600 million dollars to unlock the potential value of these assets.

María Laura Feller: Under a successful development scenario, this is a potential RIGI-related investment opportunity of up to $600 million to unlock the potential value of these assets. We are currently advancing a de-risking plan backed by international unconventional play experts. Our balance sheet remains solid, though the quarter was capital-intensive due to the Piedra del Aguila concession transaction.

Speaker #3: We are currently advancing a de-risking plan backed by international unconventional play experts. Our balance sheet remains solid, though the quarter was capital intensive due to the Piedra del Águila concession transfer.

Speaker #3: Total outstanding financial debt stands at 539.2 million dollars. Against cash and financial current assets of FRN 148.4 million dollars. Resulting in a net financial debt of 390 million dollars.

María Laura Feller: Total outstanding financial debt stands at $539.2 million against cash and financial current assets of $148.4 million, resulting in a net financial debt of $390 million. Against our last twelve months Adjusted EBITDA of $367.2 million, this yields a net leverage ratio of 1.06 times. Q1 2026 marks a pivotal inflection point for Central Puerto. Our results reflect sustained revenue, margin, and EBITDA growth, driven by strong commercial execution, operational excellence, and the contribution of the new power generation assets incorporated through our capital plan over the past 2 years.

Speaker #3: Against our last 12 months adjusted EBITDA of 367.2 million dollars, this yields a net leverage ratio of 1.06 times. First quarter 2026 marks a pivotal inflection point for CENTRAL PUERTO S.A.

Speaker #3: Our results reflect sustained revenue, margin, and EBITDA growth. Driven by strong commercial execution, operational excellence, and the contribution of the new power generation assets incorporated through our capital plan over the past two years, our 2026 outlook is constructive.

Fernando Bonnet: Our 2026 outlook is constructive. We expect continued operational excellence and financial performance with BESS projects progressing toward their mid-2027 commercial ongoing market normalization, providing further revenue upside and incremental contracting opportunities with large users and distribution companies materializing as the market matures. We remain firmly committed to delivering long-term value for our shareholders, and we are excited about the opportunities ahead for Central Puerto. Thank you very much for your interest and confidence in Central Puerto. Operator, please open the line for questions.

María Laura Feller: Our 2026 outlook is constructive. We expect continued operational excellence and financial performance with BESS projects progressing toward their mid-2027 commercial ongoing market normalization, providing further revenue upside and incremental contracting opportunities with large users and distribution companies materializing as the market matures. We remain firmly committed to delivering long-term value for our shareholders, and we are excited about the opportunities ahead for Central Puerto. Thank you very much for your interest and confidence in Central Puerto. Operator, please open the line for questions.

Speaker #3: We expect continued operational excellence and financial performance, with BEES projects progressing toward their mid-2027 commercial present day ongoing market normalization providing further revenue upside and incremental contracting opportunities with large users and distribution companies materializing as a market matures.

Speaker #3: We remain firmly committed to delivering long-term value for our shareholders and we are excited about the opportunities ahead for CENTRAL PUERTO S.A. Thank you very much for your interest and confidence in CENTRAL PUERTO S.A.

Speaker #3: Operator, please open the line for questions.

Speaker #2: Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on 'Raise Hand.'

Operator 2: Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on put Hand Down. Our first question comes from Matías Cattaruzzi with Adcap.

Operator: Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on put Hand Down. Our first question comes from Matías Cattaruzzi with Adcap.

Speaker #2: If your question has already been answered, you can leave the queue by clicking on put hand down. Please hold while we poll for questions.

Speaker #2: Please hold while we poll for questions. Our first question comes from Matías Catarusi with ADCAP.

Matías Cattaruzzi: Hi. Good morning. How are you? I got three questions. First, in Q1, we observed that post-maintenance generation rebound flowed primarily into the spot market rather than into contracted PPAs. With PPAs volumes growth, as we are seeing, it would be more gradual, right, for 2026. Could you share with us how the migrations towards more contracting and PPAs is progressing into 2026? I got another question on how do you expect self-procurement in fuels affecting CEPU going forward? Do you expect to access gas transportation capacity through the Perito Moreno expansion? Or do you see a reliance on CAMMESA's Plan Gas going forward? I got a final question.

Speaker #3: Hi, good morning. How are you? I got three questions. First, in the first quarter, we observed that post-maintenance generation rebound flowed primarily into the spot market rather than into contracted PPAs.

Speaker #3: With PPA volumes, growth as we are seeing it would be more gradual, right, for 2026. Could you share with us how the migrations towards more contracting and PPAs is progressing into 2026?

Speaker #3: And then I got another question on how do you expect self-procurement in fuels affecting CEPU going forward? Do you expect to access gas transportation capacity through the Perito Moreno expansion or do you see a reliance on CAMESA's plant gas going forward?

Matías Cattaruzzi: Do you expect to access gas transportation capacity through the Perito Moreno expansion? Or do you see a reliance on CAMMESA's Plan Gas going forward? I got a final question. Following the closing of the transaction with Patagonia Energy, could you walk us through the specific timeline for the two shale pilots? Have you been in conversations with other potential operating partners, or does it involve a standalone development?

Speaker #3: And then I got a final question following the closing of the transaction with Patagonia Energy. Could you walk us through the specific timeline for the two shale pilots, and have you been in conversations with other potential operating partners, or does it involve a standalone development?

Matías Cattaruzzi: Following the closing of the transaction with Patagonia Energy, could you walk us through the specific timeline for the two shale pilots? Have you been in conversations with other potential operating partners, or does it involve a standalone development?

Speaker #4: Okay, thank you. Thank you for your question. Going one by one, the first that you asked is related to the migration from the spot market to the contracted market.

Fernando Bonnet: Okay. Thank you. Thank you for your question. Going one by one. The first that you ask is related to the migration from the spot market to the contracted market. We are in fact in the first quarter and right now advancing that area. For the first 20% that the regulation allows to us to sell to the private consumers, we are full contracted there right now. We are now keep growing in the other 80% that we can only sell to the distribution companies. This is the regulations as is right now. We are trying to or we are starting to moving that 80% that we still sell to the spot market to negotiating with distribution companies.

Speaker #4: We are in fact in the first quarter and right now advancing that area so for the first 20% that the regulation allows to us to sell to the private consumers, we are full contracting there.

Speaker #4: Right now. And so we are now keep going in the other 80% that we can only sell to the distribution companies. This is the regulation as is right now.

Speaker #4: So we are trying to or we are starting to move in that 80% that we still sell to the spot market to negotiate with distribution companies and right now we are having a good advance with them.

Fernando Bonnet: Right now we are having a good advance with them. We expect that to have more news about that in next quarter. That is the first question. The second, you mentioned, I think, is related to the gas transportation. In terms of gas transportation, we participate in the TGS auction. We receive was an auction, very competitive, so we receive less than we ask. We receive around 400,000 meter cubes. We ask for 1.6 million. We are still trying to get in the next round of the TGS auction, more gas transportation there. We are talking with distribution companies also to have more transportation. In terms of the gas itself

Speaker #4: And we expect that to have more news about that in next quarter. That is the first question. The second, you mentioned I think is related to the gas transportation.

Speaker #4: In terms of gas transportation, we participated in the TGS auction. The auction was very competitive, so we received less than we asked for. We received around 400,000 cubic meters, while we asked for 1.6 million. We are still trying to get more gas transportation capacity in the next round of the TGS auction.

Speaker #4: And we are talking with distribution companies also to have more transportation in terms of the gas itself. We are working right now we are still in the plant gas with CAMESA but we are we had advanced conversation with all gas producers to start buying our own gas so I think that in the next two months we will have news related to that.

Fernando Bonnet: We are working right now. We are still in the Plan Gas with CAMMESA, but we had advanced conversation with all gas producers to start buying our own gas. I think that in the next 2 months, we will have news relative to that. It's not easy because there is no producer except Pampa that get out of Plan Gas. Pampa by using their own generation. There is no private producer yet outside the Plan Gas, but we have advanced conversation with some of them. We expect news for the next 2 or 3 months in order to start buying the gas directly, not through CAMMESA.

Speaker #4: It's not easy because there is no producer except Pampa that get out of plant gas Pampa by using their own generation so there is no private producer yet outside the plant gas but we have advanced conversation with some of them and we expect news for the next two or three months in order to start buying the gas directly not through CAMESA.

Fernando Bonnet: In terms of all alternative fuels, like diesel oil, fuel oil, and LNG or import gas, we are working and we are right now buying our own fuel and gas. We are having that set with CAMMESA. The last one is the acquisition of PESA. We are as Laura mentioned, we are working with a US company in order to develop the Melón man phase for the two pilots, two or three wells that we are thinking on doing in order to confirm the resources there and work for the cinch with the province. Right now, we don't have a fixed timing to comment.

Speaker #4: And in terms of alternative fuels like diesel oil, fuel oil and LNG or import gas, we are working and we are right now buying our own fuel and gas.

Speaker #4: We are having that set with CAMESA. And the last one is the acquisition of PESAF. We are, as Laura mentioned, working with a U.S. company in order to develop the development phase for the two pilot—two or three wells—that we are thinking of doing in order to confirm the resources there and work for the CENTRA with the province.

Speaker #4: But right now we don't have a fixed time to comment but we expect that this is going to happen perhaps last quarter or this year or the first of the next one because you need to bring the all the drilling sets and that stay time right now like four between four and five months.

Fernando Bonnet: Right now, we don't have a fixed timing to comment. We expect that this is going to happen perhaps Q4 or this year or Q1 of the next one because you need to bring all the drilling sets, and that takes time right now, like 4, between 4 and 5 months. That could be the timing, but it's not fully closed yet.

Fernando Bonnet: We expect that this is going to happen perhaps Q4 or this year or Q1 of the next one because you need to bring all the drilling sets, and that takes time right now, like 4, between 4 and 5 months. That could be the timing, but it's not fully closed yet.

Speaker #4: So, that could be the timing, but it's not fully closed yet.

Matías Cattaruzzi: Great. Thank you. I got a follow-up on generation volumes going forward in 2026. Do you expect PPA contracted volumes to continue growing during 2026 or to stay steady as you shown in Q1? What will happen with the spot market generation as well?

Speaker #3: Great, thank you. I got a follow-up on generation volumes going forward in 2026. Do you expect PPA contracted volumes to continue growing during 2026 or to stay steady as you shown in the first quarter?

Speaker #3: And what will happen with the spot market generation as well?

Speaker #4: Oh, yes. As I mentioned before, we expect to do to have a to increase our PPAs especially with distribution companies. That is the idea that we are looking for.

Fernando Bonnet: No, yes, as I mentioned before, we expect to have a, to increase our PPAs, especially with the distribution companies. That is the idea that we are looking for. As I mentioned, we are in the private PPAs with the big industries. We are almost at 100% of our capacity right now, regulated capacity. we have something to do in related to distribution company. We can go up to that 20% when we start a negotiation with distribution company. That is what we are looking for in the next quarters.

Speaker #4: As I mentioned, we are in the private PPAs with big industries. We are almost at 100% of our capacity right now. Regulator regulated capacity but we have some something to do related to distribution company.

Speaker #4: We can go up to that 20% when we start negotiation with distribution company. So that is the what we are looking for the next quarters.

Speaker #3: Great. And do you have a specific contract timeline of the new contracts? Like they are a year contract, two-year contracts?

Matías Cattaruzzi: Great. Do you have specific contract timeline of the new contracts? Like they are a 1-year contract, a 2-year contracts?

Speaker #4: Yes. Normally we are seeing yes, one year or no more than two years. Yes. This is for thermal, you know, when you go to renewables that could be perhaps bigger than that.

Fernando Bonnet: Yes. Normally, we are seeing, yes, 1 year or no more than 2 years. Yes. This is for thermal, you know. When you go to renewables, that could be perhaps bigger than that, 3 years, 5 years.

Speaker #4: Three years, five years.

Speaker #3: Okay, great. Thank you.

Matías Cattaruzzi: Okay, great. Thank you.

Speaker #4: You're welcome.

Fernando Bonnet: You're welcome.

Speaker #1: Next question from Thomas Peruchin with Balance.

Operator 2: Next question from Tomas Perusin with Balanz.

Operator: Next question from Tomas Perusin with Balanz.

Speaker #3: Hello, good morning. Can you hear me?

Tomas Perusin: Hello, good morning. Can you hear me?

Tomás Perusin: Hello, good morning. Can you hear me?

Speaker #4: Yes, Thomas.

Fernando Bonnet: Yes, Tomas.

Speaker #3: Okay, congratulations on the result first. I have three questions. I will go one by one if that's okay. Just a quick follow-up of the previous question.

Tomas Perusin: Okay. Congratulations on the result first. I have 3 questions. I will go one by one, if that's okay.

Tomás Perusin: Okay. Congratulations on the result first. I have 3 questions. I will go one by one, if that's okay.

Fernando Bonnet: Yes.

Tomas Perusin: Just a quick follow on off the previous question. First, how much capacity do you consider can be viable contracted under energy PPAs with DISCOs and industrial users? How much have you effectively contracted to date? See if you see feasible to close PPAs with DISCOs this year.

Tomás Perusin: Just a quick follow on off the previous question. First, how much capacity do you consider can be viable contracted under energy PPAs with DISCOs and industrial users? How much have you effectively contracted to date? See if you see feasible to close PPAs with DISCOs this year.

Speaker #3: First, how much capacity do you consider can be able to be contracted under energy PPAs with discos? And industrial users? And how much have you effectively contracted to date?

Speaker #3: And if you see feasible to close PPAs with discos this year?

Fernando Bonnet: You ask about capacity, not energy. Capacity, we are fully contracted right now. Our capacity are full contracted. Previously I talk about energy, so I think during this year, yes, we can have a Of course, this is by one by one. Each DISCO have the, a process itself, but I expect to have a contract with DISCOs or the, or perhaps the first ones during this year, yes.

Speaker #4: You ask about capacity. Not energy. So capacity we are fully contracted right now. Our capacity are full contracted. But previously I talk about energy so I think during this year yes, we can have of course this is one by one.

Speaker #4: Each disco have the process itself but I expect to have a contract with discos or perhaps the first ones during this year, yes.

Speaker #3: Okay. The second one, regarding the DGS transfer capacity, how much additional capacity do you still need to fully cover your fuel needs once plant gas expire?

Tomas Perusin: Okay. The second one, regarding the TGS, transfer capacity, how much additional capacity do you still need to fully cover your fuel needs once Plan Gas expire? How challenging do you think this will be considering current bottlenecks in the system?

Tomás Perusin: Okay. The second one, regarding the TGS, transfer capacity, how much additional capacity do you still need to fully cover your fuel needs once Plan Gas expire? How challenging do you think this will be considering current bottlenecks in the system?

Speaker #3: And how challenging do you think this will be considering current bottlenecks in the system?

Speaker #4: Well, that's the question it is. I think it's very big to discuss perhaps in a few minutes but you need to consider that we more or less consume perhaps between 10 and 12 million meter cubic day per day but this doesn't mean that we need all this firm capacity because there is a lot of capacity in the pipelines except in the wintertime, you know?

Fernando Bonnet: Well, that's the question, this, I think it's very big to discuss perhaps in a few minutes. You need to consider that we more or less consume perhaps between 10 and 12 million meter cubic day per day. This doesn't mean that we need all this firm capacity because there is a lot of capacity in the pipelines, except in the wintertime, you know? We want to have the capacity that we need for the contract that we have, and this is much more or less than the all gas that we consume.

Speaker #4: So we want to have the capacity that we need for the contract that we have and this is less much more less than the all gas that we consume.

Speaker #4: But as I mentioned, in the DGS bidding process we ask for 1.6 million and we receive 400. So I think we want to at least cover that 1.6 million to have firm gas during winter which is the period that is important to have it.

Fernando Bonnet: As I mentioned, in the TGS bidding process, we asked for 1.6 million, and we received 400. I think we want to at least cover that 1.6 million to have firm gas during winter, which is the period that is important to have it. The rest of the year transportation is not a problem. The problem is during perhaps 30, 45 days during winter. In that moment is when we are going to need this additional firm capacity. As mentioned, 1.6, 2 million is what we expect to have.

Speaker #4: But the rest of the year is not the transportation is not a problem. So the problem is during perhaps 30, 45 days during winter.

Speaker #4: So, in that moment is when we're going to need this additional firm capacity. But, as I mentioned, 1.6 to 2 million is what we expect to have.

Speaker #3: Okay. And last one regarding your recent acquisition in Bacamorta. Do you have an estimated CAPEX for the two or three wells that you are thinking to develop?

Tomas Perusin: Okay. Last one, regarding your recently acquisition in Vaca Muerta, do you have an estimated CapEx for the 2 or 3 wells that are you thinking to develop?

Tomás Perusin: Okay. Last one, regarding your recently acquisition in Vaca Muerta, do you have an estimated CapEx for the 2 or 3 wells that are you thinking to develop?

Speaker #4: No, not yet but it's normal what we expect is the normal values that the industry have there is around 17 million per well.

Fernando Bonnet: No, not yet, but it's normal. What we expect is the normal values that the industry have there is around 17 million per well.

Speaker #3: Okay, thank you. Thank you very much.

Tomas Perusin: Okay. Thank you. Thank you very much.

Tomás Perusin: Okay. Thank you. Thank you very much.

Fernando Bonnet: Oh, okay. You're welcome.

Speaker #4: Okay. You're welcome.

Speaker #1: Next question from Teodora Nashiba with CENTRAL PUERTO S.A. You can open your microphone. I believe she's having some technical issues. We are going to go ahead with our next question from Marco Ceru with Alaria.

Operator 2: Next question from Teodora Nacheva with Sandglass Capital. You can open your microphone. I believe she's having some technical issues. We're gonna go ahead with our next question from Marcus Seru with Alaria. Thank you for the presentation. A few questions. Number 1, could you explain more about the plans in Vaca Muerta? Second, leverage ratio guidance for December 2026. Thank you.

Operator: Next question from Teodora Nacheva with Sandglass Capital. You can open your microphone. I believe she's having some technical issues. We're gonna go ahead with our next question from Marcus Seru with Alaria. Thank you for the presentation. A few questions. Number 1, could you explain more about the plans in Vaca Muerta? Second, leverage ratio guidance for December 2026. Thank you.

Speaker #1: Thank you for the presentation. A few questions. Number one, could you explain more about the plans in Bacamorta? And second, leverage ratio guidance for December 2026?

Speaker #1: Thank you.

Speaker #4: Okay. Well, in terms of Bacamorta first, our plan is of course entering the area and try to develop the area that we acquire. That is our plan.

Fernando Bonnet: Okay. Well, in terms of Vaca Muerta first, our plan is of course entering the area and trying to develop the area that we acquire. That is our plan. It's an area of 27,000 acres. There is a lot of to do there. This is the first time We enter in oil and gas business, so we need to de-risk the area to start understanding the business, and this will be Take perhaps two years. Of course, we're gonna look at opportunities if appear, but our first focus is to develop this area.

Speaker #4: It's an area of 27,000 acres. So that is a lot of to do there. So this is the first time that we are going to we enter in oil and gas business.

Speaker #4: So we need to de-risk the area to start understanding the business. And this will be take perhaps a couple of years of course we're going to look at opportunities if appear but our fair focus is to develop this area.

Fernando Bonnet: It's an area that could place a rig there. We need to work for the rig also and to have the sand. This is our main focus right now, to develop in Vaca Muerta. We are going to see how it works and if we could enlarge that. In terms of leverage, it will depend on the opportunities. We are going to still see opportunities in M&A, in our sector, in energy sector, coming from privates or coming from government auctions. That is the leverage ratio going to depend on that opportunities that we can develop that opportunities. We are not expecting gross 2.5 or that area, 2.5x.

Speaker #4: And it's an area that could be could place a rig there. So we need to work for the rig also and to have the sense.

Speaker #4: So, this is our main focus right now—to develop in Bacamorta. And we're going to see how it works, and if we could enlarge that.

Speaker #4: In terms of leverage, it will depend on the opportunities. We're going to still see opportunities in M&A, in our sector, in energy sector. Coming from private or coming from government auctions.

Speaker #4: So that's the leverage ratio going to depend on that opportunities that we can develop that opportunities and but we are not expecting gross 2.5 or that area.

Speaker #4: 2.5 times. But well, it will depend on the opportunities appearing and what we can get it or not.

Fernando Bonnet: Well, it will depends on the opportunities appearing and what we can get it or not.

Speaker #1: Thank you. Our next question comes from Teodora Nashiba with CENTRAL PUERTO S.A. You can open your microphone. You can open your microphone.

Operator 2: Thank you. Our next question comes from Teodora Nacheva with Sandglass Capital. You can open your microphone.

Operator: Thank you. Our next question comes from Teodora Nacheva with Sandglass Capital. You can open your microphone.

Speaker #5: Hi. I hope you can hear me now.

Teodora Nacheva: Hi. I hope you can hear me now.

Speaker #4: Yes.

Fernando Bonnet: Yes.

Speaker #5: Sorry. Yeah. Internet in London is crazy. So just taking back to the liberalization and spot market, can you maybe you mentioned it but I couldn't hear you well.

Teodora Nacheva: Sorry. Yeah, internet in London is crazy. Just taking back to, like, the liberalization and spot market, maybe you mentioned it, but I couldn't hear you well. Can you mention again what is the realized price in legacy energy and capacity? How you see going forward with PPAs? You mentioned the private ones, but I also saw there's something about CAMMESA potentially launching a small auction again. If you can, yeah.

Speaker #5: Can you mention again what is the realized price in legacy energy? And capacity, how you see going forward with PPAs. You mentioned the private ones but I also saw there's something about COMESA potential launching a small auction again.

Speaker #5: If you can yeah.

Speaker #4: A lot of questions in one but going one by one, in terms of prices, that's very there is no clear market right now. So each negotiation, each by each.

Fernando Bonnet: A lot of questions in one, going one by one. In terms of prices, there is no clear market right now. We see each negotiation is by each. Depending on the timing, depending on if you are acquiring renewables, if you are acquiring hydro, if you are acquiring thermal, it's not easy to set a price for the whole market. For sure it's higher than the spot prices. That is good news. It's depending on, as I mentioned, the counterpart, if you are acquiring hydro or depending on the technology, are better. We are seeing better prices, much more better price than the spot market. In terms of new auctions or CAMMESA possible new auctions are coming.

Speaker #4: So depending on the timing, depending on if you are acquiring renewables, if you are acquiring hydro, if you are acquiring thermal. So it's not easy to set a price for the whole market.

Speaker #4: But for sure it's higher than the spot prices. That's a good news. But it's depending on, as I mentioned, the counterpart, if you are acquiring hydro or depending on the technology.

Speaker #4: But are better we are seeing better prices much more better price than the spot market. In terms of new auctions or COMESA possible new auctions are coming or they are one auction in place which is the ALMA SADI auction is an auction for batteries, storage system, in the oil country, not as the previous one that we win.

Fernando Bonnet: There are one auction in place, which is the AlmaSADI auction, an auction for battery storage system in the whole country, not as the previous one that we win. It was related to AMBA area, to Buenos Aires area. This new auction is for the whole country and is 700 MW of capacity, battery's capacity. We are looking to participate there. We are developing project to participate there. CAMMESA are talking about new capacity auctions, but it's not still launched. They expect to launch some capacity auction, thermal capacity auction for perhaps the second H2 of this year.

Speaker #4: It was related to AMBA area to Buenos Aires area. This new auction is for the whole country. And this 700 megawatts of capacity batteries capacity.

Speaker #4: And we are looking to participate there. We are developing a project to participate there. But COMESA is talking about something new, not yet launched.

Speaker #4: They expect to launch and some capacity auction thermal capacity auction for I don't know perhaps the second half of this year. But we don't have a precision about quantity of megawatts or a specific regulation scheme that's not completely say by COMESA yet.

Fernando Bonnet: We don't have a precision about quantity of megawatts or a specific regulation scheme that's not completely say by CAMMESA yet.

Speaker #1: I understand. And isn't that COMESA launching another thermal auction? Isn't that a step back? The whole idea of this liberalization was to move away from the COMESA PPAs and now they're doing it again.

Teodora Nacheva: I understand. Isn't that CAMMESA launching another thermal auction, isn't that a step back? The whole idea of this liberalization was to move away from the CAMMESA PPAs. Now they're doing it again.

Speaker #4: Well, more or less because all over the world the capacity auction is launched by the system regulator. It's not easy for distribution companies or privates to go for capacity.

Fernando Bonnet: Well, the more or less, because all over the world, the capacity auction is launched by the, the system regulator, you know. It's not easy for distribution companies or privates to go for capacity, you know, because depends on the growth of demand, the whole system. In Brazil do the same, you know, and it's has a more free market that was in Argentina. It's normal that the, the system regulator launch the capacity in advance, you know, trying to look forward to the whole system demand and try to cover that. It's not energy, you know, it's capacity.

Speaker #4: Because it depends on a lot of the growth of the demand, the whole system. So in Brazil, Brazil does the same. And it's a more free market than it was in Argentina.

Speaker #4: So and Chile and it's normal that the system regulator launch the capacity in advance. Trying to look forward to the whole system demand and try to cover that.

Speaker #4: But it's not energy. It's capacity. So I didn't see as a back because the electricity, the energy will still be contracted by private companies and the distribution companies.

Teodora Nacheva: Yeah.

Fernando Bonnet: I didn't see as a pack because the electricity, the energy will still be contracted by private companies and the distribution companies. The capacity is different. I only see that capacity auction. No new PPAs related to energy. That is something that CAMMESA said that is not going back. Capacity, especially when you are trying to look the system for 3, 4, 5, 10 years in advance, it's something that the system regulators have a better understanding about the needs of the system in terms of capacity.

Speaker #4: But the capacity is different. So I only see that capacity auction. No new PPAs related to energy. That is something that COMESA has said that it's not going back.

Speaker #4: But capacity, especially when you are trying to look at the system for three, four, five, or ten years in advance, is something that the system regulator has a better understanding about—the needs of the system in terms of capacity.

Speaker #1: Okay. Thank you. And just to clarify on thermal, spot, legacy, what is the realized price that you're getting at the moment? Because it's subject to this FRA cap.

Teodora Nacheva: Okay, thank you. Just to clarify on thermal spot legacy, what is the realized price that you're getting at the moment? 'Cause it's subject to this frac cap.

Speaker #4: Well, you say in a spot market.

Fernando Bonnet: Well, you say in the spot market?

Speaker #1: Yeah.

Teodora Nacheva: Yeah.

Speaker #4: Well, it's a combination. You have a capacity payment and you have a.

Fernando Bonnet: Well, that it's a combination, you know. You have a capacity payment and you have a.

Speaker #1: No. I'm talking about dispatch.

Teodora Nacheva: No, I'm talking about dispatch.

Speaker #4: You talk about dispatch. The price—the variable price that we receive—depends on what fuel we use. So, to say, something is around $40,000 per megawatt.

Fernando Bonnet: You talk about dispatch. The variable price that we receive is depending on what fuel we use. To say something is around $40,000 per megawatt. Yes, with gas.

Speaker #4: Yes. With gas, with gas around 40, 40 something thousand 40 something dollars per megawatt. Sorry. Not thousand dollars.

Teodora Nacheva: Okay.

Fernando Bonnet: forty-something dollars per megawatt, sorry, not thousand. Dollars.

Speaker #1: Okay. Understood. Thank you.

Teodora Nacheva: Okay. Understood. Thank you.

Speaker #4: It's depending on the efficiency of the equipment, depending on the fuel that you use, but it's something around that.

Fernando Bonnet: It is depending on the efficiency of equipment, depending on the fuel that you use, but it's something around that.

Speaker #1: Thank you. This concludes our Q&A session. I would like to turn the conference back over to Mr. Fernando Bonet for any closing remarks.

Operator 2: Thank you. This concludes our Q&A session. I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks.

Operator: Thank you. This concludes our Q&A session. I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks.

Speaker #4: Okay. Thank you. CENTRAL PUERTO S.A. is a growing phase. Market buy. PIDEREL ÁGUILA concession extension. Portfolio expansion. Market normalization and diversification in a strategic sectors.

Fernando Bonnet: Okay. Thank you. Central Puerto is in a growing phase marked by Piedra del Águila concession extension, portfolio expansion, market normalization, and diversification in strategic sectors. Thank you everyone for joining and for your interest in our company. This is all for this quarter. Have a great rest of the week and month. You may now disconnect.

Speaker #4: Thank you everyone for joining. And for your interest in our company. This is all for this quarter. Have a great rest of the week and month.

Speaker #4: You may now disconnect.

Speaker #1: Thank you. This concludes today's conference call. You may now disconnect.

Operator 2: Thank you. This concludes today's conference call. You may now disconnect.

Operator: Thank you. This concludes today's conference call. You may now disconnect. Goodbye.

[Analyst]: Goodbye.