Pampa Energía (PAMP) Investor Day 2024 summary

Strategic overview and financial position

• Built a diversified energy portfolio over nearly 20 years, with leading positions in power generation, oil & gas, transmission, and petrochemicals.

• Holds 15% of Argentina's power generation capacity (5.5 GW) and 9% of natural gas market share, with co-control of key infrastructure assets like Transener and TGS.

• Achieved significant deleveraging, reducing net debt by 50% since the Petrobras Argentina acquisition, now at $700 million, with strong cash flow supporting further growth.

• Repurchased 35% of outstanding ADRs since 2018, consolidating financial strength and reducing share count to 54.5 million.

• Maintains a robust balance sheet with net debt at 0.5x EBITDA and over $1.3 billion in cash and equivalents.

Power generation and regulatory outlook

• Operates 5.5 GW across Argentina, holding a 15% market share and maintaining industry-leading thermal plant availability rates (97% in 2023 and 6M24).

• Power generation capacity is split between new (post-2012) and legacy assets; new capacity (mainly under PPAs) generates 74-75% of segment EBITDA with stable cash flows.

• Stable cash flow supported by CAMMESA and B2B PPAs with over 7 years average maturity.

• Anticipates sector deregulation, with the government aiming to phase out CAMMESA's central role and foster a competitive market among IPPs, with future expansion opportunities in marginal pricing and private PPAs.

• Maintenance CapEx for power is ~$80 million/year, with segment free cash flow north of $300 million pre-tax annually.

Shale oil and gas development (Rincón de Aranda and Vaca Muerta)

• Rincón de Aranda shale oil block acquired at a favorable price, with 59-60,000 acres and estimated 400 million barrels in resources.

• Plans to ramp up production to 45,000 barrels/day by 2027, maintaining this plateau for 15 years, with $5+ billion total CapEx and a 286-well inventory.

• Production ramp: 20,000 barrels/day by end-2025, 40,000 by end-2026, and 45,000 by end-2027.

• Lifting costs targeted to fall from $22 to $5 per barrel as infrastructure is completed; CapEx per well to decrease from $18M to $15M.

• EBITDA from Rincón de Aranda expected to reach $700 million/year at plateau, with overall company EBITDA projected to triple to $1.1 billion by 2027.