PAM · Pampa Energía S.A.

Pampa Energía’s Q1 2026 results reflect strong operational execution across its vertically integrated energy platform. Sales growth of 38% YoY was led by record upstream production—100.6 kboepd, up 38% YoY—with Rincón de Aranda shale oil ramp-up contributing significantly to both domestic and foreign market sales (up 235% YoY). The new Wholesale Electricity Market (WEM) framework, effective November 2025, enabled greater flexibility for thermal generators—including Pampa’s CCGTs—to procure gas directly, boosting gas sales to generation assets and improving dispatch margins (FRA = 1 for gas transported via new infrastructure like the GPM expansion). Adjusted EBITDA growth of 48% YoY outpaced sales growth, signaling margin expansion, particularly in oil & gas (EBITDA +155% YoY) and power generation (+11% YoY), despite a 29% YoY decline in net income for that segment due to lower electricity pricing and higher costs. The $214 million net income included a non-cash deferred tax benefit tied to Argentina’s high inflation environment, where inflation exceeded peso depreciation—highlighting accounting volatility inherent in hyperinflationary reporting. Strategically, Pampa advanced multiple capital-intensive initiatives: the $2.4 billion urea project and $4.5 billion Rincón de Aranda expansion both seek RIGI benefits to secure long-term regulatory stability and financing terms; meanwhile, the $330 million prepayment from TGS’s GPM expansion provides near-term cash flow visibility and locks in long-dated, inflation-linked revenue. The share cancellation—reducing outstanding shares by ~1.5%—signals continued capital discipline amid elevated investment activity. With net debt rising to $1.2 billion (from $801 million in December 2025) due to capex and oil hedging collateral, liquidity management remains critical as these multi-year projects advance.