PAM · Pampa Energía S.A.

Pampa Energía’s Q1 2026 results reflect a pivotal inflection in operational execution and vertical integration monetization. Record O&G production of 100.6 kbpd—driven by Rincón de Aranda’s rapid ramp to 25.3 kbpd and contributions from Sierra Chata and El Mangrullo—delivered a 38% yoy production gain and lifted consolidated adjusted EBITDA to $239 million, despite a 35% sequential decline attributable to seasonal and timing effects in power margins and higher lifting costs. The new Argentine power framework materially benefited the generation segment: spot pricing leverage, combined with 90% thermal availability and reduced hydro outages, drove a 30% qoq EBITDA increase in power. Gas monetization strengthened, with 82% of output sold into the national grid and 47% under Plan Gas—providing stable, regulated revenue streams amid volatile spot prices. However, aggressive upstream investment—including $1.5 billion committed toward Rincón de Aranda’s 45 kbpd plateau—resulted in negative FCF of $402 million, largely due to Brent coverage obligations and front-loaded development capex. The issuance of $200 million in 3-year debt at 5.49% signals continued access to capital markets but also underscores near-term liquidity pressure as the company funds its largest growth initiative to date. Management emphasized that Rincón de Aranda’s improving drilling and completion efficiency—evidenced by a 52% increase in daily drilling rate and 31% rise in completion stages since Feb-26—supports confidence in achieving the 45 kbpd plateau by mid-2026. With net leverage at 1.5x (Parent) and gross leverage at 2.3x, the balance sheet remains solid but increasingly leveraged to fund growth, making execution on RDA and tariff revisions for Transener and TGS critical for sustaining credit metrics and funding flexibility.