PAM · Pampa Energía S.A.

Pampa Energía's first quarter 2026 results reflect a dramatic turnaround in its oil and gas segment, which swung from a $49 million loss to a $105 million profit. The primary driver was a 504% surge in oil production to 19.5 thousand barrels per day, fueled by the ramp-up at the Rincón de Aranda block. Revenue in the segment rose 69% to $247 million, despite a 15% decline in average oil prices to $58.2 per barrel, partly due to hedge contracts. Cost of sales increased 51% to $178 million, driven by higher lifting costs, depreciation, and royalties, but gross margin improved to 28% from 19%. The segment also benefited from a $94 million income tax benefit, largely non-cash, related to inflation and peso strengthening. In the generation segment, revenue grew 43% to $279 million, supported by higher spot prices under a new regime effective November 2025, but net income fell 28% to $90 million due to lower hydro generation and an unscheduled outage at CTLL's TG04 turbine. The petrochemicals segment saw a slight revenue decline to $88 million, but gross profit improved to $7 million from $2 million. Overall, the company's operational momentum in oil and gas, combined with favorable tax effects, drove a significant improvement in profitability, though generation faced headwinds from operational disruptions.