Pampa Energia S.A.

Good morning, everyone, and thank you for waiting. I'm Raquel Cabras from IAR, and we would like to welcome everyone to Pampa Energía's Single Quarter of 2025 results video conference. We would like to inform you that this event is being recorded. All participants will be in listen-only mode during the presentation. After the company's remarks, there will be a Q&A session. Questions can only descend in writing through Zoom. Should any participant need assistance, please send us a chat message. Before continuing, please read the disclaimer on the second page of our presentation. Let me mention that four looking statements are based on PumpEnergia's management beliefs and assumptions and information currently available to the company. They involve risks, uncertainties and assumptions because they are related to future events that may or may not occur. Investors should understand that general economic and industry conditions and other operating factors could also affect the future results of pampanergia and could cause results to differ materially from those expressed in such forward-looking statements. Now I will turn to Lida. Please go ahead.

Thank you, Raquel. Hello, everyone, and thank you for joining our conference call. I will make a real quick summary of the Q2 so we can have more time for questions with the management. Today, for the Q&A, we have our CEO, Mr. Gustavo Mariani, our head of Over and Gas, Mr. Horacio Turri, and our CFO, Mr. Adolfo Zuberliura. So, going to the slide three, several key developments marked the second quarter of 2025. First and foremost is the successful production ramp-up in Rincón de Aranda, thanks to the tidying of new paths in coordination with the commissioning of supporting infrastructure, such as the temporary processing facility, internal and front pipelines, and so on. So, also, the contribution of the new 140 MW wind farm PP6 and the higher spot prices boosted the quarter's figures. However, colder temperatures started in June, so delayed the spike of the winter. The winter spike involved power and gas demand. TETCAM contributed positive EVDA continue, gradually recovering, returning to a positive EVDA. Finally, in a proactive LM and ability management transaction, we extended the 2029 notes to 2034 with a $140 million RETAP issued at the lowest spread over U.S. treasuries in PAMPA's history. Well, let's move into the quarter's financial results. The adjusted BDA amounted to $249 million. This is a 17% decline year-on-year, driven by soft gas sales, falling PEPCAM prices, and higher operating expenses weighted on the performance. The headwinds were partially offset by contributions from the new PP6 wind farm. Increased gas exports to Chile and higher production at Rincon Yeranda. Quarter-on-quarter EBDA improves due to the seasonality and growing output at Rincon Yeranda. CapEx surged 134% year-on-year, reaching to $354 million. The majority, which is $249 million, was invested in the development of Rincon Yeranda. Moving on to slide four, the oil and gas adjusted EBITDA was up $87 million, down 28% year-on-year, largely due to reduced domestic gas sales to retail and thermal power as the colder weather arrived later than usual. Expiration of winter peak contracts between May and September under the planned gas EGSA also impacted the results. Though in June, that performed very strongly, as if the GSA remained in place. Higher lifting costs, especially from Rincón de Arana, also affected EBITDA performance. However, increased gas exports to Chile and stronger crude oil production at Rincón de Arana helped to balance this decline. The lease of temporary facilities and gas treatment fees push the lifting costs up to $7.6 per BOE. In particular, gas lifting costs rose to $1.1. This is influenced also by the lower output. Quarter-on-quarter lifting costs per BOE increased moderately, explained by the transition from fracking to in-house and lease facilities, offset by the seasonality. Total production averaged 84,000 barrels per day. This is down 7% year-on-year due to the output decreases at Hemangruxo and non-operating blocks. Partially offset by Rinconiaranda and Sierra Chata gas fields. Water-on-water, the production is up 16%. Again, explained by the seasonal effects and shale oil. The production mix continues to shift. with oil rising to 9% of the total production output and contributing 18% of the oil and gas revenues, entirely due to Rincón de Aranda and Mampapa. Also, we're tidying two shale wells, targeting Vaca Muerta at Río Neuquén block, the block's first shale development, alongside new tide gas wells. Río Neuquén is not operated by Pampa. Crude oil prices average nearly $62 per barrel in Q2. This is 14% lower than last year, mainly explained by the Brent's underperformance, affecting exports mostly. However, our hedging strategy around Rincón de Aranda's rising production helped to mitigate the price drop. Total gas sales fell 11% year-on-year. This is to almost 13 million cleaners per day, but rose 10% from Q1. Last, as I just explained recently again, by seasonality. The Manusho block continued to leave the output, though its share declined to 58% of the total gas volume in Q2. Meanwhile, Sierra Chata increased its share to 29% of the gas output in Q2, with a 14% production gain year-on-year. In Sierra Chata, we drilled four wells and tied in three here today, so 57% of the Q2 output is considered shale gas. And now, in line with our commitments with the exploratory rock in Barabaneira Este, we drilled a horizontal shell well, which is currently awaiting for completion and testing. Pampa extended Barabaneira Este's exploratory ice license until 2027. In the gas prices, they averaged $4 per millimeter in the quarter, remaining steady year-on-year, due to the Brent prices that affected export prices, and offset by improved retail prices and improved marginally in the industrial segment. Half of our gas was delivered to CAMESA for power thermal generation under the Plan Gas GSA. If you see the nationwide gas, we contributed 17% of the gas consumed totally in the country for power generation. Since May, we have increased our flows to Chile through two pipelines, right, Gas Andes and Gas Pacífico, Capitalizing the competitive demand of our gas relative to LNG. By June, the exports had reached 1.1 million kilometers per day, same as today. Though Q2 gas sales were soft, June rebounded sharply with the colder temperatures. On July 24, we hit a new all-time high, daily production high at 17.4 million cubic meters per day, driven by the outstanding shell wells at Sierra Chata. The most recent tidying pad of free wells, we peak at 2.7 million kilometers per day in June, highlighting its solid productivity and competitiveness. So focusing now on Rincón de Arana, we have five paths. have been grilled, four of which are online. During Q2, the block produced an average of 5.3 thousand barrels per day, exiting June at 8.8 thousand barrels per day. This growth was mainly driven by the path number two and number four. The latter began really producing in late June, and it didn't, by then, completely clear out the water. So it wasn't tested. Currently, Rincon de Aran lies delivering almost 16,000 barrels per day from four paths. The last two paths were tidy during July and they're still on the wall testings. For 2025, we budget $800 million in total cafes, having already invested over $360 million year to date. We expect it to reach 20,000 barrels per day at Rincón de Aranda by Q4, and aim to reach a target of 45,000 barrels per day by 2027, when Vaca Muerta Sur pipeline is online. So again, to support this ramp-up, we secure trunk pipelines, transportation agreements in Vaca Muerta Sur, In June, we applied to the RIGI framework for the central processing facility a.k.a. CPF, and all related infrastructure needed to evacuate the target production level, as shown in the video on the screen. The CPF flowlines, pipelines, water treatment pools, and all required investment is approximately of $426 million, of which the CPF is estimated to begin by next year. Switching to power generation on slide 9, we posted an adjusted PDA of $112 million in the Q2, just a 5% increase year-on-year, mainly explained by BP6 performance and higher spot prices measured in dollars, partially upset by increased operating costs and scheduled outages. Generation volumes declined 7% year-on-year. Inavailability stood at 92% due to the maintenance at Loma La Lata. Upgrade works in Barragán CCGT for efficiency and lower gas emissions. And the hydros in Huiles outages in two out of the three dams since January of this year. Still, increased gas supply and PPCs helped to offset the The decreases, capacity payments, particularly under the take-or-pay PPAs, continue to support 70% of the segment's KPDA. So turning to the slide 10 about the cash flow, we only show restricted group figures because they are aligned with the bond parameter. In Q2, we posted a free cash flow outflow. of $307 million. This is mainly driven by the capex that we're doing at Ringgit Aranda, which accounted 75% of the total investment, along with an uptick in seasonal working capital, as gas sales peaked during the Q2 and Q3, right? As a result, cash and cash equivalents stood at $879 million at the quarter end. Finally, in the balance sheet, gross debt was nearly $1.6 billion, down 23% since December 2024, thanks to the redemption of the 27 and the 29 NOBs. Debt rose to $712 million. This is 1.1 times net leverage ratio, reflecting the cash flow for CapEx and the working capital needs. Our successful liability management efforts extended the debt average life. to 6.2 years from 4.2 years, significantly improving the maturity profile and the high drawdown in cash from Rincon Gerand. So this concludes our presentation. Now the floor is open for questions. If you have a question, please send it to the Zoom chat. We'll read it and answer them in order received. Make sure your name and the company is correctly displayed to introduce you to the audience. Should any participant need assistance, just write it through the Zoom chat. We are totally for questions, so please wait a little bit.

Thank you. All right. Cool. Let's cut it off.