Pampa Energia S.A.

Recording in progress. Good morning. Thank you for waiting. I'm Raquel Caldas from IAR, and we would like to welcome everyone to Pampa Nergia's third quarter of 2025 results video conference. First, 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 be submitted by 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 forward-looking statements are based on Pampa Energías 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 Pampa Energía and could cause results to differ materially from those expressed in such forward-looking statements. Now I will turn the video conference to Lidia.

Thank you, Raquel. Hello, everyone, and thank you for joining our conference call. I will make a quick summary of Q3 so we can spend more time on Q&A with the management. Today, we have our CEO, Gustavo Mariani, our head of Orlan Gas, Mr. Horacio Turri, and our CFO, Mr. Adolfo Zuberbühler. The quarter's standout performance came from Rincón de Aranga, where the production ramp-up is translating into strong EBDA, supported by six out of seven active paths today. Oil is emerging as a minimum contributor, now accounting for 34% of our EBDA in the EMP, and therefore 18% of total EMP in the quarter. In power generation, after six years, and amid the ongoing deregulation, in winter, we self-procure gas for our Loma de Alata power plant, boosting both power and EMP margins. Winter demand pushes us to a new all-time high in production. Almost 18 million kilometers per day of gas delivers smoothly without any disturbance and disruptions. Following the September market volatility, management demonstrated confidence in the company's fundamentals by repurchasing 1.5% of the company's share capital at close to $59 per ADR. Today, the stock is trading nearly $90. So let's move into the quarter's financial results. The adjusted EBDA amounted to $322 million. This is a 16% year-on-year increase. This is mainly driven by Rincón de Aranda, steady shallow growth, higher B2B sales, and the contribution of BP6 wind farm. Quarter-on-quarter, EBDA also improved due to Rincón de Aranda and gas seasonality. CAPEX surged 183% year-on-year, reaching to $332 million, of which $174 million were invested in the development of Rincon de Aranda. Moving on to the slide 4, the oil and gas adjusted VDI was $171 million in Q3. This is a 40% year-on-year increase, largely due to Rincón de Aranda, again, increased exports and strong industrial demand, as well as self-procurement margin in Loma La Lata, well, for Loma La Lata power plant. These variations were partially offset by soft retail demand in September due to milder weather and the end of the winter peak contracts under the planned gas GSA. Higher gas treatment costs and the lease of temporary facilities at Rincón de Aranda, offset by the higher production, Highly increased the lifting costs to $6.4 per VOE. Quarter-on-quarter lifting costs per VOE actually sharply decreased due to the higher output and stable total cost. Gas lifting costs remain flat year-on-year at $0.90 per million BTU. but dropped quarter on quarter, 17%, while oil saw significant cuts thanks to Rincón de Aranda. We will address that later. Total production average, nearly 100,000 barrels equivalent of oil equivalent per day. This is a 14% increase year on year, led by Rincón de Aranda and Sierra Chata, but partially offset by decreases in Mangrucho and non-operated blocks. Quarter-on-quarter production rose 18%, again, explained by Rincón de Aranda and gas seasonality. The production mix continues to evolve, with oil rising to 17% of the total output, driven entirely by Rincón de Aranda ramp-up. Cruelty prices averaged $61 per barrel in Q3. This is a 15% decrease than last year due to the brand underperformance. However, our hedge in Rincón de Aranda's production helped mitigate the price drop. Without the hedge, our realized price would have been $60 per barrel. This number is excluding quality or registered discounts and any duties, export duties. This is a sort of a FOB price. Focusing now on the slide 5 in Rincón de Aranda, as you can see on the chart above, the ramp-up remains on track. During Q3, average production reached 14,400 bottles per day. This is almost three times Q2 levels driven by the three new paths that we tied in during the quarter. Post-quarter, a seventh new path was connected. elevating output to 16,000 barrels of oil per day. Currently, we have one freight fleet in the block ready to tighten three DUCs, and we have two high-spec rigs drilling another three paths for the next year's campaign. We expect to exceed 2025, producing 20,000 barrels of oil equivalent per day. To support further growth and leverage idle capacity, trumpet capacity in the pipeline, we plan to install an additional temporary facility next year, increasing production to an average of 28,000 barrels per day by the second half of 2026. Our target is 45,000 barrels per day by 2027. once Vaca Muerta, Oil Sur Pipeline, and our Central Processing Facility, as known as CPF, are borderline. Another important highlight this quarter is the drop in lifting costs per barrel, as anticipated when we announced Rincon de Aranda's development. Our goal is to stabilize at $5 per barrel, in line with our peers, with the CPF playing a key role in achieving this milestone. Okay, slide six, moving to gas. Sales held steady year-on-year at 14 million kilometers per day. This is 8% higher than Q2, as explained early by seasonality. And Mangrusha continued to lead the output, though its share shrank to 50%, while Sirachata grew to 38% of total output, with a year-on-year production increase of 33%. In July, we hit a new all-time high in gas production of 17.6 million kilometers per day driven by Pincondia Sierra Chata, peak of 6.3 million kilometers per day. The most recent tidying path of three wells delivered 2.7 million kilometers per day. So imagine per well how much it is, highlighting its solid productivity. A new four-wheel pad is now undergoing fracking. Shell accounted for 64% of the Q-freeze output. Gas prices averaged at $4.4 per minute with you. This is flat year-on-year. Fuel cell procurement for Loma de Alata power plant during the winter and industry sales supported this price, offset by lower export prices affected by the brand underperformance. Seventy-two percent of our gas was sold under Planned Gas GSA, CAMESA, retail. This is down from 86 percent last year. This is due to the cell procurement, which accounted six percent of the total gas output and gas sales, sorry, and improved deliveries of B2B sales and exports. Expo remains steady at 1.2 million cubic meters per day amid the heavy winter that we experienced, up 146% year-on-year due to the low hydro in Chile. Switching to power generation on slide 7. We posted an NVDA of $120 million in Q3. This is 8% increase year-on-year, mainly explained by PP6 wind farm fuels procurement margin in Loma La Lata plus higher seasonal capacity payments for open cycles, partially upset by a 9% drop in generation due to the weaker demand. So, availability declined to 94% due to scheduled maintenances in Elba and Loma La Lata in September, and the ongoing outages that is having in ISA since January. New energy, particularly under take-or-pay PPAs, continue to support 66% of the segments of ETA. We will discuss expectations of this new framework during the Q&A. Turning to cash flow on slide 8, we show the restricted group figures because this is aligned with our bond perimeter. Amid high capex and at Gringo Neranda, we generated $6 million free cash flow in Q3, driven by the strong EBDA generation and improved working capital. Q3 marked our peak in EBITDA and sales, and during the second half of the year, working capital typically moves as we collect winter sales. So the results, the cash and net cash equivalents stood at $881 million at the quarter end in line with Q2. Finally, in the balance sheet, gross debt was nearly $1.8 billion. This is 16% down since December 2024, following the redemption of the 2027 and 2029 notes that were funded with proceeds from the 2034 notes, net debt rose to $874 million, 1.3 times net leverage ratio, reflecting the capex outflows and collaterals on oil hedge. However, post-quarter, we repay $47 million in export pre-financing loans and recover $84 million from OCP Ecuador guarantees, funds that should have been released back in March. Therefore, we maintain a 1.1 time net leverage and a strong cash position, approximately $920 million. However, our levelated management efforts extended the average life to 5.6 years, strengthening our financial profile and reducing near-term maturities amid Rincon de Aranda's development. Well, this concludes the presentation. Now I turn the floor. It's open for questions. If you have any questions, please send through Zoom chat. We will read it and answer them in the order received. Make sure your name and your company is displayed correctly so we can introduce yourself to the audience. Should any participant have any problem, again, please send us a chat message or ping us or send us an email. Please hold while we poll for questions.

Thank you. Okay.