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.

Well, let's go first. The first one is Guido Bizzosero from Alaria. From Italy, he's asking, considering that during Q3 2025, inventories of crude oil were sold by approximately 2.8 thousand barrels per day, and that since October, the 1.6 thousand barrels per day contribution from El Tordillo will not be any more, how do you expect total oil production to evolve in the upcoming quarters?

Our best expectation for the fourth quarter of 2025 is between 18,000 and 19,000 barrels per day.

So ramping up from Q3.

That's right. That's right. Because of the coming online of pad number 11. Great. Awesome.

So basically going forward is going to be Rincón de Aranda plus associated oil from gas fields.

But very little. Very little. I mean, the main driver is Rincón de Aranda.

Good. Second question from Guido. We noticed a sequential improvement in lifting costs from $7.6 per wire or VOE to $6.8. $6.8 or $6.4? No, $6.4. $6.4. How do you expect to evolve during 2026 until the CPF is ready? This is per VOE, all right?

Yes, I understand the question.

Yes.

The main change in 2026 is going to be the ramping up of Rincón de Aranda from the year end of around 19,000 to 20,000 barrels up to 28,000 barrels on the second half. Therefore, we will see a reduction in our lifting cost for oil from 10 to around 9.1, 9.2 dollars per barrel, and that will drive down our overall lifting costs to around $6.2 per barrel equivalent.

Do you see any potential to reduce lifting costs in gas?

I wouldn't say so. I would say that probably that's going to keep stable. We are pretty much keeping more or less the same expectation of production so far. If there's going to be an additional production to come online, probably those lifting costs will be reduced.

Great.

Thank you.

How do you expect to evolve the gas market during the summer season considering the lack of local demand, export market to Chile, and more associated gas from oil fields?

Okay, there's always seasonality, obviously, in the Argentine market. Good news is that we do have a take-or-pay clause in our contracts of 75%, and more or less that matches with the real demand during the summer. So we will be delivering what we already have contracted as a take-or-pay. Regarding the associated gas, I would say that that will have much more influence in the spot market, in the gas spot market, and we are not in that market. That's right. So it's not going to have any influence on our overall price.

Yeah. What do you think about Chile? Do you think it's going to maintain these levels?

Chile, we are consistently increasing our exports to Chile. If we compare with last year, we come from around half a million cubic meters per day to around 1.2, 1.3 million cubic meters per day this year. That has to do with two main drivers. One is the... Launching of the export to the Gas Pacific region pipeline with around 400,000 to 500,000 million kilometers per day. And also has to do with higher demand on the Gazandes region from the Chilean side.

It matches to Santiago, right?

It's not only Santiago, but all the central region of Chile. Yeah.

So you expect that it could continue around 1 million?

It's going to be around, yeah, a little bit more than that, probably 1.2, 1.3 million kick minutes per day. Great. Basically maintaining what we do have today and eventually increasing a little bit in the Las Octo del Pacifico. Awesome.

Four, could you give us any color on how you expect to improve during 2026 revenues and EVTA in the power generation segment considering the new framework established by the resolution 400? This question is also addressed by Alejandro Dimichelis from Chevries, I want to say. And others, yeah, and other people, sorry.

We basically expect that the EBDA of the segment will improve by at least 15% next year due to these resolutions. But there's still a... This is based on several assumptions. Now the market has become much more complicated to predict now that we are moving into kind of a marginal price system. It will also depend on how successful we are on the B2B market and how much of our energy we are able to produce. to sell it with higher margins than Kamesa to the B2B market, but that's going to be very competitive. So, the other relevant thing that the Secretary still needs to publish the details on how producers of gas can take out their contracts from Kamesa. So, in order for us to self-fulfill our power generation unit. We need to cancel or extinguish our obligation with CAMESA. The Secretary of Energy is working on that resolution. The details of that resolution will impact on this matter. Still too early to be precise on what to expect, but I would say that you should be expecting at least 10% to 15% improvement in the segment.

All right. Cool.

What levels of capex and leverage are you forecasting for 2026? Are you planning to finance it?

Level of capex for 2026 is going to be more or less similar to capex of this year of around 1 to 1.1 billion dollars. In terms of how we are planning to finance it, Lida showed our cash position. The cash that we are showing there does not take into account the cash that we have posted as collateral. for the hedges or for hedging the rent. That's something that for us is also cash that we can convert into cash in just one day, but it's not considered cash by the accounting rules. So we have a very large cash position. We have a very good debt profile that we always like to improve even better than than what it is um argentina as you have seen it's a volatile country so we always like to to play on the on the on the safe side you know with a very comfortable financial position

I will add to that that next year we'll have a full year of oil production that this year we didn't have. We have a full year of an average of $24,000, $22,000 per day that will add additional cash flow that this year we have to face with our own cash position.

Great. Awesome. Well, moving on to Alejandro de Michelis from Jefferies. The first question was exactly the same as Guido about deregulation. We talked about it. The second question is, with increased capex from the subsidiaries and the capex requirement, when do you see that the net debt peaking? When and where? to net debt picking?

Well, as you can see in the last slide, our net debt had remained very, very low, around 1.1. As we've been speaking with investors, this question was repeated many times. We expected to have reached the highest peak by now, at around 1.2, 1.3, we were saying that. because this year was, as I said before, the year with a lot of capex and production of oil just started. Next year, the production of oil will be constant the whole year, so we shouldn't increase net leverage much or above these current levels of around 1.1, 1.2, 1.3. Next year, we probably have more dead, but we will have more EVDA, so the ratio will keep around these levels. And this is a level that we feel very comfortable and very prudent.

Great. Next question comes from George Castout from Latin Securities. I know that Pampa's free cash flow was positive this quarter, despite the ongoing expansion at Rincón de Aranda. How is the rest of the year looking on this front? Are you expecting any reductions in the DNC costs to help over the next few quarters?

Okay, we are working permanently in the reduction of the DNC costs. Actually, in 2025, we were successful in reducing our drilling time in around 15% and our completion time in around 13%. That resulted in an overall reduction in our work costs of around 6% to 7%, going from $16 million to a little bit above $15 million. And in 2026, we expect to keep on going this way and eventually rate – sorry, achieve reductions in the range of 5% in the overall costs of the wells. Great.

I would add that the reason why the free cash flow was positive this quarter is because this is the best quarter of the year for – for Pampa, but this year, overall, as you know, we are investing a lot in Rincón de Randa, so our capex this year are above our EBDA generation, so definitely a year of negative free cash flow, and that's why our net debt went up. And next year, That, because of the reasons that Fito explained, is going to be reduced significantly because next year our EBDA is going up, our CAPEX remains flat, so it's going to be a more balanced year than 2025.

Awesome. Well, the next question is coming from Francisco Cascaron from Don Capital. What was the amount of... What about the amount of non-cash deferred income tax? It was, I guess, recorded in this quarter. And do we expect any impact of this account of this size in Q4 2025? Do you want to answer?

This... This happens from time to time when there is a big gap between the devaluation rate and the inflation in pesos. So whenever this happens, we may have this cash deferred income tax in one quarter. That's what happened in this quarter. It's very hard for us to... project if it's going to happen in the following quarters because it will depend of these variables that are out of our control whenever the inflation and the devaluation move together this won't happen but if they if they if they widen if the difference between them is increased or widened then we will have again so we cannot predict only no one knows but but If the macro balances remain normal, this shouldn't happen again.

Great. Great. Awesome. Luisa Belen from Morgan Stanley. What should we expect in terms of Rincón de Aranda drilling pace for Q4 2025? And how was the production during the month of October?

Production during the month of October was a little bit more than 16,000 barrels. And we will be, in the next quarter, we will be drilling four pots. We are drilling pots number seven and number 12, and we will be drilling in short time pot number 13 and what we call number 10Bs.

Okay. But basically, drilling. Yeah, drilling a little bit more, but completing, still completing this year, seven pads.

Yeah. The only pad that is going to be completed in a short time is pad number eight.

Tiny.

So we say it's going to be one more pad to be completed. Yeah. Sure. Sorry. Sorry, I was muted. Oh. Yeah. I don't know. I did. Yeah, but I don't know. Start again. Start from scratch. Sorry about that. Well, again, the production for October was more than 16,000 barrels. We will be drilling in the last quarter four paths. We are currently drilling paths number 7 and number 12. We will be drilling paths number 13, and we are almost starting to drill path number 10Bs. or an additional three more wells to the organico inferior in pad 10. That's regarding the drilling. What Gustavo mentioned about our activity and how many rigs we have, Currently, we have three high-spec rigs, but it's going to be for a short time until we finish with the three wells of the organic inferior in pad number 10. Then we will remain with two high-spec rigs and one E-fleet.

Great. Second question is, in terms of investments, should we expect a maintenance in 2025 expectations for CapEx? How should it evolve going into 2026? So we talk about $1 billion. Yeah. Pretty similar, right?

This year is basically what we projected on the budget, or slightly lower than what we projected on the budget, because of very small delays in the deployment on some payments that are not going to be done this year, but are going to be done early next year. So it's going to be around $1.1 billion. And next year, we expect roughly to maintain the level of CapEx. Great. That is basically until we finish the ramp-up of Rincon Aranda, no? Because, as we said, Rincon Aranda takes 70, 75% of that number.

Yeah. Okay, so Juan Ignacio from Puente, given the recent launch of the Secretary of Energy new regulatory framework for the power market and the explicit focus on free contracting through bilaterals or B2B PPAs, and cost-reflected marginal pricing, what is Pampa's commercial strategy to navigate this transition, and how do you plan to maximize the opportunities presented by this new scheme, particularly regarding securing long-term private contracts?

Okay. Fortunately, we have a very well-seasoned commercial team because we have always been active on whatever B2B market was available for us, and we've always been a very active player on the B2B market. Now that this market increases, we have a very good muscle. And obviously, we are going to try to gain a good market share in this B2B market for two reasons. Basically, because we expect to improve our margin vis-a-vis selling our energy to Gamesa. And second, to diversify our sources of clients, so being less dependent on CAMESA and a diversified portfolio of industrial clients and distribution companies, power distribution companies. Great.

Carolina Carneiro from Safra, she's asking, well, it's a bit of a broad question, but it's good to ask this. Can you comment on the new rules published for the wholesale electricity market? If there's any next step that you talk a little bit about that and impacts for the companies? Well, first thing first, you have to read the... The summary I preciously laid out, we preciously laid out in the earnings release. But basically, in a nutshell, it's a marginal system, right? Cap, we cap for this period of time, right? There's going to be a B2B market. So the good news is that Pampa is around in the power sector, in power generation, right? It's 20% of our ABTA is B2B and 80% is Camisa. Now that's going to shift. It will be more than 20%. I don't know how much it will be, but surely it will be more than 20% B2B. This is a good diversification. And, well, that's basically more. And then, of course, for the first time, we will be able to – well, actually, we just started this winter, but we can continuously self-procure fuel to our own power units. And it's a great chance for our CDGTs.

Yes, but again, there's still rules to be published by the Secretary of Energy. We are not able to withdraw the contracts from CAMESA yet and provide the fuel to our plants yet. We hope that at any moment, the sooner the better, that would be published and it would allow us to self-fulfill our power generation plans.

At the same, we need to see the open season for the transport.

Exactly. This is not only gas, but also transportation capacity that the Secretary of Energy has to decide. Out of the 21 million cubic meters of gas, of gas transportation contract that CAMESA had, how much will remain in CAMESA, how much will be transferred to gas distribution companies. So there are a few things that need to be clarified. before having a better visibility of what's going to happen in 2026.

The good news is already out there. It's already kind of implemented. It's just we need some... The details. Yeah, small details. That's right. Updates on Rincón de Aranda, we already talked about it. So let's move on. Matías Cataruzzi from AdCap. Upstream, Pampa hit 17.3 thousand barrels per day in Q3 2025 in Rincón de Aranda with numbers above the guidance. What is the four-quarter 2025 exit rate target? We already talked about that. 20,000 barrels per day. And 2026 quarterly ramp-up.

Because we put, like, quarterly ramp-up to

All the path to the 45,000 plateau by 2027. So, he wants all the details.

All of the details. Okay. So, we will be exiting 2025 around 20,000 barrels, as we mentioned. By February next year, end February, beginning of March, we should have the additional temporary production facility. So, we'll be able to have their ramp up around... 4,000 barrels of additional oil. It's going to 24,000 barrels by the second quarter of 2026. And by the third quarter of 2026, we should be reaching a peak of around 28,000 barrels per day. And then by January, February of 27, once the central processing facility is in place, our plan is a very quick ramp-up from those 28,000 barrels to 45,000 barrels, which is the overall target.

Cool. Great. He's asking for DMC, which we already talked about.

We already talked about that.

Lifting costs, we already talked about that. And as soon as this call is done, in 10 minutes, it's uploaded to the cloud so you can access to the replay easily. So soon 10 minutes. And then he's asking, well, this is a more detailed question, but the lifting cost breakdown between shale gas and shale oil. I will say Shell Gas is what we are seeing today. It's $0.80. Sierra Chata.

Yeah. Between Mangrullo and Sierra Chata, but it's around $0.80.

Sierra Chata, cheaper. Cheaper than Mangrullo. Mangrullo, amazingly. It was the opposite. That's right. Given the productivity, right? And then Shell Oil, well, it's Rincón de Arango. We already talked about that.

Right now, it's $9. It's around $10. It's going to be going down to $9 with the installation of it. Second temporary production facility.

Well, and then in power, he's asking something like kind of similar, but with the normalization, how quickly can Pampa migrate legacy firms? Basically, how quickly we can get between PPAs. We already talked about that, about the muscle of our commercial team.

Yeah, that's a question that I don't have an answer. We will have to...

We have a handicap, but it doesn't mean that we are guaranteed. And then this is a very odd question. What is your 2026-2027 spot price range under the new dispatch rules? How sensitive is PowerVDA to an increase of $5 per mile an hour? I think he's asking for the marginal cost because now that is the higher the marginal cost, the higher... What marginal cause are you seeing?

It's a difficult question. I don't have all the numbers on top of my head. It's very difficult, very different. Summer prices could be in the $30, $40 summer. And winter, in the lower demand of the summer.

And the off-peak at peak. Yeah.

And in the winter, probably in the 80s or 90s or 100s. Next year, there shouldn't be any significant change from current year. Hopefully, in 2027, the system will see a decrease in the marginal spot prices. because there's going to be new gas available in the market. I think, I don't recall when we mentioned, but our subsidiary, TGS, has been awarded to increase the transportation capacity of the gasoducto Perito Moreno. by 14 million cubic meters of natural gas per day so that will have an impact during winter times because we will be as a country we will be able to replace imports of lng and even more important import and consumption of diesel oil in thermal plants with local natural gas, so that will have an impact reducing support prices. On 2026, there shouldn't be any significant change.

Well, there's a lot of variables like weather, hydrology, renewable penetration, right? Yeah. Anyways, Ricardo Vejo from Safra, is there any other projects or infra auctions, gas pipeline batteries, renewables, PPAs that the company may be interested in?

But there is the option of the Comahue power plants that we are studying all the opportunities. That is something that is, if there's no new delays, it's going to take place this coming Friday. I don't have any other infrastructure option. On top of my head. Do you? No, no.

The second tranche of the Perito Moreno?

I don't see it.

You don't see it?

No, not at this point.

With the private initiative, you think it's kind of slated to... But the good news is that that private initiative gives gas to the eastern side of Argentina, where a lot of the most efficient power plants are located. Good. Then, Daniel Guardiola. BTG. He's asking, well, the first question is about the new regulation answer, broadly answer, I think. Well, at least he's asking. Second question is about the hydro action, but zooming in on the potential capex that you might engage, might commit if you get awarded, and what do you envision the remuneration, how do you envision the remuneration of these plants? I guess if it's going to happen or not, because it's the remuneration itself.

It's a fixed dollar remuneration for a 30-year contract. And the upside is on an increased portion of your energy production that can be sold to the B2B market. So initially the first two years is only 5% of your energy can be sold to the B2B market. Then it goes for another two years at 10%, 15, until in year 20, it reaches that 100% of your energy can be sold to the B2B market. Meanwhile, you are selling your energy to Kamesa at this rate. fixed dollar price adjusted by inflation.

By U.S. inflation. Does it involve any capex if awarded?

They are maintained as capex, but in most of the plants, those capex, because these are fairly new and very well-maintained plants, those capex come at Two-thirds of the – in the last 10 years of the concession. So from year 20 to year 30, most of those capex have to be done. Right.

Then he's asking about, well, about lifting costs, DNC, we already covered. We covered that. Yeah, but he's asking a more interesting question is, do you foresee any additional M&A opportunities in Baca Muerta? If so, what will be the priority, oil or gas?

There are There has been many opportunities, and I'm sure there's going to be many opportunities in the future as well. Our focus, if any, would be increasing our reserves of shale oil. We have reserves of shale gas. in excess of our expected production over the next so we don't need any additional gas reserves and we if there's a good opportunity but as you know we are price sensitive we um so we we are we will be waiting for what we consider a good opportunity to increase our um portfolio of reserves of oil.

But there's no, well, I know it's, there's no processes ongoing.

No, no, nothing.

That we're interested in. Right. And another question from Daniel. He's asking, can you share with us the expected IRRs of the LNG project that you're currently developing? I guess, sovereign energy. And if it's possible, what will be the incremental EBTA for Pampa link to this project?

Okay, let's go to the incremental EVTA. The best part. So, there are two segments of this business. The CESA side, regarding the liquefaction of the LNG and the sale of the LNG itself. And then there is the upstream segment, which is basically supplying those 6 million cubic meters per day that the vessels will be needing from Pampa, from our participation of 20%. The EVDA related to the upstream segment.

uh segment of the business is around 140 million dollars per year once we reach the six million uh cubic meters per day yes the overall project is going to depend on the fob price of the energy that that we sell yeah so i think we mentioned this in the previous call um If we are able to sell above $7.50, it's going to be a very good project. If we are selling below, it's going to be lower IRR return than we expect. We know we are going to have good years, regular years, and self-advocate years, but we are very optimistic in the overall project.

The average is going to be fine. All right. Ezequiel Harari from ADCAP has pumped a hedge in the portion of its 2026 production? If so, what percentage was covered and at what average price those hedges were executed?

Okay. We hedged almost 100% of our production and

For 2026, I mean, I have it.

Well, pretty much, very a good portion of it, right? A very important portion of it.

And 68, no?

Sorry, I'm here. So I would say it's around 80% of next year, and the average price is, including this year, so... What is left of this year and the rest of next year is around 68, over 68 dollars per barrel.

This is brand, right? Then translating to Pampa, we have a lot of stuff that we have to pay for export duties. There are some discounts, very minor though, for logistics and quality and then other stuff. If we sell locally, transportation fees and so on. Right. Jonathan's work from DebtWire. Are you planning to cancel the 0.8 million ADRs that you bought back? Is 0.8 million all you have on your own shares or do you have more?

I don't recall if we have... Do we have shares from previous buyback? No, we cancel it all. So, no. There's no... As of today, most probably we are going to cancel these shares as well.

We have to do by law.

Well, eventually we could do a convertible or use it for something, but we are not starting that opportunity, so most probably they are going to be canceled in the next shareholders assembly.

What is the status of your plan to build a fertilizer urea plant?

We are waiting from, there's been some delays on the original, our original schedule. So now we are expecting by the end of the year to have, we have already received the, yeah, the technical part of the and we are studying from the suppliers the technical part of the project, but we still haven't received the prices. We should receive that by year-end, and so we are expecting that number. Great.

Okay. Felipe Colasso from Bull Market. What is the current state of the payment days in gas from Enarsa? What is Pampa's exposure to this?

Fito, do you have exposure? No. Inarsa has been improving.

Yes, sir.

significantly over the past few months. So at one point it had like almost two months of delay and now it has less than a month, right?

Yeah, it's like 20 days. That's right. And then the debt, it's shrink and loss. Right now the debt, it's like less than 60 million, around 60 million dollars. So it's like in pesos, it's like 90 billion pesos. And exposure is, we just sell... Those 19 billion pesos that you mentioned. No, but where we sell in ARSA, so why is a client not ours? We sell under applying gas, but a fraction of applying gas to them. The last round that we won, our offtake is in ARSA. Next question. I better keep it up. Tadeo Zapata from Proficio. Regarding the free DUC pads plus the free that you are currently drilling, is it part of your policy to maintain the inventory of that type of wells, or is it due to the limitation related to the facility's capacity? I guess why do we have DUCs instead?

We have DUCs because we need to, as he's mentioning, we need to anticipate the ramp-up once the facility is in place. So if we are going to be installing a facility in March 2026, increasing around 7,000 to 8,000 barrels per day, we need to anticipate those DUCs so we can complete those quickly and hit the ramp-up rate.

Well, some questions have been answered. Laura from . Nice to meet you. Any further bond placement on the cross-border markets?

Well, as you know, I'm sorry, I'm going to extend a little bit in the question. But as you know, on 2024, we started, process of refinancing all our debt. We issued two bonds. We called another two, as Lida explained. That showed that we are very active in the international bond market. And as we've been explaining, we've been funding our CapEx with our own cash position and our free cash flow. So all these issuance were opportunistic. rather than a need to finance any capex or any M&A. We tap the market in very opportunistic manners, and that will be the case going forward. So we don't need to issue bonds. We don't need to finance any specific out of the ordinary course of business. But if we see an opportunity... We will take it. We will take it. If we can improve our debt profile, if we can issue a very long-term bond, or if we can issue at a very low rate, that is something that we might do. Always in the spirit of calling or paying short-term debt and issuing longer-term debt, yeah, that is something that we might do. and we're always very active, and we execute our transactions very fast, so this can happen overnight. I think that answers the question.

Awesome. Ignacio Sinichowski from Inverti en Bolsa. He's asking regarding the remaining stake of Pampa housing Geopark. As far as I know, it is now nearly 4%. Are you planning to sell?

Currently, we don't have any position in Geopark. We sold them all, making us more profit. Basically, I think we finished selling the stake in September after the... significant sell-down in the Argentine market, we decided to switch.

So the main goal was we saw our stock very cheap, and we launched a share buyback program, as you all know. So we disinvested in Geopark, and at 58, we decided to buy back our shares with that capital. It was a better investment.

Yeah, even significantly more than what we spent.

We spent $48 million, and the Joe Park trade was $33, $34. The profit from that trade was the two dividends we collected during the holding period.

And something else?

The price was more or less neutral, but in general, that was our strategy.

Regarding OCP, the warranty was $100 million. Are there any chances to collect the remaining?

Yeah, the guarantee was $100 million, but we had cash collateral of $84 million. The rest was based on the balance sheet of Pampa. The guarantee is completely collected, so there's nothing remaining there. Awesome.

And that's it. 12.59. We ended all the questions. Some of them, they've already been answered, so you can access the replay and check it out. Thank you for being here. Gustavo, Horacio, Pito, do you have anything to say?

Thank you for joining us. I hope it was useful.