Pampa Energia S.A.

Good afternoon, everyone, and thank you for waiting. I'm Raquel Cardaz from IR, and we would like to welcome everyone to Pampa Energías' 4Quality 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 be sent in written through Zoom. Should any participants 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 Pampa Energia'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 operation 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 the video conference over to Lida. Please go ahead.

Hello, Raquel. Thank you very much. And hello, everyone. Good afternoon. Thank you for joining our call. I will make a really quick summary so we can spend more time on questions with the management today. Q&A, we have our CEO, Mr. Mariani, our CFO, Mr. Zuberbuehler, and our head of oil and gas, Mr. Turri. So, let's go ahead with the first slide where we make a quick summary of 2025. November 25, 2025 marked our 20th anniversary of Wampa and the creation of Wampa. Back in 2005, we did not produce any oil or gas. or did not generate any single megawatt hour of generation electricity. So 20 years later, Pampa accounts for 9% of the country's total natural gas production and reached a record daily production of 104,000 barrels of oil equivalent during the winter of 2025. This year also marked a steep change in our upstream profile. Our Black Flagship shallow development at Fincón de Aranda began the year producing less than 1,000 barrels of oil per day, and now reached a 20,000 barrel goal by December of last year. As a result, total annual average production exceeded 84,000 barrels of oil equivalent per day. This is 8% higher than last year and 73% up since 2017, the year after we acquired Petrobras Argentina, reflecting the sustained organic growth and disciplined capital allocation. In the power segment, we consolidated a 15% share of Argentina's net electricity output, achieving an outstanding 94% thermal availability rate in 2025. reaffirming our position as the country's leading IPP and demonstrating a reliable, efficient fleet cooperating under a gradually normalizing market framework. At a consolidated level, EBITDA grew 8% year-on-year, surpassing the $1 billion mark. mostly driven by power, gas, and Rincón de Aranda. While oil and gas and power each represent half of the EVDA, we expect that ongoing growth at Rincón de Aranda will further expand oil and gas footprint in the EVDA. So Canva and its series are deeply committed to the country's energy development. In 2025, we hit a new record high of $1.4 billion in capex, of which roughly half was destined to Rincón de Arana, the largest single project development investment in our 20-year history. In 2026, we expect to set a new record price, allocating $717 million in Rincón de Aranda, very similar to last year, to reach production total, plus another $400 million for maintenance across our operations, and around $600 million for TGS Revit Initiative project. So, moving on to the Q4 results, the quarters adjusted EBITDA amounted to $240 million. This is a 26% year-on-year increase. Power generation was the main contributor, where since November, the new guidelines for the wholesale electricity market have allowed power producers to operate under a more decentralized scheme. improving price signals and enabling us to capture operational efficiencies and synergies with our EMP gas. Rincón de Aranda was the second key driver with this production ramp up, accounting for 23% of the quarters at ETA, supported by 10 active paths as of today. Our capital structure continues to strengthen following the issuance of our 12-year international bond. We closed the year with a net debt to EBITDA ratio of 1.1 times and averaged that life of almost eight years. Quora on Quora EBITDA decreased due to the gas seasonality offset by Rincón de Arana and the steady contributions from our utilities TGS and Transenat. CAPEX surged 81% year-on-year to $371 million in the quarter, of which $249 million were invested in the development of Rincon de Aranda. Okay, so moving on, on the slide six, the oil and gas segment adjusted BDA was $77 million in Q4, more than doubling. last year, driven by Rincón de Aranda, increased gas exports and industrial demand. Higher transport and treatment costs partially upset this case. Compared to Q3, the PDA declined due to the gas seasonality, but was smooth by Rincón de Aranda. Lifting costs averaged $8 per barrel. of oil equivalent slightly below last year due to higher crude oil output and stronger gas demand, offset by increasing gas treatment costs and the lease of temporary facilities in Congaranga. Quarter on quarter, lifting costs for BOE increased due to this gas seasonality, Gas listing costs remained flat year-on-year at $1.2 per mil BTU, an average of $1 during 2025, but rose quarter-on-quarter again because of the gas seasonality, while oil declined sharply to below $11 per barrel from $36 last year's Q4. This is mainly because of Rincón de Aranda's ramp-up and the divestment of mature conventional blocks. I remind you all that last year, Q4 Rincón de Aranda was really a green field, produced only from one well. On top of that, we were recording trucking expenses, testing expenses, and we also found a lot of mature blocks that today are divested. Total production average more than 81,000 barrels of oil equivalent per day, up 32% year-on-year. This is led by Rincón de Aranda and Sierra Chata, partially offset by decreases at El Mangrucho and in non-operated blocks, as well as the divestment in Torrillo. Quarter-on-quarter, production dropped 18%, again explained by the gas seasonality. The production mix continues to evolve. with oil rising to 22% of total outputs, driven entirely by Rincón de Aranda. Cruel prices averaged nearly $61 per barrel on Q4. This is 10% lower than last year due to the weaker rent prices. Without the hedging at Rincón de Aranda, our realized price would have been $53 per barrel. So focusing now exclusively on Rincón de Aranda, the ramp-up stays on track. In Q4, we reached the first goal of 20,000 barrels per day after tying two paths, two new paths, with an average quarterly production of 17.1 thousand barrels per day. This is at 19% increase quarter on quarter. As of today, 10 paths are online, of which three of them are currently undergoing testing, well testing, and Plus, we have another two paths, DUC paths, and two other paths are under fracking. In 2025, Rincón de Aranda contributed $126 million of KBDA. Infrastructure build-out, thanks to the WIHI incentive regime, continues in parallel with the field development. Next month, we are installing an additional temporary processing facility with a focus on reaching 28,000 barrels by mid-2026. a key milestone toward the final production target of 45,000 barrels expected in 2027. So moving to gas. Sales grew 10% year-on-year, but dropped 23% from 53%. This is, again, explained by seasonality. El Mangrullo continued to lead the output, though its share shrank to 46%, while Sierra Chata grew to 38% share, with production up 39% year-on-year, supported by a new cap that we tied in during the quarter. Together, they accounted for 84% of the total gas production. Gas prices averaged $3 per millimetre, flat year-on-year. Industry sales supported the pricing, offset by lower export prices due to the brand's underperformance, and a drop in residential due to the lagged tariff pass-through of the devaluation. In Q4 this year, 72% of our gas was sold under the plant gas GSA, a methane retail, down from the 81% Q4 last year, due to the transfer of certain rounds of the plant gas volumes to fuel cell procurement in power, which represented 4% of the total sales in Q4 25. Now, In December, we started to formally be doing the self-procurement of gas in Generva and Loma La Lata. The self-procurement increased to 41% on average in January 2026. So as a result, plant gas, you say, exposure shrunk to 37%. With the new guidelines in place, we expect 40% of this year's production to supply our own gas, our own power generation, capturing margins and leveraging synergies between these two core businesses. Before moving from EMP, I want to just do a quick update on reserves. Total proven reserves rose 28% to 296 million VOE, driven by our increased activity in Sierra Chata and specifically in Rincon de Aranda. Shell reserves grew by 65% year-on-year to 204 million barrels, and with shale oil now accounting for 19% of total reserves. The reserve replacement ratio was 3.2 times, extending the average life to 10.2 years. Since 2019, proven reserves have increased 118% with the most significant expansion coming from Shell since 2023, one of the year when we started to actively develop Vagamorta formation. Okay, so moving to power generations, we posted an EBDA of $111 million in Q4, up 28% year-on-year, mainly driven by stronger stock prices under the new guidelines, especially partially upset by power dispatch at Genelva's new CCGT due to the program maintenance. Total availability declined to 91% due to this scheduled maintenance and the ongoing outage that we are experiencing in Enisa since January. However, campus thermal availability continues to outpace The national grid, under the new framework, also, inertia plus B2B contracts were discontinued, though we managed to recontract in the B2B market. So, contract capacity remained stable year on year. With the new framework, also, performance balances between contracted capacity and this thought margin. So value creation also can be driven by efficiency and fuel management. Those units with high-low factors and self-procured fuel will achieve higher margins. Turning to cash flow on slide 11, we show the parent company figures because this is aligned with our bond perimeter. Despite the higher cap rates, at Rincón de Aranda, we posted a limited $20 million three-hour cash outflow in Q4, offset by strong EBITDA and working capital inflows, mostly from winter collections. As a result, cash and cash equivalents stood at $1.1 billion at the quarter end. This is $210 million more than September close. Finally, on the balance sheet, gross debt was nearly $1.9 billion, down 9% since 2024 December. In November last year, we issued a $450 million international bond maturity in 2037 with a record 20-year tenure. This is the first loan-dated issuance by an Argentine corporate over a decade. and extending our average life to almost eight years. The proceeds from decisions and the 2,034 notes that we issued in May were used to redeem all the outstanding international bonds, the 26, the 27, the 29 notes, and some of the local dollar bonds. As a result, net debt reached to $801 million. This is 1.1 net leverage, maintaining a conservative capital structure while funding growth. Well, so this concludes the presentation. Thank you for hearing me. Now the floor is open for questions. If you have a question, please send it through Zoom chat. We will read it and answer them in the order received. Make sure your name and your company is displayed so we can correctly introduce you to the audience. Should any participant need assistance, please send us a chat message. Please hold while we pull the questions. Thank you. All right, so we start. Alejandro de Michelis from Jefferies. How do you see the evolution of production, please split between oil and gas, and of drilling and completion and lifting costs in 2026? Production, drilling, D&C, lifting costs.

Good afternoon and thank you everybody for joining. Regarding production, let's go first to oil. We are As Lida mentioned, currently in around 19,000 barrels per day. Our target is to reach 25,000 barrels per day by the end of March, beginning of April, and then keep on ramping up to 27,000, even 28,000 barrels per day as of the half of the year. All of this is coming out of Rincón de Aranda. In terms of natural gas, we just closed February around 14 million cubic meters per day. We will probably be reaching a peak of around 18 million cubic meters per day during the winter and an average of approximately 13.5 million cubic meters per day compared to 12.5 million cubic meters per day in 2025. In terms of drilling and completion, In Rincón de Aranda, we drilled 20 wells. We're going to be drilling 20 wells and completing 35. And in Sierra Chata, we will be drilling and completing eight wells each. And I'm missing lifting costs, which are in the range of, will be in the range of $10 per barrel. Yeah, until we get the CPF, but we're talking about 2026. Yeah. And a little bit less than $1 per million BTU in our gas operations.