Pampa Energía (PAMP) Investor Day 2024 summary

Strategic overview and financial position

• Built a diversified energy portfolio over nearly 20 years, holding 15% of Argentina's power generation and 9% of natural gas market share, with co-control of key infrastructure assets like Transener and TGS.

• Achieved significant growth through acquisitions, notably Petrobras Argentina in 2016, and doubled gas production in three years.

• Share buybacks since 2018 reduced outstanding ADRs by 35%, while operating cash flow enabled a 50% reduction in net debt since 2016, now at $700 million and net debt at 0.5x–0.9x EBITDA.

• Expects to fund major growth projects through internal cash flow, not requiring new capital market issuances except for refinancing.

Power generation and regulatory outlook

• Operates 5.5 GW of capacity, with new capacity (post-2012) generating 74–75% of segment EBITDA under long-term PPAs averaging over seven years.

• Maintains industry-leading thermal plant availability rates (97% in 2023 and 6M24).

• Anticipates sector deregulation, with the government aiming to phase out CAMMESA’s central planning and foster a competitive market among IPPs.

• Expects stable cash flow from PPAs, while legacy capacity could benefit from marginal pricing in a deregulated market.

• Maintenance CapEx for power is $80 million/year, with free cash flow over $300 million/year expected.

Oil & gas business and Vaca Muerta opportunity

• Holds significant acreage in Vaca Muerta, with 16+ billion barrels of oil and 300 TCF of gas resources, and is the #3 unconventional gas producer with 9% of Argentina's output and record production of 600 mcfpd in 2024.

• Rapidly increased gas output from 250 to 600 million cubic feet/day since 2021, with Sierra Chata among the top 10% of Vaca Muerta wells.

• Major pipeline expansions (Oldelval Duplicar+, Vaca Muerta Oil Sur) are enabling export capacity increases by 2030.