Pampa Energía (PAMP) Q2 2025 earnings summary

Executive summary

• Q2 2025 featured a strong production ramp-up at Rincón de Aranda, the launch of the PEPE VI wind farm, and higher spot prices, though winter demand was delayed by milder weather starting in June.

• Adjusted EBITDA was $239M, down 17% year-over-year but up sequentially, with a margin of 41%, reflecting lower gas demand, weaker petrochemical prices, and higher costs, partially offset by new wind capacity and oil output.

• CapEx surged to $354M, up 144% year-over-year, mainly for Rincón de Aranda and PEPE VI.

• Net income attributable to shareholders was $40M, a 60% year-over-year decline, mainly due to higher deferred tax charges and lower operating margin.

• Net debt increased to $712M, with a net-debt to EBITDA ratio of 1.1x, due to higher working capital and investments in Rincón de Aranda.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $239M, down 17% year-over-year but up 9% from Q1; EBITDA margin was 41%.

• CapEx reached $354M, up 144% year-over-year, with $249M invested in Rincón de Aranda.

• Free cash flow was -$307M, mainly from Rincón de Aranda CapEx and seasonal working capital needs.

• Cash and equivalents at quarter-end were $879M; gross debt at $1.6B, down 23% since Dec 2024.

• Net income was $40M, down 60% year-over-year.

Outlook and guidance

• 2025 CapEx budgeted at $800M, with over $360M invested YTD; Rincón de Aranda expected to reach 20,000 bbl/day by Q4 and 45,000 bbl/day by 2027.

• Negative free cash flow expected through 2025 and 2026 due to heavy investment in Rincón de Aranda ($1.5B over two years).

• VMOS consortium secured $2B financing for Vaca Muerta Oil Sur pipeline; Pampa holds 10.2% stake and contract for 50 kbpd transport.

• Regulatory reforms aim to liberalize oil and gas markets, update power tariffs, and extend energy emergency until July 2026.

• Leverage expected to peak by year-end and decrease as Rincón de Aranda generates new EBITDA.