Pampa Energía (PAMP) Q4 2024 earnings summary

Executive summary

• 2024 featured record gas output, 21% year-average growth, and strong operational KPIs, with Q4 gas production at 9.8 mcmpd (up 11% YoY) and power availability at 94%.

• Rincón de Aranda shale oil project advanced, with fracking initiated and ramp-up targeted for 20,000 barrels/day by end-2025; full ramp-up expected in 2H26.

• Net debt dropped to $410 million, the lowest since 2016, with a net leverage ratio of 0.6x.

• Power segment expanded with PEPE VI Wind Farm, increasing green energy capacity by 140 MW and commissioning 31 windmills.

• Q4 24 sales rose 20% YoY to $435 million, with net income at $106 million, reversing a $155 million loss in Q4 23.

Financial highlights

• Adjusted Q4 EBITDA was $182 million, up 60% YoY, driven by gas deliveries, tariff hikes, and AR$ appreciation.

• Free cash flow in Q4 reached $82 million, supported by strong working capital inflows.

• Cash and equivalents at year-end 2024 were $1,668 million, up $834 million YoY.

• CapEx in Q4 was $154 million, with over half allocated to Rincón de Aranda; oil & gas CapEx was $111 million, power $38 million, and petrochemicals $2 million.

• Gross debt stood at $2 billion, up 44% YoY due to new bond issuances.

Outlook and guidance

• Rincón de Aranda ramp-up to 20,000 barrels/day by year-end 2025, with $750 million CapEx allocated; full ramp-up targeted for 2H26.

• Total CapEx for 2025 is budgeted at $1.1 billion.

• Participation in major infrastructure projects: 14% stake in VMOS (oil pipeline, $3 billion investment) and 20% in Argentina's first FLNG project.

• Regulatory changes and tariff reviews underway, with new schemes expected in 2025.

• No new greenfield power projects planned; focus remains on Rincón de Aranda and select maintenance.