Group 1 - The article discusses the author's experience in creating content related to economics and finance, focusing on US stocks and emerging markets, particularly in Latin America [1] - The author emphasizes a preference for global macro strategies and value investing, with a focus on sectors such as energy, materials, and real estate [1] - The analysis highlights the importance of companies having competitive advantages, good management, and strong future prospects, particularly those that generate good cash flow and maintain a solid asset base [1] Group 2 - The author expresses a beneficial long position in the shares of PAM, indicating a personal investment interest [2] - The article is presented as an independent opinion, with no compensation received from companies mentioned, ensuring a level of objectivity [2] - There is a disclaimer regarding the nature of past performance not guaranteeing future results, emphasizing the need for individual assessment of investment suitability [3]

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide valuable information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 amounted to $249 million, representing a 17% decline year-on-year due to soft gas sales, falling petrochemical prices, and higher operating expenses [6] - CapEx surged 140% year-on-year, reaching $354 million, primarily invested in the development of Rincon de Aranda [6] - Gross debt was nearly $1.6 billion, down 23% since December 2024, reflecting successful liability management efforts [18] Business Line Data and Key Metrics Changes - Oil and gas adjusted EBITDA was $87 million, down 28% year-on-year, largely due to reduced domestic gas sales and higher lifting costs [7] - Power generation posted an adjusted EBITDA of $112 million in Q2, a 5% increase year-on-year, mainly due to BP6 performance and higher spot prices [16] Market Data and Key Metrics Changes - Crude oil prices averaged nearly $62 per barrel in Q2, 14% lower than last year, primarily due to Brent underperformance [10] - Total gas sales fell 11% year-on-year to nearly 13 million cubic meters per day but rose 10% from Q1, attributed to seasonal effects [11] Company Strategy and Development Direction - The company aims to reach a production target of 20,000 barrels per day at Rincon de Aranda by Q4 2025 and 45,000 barrels per day by 2027 [15] - The company is focused on increasing gas exports to Chile and enhancing production capabilities through new infrastructure investments [13][15] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 and 2026 will be years of negative free cash flow due to significant investments in Rincon de Aranda, with expectations of cash generation improving thereafter [73] - The company remains optimistic about future production growth and the potential for improved pricing dynamics in the oil market [108] Other Important Information - The company has extended the exploratory license for Paravanera until 2027, indicating ongoing commitment to exploration activities [12] - The central processing facility (CPF) is expected to be operational by 2026, which will significantly enhance production capabilities [24] Q&A Session Summary Question: Can you provide more details on the CPF in Rincon de Aranda? - The CPF will facilitate oil and water separation, disposal of flowback water, and natural gas separation, with an output of 7,000 cubic meters per day expected to be completed by 2026 [24] Question: Have you started self-producing power with your own fuel? - Yes, self-procurement of gas has begun on a marginal basis, with current prices around $8 per million BTU [29][33] Question: What are the expected lifting costs for the second half of the year? - Lifting costs are expected to decrease from around $16 per barrel in 2025 to approximately $7 per barrel by 2026 as production ramps up [38] Question: What is the expected EBITDA contribution from the CESA project? - The EBITDA contribution will depend on LNG prices, which are currently variable and difficult to predict [130] Question: What is the current status of hydroelectric concessions? - The first tenders for hydro concessions are expected to be auctioned soon, but there is no clarity on the timing [100] Question: Are there plans for shareholder distributions in 2027? - It is too early to determine, but the company anticipates significant developments by then [132]

Pampa Energía, an independent company with active participation in the Argentine oil, gas and electricity, announces the results for the six-month period and quarter ended on June 30, 2025. Stock information | Buenos Aires Stock | | --- | | Exchange | | Ticker: PAMP | | New York Stock Exchange | Basis of presentation Buenos Aires, August 6, 2025 Q2 25 main results Sales recorded US$486 million in Q2 25, a 3% year-on-year slight decline, driven by lower deliveries under the Plan Gas GSA and a drop in petroch ...

Group 1 - The Argentine energy sector is undergoing significant transformation, with the government accelerating tariff regulations and gradually lifting capital controls [1] - The opening of the economy has shown clear signs of foreign exchange (FX) improvements [1]

Core Viewpoint - Addex Therapeutics reported a strong start to 2025 with significant progress in product development and business milestones, particularly in their GABAB PAM drug candidate for chronic cough and the mGlu2 PAM asset ADX71149 [2][5]. Financial Summary - Income for Q1 2025 was CHF 71,000, a decrease of CHF 164,000 from CHF 235,000 in Q1 2024 [4]. - R&D expenses decreased to CHF 156,000 from CHF 245,000, a reduction of CHF 89,000 [4][8]. - G&A expenses decreased to CHF 521,000 from CHF 778,000, a reduction of CHF 257,000 [4][8]. - Total operating loss improved to CHF 606,000 from CHF 788,000, an improvement of CHF 182,000 [4]. - Net loss from continuing operations was CHF 1,473,000, compared to CHF 735,000 in Q1 2024, reflecting an increase of CHF 738,000 [4]. - Net loss for the period decreased to CHF 1,473,000 from CHF 3,087,000, a reduction of CHF 1,614,000 [4]. - Basic and diluted net loss per share was CHF 0.01, down from CHF 0.03 in the same period last year [4][10]. - Cash and cash equivalents increased to CHF 2.8 million from CHF 1.6 million, an increase of CHF 1.2 million [4][11]. - Shareholders' equity improved significantly to CHF 8.3 million from a negative CHF 1.4 million [4]. Operational Highlights - The GABAB PAM chronic cough candidate demonstrated robust anti-tussive activity in multiple disease models [5][6]. - The company regained rights to its Phase 2 mGlu2 PAM asset, ADX71149 [5][6]. - Indivior successfully advanced their GABAB PAM program for substance use disorders through IND enabling studies [5][6]. - An option agreement was entered with Sinntaxis for exclusive licensing of intellectual property related to mGlu5 NAM in brain injury recovery [5][6]. Additional Information - The Q1 2025 financial report is available on the company's website [12]. - A conference call was scheduled to review the financial results, featuring CEO Tim Dyer and Head of Translational Science Mikhail Kalinichev [13].

Core Viewpoint - Addex Therapeutics announced significant anti-tussive activity of its GABAB positive allosteric modulator (PAM) in preclinical models, indicating potential as a treatment for chronic cough [1][3][4] Company Overview - Addex Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel small molecule allosteric modulators for neurological disorders [6] - The company’s lead drug candidate, dipraglurant, is being evaluated for brain injury recovery [6] - Addex has a partnership with Indivior for a GABAB PAM drug candidate aimed at substance use disorders, which has completed IND enabling studies [6] Product Development - The GABAB PAM drug candidate demonstrated significant reductions in cough frequency and increased cough latency in preclinical models, outperforming reference drugs like nalbuphine, baclofen, and codeine [3][4] - The candidate showed better tolerability and a wider therapeutic margin compared to nalbuphine and baclofen, while being similar to a P2X3 inhibitor [3] - The company plans to advance the GABAB PAM candidate into IND enabling studies following positive in vivo proof of concept [4] Scientific Background - GABAB receptors are involved in the cough neural circuit and are activated by GABA, with baclofen being a selective GABAB agonist used off-label for chronic cough [5] - The allosteric modulation approach offers advantages such as higher selectivity and better tolerability compared to traditional orthosteric compounds like baclofen [5]

Core Viewpoint - Pampa Energia S.A. (PAM) is positioned as a strong investment option in the utility sector due to its focus on asset quality and expansion in electricity generation, transmission, and distribution in Argentina [1] Growth Projections - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 67.2% to $11.20 over the past 90 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $2.15 billion, reflecting a year-over-year growth of 14.7% [2] - PAM has achieved an average earnings surprise of 168.1% in the last four quarters [2] Liquidity - PAM's current ratio at the end of Q1 2025 was 1.82, surpassing the industry average of 0.77, indicating sufficient short-term assets to cover liabilities [3] Debt Position - PAM's total debt to capital ratio stands at 38.69%, which is better than the industry's average of 62.5% [4] - The time-to-interest earned ratio at the end of Q1 2025 was 4.1, indicating the company's capability to meet future interest obligations comfortably [4] Return on Equity (ROE) - PAM's ROE is currently 15.29%, exceeding the industry average of 10.05%, demonstrating effective utilization of shareholders' funds to generate income [5] Clean Power Generation - PAM is developing multiple wind energy projects in Argentina, particularly in Buenos Aires, with over $1 billion invested in 687 megawatts (MW) of wind energy since 2018 [6] - In Q1 2025, PAM's net power generation reached 5,951 gigawatt-hours, sourced from hydro, wind, and thermal energy [6] Stock Price Performance - Over the past three months, PAM's shares have increased by 6.9%, outperforming the industry's growth of 4.8% [7]

Group 1 - The focus is on value companies linked to commodity production, particularly in sectors like oil & gas, metals, and mining [1] - Emphasis on companies with sustained free cash flows, low leverage, and sustainable debt, especially those in distress with high recovery potential [1] - Preference for analyzing companies in emerging markets that exhibit high margins and present good medium to long-term investment opportunities [1] Group 2 - Interest in companies with a strong pro-shareholder attitude, including solid buyback programs and consistent dividend distributions [1] - The analyst has a financial master's degree specializing in company valuation and an economic degree [1] - The motivation is to share information with the Seeking Alpha community to enhance individual investment decisions [1]

[Q1 25 Main Results](index=1&type=section&id=Q1%2025%20Main%20Results) Pampa Energía reported a 3% increase in Q1 25 sales and a 17% rise in Adjusted EBITDA, while net profit decreased by 43% due to tax and operating costs Q1 25 Key Financial Highlights (YoY) | Metric | Q1 25 (US$ million) | Q1 24 (US$ million) | Variation | | :--- | :--- | :--- | :--- | | Sales | 414 | 401 | +3% | | Adjusted EBITDA | 220 | 187 | +17% | | Net Profit | 153 | 267 | -43% | | Net Debt | 577 | N/A | N/A | - Sales growth was driven by higher spot energy prices, the newly commissioned **PEPE 6**, and greater deliveries under **Plan Gas**, partially offset by lower petrochemical reformer volumes and softer gas sales to industries and Chile[2](index=2&type=chunk) - Adjusted EBITDA increase was mainly due to spot energy and **PEPE 6** in power generation, along with higher **Plan Gas** volumes and tariff increases in **TGS** and **Transener**, partially offset by higher operating costs and reduced petrochemical production[3](index=3&type=chunk) - Net profit decreased primarily due to a smaller recovery from non-cash deferred income tax and increasing operating costs, despite higher sales and positive net financial results[4](index=4&type=chunk) [1. Relevant Events](index=2&type=section&id=1.%20Relevant%20Events) This section details significant corporate developments, including a major FLNG project, power generation updates, tariff adjustments for TGS and Transener, and changes in the Board of Directors [1.1 Participation in the FLNG Project for LNG Exports](index=2&type=section&id=1.1%20Participation%20in%20the%20FLNG%20Project%20for%20LNG%20Exports) Pampa Energía, through its 20% stake in SESA, is moving forward with a significant FLNG Project, executing final investment decisions for two floating liquefaction vessels (Hilli and MKII) with a combined capacity of up to 6 MTPA of LNG. This US$7 billion investment aims to monetize Pampa's Vaca Muerta reserves and position Argentina in the global LNG market, with Pampa contributing up to 6 mcmpd of natural gas - Shareholders of SESA (Pampa **20% stake**) agreed to proceed with the FLNG Project, executing FID for a **20-year charter** of the **Hilli (2.45 MTPA)** and **MKII (3.5 MTPA)** floating liquefaction vessels[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - The project aims to export up to **6 MTPA of LNG**, with Hilli expected to begin operations in **late 2027/early 2028** and MKII by the **end of 2028**[8](index=8&type=chunk) - Pampa will contribute up to **6 mcmpd of natural gas**, representing an almost **50% increase** from current average production, to supply the vessels[10](index=10&type=chunk) - The estimated investment is **US$7 billion over 20 years**, approved under the RIGI, with a **30-year unrestricted LNG export permit** granted[11](index=11&type=chunk) [1.2 Power generation](index=2&type=section&id=1.2%20Power%20generation) The power generation segment saw multiple spot remuneration updates from January to May 2025, with increases ranging from 1.5% to 4%. Additionally, the National Government and Mendoza province agreed to jointly tender the HIDISA and HINISA concessions as a single business unit Spot Remuneration Updates (Effective as of) | Effective as of: | Increase | | :--- | :--- | | January 2025 | 4% | | February 2025 | 4% | | March 2025 | 1.5% | | April 2025* | 1.5% | | May 2025* | 2% | - The National Government and Mendoza province agreed to jointly tender the HIDISA and HINISA concessions as a single business unit, transferring **51%** of the concessionaire's shares[13](index=13&type=chunk) [1.3 Transener and TGS](index=3&type=section&id=1.3%20Transener%20and%20TGS) TGS experienced a US$13 million loss in Q1 25 due to severe flooding at its Cerri Complex, which halted NGL production and gas transportation, though gas transportation was restored. Both Transener and TGS received multiple tariff adjustments and concluded their five-year tariff reviews (RQT), establishing new capital bases, mandatory investments, real rates of return, and monthly adjustment mechanisms for cost variations - Severe flooding at **TGS's Cerri Complex** on March 7, 2025, halted NGL production and natural gas transportation; gas transportation was restored on March 24, but NGL production is still partially normalized[15](index=15&type=chunk) - **TGS** recorded a **US$13 million loss** in Q1 25 related to climate event expenses and impairment of materials and PPE due to the flood[16](index=16&type=chunk) Tariff Adjustments due to Cost Variations | Effective as of: | Transener Increase | TGS Increase | | :--- | :--- | :--- | | January 2025 | 4% | 2.5% | | February 2025 | 4% | 1.5% | | March 2025 | 2% | 1.7% | | April 2025 | 4% | 0% | - **TGS's five-year tariff review (RQT)** concluded, effective May 2025-2030, including an initial **3.67% tariff increase** and monthly adjustments based on a **50% PPI and 50% CPI** formula[18](index=18&type=chunk)[19](index=19&type=chunk) - **Transener and Transba's five-year tariff review (RQT)** concluded, effective May 2025-2030, with **Transener** receiving a **42.89% increase** and **Transba** a **10.30% increase**, phased in monthly, and a monthly adjustment mechanism combining **33% CPI and 67% PPI**[20](index=20&type=chunk)[21](index=21&type=chunk) [1.4 Approval of VMOS's under RIGI](index=4&type=section&id=1.4%20Approval%20of%20VMOS%27s%20under%20RIGI) The Ministry of Economy (MECON) approved VMOS's application to the Incentive Regime for Large Investments (RIGI) for the construction and operation of a 437 km oil pipeline with a capacity of up to 700 kbpd. Pampa holds an 11% stake in VMOS and has a contract to transport 50 kbpd - **MECON** approved **VMOS's** application to the **RIGI** for building and operating a **437 km oil pipeline** between Allen and Punta Colorada, with a capacity of up to **700 kbpd**[23](index=23&type=chunk) - Pampa holds an **11% stake** in **VMOS** and has a contract to transport **50 kbpd**, including storage and loading services[23](index=23&type=chunk) [1.5 End of the Export Growth Program ('PIE')](index=4&type=section&id=1.5%20End%20of%20the%20Export%20Growth%20Program%20%28%27PIE%27%29) Executive Order No. 269/25 mandated that 100% of export proceeds must be settled through the official exchange market (MULC), effectively terminating the Export Growth Program (PIE) - Executive Order No. **269/25** ended the **Export Growth Program ('PIE')** by mandating that **100% of export proceeds** must be settled through the official exchange market **MULC**[24](index=24&type=chunk) [1.6 Changes in the Board of Directors](index=4&type=section&id=1.6%20Changes%20in%20the%20Board%20of%20Directors) Pampa's Shareholders Meeting approved the appointments of three new Board members and renewed the tenures of several existing members and alternate members. New appointments were also made to the Audit Committee - **Gabriel Szpiegel**, **Daniela Rivarola Meilan**, and **Nicolás Mindlin** were appointed as new Board members[25](index=25&type=chunk) - **Carolina Zang** and **Julia Pomares** had their tenures renewed as Board members, while **Clarisa Lifsic**, **Lorena Rappaport**, and **Diego Martín Salaverri** were renewed as alternate members, and **Flavia Bevilacqua** and **María Carolina Sigwald** were appointed as alternate members[26](index=26&type=chunk) - **Gabriel Szpiegel** and **Carolina Zang** were designated members of the Audit Committee, with **Clarisa Lifsic** as an alternate member[26](index=26&type=chunk) [2. Financial highlights](index=5&type=section&id=2.%20Financial%20highlights) This section provides an overview of Pampa Energía's consolidated balance sheet, income statement, cash flow, and debt profile for Q1 25 [2.1 Consolidated balance sheet](index=5&type=section&id=2.1%20Consolidated%20balance%20sheet) As of March 31, 2025, Pampa Energía reported a slight decrease in total assets and liabilities compared to December 31, 2024, while total equity attributable to owners of the company increased Consolidated Balance Sheet (US$ million) | Metric | As of 03.31.2025 | As of 12.31.2024 | | :--- | :--- | :--- | | Total Assets | 6,199 | 6,345 | | Total Equity | 3,482 | 3,295 | | Total Liabilities | 2,717 | 3,050 | | Property, plant and equipment | 2,685 | 2,607 | | Investments in associates and joint ventures | 1,103 | 993 | | Cash and cash equivalents | 361 | 738 | [2.2 Consolidated income statement](index=6&type=section&id=2.2%20Consolidated%20income%20statement) Pampa Energía's Q1 25 consolidated income statement shows a 3% increase in sales revenue year-on-year, but a 43% decrease in net income, primarily due to lower recovery from non-cash deferred income tax and increased operating costs Consolidated Income Statement (US$ million, Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | Sales revenue | 414 | 401 | +3% | | Cost of sales | (285) | (258) | +10% | | Gross profit | 129 | 143 | -10% | | Operating income | 121 | 119 | +2% | | Financial results, net | 29 | 1 | NA | | Profit before tax | 150 | 120 | +25% | | Net income for the period | 154 | 268 | -43% | | Net income per ADR to shareholders | 2.8 | 4.9 | -43% | [2.3 Consolidated cash flow statement](index=7&type=section&id=2.3%20Consolidated%20cash%20flow%20statement) In Q1 25, Pampa Energía significantly improved cash generated from operating activities, moving from a net outflow in Q1 24 to a net inflow. However, there was a substantial increase in cash used in financing activities, primarily due to debt repurchases and redemptions, leading to an overall decrease in cash and cash equivalents Consolidated Cash Flow Statement (US$ million, Q1 25 vs Q1 24) | Activity | Q1 25 | Q1 24 | | :--- | :--- | :--- | | Net cash generated by (used in) operating activities | 90 | (20) | | Net cash generated by (used in) investing activities | (43) | (28) | | Net cash (used in) generated by financing activities | (424) | 77 | | (Decrease) Increase in cash and cash equivalents | (377) | 29 | | Cash and cash equivalents at the end of the period | 361 | 200 | - Repurchase and redemption of corporate bonds amounted to **US$360 million** in Q1 25, a significant financing outflow compared to none in Q1 24[31](index=31&type=chunk) [2.4 Cash and financial borrowings](index=8&type=section&id=2.4%20Cash%20and%20financial%20borrowings) Pampa Energía's consolidated financial debt decreased by 19% to US$1,691 million in Q1 25 due to the redemption of 2027 Notes, but net debt increased to US$577 million due to higher working capital and investments. The company successfully improved its debt maturity profile, extending the average life to 5.0 years, and continues to comply with all debt covenants Cash and Financial Debt (US$ million, as of March 31, 2025) | Metric | Consolidated (in FS) | | :--- | :--- | | Cash | 1,114 | | Financial debt | 1,691 | | Net debt | 577 | - Pampa's financial debt under IFRS amounted to **US$1,691 million**, a **19% decrease** from the end of 2024, mainly due to the full redemption of **2027 Notes** funded by the issuance of **2034 Notes**[34](index=34&type=chunk) - Net debt increased to **US$577 million** due to higher seasonal working capital needs and increased capital expenditures for Rincón de Aranda's development[34](index=34&type=chunk) - The issuances of the **2031** and **2034 Notes** significantly improved Pampa's debt maturity profile, extending the average life to **5.0 years**[35](index=35&type=chunk) Pampa's Debt Securities (in million US$) | Security | Maturity | Amount net of repurchases | Coupon | | :--- | :--- | :--- | :--- | | CB Series 9 (Foreign Law) | 2026 | 120 | 9.5% | | CB Series 3 (Foreign Law) | 2029 | 293 | 9.125% | | CB Series 21 (Foreign Law) | 2031 | 410 | 7.95% | | CB Series 23 (Foreign Law) | 2034 | 360 | 7.875% | Credit Ratings (Global) | Company | Agency | Rating | | :--- | :--- | :--- | | Pampa | S&P | B- | | Pampa | Moody's | Caa1 | | Pampa | FitchRatings | B- | [3. Analysis of the Q1 25 results](index=10&type=section&id=3.%20Analysis%20of%20the%20Q1%2025%20results) This section offers a detailed segment-by-segment analysis of Pampa Energía's Q1 25 financial performance, including adjusted EBITDA, and key operational drivers [3.1 Reconciliation of consolidated adjusted EBITDA](index=10&type=section&id=3.1%20Reconciliation%20of%20consolidated%20adjusted%20EBITDA) Pampa Energía's consolidated adjusted EBITDA increased by 17% year-on-year to US$220 million in Q1 25, driven by strong performance in power generation and holding & others segments, despite adjustments in other segments Consolidated Adjusted EBITDA Reconciliation (US$ million) | Metric | Q1 25 | Q1 24 | | :--- | :--- | :--- | | Consolidated operating income | 121 | 119 | | Consolidated depreciations and amortizations | 84 | 68 | | Reporting EBITDA | 205 | 187 | | Consolidated adjusted EBITDA | 220 | 187 | Adjusted EBITDA by Segment (US$ million, Q1 25 vs Q1 24) | Segment | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | Oil and Gas | 41 | 67 | -39% | | Power generation | 130 | 86 | +51% | | Petrochemicals | (4) | 11 | NA | | Holding and Others | 53 | 23 | +133% | | Total | 220 | 187 | +17% | [3.2 Analysis of the oil and gas segment](index=11&type=section&id=3.2%20Analysis%20of%20the%20oil%20and%20gas%20segment) The oil and gas segment experienced a 3% decline in sales revenue and a 39% drop in adjusted EBITDA in Q1 25, primarily due to lower gas sales to Chile and industries, and reduced crude oil volumes. Despite flat overall production year-on-year, gas production saw a slight increase, while oil production decreased significantly due to divestments and lower volumes in conventional blocks, partially offset by rising shale oil production at Rincón de Aranda, which also drove a 67% increase in capital expenditures Oil & Gas Segment Financials (US$ million, Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | ∆% | | :--- | :--- | :--- | :--- | | Sales revenue | 146 | 150 | -3% | | Gross profit | 28 | 51 | -45% | | Net loss for the period | (49) | 48 | NA | | Adjusted EBITDA | 41 | 67 | -39% | | Increases in PPE and right-of-use assets | 147 | 87 | +69% | - Sales decline was mainly due to lower gas sales to Chile and industries, and a drop in crude oil volumes, partially offset by higher deliveries under **Plan Gas**[44](index=44&type=chunk) Oil & Gas Production (kboe/day, Q1 25 vs Q1 24) | Product | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | Total Production | 72.7 | 73.1 | -0% | | Gas Production | 69.5 | 68.8 | +1% | | Oil Production | 3.2 | 4.3 | -25% | Oil & Gas Average Prices (Q1 25 vs Q1 24) | Product | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | Average gas price (US$/MBTU) | 3.0 | 3.2 | -6% | | Average oil price (US$/bbl) | 68.4 | 68.6 | -0% | - Oil production decreased due to the sale of **Gobernador Ayala block** in October 2024 and lower volumes at conventional crude oil blocks, partially offset by rising shale oil production at **Rincón de Aranda**[51](index=51&type=chunk) - Lifting cost per boe rose **20% to US$6.9** in Q1 25 (vs. US$5.8 in Q1 24), mainly due to higher gas treatment expenses and well testing at **Rincón de Aranda**[53](index=53&type=chunk) - Capital expenditures amounted to **US$147 million** in Q1 25 (**+67% YoY**), with **78%** allocated to the development of **Rincón de Aranda**[60](index=60&type=chunk) [3.3 Analysis of the power generation segment](index=14&type=section&id=3.3%20Analysis%20of%20the%20power%20generation%20segment) The power generation segment saw a 27% increase in sales revenue and a 51% rise in adjusted EBITDA in Q1 25, primarily driven by higher spot prices, the full commissioning of PEPE 6, and operational improvements. Despite a slight decrease in net income, the segment's operational performance outperformed the national grid, with increased generation from new capacity and improved availability Power Generation Segment Financials (US$ million, Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | ∆% | | :--- | :--- | :--- | :--- | | Sales revenue | 195 | 154 | +27% | | Gross profit | 92 | 77 | +19% | | Net income for the period | 125 | 198 | -37% | | Adjusted EBITDA | 130 | 86 | +51% | | Increases in PPE | 9 | 24 | -63% | - Sales growth was mainly driven by higher spot prices in US$ terms (AR$ prices rose **136% YoY**), the full commissioning of **PEPE 6** (adding **140 MW**), and increased recognition of fuel, gas, and power transportation tariffs[62](index=62&type=chunk) Power Generation Key Performance Indicators (Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | Installed capacity (MW) | 5,472 | 5,332 | +3% | | Net generation (GWh) | 5,951 | 5,928 | +0% | | Average price (US$/MWh) | 37 | 31 | +22% | | Average gross margin (US$/MWh) | 25 | 20 | +22% | | Total availability | 93.4% | 96.5% | -307 bps | - Adjusted EBITDA was boosted by higher spot prices, the addition of **PEPE 6**, and operational improvements, especially in **PPAs units**, partially offset by higher operating expenses[72](index=72&type=chunk) - Capital expenditures (excluding CTEB) totaled **US$9 million** in Q1 25, down from US$24 million in Q1 24, due to the completion of **PEPE 6** in Q4 24[73](index=73&type=chunk) [3.4 Analysis of the petrochemicals segment](index=16&type=section&id=3.4%20Analysis%20of%20the%20petrochemicals%20segment) The petrochemicals segment reported a US$4 million adjusted EBITDA loss in Q1 25, a significant decline from a US$11 million gain in Q1 24, primarily due to a reformer plant overhaul that reduced production by 30%, lower styrene and polystyrene prices/volumes, and higher operating expenses. Despite this, net income increased significantly due to contingency recoveries Petrochemicals Segment Financials (US$ million, Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | ∆% | | :--- | :--- | :--- | :--- | | Sales revenue | 92 | 120 | -23% | | Gross profit | 2 | 12 | -83% | | Net income for the period | 42 | 11 | +282% | | Adjusted EBITDA | (4) | 11 | NA | - The adjusted EBITDA loss was mainly due to a **30% reduction in production** from an overhaul at the **Reformer plant** in February 2025, lower styrene and polystyrene prices and volumes, and higher operating expenses[76](index=76&type=chunk) Petrochemicals Key Performance Indicators (Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | Total volume sold (k ton) | 84 | 110 | -24% | | Average price (US$/ton) | 1,095 | 1,098 | -0% | | Styrene & polystyrene volume sold (k ton) | 19 | 23 | -15% | | SBR volume sold (k ton) | 11 | 10 | +8% | | Reforming & others volume sold (k ton) | 54 | 77 | -30% | - Financial results recorded a profit of **US$26 million** in Q1 25, compared to a US$1 million loss in Q1 24, mainly explained by contingency recoveries[77](index=77&type=chunk) [3.5 Analysis of the holding and others segment](index=17&type=section&id=3.5%20Analysis%20of%20the%20holding%20and%20others%20segment) The holding and others segment significantly improved its adjusted EBITDA to US$53 million in Q1 25, a 133% increase year-on-year, driven by higher contributions from TGS and Transener due to tariff hikes, and improved corporate segment losses. Net income also saw a substantial increase, supported by gains from slower AR$ devaluation and reduced financial expenses Holding and Others Segment Financials (US$ million, Q1 25 vs Q1 24) | Metric | Q1 25 | Q1 24 | ∆% | | :--- | :--- | :--- | :--- | | Sales revenue | 7 | 3 | +133% | | Operating income | 20 | 16 | +25% | | Net income for the period | 36 | 11 | +227% | | Adjusted EBITDA | 53 | 23 | +133% | - The significant increase in adjusted EBITDA was due to higher contributions from **TGS (US$46 million vs US$27 million)** and **Transener (US$13 million vs US$6 million)**, both driven by tariff increases, and improved losses from the corporate segment[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - Financial results showed a net profit of **US$7 million** in Q1 25 (vs. US$5 million loss in Q1 24), mainly explained by gains from slower AR$ devaluation on tax credits and lesser financial expenses from reduced AR$ debt[81](index=81&type=chunk) [3.6 Analysis of the quarter, by subsidiary and segment](index=19&type=section&id=3.6%20Analysis%20of%20the%20quarter%2C%20by%20subsidiary%20and%20segment) This section provides a detailed breakdown of Adjusted EBITDA, Net Debt, and Net Income for Q1 25 and Q1 24, categorized by subsidiary and segment, both on a consolidated basis and adjusted by Pampa's ownership stake, offering granular insight into each business unit's contribution Adjusted EBITDA by Subsidiary and Segment (US$ million, Q1 25 vs Q1 24) | Segment/Subsidiary | % Pampa | Q1 25 Adjusted EBITDA | Q1 24 Adjusted EBITDA | | :--- | :--- | :--- | :--- | | Oil & gas segment (Pampa Energía) | 100.0% | 41 | 67 | | Power generation segment (Subtotal) | N/A | 130 | 86 | | Petrochemicals segment (Pampa Energía) | 100.0% | (4) | 11 | | Holding & others segment (Subtotal) | N/A | 53 | 23 | | Total consolidated | N/A | 220 | 187 | Net Income by Subsidiary and Segment (US$ million, Q1 25 vs Q1 24) | Segment/Subsidiary | % Pampa | Q1 25 Net Income | Q1 24 Net Income | | :--- | :--- | :--- | :--- | | Oil & gas segment (Pampa Energía) | 100.0% | (49) | 48 | | Power generation segment (Subtotal) | N/A | 124 | 197 | | Petrochemicals segment (Pampa Energía) | 100.0% | 42 | 11 | | Holding & others segment (Subtotal) | N/A | 36 | 11 | | Total consolidated | N/A | 153 | 267 | Net Debt by Subsidiary and Segment (US$ million, Q1 25 vs Q1 24) | Segment/Subsidiary | % Pampa | Q1 25 Net Debt | Q1 24 Net Debt | | :--- | :--- | :--- | :--- | | Oil & gas segment (Pampa Energía) | 100.0% | 1,167 | 956 | | Power generation segment (Subtotal) | N/A | (502) | (129) | | Petrochemicals segment (Pampa Energía) | 100.0% | - | - | | Holding & others segment (Subtotal) | N/A | (118) | 3 | | Total consolidated | N/A | 577 | 718 | [4. Appendix](index=20&type=section&id=4.%20Appendix) This section provides supplementary operational data, including detailed KPIs for power generation plants and oil and gas production by main blocks [4.1 Power generation's main operational KPIs by plant](index=20&type=section&id=4.1%20Power%20generation%27s%20main%20operational%20KPIs%20by%20plant) This section provides a detailed breakdown of key operational performance indicators for Pampa Energía's individual power generation plants, including installed capacity, net generation, sales volume, average price, and average gross margin, categorized by wind, hydroelectric, and thermal sources for Q1 25 and Q1 24 Power Generation Operational KPIs by Plant (Q1 25) | Plant Type | Installed Capacity (MW) | Net Generation (GWh) | Sales (GWh) | Avg. Price (US$/MWh) | Avg. Gross Margin (US$/MWh) | | :--- | :--- | :--- | :--- | :--- | :--- | | Wind | 427 | 418 | 420 | 70 | 51 | | Hydro | 938 | 485 | 485 | 19 | 10 | | Thermal | 4,107 | 5,048 | 5,246 | 36 | 24 | | Total | 5,472 | 5,951 | 6,150 | 37 | 25 | - Wind generation saw a **72% increase** in net generation (**418 GWh** in Q1 25 vs **244 GWh** in Q1 24), while hydro generation decreased by **29% (485 GWh vs 683 GWh)**[90](index=90&type=chunk) [4.2 Production in the main oil and gas blocks](index=21&type=section&id=4.2%20Production%20in%20the%20main%20oil%20and%20gas%20blocks) This section details Pampa Energía's oil and gas production in kboe/day by main blocks for Q1 25 and Q1 24, highlighting variations in gas and oil output across different fields Oil and Gas Production in Main Blocks (kboe/day at ownership) | Block | Q1 25 | Q1 24 | Variation | | :--- | :--- | :--- | :--- | | **Gas** | | | | | El Mangrullo | 38.1 | 43.7 | -13% | | Río Neuquén | 8.4 | 8.9 | -5% | | Sierra Chata | 20.9 | 13.8 | +51% | | Rincón del Mangrullo | 1.0 | 1.5 | -29% | | **Oil** | | | | | El Tordillo | 1.3 | 1.6 | -15% | | Gobernador Ayala | - | 1.1 | -100% | | Rincón de Aranda | 0.9 | 0.2 | NA | | Total | 72.7 | 73.1 | -0% | - **Sierra Chata** gas production increased by **51% YoY**, while **El Mangrullo** and **Rincón del Mangrullo** gas production decreased by **13%** and **29%** respectively[91](index=91&type=chunk) - **Gobernador Ayala** oil production ceased due to the transfer of Pampa's stake in October 2024, while **Rincón de Aranda** shale oil production significantly increased[91](index=91&type=chunk) [5. Glossary of terms](index=22&type=section&id=5.%20Glossary%20of%20terms) This section defines key financial, operational, and regulatory terms used throughout the report - The glossary provides definitions for key terms and acronyms used throughout the earnings release, covering financial, operational, and regulatory terminology specific to the Argentine energy sector[93](index=93&type=chunk)[94](index=94&type=chunk)