Company Overview - Addex Therapeutics is a clinical-stage biopharmaceutical company focused on developing novel small molecule allosteric modulators for neurological disorders [5] - The company's lead drug candidate, ADX71149, has completed several Phase 2 clinical studies in various conditions including schizophrenia and epilepsy [5] - Addex is also advancing a GABAB PAM program for chronic cough independently, alongside a partnership with Indivior for substance use disorder treatments [5] Product Development - The company announced positive results from its GABAB positive allosteric modulator (PAM) chronic cough program, which will be presented at the Thirteenth London International Cough Symposium [1] - In guinea pig models, the GABAB PAM significantly reduced cough frequency and increased cough latency without showing signs of tolerance after sub-chronic treatment [2] - The GABAB PAM demonstrated a wider safety margin compared to baclofen, a GABAB agonist, which is limited in clinical use due to side effects and short half-life [2][4] Scientific Insights - This is the first time a highly selective GABAB PAM has shown antitussive activity in animal models of cough, indicating its potential as a best-in-class treatment [3] - GABAB receptors are widely expressed in the cough neural circuit, and targeting these receptors with an allosteric modulator is expected to provide advantages such as higher selectivity and better tolerability compared to traditional agonists [4]

Footnote 1: 650 Group: AEC Quarterly Market and Long-Term Forecast Report, June 2024. SOURCE Marvell SANTA CLARA, Calif., June 27, 2024 /PRNewswire/ -- Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today introduced the Marvell® Alaska® A 1.6T PAM4 DSP for active electrical cables (AECs), the industry's first 1.6 Tbps AEC DSP to address emerging 200G/lanebased accelerated infrastructure architectures. Artificial intelligence (AI) and machine learning (ML) a ...

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Pampa Energía, an independent company with active participation in the Argentine electricity and gas value chain, announces the results for the quarter ended on March 31, 2024. Stock information Share capital as of May 6, 2024 1,363.5 million common shares/ 54.5 million ADS Market capitalization AR$3,010 billion/ US$2,705 million Information about the videoconference Date and time Wednesday May 8 10 AM Eastern Standard Time 11 AM Buenos Aires Time Access link bit.ly/Pampa1Q2024VC For further information abo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Commission File Number: 001-34429 PAMPA ENERGÍA S.A. (Exact name of registrant as specified in its charter) Pampa Energy Inc. (Translation of registrant's name into English) Argentina (Jurisdiction of incorporation or organization) Maipú 1 C1084ABA, City of Buenos Aires Argentina (Address of principal ...

Audit Report [Auditor's Opinion](index=2&type=section&id=Opinions%20on%20the%20consolidated%20financial%20statements) The independent auditors issued an unqualified opinion, affirming the fair presentation of Pampa Energía S.A.'s consolidated financial statements as of December 31, 2023, in accordance with IFRS - The auditors concluded that the consolidated financial statements present a fair view of the Group's financial position and performance for the year ended December 31, 2023, in accordance with IFRS[3](index=3&type=chunk) [Key Audit Matters](index=3&type=section&id=Key%20Audit%20matters) Key audit matters included oil and gas reserve estimates, impairment of non-financial assets, and fair value determination in acquisitions and divestments - Estimates of oil and gas reserves were a key audit matter due to their significant impact on the depreciation and recoverability of Property, Plant and Equipment (PPE) and goodwill in the oil and gas segment. These estimates involve numerous uncertainties and subjective judgments[10](index=10&type=chunk)[11](index=11&type=chunk)[14](index=14&type=chunk) - The impairment of non-financial long-lived assets for the Rincón del Mangrullo and el Tordillo / la Tapera cash-generating units was a key focus. Management's analysis led to the recognition of an impairment loss of **$30,456 million** as of December 31, 2023[15](index=15&type=chunk)[17](index=17&type=chunk) - The audit focused on the fair value determination related to the acquisition of an additional interest in the Rincón de Aranda block and the divestment of Greenwind S.A., which involved significant management judgment and complex valuation models[17](index=17&type=chunk) Financial Statements [Consolidated Statement of Comprehensive Income](index=13&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) Revenue more than doubled in 2023, but profit for the year decreased to **$36.7 billion** from **$64.9 billion** in 2022, primarily due to higher income tax expense Key Income Statement Data (in millions of Argentine Pesos) | Indicator | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Revenue** | 513,727 | 242,182 | 144,641 | | **Gross profit** | 193,603 | 92,521 | 53,690 | | **Operating income** | 117,754 | 88,451 | 56,426 | | **Profit of the year** | 36,691 | 64,900 | 23,786 | | **Total comprehensive income** | 1,545,345 | 222,754 | 70,362 | Earnings Per Share | Indicator | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Basic and diluted EPS** | $25.25 | $46.97 | $19.29 | [Consolidated Statement of Financial Position](index=15&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) Total assets significantly increased to **$3.8 trillion** from **$840 billion**, driven by Property, Plant and Equipment, with total equity rising to **$1.95 trillion** Key Balance Sheet Data (in millions of Argentine Pesos) | Indicator | 12.31.2023 | 12.31.2022 | | :--- | :--- | :--- | | **Total non-current assets** | 2,738,024 | 601,881 | | **Total current assets** | 1,079,172 | 238,183 | | **Total assets** | **3,817,196** | **840,064** | | **Total equity** | **1,950,696** | **404,620** | | **Total non-current liabilities** | 1,444,818 | 323,746 | | **Total current liabilities** | 421,682 | 111,698 | | **Total liabilities** | **1,866,500** | **435,444** | [Consolidated Statement of Changes in Equity](index=17&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) Total equity increased to **$1.95 trillion** from **$404.6 billion**, primarily driven by **$1.5 trillion** in other comprehensive income and **$36.7 billion** profit for the year - Total equity grew from **$404.6 billion** at the end of 2022 to **$1,950.7 billion** at the end of 2023[50](index=50&type=chunk)[53](index=53&type=chunk) - The main drivers for the increase in equity during 2023 were the profit for the year (**$36.7 billion**) and other comprehensive income (**$1.5 trillion**)[53](index=53&type=chunk) [Consolidated Statement of Cash Flows](index=19&type=section&id=CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) Net cash from operating activities more than doubled to **$177.1 billion**, with significant outflows for PPE acquisitions, resulting in a **$48.7 billion** increase in cash Net Cash Flow Summary (in millions of Argentine Pesos) | Activity | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net cash from operating activities** | 177,099 | 81,197 | 72,029 | | **Net cash used in investing activities** | (75,354) | (75,055) | (45,793) | | **Net cash used in financing activities** | (53,093) | (5,064) | (31,804) | | **Increase (Decrease) in cash** | 48,652 | 1,078 | (5,568) | - The largest cash outflow was for the acquisition of property, plant, and equipment, amounting to **$194.3 billion** in 2023, a significant increase from **$51.9 billion** in 2022[56](index=56&type=chunk) Notes to the Consolidated Financial Statements [Note 1: General Information](index=20&type=section&id=NOTE%201%3A%20GENERAL%20INFORMATION) Pampa Energía, a fully integrated Argentine power company, operates in a volatile economic environment characterized by GDP decrease, high inflation, and currency depreciation - The company is one of Argentina's largest independent power generators with an installed capacity of **5,332 MW**, representing approximately **12%** of the country's total capacity[58](index=58&type=chunk) - In the oil and gas segment, as of December 31, 2023, production reached **10.3 million m³/day** of natural gas and **4.8 thousand boe/day** of oil[59](index=59&type=chunk) - The Argentine economy faced significant challenges in 2023, with a **1.6% GDP decrease**, **211.4% cumulative inflation (CPI)**, and a **356.3% depreciation** of the peso against the U.S. dollar[69](index=69&type=chunk) [Note 2: Regulatory Framework](index=22&type=section&id=NOTE%202%3A%20REGULATORY%20FRAMEWORK) Operations are heavily influenced by Argentina's complex regulatory framework, including electricity and gas pricing, production incentives, tariff renegotiations, and foreign exchange market restrictions - Generation revenues are derived from multiple regimes: sales contracts with large users (MAT), supply agreements with CAMMESA (under various resolutions), and sales to the Spot market, with remuneration values frequently updated by the Secretary of Energy (SE)[72](index=72&type=chunk) - The GasAr Plan and its successor, the Reinsurance Plan, are key government programs to promote natural gas production, under which the company has committed to significant production volumes through 2028[161](index=161&type=chunk)[172](index=172&type=chunk) - Gas transportation (TGS) and electricity transmission (Transener) tariffs are subject to ongoing renegotiation processes (RTI) with the government, with transitional tariff adjustments being granted periodically[219](index=219&type=chunk)[255](index=255&type=chunk) - Access to the foreign exchange market (MLC) for imports and debt payments is highly regulated by the Central Bank of Argentina (BCRA), with a new import monitoring system (SEDI) replacing the previous SIRA/SIRASE systems in December 2023[264](index=264&type=chunk)[270](index=270&type=chunk) [Note 4: Accounting Policies](index=62&type=section&id=NOTE%204%3A%20ACCOUNTING%20POLICIES) Financial statements adhere to IFRS, using the U.S. dollar as functional currency and Argentine Peso for presentation, with key policies for oil and gas, PPE, and business combinations - The company's functional currency is the U.S. dollar, and the presentation currency is the Argentine Peso, as required by the CNV[307](index=307&type=chunk) - For oil and gas exploration and production activities, the company uses the successful efforts method of accounting, where exploration costs are expensed as incurred, but exploratory well drilling costs are capitalized pending determination of proved reserves[356](index=356&type=chunk)[357](index=357&type=chunk) - Depreciation for productive wells and machinery in the oil and gas segment is calculated using the units of production method based on estimated proved developed reserves[347](index=347&type=chunk) - Business combinations are accounted for using the acquisition method, with identifiable assets and liabilities measured at their fair values on the acquisition date[328](index=328&type=chunk) [Note 5: Group Structure](index=88&type=section&id=NOTE%205%3A%20GROUP%20STRUCTURE) This note details corporate reorganizations, including the 2021 Edenor sale, 2022 VAR acquisition, and 2023 Rincón de Aranda asset swap, alongside interests in associates and joint ventures - In June 2021, the company completed the sale of its **51%** controlling interest in the electricity distributor Edenor[465](index=465&type=chunk)[466](index=466&type=chunk) - On December 16, 2022, the company acquired **100%** of VAR (Arauco II Wind Farm) for a price of **US$171 million**[486](index=486&type=chunk)[487](index=487&type=chunk) - On August 16, 2023, the company acquired the remaining **45%** interest in the Rincón de Aranda block (reaching **100%** ownership) by transferring its **100%** equity stake in Greenwind S.A. (Mario Cebreiro Wind Farm). This transaction resulted in a gain of **$2,485 million** from revaluing the previously held stake and a gain of **$85 million** on the asset swap[495](index=495&type=chunk)[497](index=497&type=chunk)[500](index=500&type=chunk) [Note 6: Risks](index=111&type=section&id=NOTE%206%3A%20RISKS) Critical accounting estimates and financial risks, including market, credit, and liquidity, are managed, with a **23%** leverage ratio and **48%** credit concentration with CAMMESA - The company is exposed to foreign exchange risk, primarily from the Argentine peso. In 2023, the peso devalued by **356.3%** against the USD, resulting in a net foreign exchange gain of **$43.6 billion** for the company[620](index=620&type=chunk) - Credit risk is concentrated with CAMMESA, which accounted for approximately **48%** of the company's trade receivables as of December 31, 2023[635](index=635&type=chunk) - As of December 31, 2023, **95%** of the company's financial debt is at a fixed interest rate, mitigating exposure to interest rate volatility[630](index=630&type=chunk) Leverage Ratio | Indicator | 12.31.2023 | 12.31.2022 | | :--- | :--- | :--- | | Net debt | 580,683 | 163,153 | | Total capital | 2,524,419 | 566,616 | | **Leverage ratio** | **23.00%** | **28.79%** | [Note 7: Segment Information](index=125&type=section&id=NOTE%207%3A%20SEGMENT%20INFORMATION) The company operates in Generation, Oil and Gas, Petrochemicals, and Holding segments, with Generation being the largest contributor to 2023 revenue and operating income 2023 Segment Performance (in millions of US$) | Segment | Revenue | Operating Income | | :--- | :--- | :--- | | Generation | 648 | 272 | | Oil and Gas | 666 | 140 | | Petrochemicals | 507 | 45 | | Holding and others | 14 | (33) | | **Consolidated Total** | **1,732** | **424** | [Note 11: Non-financial Assets and Liabilities](index=139&type=section&id=NOTE%2011%3A%20NON-FINANCIAL%20ASSETS%20AND%20LIABILITIES) Details PPE, intangible assets, inventories, and provisions, noting a substantial increase in PPE to over **$2 trillion** and **$30.5 billion** impairment losses in Oil & Gas - Net book value of Property, Plant and Equipment increased to **$2,056,974 million** as of Dec 31, 2023, from **$383,464 million** in the prior year[684](index=684&type=chunk)[687](index=687&type=chunk) - Impairment losses of **$30,456 million** were recognized in 2023 for the Rincón del Mangrullo and el Tordillo / la Tapera CGUs in the Oil & Gas segment due to rescheduled or suspended future drilling activities[693](index=693&type=chunk)[696](index=696&type=chunk) - Total provisions amounted to **$124.5 billion**, with the largest components being for contingencies (**$88.0 billion**), asset retirement/decommissioning (**$22.2 billion**), and environmental remediation (**$13.3 billion**)[706](index=706&type=chunk)[707](index=707&type=chunk) [Note 12: Financial Assets and Liabilities](index=156&type=section&id=NOTE%2012%3A%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) Financial assets include fair value instruments, while total borrowings significantly increased to **$1.17 trillion** in 2023, primarily non-current USD corporate bonds Borrowings Breakdown (in millions of Argentine Pesos) | Category | 12.31.2023 | 12.31.2022 | | :--- | :--- | :--- | | **Non-Current** | 989,182 | 237,437 | | **Current** | 181,357 | 48,329 | | **Total** | **1,170,539** | **285,766** | - In 2023, the company issued several new series of corporate bonds, including Class 15, 16, 17 (a green bond), and 18, while redeeming others like Series T and Class 11[762](index=762&type=chunk)[764](index=764&type=chunk)[768](index=768&type=chunk)[769](index=769&type=chunk) [Note 13: Equity Components](index=171&type=section&id=NOTE%2013%3A%20EQUITY%20COMPONENTS) Details share capital changes, including a capital reduction by canceling **20.1 million** shares, resulting in **$25.25** basic and diluted EPS for 2023 - On April 26, 2023, the Shareholders' Meeting approved a capital reduction through the cancellation of **20.1 million** shares[799](index=799&type=chunk) Earnings Per Share Calculation | Indicator | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Earning attributable to equity holders | 34,488 | 64,859 | 27,097 | | Weighted average outstanding shares | 1,366 | 1,381 | 1,405 | | **Basic and diluted EPS** | **$25.25** | **$46.97** | **$19.29** | [Note 18: Investment Commitments](index=186&type=section&id=NOTE%2018%3A%20INVESTMENT%20COMMITMENTS) Significant investment commitments include the **US$500 million** PEPE VI Wind Farm (300 MW) and **US$217 million** for hydrocarbon exploration and exploitation through 2027 - Construction began on the PEPE VI Wind Farm in February 2023, a **300 MW** project with an estimated total investment of **US$500 million**. Stage 1 (**94.5 MW**) is expected to be operational in mid-2024[840](index=840&type=chunk)[841](index=841&type=chunk) - The company has committed to hydrocarbon investments of approximately **US$217 million** through 2027[845](index=845&type=chunk) [Note 24: Subsequent Events](index=192&type=section&id=NOTE%2024%3A%20SUBSEQUENT%20EVENTS) Post-year-end, the Secretary of Energy approved a **73.9%** increase in remuneration values for spot energy generation, effective February 2024 - On February 8, 2024, SE Resolution No. 9/23 updated remuneration for spot energy generation, providing a **73.9%** increase effective from February 2024[873](index=873&type=chunk)

Financial Data and Key Metrics Changes - EBITDA fell 12% year-on-year, primarily due to reduced gas sales and the impact of peso depreciation on affiliates [4][8] - Net debt reached $613 million, marking the lowest level in years, with a significant reduction in net cash of $129 million in the quarter [5][14] - Adjusted EBITDA for Q4 amounted to $129 million, a 30% decrease year-on-year, influenced by soft demand and peso devaluation [23] Business Line Data and Key Metrics Changes - The E&P business posted an adjusted EBITDA of $50 million in Q4, down 30% year-on-year due to a sharp decline in demand affecting gas prices [12] - Power generation achieved an adjusted EBITDA of $94 million in Q4, a 10% increase year-on-year, attributed to lower operating costs and new PPAs [9] - Shale gas production represented 47% of total gas production in Q4, a significant increase from nearly 3% the previous year [6] Market Data and Key Metrics Changes - Q4 gas production decreased by 7% year-on-year, averaging almost 9 million cubic meters per day, primarily due to lower demand [29] - The average price for gas in Q4 stood at $3.2 per million BTU, a 17% decline due to lower-than-expected exports [29] - Power dispatch decreased by 3% year-on-year, with take-or-pay capacity reaching 93%, down from 97% the previous year [10] Company Strategy and Development Direction - The company aims to diversify its production by incorporating shallow oil from Rincon de Aranda while focusing on gas production [3] - Significant investments are planned for E&P, with a CapEx budget of around $700 million for 2024, including $500 million for new wells and infrastructure [36] - The company is actively involved in the development of LNG projects, recognizing the importance of natural gas exports for long-term growth [40] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by mild weather and the impact of peso depreciation on financial results, emphasizing the need for strategic adjustments [22][24] - The outlook for 2024 includes a projected 30% increase in natural gas sales compared to 2023, with expectations of improved production capabilities from new wind farms [33][34] - Management expressed optimism about the company's financial position, noting a significant reduction in net debt and strong cash flow generation [74][88] Other Important Information - The company recorded a cash outflow of $95 million in Q4, primarily due to expansionary CapEx in shale gas [30] - The PEPE VI wind farm project is progressing well, with 69% completion and expected to add 140 megawatts of capacity [27] - The company is experiencing delays in CAMMESA payments, which adds uncertainty to working capital needs [41][77] Q&A Session Summary Question: How do you see upstream production and sales evolving in 2024? - The company expects a 30% increase in natural gas sales in 2024 compared to 2023, averaging around 13.5 million cubic meters per day [33] Question: How do you see power generation sales and prices evolving in 2024? - Power generation sales are expected to increase due to the new wind farm coming online, with remuneration anticipated to remain relatively flat despite inflation [34] Question: Can you walk us through Pampa's 2024 CapEx budget for each of the business segments? - The CapEx plan is around $700 million, with $500 million allocated to E&P and $200 million for power generation, including significant investments in the PEPE VI wind farm [36][55] Question: Is the company interested in participating in LNG projects being discussed in Argentina? - The company is interested in participating in LNG projects, recognizing the importance of natural gas exports for Argentina [40] Question: Could you comment on what Pampa is experiencing regarding CAMMESA payments? - The company is facing delays in CAMMESA payments, which is causing uncertainty and stress regarding working capital needs [41][77] Question: What are your expectations for gas export to Chile during winter? - The company expects to fully supply the capped export to Chile through the GasAndes pipeline during winter [45] Question: Can you explain how Plan Gas works during off-peak season? - The company can export surplus gas to Chile, but there is a cap on transportation capacity during off-peak season [70]

[Report on Review of the Consolidated Condensed Interim Financial Statements](index=2&type=section&id=Report%20on%20Review%20of%20the%20Consolidated%20Condensed%20Interim%20Financial%20Statements) This section presents the independent auditor's review and conclusion on the unaudited consolidated interim financial statements, affirming their preparation in accordance with IAS 34 [Auditor's Conclusion](index=2&type=section&id=Auditor%27s%20Conclusion) The independent auditor, Price Waterhouse & Co. S.R.L., has reviewed the unaudited consolidated condensed interim financial statements of Pampa Energía S.A. for the period ended September 30, 2023, concluding they are prepared in all material respects in accordance with International Accounting Standard 34 (IAS 34) - The auditor's review concluded that the financial statements appear to be prepared in accordance with IAS 34, but this is a review conclusion, not a full audit opinion[4](index=4&type=chunk)[6](index=6&type=chunk) - The Board of Directors is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards (IFRS) and IAS 34[3](index=3&type=chunk) - As of September 30, 2023, the company's accrued debt to the Argentine Integrated Social Security System was **$730.5 million**, none of which was claimable at that date[8](index=8&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section provides an overview of the company's financial performance, position, equity changes, and cash flows, highlighting significant growth in profitability and asset base [Consolidated Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Pampa Energía reported a significant increase in financial performance for the nine months ended September 30, 2023, compared to the same period in 2022, with revenue more than doubling and net profit surging Consolidated Income Statement Highlights (in millions of Argentine Pesos) | Metric | Nine Months Ended 09/30/2023 | Nine Months Ended 09/30/2022 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 346,957 | 168,748 | +105.6% | | **Gross Profit** | 137,004 | 64,725 | +111.7% | | **Operating Income** | 114,609 | 61,408 | +86.6% | | **Profit for the period** | 119,960 | 42,762 | +180.5% | | **Total comprehensive income** | 561,138 | 142,118 | +294.8% | - Basic and diluted earnings per share for the nine-month period increased to **$87.51** in 2023 from **$30.74** in 2022, reflecting the strong growth in profitability[15](index=15&type=chunk) [Consolidated Statement of Financial Position](index=8&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The company's financial position strengthened significantly as of September 30, 2023, with total assets more than doubling and total equity seeing substantial growth Consolidated Balance Sheet Highlights (in millions of Argentine Pesos) | Metric | As of 09/30/2023 | As of 12/31/2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 1,813,187 | 840,064 | +115.8% | | Non-Current Assets | 1,243,563 | 601,881 | +106.6% | | Current Assets | 569,624 | 238,183 | +139.2% | | **Total Liabilities** | 847,032 | 435,444 | +94.5% | | **Total Equity** | 966,155 | 404,620 | +138.8% | [Consolidated Statement of Changes in Equity](index=10&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased from $404,620 million at the end of 2022 to $966,155 million by September 30, 2023, primarily driven by profit for the period and other comprehensive income Key Changes in Equity (in millions of Argentine Pesos) | Item | Nine Months Ended 09/30/2023 | | :--- | :--- | | **Equity at start of period (Dec 31, 2022)** | 404,620 | | Profit for the period | 119,960 | | Other comprehensive income | 441,178 | | Capital reduction | (20) | | **Equity at end of period (Sep 30, 2023)** | 966,155 | [Consolidated Statement of Cash Flows](index=12&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash generated by operating activities significantly increased, while investing activities resulted in a net outflow, leading to an overall increase in cash and cash equivalents Consolidated Cash Flow Summary (in millions of Argentine Pesos) | Cash Flow Activity | Nine Months Ended 09/30/2023 | Nine Months Ended 09/30/2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | 126,648 | 50,724 | | **Net cash used in investing activities** | (113,445) | (48,687) | | **Net cash from financing activities** | 14,726 | (2,954) | | **Increase (Decrease) in cash** | 27,929 | (917) | | **Cash at end of period** | 64,117 | 14,259 | [Notes to the Unaudited Consolidated Condensed Interim Financial Statements](index=13&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Condensed%20Interim%20Financial%20Statements) This section provides detailed notes on the company's business operations, regulatory environment, group structure, segment performance, financial instruments, investment commitments, and significant subsequent events [Note 1: General Information](index=13&type=section&id=NOTE%201%3A%20GENERAL%20INFORMATION) Pampa Energía S.A. is a fully integrated power company in Argentina, with significant operations across the electricity and gas value chains, including power generation, oil and gas, petrochemicals, and interests in electricity and gas transportation - The company has an installed power generation capacity of **5,332 MW**, representing approximately **12%** of Argentina's total capacity, with an additional **140 MW** under expansion[28](index=28&type=chunk) - In the oil and gas segment, production for the nine-month period reached **10.8 million m³/day** of natural gas and **5.0 thousand boe/day** of oil[29](index=29&type=chunk) - The company holds a dominant market share (**95-100%**) in the domestic petrochemicals market for styrene, synthetic rubber, and polystyrene[30](index=30&type=chunk) - Through joint ventures, Pampa has significant interests in electricity transmission (Transener, **86% market share**) and gas transportation (TGS)[31](index=31&type=chunk) [Note 2: Regulatory Framework](index=14&type=section&id=NOTE%202%3A%20REGULATORY%20FRAMEWORK) This note details significant updates to the regulatory framework affecting Pampa's operations in Argentina, including changes in generation, oil and gas, and transmission sectors, as well as foreign exchange and tax regulations [Generation](index=14&type=section&id=2.1%20Generation) Regulatory updates in the power generation sector included modifications to the penalty system for renewable projects (MATER), changes to the dispatch priority system, and new remuneration schemes for combined cycles, with the company participating in tenders for new thermal generation capacity - SE Resolution No. 165/23 modified the penalty system for MATER and Renovar renewable energy projects for breaches in committed supply[33](index=33&type=chunk) - The company executed availability and efficiency optimization agreements with CAMMESA for its CTLL and CTGEBA combined cycles, effective March 1, 2023, to February 29, 2028, setting remuneration at **US$ 2,000/MW-month**[38](index=38&type=chunk)[39](index=39&type=chunk) - Pampa submitted a tender for the **300 MW** CTGEBA II expansion and an **11 MW** expansion for CTB under the "TerCONF" call for reliable thermal generation[43](index=43&type=chunk) [Oil and Gas](index=16&type=section&id=2.2%20Oil%20and%20Gas) Key developments in the oil and gas sector include the extension and assignment of natural gas export quotas and the commencement of operations for the President Néstor Kirchner Gas Pipeline's first tranche, increasing transport capacity from the Vaca Muerta field - The company was assigned additional natural gas export quotas for various periods in 2023 and 2024, supporting its export activities[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The President Néstor Kirchner Gas Pipeline (Tratayén – Salliqueló tranche) commenced operations in August 2023, adding an initial transportation capacity of **11 million m³/day** from Vaca Muerta[51](index=51&type=chunk)[52](index=52&type=chunk) [Gas Transportation](index=18&type=section&id=2.3%20Gas%20Transportation) The gas transportation segment, through TGS, received a **95%** transitionary tariff increase effective from April 2023 and formally requested a 10-year extension of its gas transportation license beyond its 2027 expiration - TGS received a **95%** transitionary tariff increase on natural gas transportation, effective April 29, 2023, under the 2023 RTT agreement ratified by the government[56](index=56&type=chunk)[57](index=57&type=chunk) - On September 8, 2023, TGS requested a 10-year extension of its license, which is set to expire on December 28, 2027[58](index=58&type=chunk) [Transmission](index=18&type=section&id=2.4%20Transmission) In the electricity transmission segment, the regulator ENRE initiated a comprehensive tariff review (RTI) process for Transener and Transba, with interim remuneration values increased in August and November 2023 to preserve revenue purchasing power - ENRE launched a comprehensive tariff review (RTI) process for electricity transmission companies in April 2023[60](index=60&type=chunk) - Transener and Transba received tariff remuneration increases of approximately **20.9%** and **37.3%** (for Transener) effective August 1, 2023, and November 1, 2023, respectively[63](index=63&type=chunk) [Regulations on Access to the Foreign Exchange Market (MLC)](index=19&type=section&id=2.5%20Regulations%20on%20access%20to%20the%20MLC) The Central Bank of Argentina (BCRA) introduced further restrictions and requirements for accessing the official foreign exchange market (MLC), including prior authorization for certain service payments and extended waiting periods for companies involved in securities transactions - BCRA now requires prior authorization to access the MLC for certain service payments before **60 days** from the approval of the SIRASE affidavit[65](index=65&type=chunk) - The waiting period for companies transacting with securities before accessing the MLC was extended to **180 days** for foreign-law securities and maintained at **90 days** for Argentine-law securities[66](index=66&type=chunk) [Tax Regulations](index=20&type=section&id=2.6%20Tax%20regulations) The Argentine government extended the PAIS tax to cover the acquisition of services abroad and certain import transactions, while granting exemptions for goods associated with the energy sector, benefiting the company's operations - Executive Order No. 377/23 extended the PAIS tax to certain import and foreign service transactions[68](index=68&type=chunk) - The company's energy sector imports, including goods for gas pipelines and power generation works (including PEPE II, IV, and VI wind farms), are exempted from the PAIS tax[69](index=69&type=chunk)[70](index=70&type=chunk) [Note 5: Group Structure](index=22&type=section&id=NOTE%205%3A%20GROUP%20STRUCTURE) This note outlines significant changes in the company's portfolio of assets and investments, including the acquisition of the Rincón de Aranda shale oil block through an asset swap and updates on investments in associates and joint ventures [Acquisition of Rincón de Aranda and Divestment of Greenwind](index=22&type=section&id=5.1.1%20Acquisition%20of%20Rinc%C3%B3n%20de%20Aranda%20and%20Divestment%20of%20Greenwind) On August 16, 2023, Pampa acquired the remaining **45%** interest in the Rincón de Aranda block, reaching **100%** ownership, by transferring its **100%** equity interest in Greenwind, a strategic move diversifying its portfolio with a high-potential shale oil block - The company acquired a **100%** interest in the Rincón de Aranda exploration block by swapping its **100%** interest in the Greenwind subsidiary[80](index=80&type=chunk) - The transaction resulted in a recorded profit of **$2,485 million** from revaluing the previous **55%** interest in Rincón de Aranda and a profit of **$85 million** on the asset swap[85](index=85&type=chunk) [Associates and Joint Ventures](index=26&type=section&id=5.1.3%20Associates%20and%20joint%20ventures%20information) The company's investments in associates and joint ventures totaled **$325,458 million** as of September 30, 2023, a significant increase from year-end 2022, with a share of profit of **$14,044 million** for the nine-month period, largely attributable to exchange differences on translation Investment in Associates and Joint Ventures (in millions of ARS) | Category | 09/30/2023 | 12/31/2022 | | :--- | :--- | :--- | | Associates (OCP, TGS, etc.) | 19,311 | 14,487 | | Joint Ventures (CIESA, Citelec, CTB) | 306,147 | 145,346 | | **Total** | **325,458** | **159,833** | Share of Profit from Associates and Joint Ventures (in millions of ARS) | Category | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | | Associates | 1,013 | (734) | | Joint Ventures | 13,031 | 14,344 | | **Total** | **14,044** | **13,610** | [Oil and Gas Participations](index=29&type=section&id=5.2%20Oil%20and%20gas%20participations) The company adjusted its oil and gas portfolio by increasing its interest in the Parva Negra Este block, terminating agreements for other blocks, relinquishing the Río Atuel block, and securing an unconventional exploitation concession for the Rincón de Aranda block - The company plans to increase its interest in the Parva Negra Este block to **85%** (from **42.5%**) following the assignment from ExxonMobil, pending provincial approval[105](index=105&type=chunk)[106](index=106&type=chunk) - The company fully relinquished the Río Atuel block, leading to a write-off of exploration wells amounting to **$1,702 million** (**US$ 6.6 million**)[115](index=115&type=chunk)[116](index=116&type=chunk) - After acquiring **100%** of the Rincón de Aranda block, the company was granted an unconventional exploitation concession (CENCH) and plans a pilot program with an estimated investment of **US$161 million**[113](index=113&type=chunk)[114](index=114&type=chunk) [Note 7: Segment Information](index=31&type=section&id=NOTE%207%3A%20SEGMENT%20INFORMATION) Pampa Energía operates across four main segments: Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business, with the Generation segment being the largest contributor to profit for the nine months ended September 30, 2023 Segment Performance for Nine Months Ended Sep 30, 2023 (in millions of US$) | Segment | Revenue | Operating Income | Profit of the Period | | :--- | :--- | :--- | :--- | | **Generation** | 507 | 228 | 311 | | **Oil and Gas** | 548 | 166 | 16 | | **Petrochemicals** | 389 | 26 | 26 | | **Holding and Others** | 11 | (6) | 105 | | **Consolidated Total** | 1,370 | 414 | 458 | - The Generation segment's high profitability is notable, contributing **$311 million** to the total profit of **$458 million**[127](index=127&type=chunk) - The Holding and Others segment's profit of **$105 million** was significantly influenced by financial results and share of profit from associates and joint ventures[127](index=127&type=chunk) [Note 12: Financial Assets and Liabilities](index=48&type=section&id=NOTE%2012%3A%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) This note details the composition and changes in the company's financial instruments, with total borrowings significantly increasing due to new corporate bond issuances and active debt management [Borrowings](index=52&type=section&id=12.5%20Borrowings) Total borrowings increased to **$574,215 million** as of September 30, 2023, from **$285,766 million** at the end of 2022, primarily due to new Corporate Bond issuances and currency translation effects, with the company also redeeming its Series T CBs Borrowings Breakdown (in millions of ARS) | Category | 09/30/2023 | 12/31/2022 | | :--- | :--- | :--- | | Non-Current | 451,083 | 237,437 | | Current | 123,132 | 48,329 | | **Total** | **574,215** | **285,766** | - The company issued multiple new Corporate Bonds in 2023, including Class 15, Class 16, Class 17 (a green bond), and Class 18, raising a mix of ARS and USD-denominated capital[167](index=167&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk) - On June 8, 2023, the company redeemed all outstanding Series T CBs, which had a balance of **US$ 92.9 million**[171](index=171&type=chunk) [Note 18: Investment Commitments](index=66&type=section&id=NOTE%2018%3A%20INVESTMENT%20COMMITMENTS) Pampa Energía is actively expanding its renewable energy portfolio with significant investment commitments, including the completed PEPE IV wind farm expansion and the commenced construction of the larger PEPE VI wind farm - The **81 MW** expansion of PEPE IV was fully commissioned as of September 17, 2023[202](index=202&type=chunk) - Construction began on the PEPE VI Wind Farm, a **300 MW** project with a total estimated investment of **US$ 500 million**[204](index=204&type=chunk) PEPE VI Construction Stages | Stage | Capacity Addition | Investment | Expected Operation | | :--- | :--- | :--- | :--- | | Stage 1 | 94.5 MW | US$ 186 million | Q3 2024 | | Stage 2 | 45 MW | US$ 83 million | Q4 2024 | [Note 22: Subsequent Events](index=68&type=section&id=NOTE%2022%3A%20SUBSEQUENT%20EVENTS) After the reporting period, Pampa Energía opted into the government's Export Increase Program, received a **28%** increase in spot remuneration values for energy generation, and a new mechanism was approved allowing companies to offset penalties under Renovar program contracts with investments in new renewable capacity - The company participated in the Export Increase Program, allowing it to settle a portion of its export proceeds at a more favorable exchange rate (marketable securities swap rate)[214](index=214&type=chunk)[215](index=215&type=chunk)[216](index=216&type=chunk) - SE Resolution No. 869/23 updated spot remuneration values for energy generation with a **28%** increase effective from the November 2023 transaction[217](index=217&type=chunk) - A new regulation (SE Resolution No. 883/23) allows Renovar program awardees to offset penalties by investing in new renewable power generation capacity, providing a new avenue to manage project delays or deficiencies[218](index=218&type=chunk)[219](index=219&type=chunk)

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2023 amounted to $244 million, similar year-on-year, but grew 10% quarter-on-quarter due to higher gas production [2][3] - CapEx in Q3 was 40% higher year-on-year, driven by ramp-up activities in Exploration & Production (E&P) and the construction of the PEPE VI wind farm [3] - Gross debt remained at $1.6 billion, while net debt decreased significantly to $677 million, resulting in a leverage ratio of 1x [22] Business Line Data and Key Metrics Changes - E&P business posted adjusted EBITDA of $132 million in Q3, a 12% increase year-on-year, driven by higher gas deliveries under the new Plan Gas [13] - Power generation adjusted EBITDA was $91 million, 2% higher year-on-year, mainly due to new PPAs at wind farms and lower maintenance costs [10] - Petrochemical business recorded $60 million in EBITDA, a 16% decrease year-on-year due to lower international prices, but a 60% increase quarter-on-quarter [19] Market Data and Key Metrics Changes - Total production averaged above 80,000 barrels of oil equivalent per day, a 17% increase year-on-year and 19% quarter-on-quarter [14] - Gas sales grew by 20% year-on-year, averaging almost 13 million cubic meters per day, primarily due to higher volumes sold in the local market [16] - The average gas price for the quarter stood at $4.7 per MMBtu, consistent year-on-year and quarter-on-quarter [17] Company Strategy and Development Direction - The company aims to enhance its balance sheet by increasing liquidity and expanding its E&P footprint, focusing on shale gas drilling and renewable energy projects [2][60] - The strategy includes adding more PPAs and enhancing the thermal portfolio with better technology and efficiency [32][60] - Future contributions are expected to come primarily from E&P and new PPAs, with less reliance on legacy units [34][60] Management Comments on Operating Environment and Future Outlook - Management noted that the warmer spring and high hydro levels are impacting domestic gas sales and exports to Chile, with expectations for gas demand to normalize by December [18] - The company is optimistic about the natural gas market in five years, anticipating opportunities for increased exports to Chile and Brazil [51] - Management expressed confidence in the ability to manage financial risks associated with potential dual exchange rate scenarios [49][50] Other Important Information - The PEPE VI expansion project is 94% complete, with the first phase expected to be operational by Q3 2024 [5] - The company raised $68 million net from the local market, contributing to a cash position of $964 million by the end of the period [21] Q&A Session Summary Question: How do you see the evolution of production of Mangrullo going forward? - Management expects Mangrullo to deliver around 7 to 7.5 million cubic meters per day, with increased production from Sierra Chata compensating for any decreases [24] Question: What is your outlook for the power sector? - Management is working to secure peso increases to cope with cost variations but does not expect significant changes beyond that [26] Question: Could you comment about the tender prices and PPAs for Genelba and plants? - The tender has concluded, and the company believes it meets the technical and economic requirements, but awaits resolution from the Secretary of Energy [27][28] Question: What scenarios are being considered in terms of regulatory changes? - Management indicated uncertainty regarding regulatory changes but noted that legacy units may not contribute significantly in the future [30][31] Question: Can you provide an update on the progress of crude oil projects? - The Rincón de Aranda field is expected to complete a well by January 2024, with further drilling planned for 2025 [35][36] Question: What is the outlook for signing new gas contracts with Chile? - Contracts with Chile are renegotiated seasonally, with recent contracts finalized for the upcoming spring and summer [39] Question: Is there a risk of impairment and downward revision of gas reserves? - Management does not foresee issues in the next five years due to existing commitments for natural gas sales [51] Question: Any plans related to offshore investments? - Currently, there are no plans for offshore investments [52] Question: Any updates on renewable expansion and transmission bottlenecks? - The government has outlined a comprehensive plan for transmission expansion, with significant investments needed [54][55]