[Unaudited Consolidated Condensed Interim Financial Statements](index=1&type=section&id=Unaudited%20Consolidated%20Condensed%20Interim%20Financial%20Statements) [Review Report on the Consolidated Condensed Interim Financial Statements](index=2&type=section&id=Review%20Report%20on%20the%20Consolidated%20Condensed%20Interim%20Financial%20Statements) [Introduction](index=2&type=section&id=Introduction) The report reviews Pampa Energía S.A. and its subsidiaries' consolidated condensed interim financial statements for the nine and three-month periods ended September 30, 2022, including the statement of financial position, comprehensive income, changes in equity, cash flows, and selected notes - The review covers consolidated condensed interim financial statements of Pampa Energía S.A. and its subsidiaries for the nine and three-month periods ended September 30, 2022[2](index=2&type=chunk) - Balances and information for fiscal year 2021 and its interim periods are an integral part of these financial statements[3](index=3&type=chunk) [Board's Responsibility](index=2&type=section&id=Board's%20responsibility) The Board of Directors is responsible for preparing and presenting the financial statements in accordance with International Financial Reporting Standards (IFRS) and International Accounting Standard 34 (IAS 34) - The Board of Directors is responsible for preparing and presenting financial statements according to IFRS and IAS 34[4](index=4&type=chunk) [Scope of Review](index=2&type=section&id=Scope%20of%20our%20review) The review was limited to procedures under International Standards on Review Engagements ISRE 2410, which is substantially less in scope than an audit, thus no audit opinion is expressed on the financial position, comprehensive income, or cash flows - The review scope was limited to ISRE 2410 procedures, which is less extensive than an audit, and therefore no audit opinion is expressed[5](index=5&type=chunk) [Conclusion](index=3&type=section&id=Conclusion) Based on the review, nothing suggests that the consolidated condensed interim financial statements were not prepared, in all material respects, in accordance with IAS 34 - The review found no material issues indicating non-compliance with IAS 34 in the financial statements[7](index=7&type=chunk) [Report on Compliance with Current Regulations](index=3&type=section&id=Report%20on%20compliance%20with%20current%20regulations) The report confirms that Pampa Energía S.A.'s financial statements are recorded correctly, comply with General Companies Law and CNV provisions, arise from properly kept accounting records, and the Summary of Activity has no observations. Additionally, accrued debt to the Argentine Integrated Social Security System was $306.9 million as of September 30, 2022, none of which was claimable - Financial statements are recorded and comply with General Companies Law and CNV regulations[9](index=9&type=chunk) - Debt to the Argentine Integrated Social Security System was **$306.9 million** as of September 30, 2022, with no claimable amounts[9](index=9&type=chunk) [Glossary of Terms](index=4&type=section&id=GLOSSARY%20OF%20TERMS) [Definitions of Key Terms](index=4&type=section&id=Definitions%20of%20Key%20Terms) This section provides non-technical definitions for various terms used in the financial statements, including regulatory bodies (BCRA, CAMMESA, CNV, ENRE), financial instruments (ADR, CB), and company names (CIESAS, Citelec, Edenor, TGS, Transener, Refinor, etc.), to aid reader understanding - Glossary provides definitions for terms like ADR, BCRA, CAMMESA, CNV, Edenor, IFRS, NYSE, TGS, Transener, and US$[12](index=12&type=chunk)[13](index=13&type=chunk) [Unaudited Consolidated Condensed Interim Statement of Comprehensive Income](index=6&type=section&id=UNAUDITED%20CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) [Comprehensive Income for Nine-Month Periods](index=6&type=section&id=Comprehensive%20Income%20for%20Nine-Month%20Periods) For the nine-month period ended September 30, 2022, the company reported a significant increase in revenue and profit compared to the same period in 2021, driven by higher gross profit and other comprehensive income, despite increased selling and administrative expenses Comprehensive Income (Nine-Month Periods) | Metric | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :-------------------------------- | :----------------------- | :----------------------- | :----------- | | Revenue | 168,748 | 103,740 | +62.66% | | Cost of sales | (104,797) | (62,652) | +67.27% | | Gross profit | 63,951 | 41,088 | +55.64% | | Operating income | 61,408 | 44,956 | +36.59% | | Profit of the period | 42,762 | 19,345 | +120.02% | | Other comprehensive income | 99,356 | 37,513 | +164.85% | | Total comprehensive income | 142,118 | 56,858 | +149.95% | | Basic and diluted EPS (continuing operations) | 30.74 | 18.62 | +65.09% | | Total basic and diluted EPS | 30.74 | 15.98 | +92.36% | [Comprehensive Income for Three-Month Periods](index=6&type=section&id=Comprehensive%20Income%20for%20Three-Month%20Periods) For the three-month period ended September 30, 2022, the company also saw substantial growth in revenue and profit compared to the prior year, with a notable increase in other financial results contributing to the overall profit Comprehensive Income (Three-Month Periods) | Metric | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :-------------------------------- | :----------------------- | :----------------------- | :----------- | | Revenue | 69,225 | 42,529 | +62.77% | | Cost of sales | (43,538) | (27,309) | +59.41% | | Gross profit | 25,687 | 15,220 | +68.77% | | Operating income | 30,160 | 20,510 | +47.05% | | Profit of the period | 24,057 | 12,707 | +89.32% | | Other comprehensive income | 48,870 | 7,318 | +567.89% | | Total comprehensive income | 72,927 | 20,025 | +264.18% | [Unaudited Consolidated Condensed Interim Statement of Financial Position](index=8&type=section&id=UNAUDITED%20CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20FINANCIAL%20POSITION) [Assets](index=8&type=section&id=Assets) As of September 30, 2022, total assets significantly increased to $681,898 million from $396,653 million at December 31, 2021, primarily driven by substantial growth in property, plant and equipment, investments in associates and joint ventures, and financial assets Assets Overview | Asset Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Property, plant and equipment | 282,322 | 170,390 | +65.69% | | Intangible assets | 11,028 | 3,956 | +178.77% | | Investments in associates and joint ventures | 134,244 | 79,500 | +68.86% | | Total non-current assets | 486,398 | 281,011 | +73.19% | | Inventories | 24,802 | 15,888 | +56.10% | | Financial assets at fair value through profit and loss | 84,731 | 47,026 | +80.18% | | Trade and other receivables (current) | 67,816 | 40,892 | +65.84% | | Total current assets | 193,684 | 115,642 | +67.50% | | Total assets | 681,898 | 396,653 | +71.93% | [Equity and Liabilities](index=9&type=section&id=Equity%20and%20Liabilities) Total equity increased significantly to $323,881 million from $184,040 million, mainly due to higher voluntary reserves and other comprehensive income. Total liabilities also rose substantially to $358,017 million from $212,613 million, driven by increases in borrowings and income tax provisions Equity and Liabilities Overview | Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Equity attributable to owners of the company | 322,664 | 183,431 | +75.90% | | Total equity | 323,881 | 184,040 | +75.98% | | Provisions (non-current) | 21,065 | 14,444 | +45.84% | | Income tax and minimum notional income tax provision | 47,823 | 19,287 | +147.96% | | Borrowings (non-current) | 195,733 | 139,630 | +40.19% | | Total non-current liabilities | 278,502 | 177,506 | +56.89% | | Borrowings (current) | 41,788 | 8,165 | +411.78% | | Trade and other payables (current) | 26,956 | 18,561 | +45.23% | | Total current liabilities | 79,515 | 35,107 | +126.49% | | Total liabilities | 358,017 | 212,613 | +68.39% | [Unaudited Consolidated Condensed Interim Statement of Changes in Equity](index=10&type=section&id=UNAUDITED%20CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) [Equity Changes for Nine-Month Period Ended September 30, 2022](index=11&type=section&id=Equity%20Changes%20for%20Nine-Month%20Period%20Ended%20September%2030,%202022) The company's total equity significantly increased from $184,040 million at December 31, 2021, to $323,881 million at September 30, 2022, primarily driven by a substantial increase in voluntary reserve and other comprehensive income, alongside profit for the period Equity Components (09.30.2022) | Equity Component | 12.31.2021 (Millions ARS) | 09.30.2022 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Share capital | 1,382 | 1,380 | -0.14% | | Voluntary reserve | 54,528 | 99,274 | +82.06% | | Other comprehensive income | 51,432 | 93,540 | +81.88% | | Retained earnings | 44,454 | 99,376 | +123.56% | | Equity attributable to owners of the company | 183,431 | 322,664 | +75.90% | | Total equity | 184,040 | 323,881 | +75.98% | [Equity Changes for Nine-Month Period Ended September 30, 2021](index=10&type=section&id=Equity%20Changes%20for%20Nine-Month%20Period%20Ended%20September%2030,%202021) For the nine-month period ended September 30, 2021, total equity increased from $148,878 million at December 31, 2020, to $170,464 million, primarily due to profit for the period and other comprehensive income, despite a significant decrease from the sale of a subsidiary Equity Components (09.30.2021) | Equity Component | 12.31.2020 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | Total equity | 148,878 | 170,464 | | Profit for the nine-month period | N/A | 19,345 | | Other comprehensive income for the nine-month period | N/A | 37,513 | | Sale of subsidiary (Non-controlling interest) | N/A | (31,928) | [Unaudited Consolidated Condensed Interim Statement of Cash Flows](index=12&type=section&id=UNAUDITED%20CONSOLIDATED%20CONDENSED%20INTERIM%20STATEMENT%20OF%20CASH%20FLOWS) [Cash Flows from Operating Activities](index=12&type=section&id=Cash%20flows%20from%20operating%20activities:) Net cash generated by operating activities decreased to $50,724 million for the nine-month period ended September 30, 2022, from $55,957 million in the prior year, primarily due to a significant increase in changes in operating assets and liabilities, despite higher profit from continuing operations Cash Flows from Operating Activities | Metric | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Profit of the period from continuing operations | 42,762 | 26,474 | +61.52% | | Adjustments to reconcile net profit | 30,750 | 24,998 | +23.01% | | Changes in operating assets and liabilities | (22,788) | (6,566) | +247.05% | | Net cash generated by operating activities | 50,724 | 55,957 | -9.35% | [Cash Flows from Investing Activities](index=12&type=section&id=Cash%20flows%20from%20investing%20activities:) Net cash used in investing activities significantly increased to $(48,687) million for the nine-month period ended September 30, 2022, from $(25,066) million in the prior year, mainly due to higher payments for property, plant and equipment acquisitions and public securities Cash Flows from Investing Activities | Metric | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Payment for property, plant and equipment acquisitions | (38,018) | (13,119) | +189.79% | | Payment for intangible assets acquisitions | (3,312) | (359) | +822.56% | | Payment for public securities and shares, net | (16,874) | (5,251) | +221.35% | | Net cash used in investing activities | (48,687) | (25,066) | +94.24% | [Cash Flows from Financing Activities](index=12&type=section&id=Cash%20flows%20from%20financing%20activities:) Net cash used in financing activities decreased substantially to $(2,954) million for the nine-month period ended September 30, 2022, from $(30,395) million in the prior year, primarily due to a significant increase in proceeds from borrowings and a decrease in payment of borrowings Cash Flows from Financing Activities | Metric | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Proceeds from borrowings | 33,211 | 4,766 | +596.83% | | Payment of borrowings | (17,453) | (18,800) | -7.16% | | Payment of borrowings interests | (12,642) | (11,581) | +9.16% | | Net cash used in financing activities | (2,954) | (30,395) | -90.28% | [Notes to the Unaudited Consolidated Condensed Interim Financial Statements](index=13&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONSOLIDATED%20CONDENSED%20INTERIM%20FINANCIAL%20STATEMENTS) [Note 1: General Information](index=13&type=section&id=NOTE%201:%20GENERAL%20INFORMATION) This section provides an overview of Pampa Energía S.A.'s operations as a fully integrated power company in Argentina, detailing its segments (electricity generation, oil and gas, petrochemicals, and holding/others) and the volatile economic context, including high inflation, peso depreciation, and energy market dynamics [General Information of the Company](index=13&type=section&id=1.1%20General%20information%20of%20the%20Company) - Pampa Energía S.A. is a fully integrated power company in Argentina, operating in electricity, oil & gas, petrochemicals, and holding segments[29](index=29&type=chunk) - Electricity generation capacity is **4,970 MW** (~12% of Argentina's total), with an additional **361 MW** expansion underway[30](index=30&type=chunk) - Oil and gas production for the nine-month period ended September 30, 2022, was **9.9 million m3/day of natural gas** and **5.2 thousand boe/day of oil**[31](index=31&type=chunk) - Petrochemicals segment holds **92-99% domestic market share** in styrene, synthetic rubber, and polystyrene[32](index=32&type=chunk) - The company has significant interests in electricity transmission (**86% market share** via Transener) and natural gas transportation (via TGS), and a **30.1% indirect interest** in OCP (oil pipeline in Ecuador) and **28.5% direct interest** in Refinor (refinery)[33](index=33&type=chunk) [Economic Context](index=14&type=section&id=1.2%20Economic%20context) - Argentina's cumulative inflation (IPC) reached **66.1%** and the peso depreciated **43.4%** against the U.S. dollar during the first nine months of 2022[35](index=35&type=chunk) - The Néstor Kirchner Gas Pipeline project is underway, aiming to increase transportation capacity by **24 million cubic meters of gas per day**, with the first stage expected by June 2023[37](index=37&type=chunk) - CAMMESA experienced payment delays exceeding **90 days** to generators and hydrocarbon producers by August 2022, affecting the electricity distribution company's payment chain[38](index=38&type=chunk) - A subsidies segmentation system for electricity and natural gas utility residential customers was established, aiming for gradual subsidy reduction for higher-income segments[38](index=38&type=chunk) [Note 2: Regulatory Framework](index=15&type=section&id=NOTE%202:%20REGULATORY%20FRAMEWORK) This section details significant regulatory changes impacting the company's operations across electricity generation, oil and gas, and transmission segments, as well as foreign exchange regulations. Key updates include increased spot generation remuneration, seasonal programming adjustments, new natural gas pricing, currency access systems for incremental production, and tightened foreign exchange controls by the BCRA [Generation](index=15&type=section&id=2.1%20Generation) - Spot generation remuneration values increased by a cumulative **43%** from June 2022, and the utilization factor application was abrogated[41](index=41&type=chunk) - Seasonal programming updates included increases in energy prices for general non-residential demand (**36.6%**) and WEM's residential demand (**26.1%**) from June 1, 2022[44](index=44&type=chunk) - A new MATER system was approved, allowing renewable energy sales to GUDI and distribution utility companies[49](index=49&type=chunk) - Pampa was assigned a **41 MW** dispatch priority for the extension of PEPE III wind farm[52](index=52&type=chunk) [Oil and Gas](index=18&type=section&id=2.2%20Oil%20and%20Gas) - Natural gas prices at the Transportation System Entry Point (PIST) were updated, reducing government subsidies but not impacting the company's collectible price[53](index=53&type=chunk) - New currency access systems (RADPIP, RADPIGN) were established to ease MLC access for incremental oil and natural gas production, but are not yet regulated[54](index=54&type=chunk)[58](index=58&type=chunk) - Pampa was cleared to export **1,492 MMm3/d of gas** to Chile on a firm basis for October 2022 – April 2023[59](index=59&type=chunk) [Transmission](index=19&type=section&id=2.3%20Transmission) - Transener and Transba received tariff increases of **67%** and **69%** respectively, effective February 1, 2022[60](index=60&type=chunk) - Transener is requesting further tariff updates from September 2022 due to economic conditions, with a public hearing scheduled for November 30, 2022[61](index=61&type=chunk)[62](index=62&type=chunk) [Regulations on Access to the MLC (Foreign Exchange Market)](index=19&type=section&id=2.4%20Regulations%20on%20access%20to%20the%20MLC) - BCRA extended prior authorization for MLC access for financial debt principal cancellation and refinancing plans until **December 31, 2023**[63](index=63&type=chunk) - New regulations introduced BCRA intervention in import monitoring (SIMI) and restrictions on CEDEAR holdings and foreign asset transactions for MLC access[64](index=64&type=chunk)[65](index=65&type=chunk) - SIMI and SIMPES were replaced by SIRA and SIRASE, tightening import and foreign service payment regulations[66](index=66&type=chunk) [Note 3: Basis of Preparation](index=21&type=section&id=NOTE%203:%20BASIS%20OF%20PREPARATION) These unaudited consolidated condensed interim financial statements for the nine-month period ended September 30, 2022, were prepared in accordance with IAS 34, expressed in million pesos, and approved by the Board on November 7, 2022. The functional currency is US dollars, but presentation is in pesos as required by CNV. They are based on historical cost, modified by fair value measurement of financial assets, and should be read with the December 31, 2021 annual statements - Financial statements prepared under IAS 34, expressed in **million pesos**, and approved on November 7, 2022[68](index=68&type=chunk) - Functional currency is US dollars, but presented in pesos as per CNV requirements[69](index=69&type=chunk) - Prepared under historical cost convention, modified by fair value measurement of financial assets[70](index=70&type=chunk) - Unaudited, but management estimates all necessary adjustments are included; results may not be proportional to the full year[71](index=71&type=chunk) [Note 4: Accounting Policies](index=21&type=section&id=NOTE%204:%20ACCOUNTING%20POLICIES) The accounting policies applied in these interim financial statements are consistent with those used in the consolidated financial statements for the fiscal year ended December 31, 2021. New accounting standards and amendments effective January 1, 2022 (IFRS 3, IAS 16, IAS 37, and Annual Improvements to IFRS Standards) have been adopted but had no impact on the company's results or financial position - Accounting policies are consistent with the prior fiscal year ended December 31, 2021[74](index=74&type=chunk) - New standards (IFRS 3, IAS 16, IAS 37, Annual Improvements) adopted as of January 1, 2022, had **no impact** on results or financial position[75](index=75&type=chunk) [Note 5: Group Structure](index=22&type=section&id=NOTE%205:%20GROUP%20STRUCTURE) This section details changes in the company's group structure, including the sale of Edenor, the sale of a 28.5% interest in Refinor, and the acquisition of additional interests in Greenwind and Autotrol Renovables S.A. It also provides information on subsidiaries, associates, and joint ventures, and updates on specific investments and oil and gas participations [Acquisition and Sale of Equity Interests](index=22&type=section&id=5.1%20Acquisition%20and%20sale%20of%20equity%20interests) - Results from the sale of Edenor's controlling stake (September 30, 2021) are disclosed under "Discontinued operations"[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - Agreed to sell **28.5% interest in Refinor** for **US$5.7 million**, recognizing an impairment loss of **$1,242 million (US$11 million)** before taxes[79](index=79&type=chunk)[80](index=80&type=chunk) - Acquired an additional **50% interest in Greenwind** for **US$20.5 million**, recognizing a **$3,120.7 million (US$23.3 million) profit** on the previous interest[82](index=82&type=chunk)[83](index=83&type=chunk) - Greenwind acquisition contributed **$606.7 million (US$4.2 million)** in revenues and **$126 million (US$1.2 million)** in net earnings for the August 12 - September 30, 2022 period[86](index=86&type=chunk) - Acquired **100% of Autotrol Renovables S.A.** (Wayra I Wind Farm project holder) for **$7.3 million (US$50 thousand)**[89](index=89&type=chunk) [Interest in Subsidiaries, Associates and Joint Ventures](index=27&type=section&id=5.2%20Interest%20in%20subsidiaries,%20associates%20and%20joint%20ventures) Participation in Key Entities | Company | Main Activity | 09.30.2022 Direct/Indirect Participation % | 12.31.2021 Direct/Indirect Participation % | | :-------------------------------- | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | | Autotrol Renovable S.A. | Generation | 100.00% | - | | Greenwind | Generation | 100.00% | 50.00% | | Refinor | Refinery | 28.50% | 28.50% | | TGS | Gas transportation | 3.764% (direct) + 25.50% (indirect) | 3.764% (direct) + 25.50% (indirect) | | Citelec | Investment | 50.00% (direct) + 26.33% (indirect in Transener) | 50.00% (direct) + 26.33% (indirect in Transener) | Investment in Associates and Joint Ventures | Investment Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Total associates and joint ventures (non-current assets) | 134,244 | 79,500 | +68.86% | | Result from investments in associates and joint ventures | 13,610 | 8,131 | +67.38% | Evolution of Investments | Evolution of Investments | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | At the beginning of the year | 79,114 | 46,068 | | Share of profit | 14,852 | 8,131 | | Exchange differences on translation | 46,868 | 14,788 | | At the end of the period | 134,244 | 70,122 | [Investment in CTB](index=30&type=section&id=5.2.3Investment%20in%20CTB) - CTB repaid **US$72.4 million** of its syndicated loan during the nine-month period, with a final **US$2 million** repaid post-closing[99](index=99&type=chunk)[100](index=100&type=chunk) - CTB issued Class 6 CB for **US$25 million** (0% fixed rate, maturing May 2025) and Class 7 CB for **$1,754 million** (BADLAR + 2.98%, maturing November 2023)[101](index=101&type=chunk) - CTB issued Class 8 CB for **$4,235 million** (BADLAR + 1.00%, maturing February 2024)[102](index=102&type=chunk) - CTB's combined cycle project aims to increase installed capacity from **567 MW to 847 MW**, with commissioning expected by end of December 2022[104](index=104&type=chunk)[105](index=105&type=chunk) [Oil and Gas Participations](index=31&type=section&id=5.3%20Oil%20and%20gas%20participations) - A new investment schedule for the Sierra Chata block commits Pampa (**45.55% interest**) and Mobil Argentina S.A. to execute **14 horizontal wells** by July 26, 2023[108](index=108&type=chunk) - Pampa transferred its interests in Venezuelan mixed companies to Integra Petróleo y Gas S.A., with collection contingent on change of control approval[109](index=109&type=chunk)[110](index=110&type=chunk) [Note 6: Risks](index=32&type=section&id=NOTE%206:%20RISKS) This section addresses critical accounting estimates and judgments, particularly regarding impairment of non-financial assets, and financial risk management. Management continuously evaluates estimates based on past experiences and current circumstances. An impairment loss of $3,682 million (US$29.4 million) was recognized for the Rincón del Mangrullo block due to rescheduling of drilling activities and recategorization of reserves. No significant changes in financial risk management policies were noted [Critical Accounting Estimates and Judgments](index=32&type=section&id=6.1%20Critical%20accounting%20estimates%20and%20judgments) - Management's estimates and judgments are continuously evaluated and consistent with 2021 annual financial statements[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Impairment in the Value of Non-Financial Assets](index=33&type=section&id=6.1.1%20Impairment%20in%20the%20value%20of%20non-financial%20assets) - Impairment loss of **$3,682 million (US$29.4 million)** recognized for the Rincón del Mangrullo block due to rescheduling of drilling and recategorization of **2.7 MMBoe** reserves[115](index=115&type=chunk) [Financial Risk Management](index=33&type=section&id=6.2%20Financial%20risk%20management) - Company is subject to market risk (exchange rate, interest rate, price), credit risk, and liquidity risk[116](index=116&type=chunk) - No significant changes in risk management policies since last year[117](index=117&type=chunk) [Note 7: Segment Information](index=33&type=section&id=NOTE%207:%20SEGMENT%20INFORMATION) Pampa Energía S.A. manages its operations across five segments: Electricity Generation, Electricity Distribution (discontinued), Oil and Gas, Petrochemicals, and Holding and Other Business. The segment information is presented based on individual net results in U.S. dollars, with detailed consolidated profit and loss and financial position data provided for the nine-month periods ended September 30, 2022 and 2021 [Business Segments Overview](index=33&type=section&id=Business%20Segments%20Overview) - Business segments include Electricity Generation, Electricity Distribution (discontinued), Oil and Gas, Petrochemicals, and Holding and Other Business[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - Segment results reflect Greenwind consolidation from August 12, 2022[119](index=119&type=chunk) - Electricity Distribution segment (Edenor) was classified as discontinued operations as of September 30, 2021[120](index=120&type=chunk) [Consolidated Profit and Loss Information (Nine-Month Period Ended September 30, 2022)](index=35&type=section&id=Consolidated%20Profit%20and%20Loss%20Information%20(Nine-Month%20Period%20Ended%20September%2030,%202022)) Consolidated Profit and Loss (09.30.2022) | Metric (US$ Million) | Generation | Oil and Gas | Petrochemicals | Holding and Others | Consolidated | | :----------------------------------- | :--------- | :---------- | :------------- | :----------------- | :----------- | | Revenue - local market | 500 | 290 | 308 | 16 | 1,114 | | Revenue - foreign market | - | 112 | 155 | - | 267 | | Gross profit | 222 | 221 | 58 | 16 | 516 | | Operating income | 273 | 153 | 40 | 16 | 481 | | Profit (Loss) of the period | 201 | 53 | 38 | 55 | 346 | | Total Assets | 2,261 | 1,185 | 183 | 1,176 | 4,629 | | Total Liabilities | 826 | 1,262 | 145 | 372 | 2,430 | [Consolidated Profit and Loss Information (Nine-Month Period Ended September 30, 2021)](index=37&type=section&id=Consolidated%20Profit%20and%20Loss%20Information%20(Nine-Month%20Period%20Ended%20September%2030,%202021)) Consolidated Profit and Loss (09.30.2021) | Metric (US$ Million) | Generation | Distribution of energy | Oil and Gas | Petrochemicals | Holding and Others | Consolidated | | :----------------------------------- | :--------- | :--------------------- | :---------- | :------------- | :----------------- | :----------- | | Revenue - local market | 501 | - | 211 | 215 | 15 | 942 | | Revenue - foreign market | - | - | 29 | 131 | - | 160 | | Gross profit | 235 | - | 134 | 52 | 15 | 436 | | Operating income | 275 | - | 119 | 39 | 40 | 473 | | Profit (Loss) of the period | 189 | (75) | 27 | 24 | 35 | 200 | | Total Assets | 1,670 | - | 1,157 | 176 | 1,067 | 3,861 | | Total Liabilities | 525 | - | 1,324 | 166 | 264 | 2,070 | [Note 8: Revenue](index=39&type=section&id=NOTE%208:%20REVENUE) Total revenue for the nine-month period ended September 30, 2022, significantly increased to $168,748 million from $103,740 million in the prior year. This growth was primarily driven by substantial increases across all segments, particularly petrochemicals, oil and gas, and electricity generation Revenue Breakdown | Revenue Category | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Generation sales subtotal | 60,837 | 46,988 | +29.47% | | Oil and gas sales subtotal | 49,277 | 22,792 | +116.20% | | Petrochemicals products sales | 56,712 | 32,535 | +74.31% | | Holding and others subtotal | 1,922 | 1,425 | +34.88% | | Total revenue | 168,748 | 103,740 | +62.66% | [Note 9: Cost of Sales](index=40&type=section&id=NOTE%209:%20COST%20OF%20SALES) Total cost of sales for the nine-month period ended September 30, 2022, increased to $104,797 million from $62,652 million in the prior year, primarily due to higher purchases of inventories, energy and gas, increased salaries and social security charges, and significant property, plant and equipment depreciation Cost of Sales Breakdown | Cost Component | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Purchases of inventories, energy and gas | 47,236 | 28,722 | +64.46% | | Salaries and social security charges | 7,253 | 3,943 | +83.93% | | Property, plant and equipment depreciation | 18,261 | 13,157 | +38.79% | | Canons and royalties | 8,421 | 4,559 | +84.71% | | Total cost of sales | 104,797 | 62,652 | +67.27% | [Note 10: Other Items of the Statement of Comprehensive Income](index=41&type=section&id=NOTE%2010:%20OTHER%20ITEMS%20OF%20THE%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) This section details significant changes in selling expenses, administrative expenses, exploration expenses, other operating income and expenses, financial results, and income tax. Notable increases were seen in selling and administrative expenses, while other operating income benefited from the Argentine Natural Gas Production Promotion Plan. Financial costs increased, but other financial results showed a positive swing due to foreign currency exchange differences and fair value changes. Income tax expense decreased despite higher profit before tax, influenced by tax inflation adjustment effects [Selling Expenses](index=41&type=section&id=10.1%20Selling%20expenses) Selling Expenses Breakdown | Selling Expense Component | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Transportation and freights | 2,695 | 464 | +480.82% | | Taxes, rates and contributions | 1,308 | 770 | +69.87% | | Total selling expenses | 4,945 | 1,752 | +182.25% | [Administrative Expenses](index=41&type=section&id=10.2%20Administrative%20expenses) Administrative Expenses Breakdown | Administrative Expense Component | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Salaries and social security charges | 4,493 | 2,200 | +104.23% | | Fees and compensation for services | 2,742 | 2,003 | +36.89% | | Compensation agreements | 1,578 | (33) | N/A | | Total administrative expenses | 12,389 | 6,301 | +96.62% | [Exploration Expenses](index=42&type=section&id=10.3%20Exploration%20expenses) Exploration Expenses Breakdown | Exploration Expense Component | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Geological and geophysical expenses | 23 | 18 | +27.78% | | Decrease in unproductive wells | - | 32 | -100.00% | | Total exploration expenses | 23 | 50 | -54.00% | [Other Operating Income and Expenses](index=42&type=section&id=10.4%20Other%20operating%20income%20and%20expenses) Other Operating Income and Expenses Breakdown | Other Operating Item | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Argentine Natural Gas Production Promotion Plan (Income) | 6,794 | 4,545 | +49.48% | | Commercial interests (Income) | 2,653 | 2,160 | +22.82% | | Total other operating income | 10,345 | 8,864 | +16.72% | | Provision for contingencies (Expenses) | (205) | (1,326) | -84.54% | | Provision for environmental remediation (Expenses) | - | (1,489) | -100.00% | | Readjustment of investment plan (Expenses) | (1,011) | - | N/A | | Total other operating expenses | (4,209) | (4,623) | -8.80% | [Financial Results](index=43&type=section&id=10.5%20Financial%20results) Financial Results Breakdown | Financial Item | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Financial interest (Income) | 110 | 33 | +233.33% | | Total financial income | 597 | 619 | -3.55% | | Financial interest (Costs) | (14,547) | (10,160) | +43.18% | | Total financial costs | (18,127) | (14,128) | +28.31% | | Foreign currency exchange difference, net (Other financial results) | 4,710 | 1,087 | +333.30% | | Changes in the fair value of financial instruments (Other financial results) | 1,969 | 1,741 | +13.10% | | Result from exchange of corporate bonds (Other financial results) | (1,941) | - | N/A | | Total other financial results | 4,108 | 2,813 | +46.04% | | Total financial results, net | (13,422) | (10,696) | +25.49% | [Income Tax](index=44&type=section&id=10.6%20Income%20tax) Income Tax Breakdown | Income Tax Component | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Current tax | 25,899 | 1,235 | +1997.00% | | Deferred tax | (18,559) | 6,533 | -384.26% | | Total income tax - Loss | 5,224 | 7,786 | -32.89% | | Profit before income tax | 47,986 | 34,260 | +40.07% | | Income tax at the statutory tax rate (35%) | 16,795 | 11,991 | +40.07% | | Effects of valuation of property, plant and equipment, intangible assets and financial assets | (52,802) | (18,541) | +184.79% | | Effect for tax inflation adjustment | 25,215 | 11,651 | +116.42% | [Note 11: Non-Financial Assets and Liabilities](index=45&type=section&id=NOTE%2011:%20NON-FINANCIAL%20ASSETS%20ANF%20LIABILITIES) This section details the composition and changes in non-financial assets and liabilities, including property, plant and equipment, intangible assets, deferred tax assets and liabilities, inventories, and provisions. Significant increases were observed in property, plant and equipment, and intangible assets, partly due to acquisitions and exchange differences. Deferred tax assets increased substantially, while provisions for contingencies and asset retirement obligations also rose [Property, Plant and Equipment](index=45&type=section&id=11.1%20Property,%20plant%20and%20equipment) Property, Plant and Equipment (Original Values) | Property, Plant & Equipment (Original Values) | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | Equipment and machinery | 239,198 | 149,670 | | Wells | 142,499 | 89,091 | | Work in progress | 37,679 | 13,625 | | Total at 09.30.2022 | 497,572 | 311,688 | | Net book values at 09.30.2022 | 282,322 | 159,563 | | Net book values at 12.31.2021 | N/A | 170,390 | - Includes **$791 million** of financial costs capitalized in property, plant and equipment for the nine-month period ended September 30, 2022[138](index=138&type=chunk) [Intangible Assets](index=47&type=section&id=11.2%20Intangible%20assets) Intangible Assets (Original Values) | Intangible Asset (Original Values) | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | Intangible identified in acquisitions of companies | 5,602 | 717 | | Goodwill | 5,098 | 3,555 | | Total at 09.30.2022 | 11,951 | 4,530 | | Net book values at 09.30.2022 | 11,028 | 3,814 | | Net book values at 12.31.2021 | N/A | 3,956 | [Deferred Tax Assets and Liabilities](index=48&type=section&id=11.3%20Deferred%20tax%20assets%20and%20liabilities) Deferred Tax Assets and Liabilities | Deferred Tax Component | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Deferred tax assets | 42,371 | 17,180 | +146.63% | | Deferred tax liabilities | (15,288) | (8,505) | +79.76% | | Deferred tax assets, net | 27,083 | 8,675 | +212.20% | [Inventories](index=49&type=section&id=11.4%20Inventories) Inventories Breakdown | Inventory Component | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Materials and spare parts | 14,394 | 8,972 | +60.43% | | In process and finished products | 9,863 | 6,118 | +61.22% | | Total inventories | 24,802 | 15,888 | +56.10% | [Provisions](index=49&type=section&id=11.5%20Provisions) Non-Current Provisions | Provision Component | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Contingencies (Non-Current) | 15,738 | 10,859 | +44.93% | | Asset retirement obligation and decommissioning of wind turbines (Non-Current) | 3,166 | 2,007 | +57.75% | | Environmental remediation (Non-Current) | 2,161 | 1,485 | +45.52% | | Total non-current provisions | 21,065 | 14,444 | +45.84% | Evolution of Provisions | Evolution of Provisions | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | At the beginning of the year | 10,887 (Contingencies) | 8,660 (Contingencies) | | Exchange differences on translation | 4,515 (Contingencies) | 1,456 (Contingencies) | | At the end of the period | 15,751 (Contingencies) | 10,264 (Contingencies) | - International arbitration claims with Petrobras Operación S.A. and Petrobras International Braspetro B.V. are ongoing[146](index=146&type=chunk) [Income Tax and Minimum Notional Income Tax Provision](index=51&type=section&id=11.6%20Income%20tax%20and%20minimum%20notional%20income%20tax%20provision) Income Tax Provision | Income Tax Provision | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Income tax (Non-current) | 44,964 | 16,163 | +178.19% | | Minimum notional income tax (Non-current) | 2,859 | 3,124 | -8.50% | | Total non-current | 47,823 | 19,287 | +147.96% | - A provision is held for additional income tax liabilities due to inconsistencies in the tax inflation adjustment mechanism[148](index=148&type=chunk)[149](index=149&type=chunk) [Note 12: Financial Assets and Liabilities](index=51&type=section&id=NOTE%2012:%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) This section details the company's financial assets and liabilities, including significant increases in financial assets at amortized cost and fair value through profit and loss, trade and other receivables, and borrowings. Current borrowings saw a substantial increase, while the company also engaged in corporate bond issuances and an exchange offer. Fair value measurements for financial instruments are also provided [Financial Assets at Amortized Cost](index=51&type=section&id=12.1%20Financial%20assets%20at%20amortized%20cost) Financial Assets at Amortized Cost | Financial Asset | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Term deposit (Non-current) | 14,813 | 10,311 | +43.66% | | Total non-current | 14,960 | 10,821 | +38.25% | | Documents to collect (Current) | 1,899 | 537 | +253.63% | [Financial Assets at Fair Value Through Profit and Loss](index=52&type=section&id=12.2%20Financial%20assets%20at%20fair%20value%20through%20profit%20and%20loss) Financial Assets at Fair Value Through Profit and Loss | Financial Asset | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Government securities (Current) | 55,578 | 28,464 | +95.26% | | Shares (Current) | 21,399 | 12,363 | +73.09% | | Total current | 84,731 | 47,026 | +80.18% | | Shares (Non-current) | 4,299 | 2,998 | +43.40% | [Trade and Other Receivables](index=52&type=section&id=12.3%20Trade%20and%20other%20receivables) Trade and Other Receivables | Receivable Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | CAMMESA | 19,699 | 9,180 | +114.59% | | Receivables from oil and gas sales | 17,458 | 7,120 | +145.20% | | Receivables from petrochemicals sales | 10,246 | 7,280 | +40.74% | | Argentine Natural Gas Production Promotion Plan | 6,879 | 1,479 | +365.11% | | Total current | 67,816 | 40,892 | +65.84% | Impairment of Financial Assets | Impairment of Financial Assets | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | At the beginning of the year | 963 | 1,352 | | Impairment | 100 | 91 | | Reversal of unused amounts | (50) | (402) | | At the end of the period | 1,051 | 1,101 | [Cash and Cash Equivalents](index=54&type=section&id=12.4%20Cash%20and%20cash%20equivalents) Cash and Cash Equivalents | Cash & Equivalents Component | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Investment funds | 11,773 | 8,649 | +36.12% | | Total | 14,259 | 11,283 | +26.37% | [Borrowings](index=55&type=section&id=12.5%20Borrowings) Borrowings Breakdown | Borrowing Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Corporate bonds (Non-current) | 178,186 | 133,662 | +33.32% | | Financial borrowings (Non-current) | 17,547 | 5,968 | +193.99% | | Total non-current | 195,733 | 139,630 | +40.19% | | Bank overdrafts (Current) | 10,049 | 1,156 | +769.30% | | Corporate bonds (Current) | 24,345 | 3,976 | +512.35% | | Total current | 41,788 | 8,165 | +411.78% | | Total borrowings | 237,521 | 147,795 | +60.71% | Evolution of Consolidated Loans | Evolution of Consolidated Loans | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | At the beginning of the year | 147,795 | 135,805 | | Proceeds from borrowings | 33,211 | 4,766 | | Payment of borrowings | (17,453) | (18,800) | | Exchange differences on translation | 67,016 | 22,311 | | At the end of the period | 237,521 | 140,605 | - Issued Class 8 CB for **$3,107 million** (Badlar rate + 2%, 18-month maturity), the first green bond to finance PEPE III wind farm expansion[158](index=158&type=chunk)[159](index=159&type=chunk) - Issued Class 11 CB for **$12,690 million** (BADLAR rate + 0%, maturing January 2024) and reopened it for an additional **$8,963.9 million**[160](index=160&type=chunk)[161](index=161&type=chunk) - Completed an exchange offer for Series T CBs, resulting in a **$1,941 million (US$14 million) loss** disclosed under "Other financial results"[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - Took on new short-term financing with domestic financial entities totaling **$8,663.2 million**, net of cancellations[167](index=167&type=chunk) [Trade and Other Payables](index=58&type=section&id=12.6%20Trade%20and%20other%20payables) Trade and Other Payables | Payable Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | Change | | :----------------------------------- | :----------------------- | :----------------------- | :------- | | Suppliers (Current) | 20,332 | 15,807 | +28.63% | | Related parties (Current) | 3,140 | 1,524 | +106.04% | | Total current | 26,956 | 18,561 | +45.23% | | Compensation agreements (Non-current) | 944 | 379 | +149.08% | | Finance leases liability (Non-current) | 1,478 | 954 | +54.93% | [Fair Value of Financial Instruments](index=59&type=section&id=12.7%20Fair%20value%20of%20financial%20instruments) Financial Instrument Assets at Fair Value | Financial Instrument (Assets) | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | Government securities | 55,578 | 28,464 | | Shares | 25,698 | 15,361 | | Investment funds (Cash & Equivalents) | 11,773 | 8,649 | | Derivative financial instruments | 177 | 16 | | Total assets at fair value | 106,378 | 61,736 | - Fair value of derivative financial instruments is calculated from market price variations[170](index=170&type=chunk) - Fair value of shares (Level 3) is determined using the income-based approach (net present value of expected future cash flows, mainly dividends)[170](index=170&type=chunk) [Note 13: Equity Components](index=60&type=section&id=NOTE%2013:%20EQUITY%20COMPONENTS) This section details changes in share capital, including the suspension of Program 11 and approval of Program 12 for treasury share acquisitions, and a capital stock reduction by canceling 2.8 million shares. It also explains the calculation of basic and diluted earnings per share, noting no significant dilutive shares as of September 30, 2022 [Share Capital](index=60&type=section&id=13.1%20Share%20Capital) - Capital stock as of September 30, 2022, is **$1,384 million**, including **$4 million of treasury shares**[171](index=171&type=chunk) - Program 11 for treasury share acquisition was suspended, and Program 12 (max **US$30 million**) was approved[172](index=172&type=chunk)[173](index=173&type=chunk) - Acquired **0.9 million ADRs** for **US$18.2 million** during the nine-month period[175](index=175&type=chunk) - Capital stock reduced by canceling **2.8 million shares**, registered on September 14, 2022[176](index=176&type=chunk) [Earning per Share](index=61&type=section&id=13.2%20Earning%20per%20share) Earnings Per Share | EPS Metric | 09.30.2022 | 09.30.2021 | Change (YoY) | | :----------------------------------- | :--------- | :--------- | :----------- | | Basic and diluted earnings per share from continuing operations | 30.74 | 18.62 | +65.09% | | Total basic and diluted earnings per share | 30.74 | 15.98 | +92.36% | - No significant potential dilutive shares, so basic and diluted earnings per share are equal[179](index=179&type=chunk) [Note 14: Statement of Cash Flows' Complementary Information](index=62&type=section&id=NOTE%2014:%20STATEMENT%20OF%20CASH%20FLOWS'%20COMPLEMENTARY%20INFORMATION) This section provides complementary information for the statement of cash flows, detailing adjustments to reconcile net profit to cash flows from operating activities and changes in operating assets and liabilities. It also highlights significant non-cash transactions, such as the acquisition of property, plant and equipment through increased trade payables and capitalized borrowing costs [Adjustments to Reconcile Net Profit to Cash Flows from Operating Activities](index=62&type=section&id=14.1Adjustments%20to%20reconcilie%20net%20profit%20to%20cash%20flows%20from%20operating%20activities) Adjustments to Reconcile Net Profit | Adjustment Item | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Income tax | 5,224 | 7,786 | -32.89% | | Accrued interest | 14,392 | 10,928 | +31.70% | | Depreciations and amortizations | 19,204 | 13,879 | +38.37% | | Share of profit of joint ventures and associates | (13,610) | (8,131) | +67.38% | | Impairment of property, plant and equipment, intangible assets and inventories | 4,260 | 172 | +2376.74% | | Adjustments to reconcile net profit to cash flows from operating activities | 30,750 | 24,998 | +23.01% | [Changes in Operating Assets and Liabilities](index=63&type=section&id=14.2Changes%20in%20operating%20assets%20and%20liabilities) Changes in Operating Assets and Liabilities | Change Item | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | Change (YoY) | | :----------------------------------- | :----------------------- | :----------------------- | :----------- | | Increase in trade receivables and other receivables | (23,810) | (2,844) | +737.20% | | Increase in inventories | (2,481) | (2,863) | -13.20% | | Changes in operating assets and liabilities | (22,788) | (6,566) | +247.05% | [Significant Non-Cash Transactions](index=63&type=section&id=14.3Significant%20non-cash%20transactions) - Acquisition of property, plant and equipment through an increase in trade payables amounted to **$(5,519) million**[182](index=182&type=chunk) - Borrowing costs capitalized in property, plant and equipment amounted to **$(791) million**[182](index=182&type=chunk) [Note 15: Contingent Liabilities and Assets](index=64&type=section&id=NOTE%2015:%20CONTINGENT%20LIABILITIES%20AND%20ASSETS) This section outlines updates on the company's contingent liabilities and assets. Labor claims related to the "Compensating Fund" are ongoing, with some appeals dismissed and one adverse judgment received. Environmental claims include a proceeding for alleged damages near a petrochemical plant and another for collective environmental damage in Mar del Plata. Administrative claims involve a complaint against the Federal Government for owed amounts related to gas prices and a contractual breach. A significant contingent asset is an arbitration award against Petroecuador, which was partially upheld, though Petroecuador filed an extraordinary protection proceeding [Labor Claim - Compensation Fund](index=64&type=section&id=15.1%20Labor%20claim%20-%20Compensation%20Fund) - Federal extraordinary appeal regarding plan underfunding was disallowed; petition in error filed[185](index=185&type=chunk) - Appeals Chamber upheld judgments dismissing complaints by non-covered former employees seeking plan inclusion[185](index=185&type=chunk) - Adverse judgment received regarding the ineffectiveness of the IPC index to maintain "constant value" of plan benefits[185](index=185&type=chunk) [Environmental Claims](index=64&type=section&id=15.2%20Environmental%20claims) - Ongoing proceeding for alleged environmental damages near Puerto General San Martin petrochemical plant[185](index=185&type=chunk) - Ongoing proceeding for alleged collective environmental damage in Mar del Plata, with an agreement reached with three co-defendants[185](index=185&type=chunk) [Administrative Claims](index=65&type=section&id=15.3%20Administrative%20claims) - Complaint filed against the Federal Government for owed amounts related to gas prices under PEN Executive Order No. 1,053/18, following dismissal of an amparo[188](index=188&type=chunk) - Administrative litigation complaint against the Federal Government for contractual breach during January-March 2016 is ongoing[188](index=188&type=chunk) [Civil and Commercial Claims](index=65&type=section&id=15.4%20Civil%20and%20Commercial%20claims) - Arbitration award against Petroecuador partially upheld in favor of Pampa Bloque 18, despite Petroecuador filing an extraordinary protection proceeding[188](index=188&type=chunk) [Note 16: Related Parties' Balances and Transactions](index=66&type=section&id=NOTA%2016:%20RELATED%20PARTIES%C2%B4%20BALANCES%20AND%20TRANSACTIONS) This section details balances and transactions with related parties, including trade and other receivables and payables, as well as sales, purchases, fees, and other operating income/expenses. Significant balances include trade receivables from TGS and trade payables to SACDE. Operations include substantial sales of goods and services to Refinor and TGS, and purchases of goods and services from SACDE and TGS [Balances with Related Parties](index=66&type=section&id=16.1%20Balances%20with%20related%20parties) Balances with Related Parties | Related Party | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | TGS (Trade receivables - Current) | 798 | 611 | | TGS (Other receivables - Non Current) | 2,797 | 2,394 | | SACDE (Trade payables - Current) | 1,939 | 1,001 | | TGS (Trade payables - Current) | 1,166 | 311 | [Operations with Related Parties](index=67&type=section&id=16.2%20Operations%20with%20related%20parties) Operations with Related Parties | Operation Type | 09.30.2022 (Millions ARS) | 09.30.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | Sales of goods and services | 6,188 | 3,559 | | Purchases of goods and services | (14,221) | (4,594) | | Dividends received | 854 | 1,962 | - Purchases of goods and services include **$8,201 million** for infrastructure works contracted to SACDE[191](index=191&type=chunk) [Note 17: Assets and Liabilities in Currencies Other Than Pesos](index=68&type=section&id=NOTE%2017:%20ASSETS%20AND%20LIABILITIES%20IN%20CURRENCIES%20OTHER%20THAN%20PESOS) As of September 30, 2022, the company had a net liability position of $(129,735) million in currencies other than pesos, primarily US dollars, compared to $(88,942) million at December 31, 2021. This was driven by significant US dollar-denominated borrowings and provisions, partially offset by US dollar-denominated financial assets and receivables Assets and Liabilities in Other Currencies | Category | 09.30.2022 (Millions ARS) | 12.31.2021 (Millions ARS) | | :----------------------------------- | :----------------------- | :----------------------- | | Total assets in other currencies | 109,083 | 84,186 | | Total liabilities in other currencies | 238,818 | 173,128 | | Net Position Liability | (129,735) | (88,942) | - The net liability position in other currencies is primarily driven by US dollar-denominated borrowings and provisions[194](index=194&type=chunk) [Note 18: Termination of Hydroelectric Concessions](index=69&type=section&id=NOTE%2018:%20TERMINATION%20OF%20HYDROELECTRIC%20CONCESSIONS) The Secretary of Energy (SE) created a team to evaluate the status of hydroelectric concessions under national jurisdiction, including HIDISA, HINISA (expiring 2024), and HPPL (expiring 2029). A status report for HIDISA and HINISA is due within two years, and IEASA is tasked with the technical audit of power generation equipment - SE Resolution No. 130/22 created a team to evaluate national hydroelectric concessions, including HIDISA, HINISA (expiring **2024**), and HPPL (expiring **2029**)[197](index=197&type=chunk)[199](index=199&type=chunk) - A status report for HIDISA and HINISA concessions is due within **two years**[199](index=199&type=chunk) - IEASA is entrusted with the technical audit of power generation equipment[200](index=200&type=chunk) [Note 19: Documentation Safekeeping](index=69&type=section&id=NOTE%2019:%20DOCUMENTATION%20SAFEKEEPING) In compliance with CNV General Resolution No. 629/14, the company has stored non-sensitive work papers and information corresponding to non-statute-barred periods in data warehouses managed by Administración de Archivos S.A. (AdeA) and Iron Mountain Argentina S.A. A list of stored documentation is available at the company headquarters - Company stores non-sensitive work papers and information in compliance with CNV General Resolution No. 629/14[201](index=201&type=chunk) [Note 20: Subsequent Events](index=70&type=section&id=NOTE%2020:%20SUBSEQUENT%20EVENTS) This section details the "2023-2028 Plan for Ensuring and Boosting Federal Hydrocarbon Production," which amends the GasAr Plan. Key guidelines include extending the term until December 31, 2028, defining injection commitments and priorities, setting firm export quotas for natural gas and LNG, and establishing verification for incremental activity plans - Executive Order No. 730/22 amends the GasAr Plan, establishing a new "2023-2028 Plan for Ensuring and Boosting Federal Hydrocarbon Production"[202](index=202&type=chunk) - The plan extends until **December 31, 2028**, and aims to consolidate a new **70 MMm3/d flat block** and develop demand for incremental volumes[203](index=203&type=chunk)[204](index=204&type=chunk) - It establishes injection priority based on chronological order and competitive price, and sets firm export quotas for natural gas and LNG once domestic supply is met[204](index=204&type=chunk)[205](index=205&type=chunk) - Provisional payment percentage for calculated compensation is increased from **75% to 85%**[205](index=205&type=chunk)

Pampa EnergÃa S.A. (NYSE:PAM) Q3 2022 Earnings Conference Call November 8, 2022 10:00 AM ET Company Participants Margarita Chun - Chief, IR Lida Wang - Head, IR & Sustainability Gustavo Mariani - CEO, EVP & Vice Chairman Nicolas Mindlin - Executive Director, Finances, M&A and CFO Conference Call Participants Margarita Chun Good morning, ladies and gentlemen. Thank you for waiting. I'm Margarita Chun from IR, and we would like to welcome everyone to company Pampa EnergÃa's Third Quarter 2022 Results Video Co ...

Investor Presentation September 2022 We are environmentally friendly Be GREEN, keep it on SCREEN Pampaenergía Disclaimer The material that follows is a presentation of general background information about Pampa Energia S.A.("Pampa" or the "Company") as of the date of the resentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This resentation is strictly confidential and may not be disclosed to any other perso ...

Financial Statements [Consolidated Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the six-month period ended June 30, 2022, the company reported a significant increase in revenue to $99,523 million from $61,211 million in the prior-year period. Profit for the period from continuing operations rose to $18,705 million, compared to $13,767 million in 2021. Total comprehensive income for the period nearly doubled to $69,191 million, driven by higher profit and substantial positive exchange differences on translation Key Income Statement Figures (Six-Month Period) | Metric | 06.30.2022 ($M) | 06.30.2021 ($M) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | 99,523 | 61,211 | +62.6% | | **Gross Profit** | 38,264 | 25,868 | +47.9% | | **Operating Income** | 31,248 | 24,446 | +27.8% | | **Profit of the period from continuing operations** | 18,705 | 13,767 | +35.9% | | **Profit of the period** | 18,705 | 6,638 | +181.8% | | **Total comprehensive income of the period** | 69,191 | 36,833 | +87.9% | Earnings Per Share (Six-Month Period) | Metric | 06.30.2022 | 06.30.2021 | | :--- | :--- | :--- | | **Basic and diluted earnings per share from continuing operations** | 13.37 | 9.45 | | **Basic and diluted loss per share from discontinued operations** | - | (2.61) | | **Total basic and diluted earnings per share** | 13.37 | 6.84 | [Consolidated Statement of Financial Position](index=8&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2022, total assets increased to $529,835 million from $396,653 million at year-end 2021, primarily driven by growth in property, plant and equipment, and investments in associates. Total liabilities also grew to $277,914 million from $212,613 million, mainly due to increased borrowings. Consequently, total equity rose to $251,921 million Key Balance Sheet Figures | Metric | 06.30.2022 ($M) | 12.31.2021 ($M) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 529,835 | 396,653 | +33.6% | | Total Non-Current Assets | 375,999 | 281,011 | +33.8% | | Total Current Assets | 152,292 | 115,642 | +31.7% | | **Total Liabilities** | 277,914 | 212,613 | +30.7% | | Total Non-Current Liabilities | 224,737 | 177,506 | +26.6% | | Total Current Liabilities | 53,177 | 35,107 | +51.5% | | **Total Equity** | 251,921 | 184,040 | +36.9% | [Consolidated Statement of Changes in Equity](index=10&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity increased from $184,040 million at the end of 2021 to $251,921 million as of June 30, 2022. The growth was primarily driven by the profit for the six-month period of $18,705 million and other comprehensive income of $50,486 million. This was partially offset by treasury share acquisitions amounting to $1,171 million - The main drivers for the increase in equity during the first six months of 2022 were the profit for the period (**$18,469 million** attributable to owners) and other comprehensive income (**$50,337 million** attributable to owners)[26](index=26&type=chunk) - The company acquired treasury shares for a cost of **$1,171 million** during the period[26](index=26&type=chunk) [Consolidated Statement of Cash Flows](index=12&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six-month period ended June 30, 2022, net cash generated by operating activities was $25,178 million, a decrease from $33,163 million in the prior year. Net cash used in investing activities increased significantly to $21,246 million, driven by higher payments for property, plant, and equipment. Net cash used in financing activities decreased to $4,252 million. Overall, cash and cash equivalents increased slightly to $13,172 million at the end of the period Cash Flow Summary (Six-Month Period) | Metric | 06.30.2022 ($M) | 06.30.2021 ($M) | | :--- | :--- | :--- | | **Net cash generated by operating activities** | 25,178 | 33,163 | | **Net cash used in investing activities** | (21,246) | (9,896) | | **Net cash used in financing activities** | (4,252) | (19,265) | | **(Decrease) Increase in cash and cash equivalents** | (320) | 4,002 | | **Cash and cash equivalents at the end of the period** | 13,172 | 11,946 | Notes to the Financial Statements [Note 1: General Information](index=13&type=section&id=NOTE%201%3A%20GENERAL%20INFORMATION) Pampa Energía is a fully integrated power company in Argentina, with significant operations in electricity generation, oil and gas exploration and production, petrochemicals, and holding interests in electricity transmission and gas transportation. The company operates in a volatile Argentine economic context characterized by high inflation (36.2% in H1 2022), currency depreciation (21.9% in H1 2022), and exchange restrictions. International events, such as the conflict in Ukraine, have also increased energy price volatility - The company is a major player in Argentina's energy sector with an installed generation capacity of **4,970 MW**, representing about **12%** of the country's total[31](index=31&type=chunk) - In the oil and gas segment, production for H1 2022 reached **9.5 million m3/day** of natural gas and **5.1 thousand boe/day** of oil[32](index=32&type=chunk) - The company operates in a challenging domestic economic environment with cumulative inflation of **36.2%** and a **21.9%** peso depreciation against the US dollar in the first six months of 2022[36](index=36&type=chunk) [Note 2: Regulatory Framework](index=15&type=section&id=NOTE%202%3A%20REGULATORY%20FRAMEWORK) The regulatory landscape saw several key developments in H1 2022. For electricity generation, remuneration for the spot market was increased by a cumulative 43% from June 2022. In oil and gas, the government established currency access systems (RADPIP and RADPIGN) to ease foreign exchange access for companies with incremental production, though this was not yet regulated. For transmission, subsidiaries Transener and Transba received tariff increases of 67% and 69% respectively, effective February 2022. Foreign exchange controls (MLC access) remained stringent and were extended - **Generation:** SE Resolution No. 238/22 provided a cumulative **43%** increase in spot generation remuneration from June 2022[43](index=43&type=chunk) - **Oil and Gas:** PEN Executive Order No. 277/22 established systems to ease access to the Foreign Exchange Market (MLC) for beneficiaries with incremental oil and gas production, but it has not yet been regulated[51](index=51&type=chunk)[55](index=55&type=chunk) - **Transmission:** Subsidiaries Transener and Transba received significant remuneration increases of **67%** and **69%** respectively, effective from February 1, 2022, compared to August 2019 levels[56](index=56&type=chunk) - **Foreign Exchange:** Regulations requiring BCRA's prior authorization for certain foreign currency transactions and debt refinancing plans were extended until December 31, 2022[57](index=57&type=chunk)[58](index=58&type=chunk) [Note 5: Group Structure](index=20&type=section&id=NOTE%205%3A%20GROUP%20STRUCTURE) The company's structure underwent changes, with the results from the sale of its controlling stake in Edenor in 2021 classified as discontinued operations. The company also accepted an offer to sell its 28.5% stake in Refinor, classifying it as an asset held for sale. An impairment loss of $1,242 million was recognized on this investment before its reclassification. The company also transferred its interests in Venezuelan mixed companies, with the consideration being contingent. Key investments in associates and joint ventures like CIESA, Citelec, and CTB continue to be significant contributors to results - The company accepted an offer to sell its **28.5%** stake in Refinor and has classified this interest as 'assets held for sale'[74](index=74&type=chunk) - An impairment loss of **$1,242 million** (US$ **11 million**) was recognized on the Refinor investment prior to its classification as held for sale[83](index=83&type=chunk) - On May 6, 2022, the company transferred all rights and obligations for its interests in mixed companies in Venezuela. The consideration is contingent upon future payments received by the assignee[92](index=92&type=chunk) Share of Profit from Associates and Joint Ventures (H1 2022) | Entity | Share of Profit ($M) | | :--- | :--- | | **Total Joint Ventures** | 7,785 | | CIESA | 3,672 | | CTB | 3,657 | | Citelec | 419 | | **Total Associates** | (924) | | **Total** | **6,861** | [Note 6: Risks](index=28&type=section&id=NOTE%206%3A%20RISKS) The company's management makes critical accounting estimates, particularly regarding the impairment of non-financial assets. Due to a strategic shift to focus on unconventional gas reserves, the company rescheduled activities at the Rincón del Mangrullo block. This led to a re-evaluation of the asset's recoverable amount, resulting in the recognition of an impairment loss of $3,682 million (US$ 29.4 million) as of June 30, 2022. Financial risk management policies remain unchanged from the previous year - The company recognized an impairment loss of **$3,682 million** (US$ **29.4 million**) on its Rincón del Mangrullo block assets[98](index=98&type=chunk) - The impairment was triggered by a strategic decision to reschedule future drilling and workover activities to focus investments on unconventional gas reserves, leading to a recategorization of **2.7 MMBoe** of reserves to contingent resources[98](index=98&type=chunk) [Note 7: Segment Information](index=29&type=section&id=NOTE%207%3A%20SEGMENT%20INFORMATION) For the first six months of 2022, all operating segments showed positive performance. The Generation segment was the largest contributor to operating income with US$166 million, followed by Oil and Gas at US$68 million. Petrochemicals and Holding/Others also contributed positively. The Oil and Gas segment saw the largest increase in capital expenditures during the period Segment Performance (Six-Month Period Ended June 30, 2022) | Segment | Revenue (US$M) | Operating Income (US$M) | Profit of the Period (US$M) | | :--- | :--- | :--- | :--- | | **Generation** | 331 | 166 | 81 | | **Oil and Gas** | 247 | 68 | 48 | | **Petrochemicals** | 284 | 23 | 19 | | **Holding and others** | 12 | 13 | 20 | | **Total Consolidated** | **874** | **269** | **167** | Increases in PPE and Intangible Assets (H1 2022) | Segment | Amount (US$M) | | :--- | :--- | | Oil and gas | 148 | | Holding and others | 31 | | Generation | 30 | | Petrochemicals | 2 | | **Total** | **211** | [Note 12: Financial Assets and Liabilities](index=47&type=section&id=NOTE%2012%3A%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) Total borrowings increased to $183,792 million as of June 30, 2022, from $147,795 million at year-end 2021. During the period, the company issued its first green bond (Class 8 CB) for $3,107 million to finance the expansion of the PEPE III wind farm. Post-period, the company issued Class 11 CBs and launched an exchange offer for its Series T CBs due in 2023, successfully exchanging approximately 81.4% of the outstanding principal for new Class 9 CBs and cash - On January 18, 2022, the company issued its first green bond (Class 8 CB) for **$3,107 million**, with proceeds allocated to the expansion of the PEPE III wind farm[139](index=139&type=chunk)[140](index=140&type=chunk) - The company successfully launched an exchange offer for its 2023 Series T CBs, with an **81.4%** participation rate. This resulted in the issuance of US$**292.8 million** in new Class 9 CBs due 2026 and a cash payment of US$**122.1 million**[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) Borrowings Breakdown | Category | 06.30.2022 ($M) | 12.31.2021 ($M) | | :--- | :--- | :--- | | **Non-Current** | **175,046** | **139,630** | | Corporate bonds | 166,301 | 133,662 | | **Current** | **8,746** | **8,165** | | **Total** | **183,792** | **147,795** | [Note 13: Equity Components](index=55&type=section&id=NOTE%2013%3A%20EQUITY%20COMPONENTS) As of June 30, 2022, the company's capital stock was $1,384 million. The company continued its share repurchase activities, acquiring 0.4 million ADRs for US$8 million during H1 2022 under its programs. A new US$30 million repurchase program (Program 12) was approved in May 2022. Basic and diluted earnings per share from continuing operations for the six-month period was $13.37, up from $9.45 in the prior year - The Board approved a new share repurchase program (Program 12) for up to US$**30 million** on May 11, 2022[151](index=151&type=chunk) - During H1 2022, the company acquired **0.4 million** ADRs for US$**8 million**. An additional **0.4 million** ADRs were acquired after the period end for US$**8.3 million**[151](index=151&type=chunk) Earnings Per Share Calculation (Six-Month Period) | Metric | 06.30.2022 | 06.30.2021 | | :--- | :--- | :--- | | Earning for continuing operations attributable to equity holders ($M) | 18,469 | 13,499 | | Weighted average amount of outstanding shares (M) | 1,381 | 1,428 | | **Basic and diluted earnings per share from continued operations** | **13.37** | **9.45** | [Note 17: Assets and Liabilities in Currencies Other Than Pesos](index=62&type=section&id=NOTE%2017%3A%20ASSETS%20AND%20LIABILITIES%20IN%20CURRENCIES%20OTHER%20THAN%20PESOS) The company holds significant assets and liabilities denominated in currencies other than the Argentine Peso, primarily the U.S. dollar. As of June 30, 2022, total assets in foreign currencies amounted to $99,874 million, while total liabilities were $213,449 million. This resulted in a net liability position of $113,575 million, exposing the company to foreign exchange risk Foreign Currency Position as of June 30, 2022 | Category | Amount ($M) | | :--- | :--- | | Total Assets in Foreign Currencies | 99,874 | | Total Liabilities in Foreign Currencies | 213,449 | | **Net Position Liability** | **(113,575)** | [Note 18: Termination of Hydroelectric Concessions](index=63&type=section&id=NOTE%2018%3A%20TERMINATION%20OF%20HYDROELECTRIC%20CONCESSIONS) With several hydroelectric concessions approaching expiration (HIDISA and HINISA in 2024, HPPL in 2029), the Secretary of Energy created a special team in March 2022 to evaluate the status of these concessions. This team, which includes representatives from various government and regulatory bodies, is tasked with submitting a status report within two years for the concessions expiring in 2024. This process introduces uncertainty regarding the future of these assets - The Argentine Secretary of Energy has created a team to evaluate the status of hydroelectric concessions under national jurisdiction, including the company's HIDISA, HINISA, and HPPL, as their expiration dates approach[171](index=171&type=chunk) - The concessions for HIDISA and HINISA expire in **2024**, and a status report is due within two years from March 2022[173](index=173&type=chunk) [Note 20: Subsequent Events](index=64&type=section&id=NOTE%2020%3A%20SUBSEQUENT%20EVENTS) After the reporting period, on August 8, 2022, the company reopened its Class 11 Corporate Bonds, issuing an additional $8,963.9 million. These bonds accrue interest at a variable BADLAR rate and mature on January 15, 2024 - On August 8, 2022, the company issued an additional **$8,963.9 million** of its Class 11 CBs, which mature in January 2024[175](index=175&type=chunk)

Financial Data and Key Metrics Changes - Revenues increased by 28% year-on-year to $587 million, driven by rising gas output, commodity prices, and higher regulated prices, although lower income from certain PPAs offset these increases [5][6] - Adjusted EBITDA amounted to $253 million, up 6% year-on-year and 13% quarter-on-quarter, attributed to better operating margins despite increased maintenance costs and inflation [6][14] - CapEx in Q2 was up 49% year-on-year and 30% quarter-on-quarter, mainly due to gas commitment and power expansions [6] Business Line Data and Key Metrics Changes - Power generation EBITDA was $99 million, down 18% year-on-year and quarter-on-quarter, primarily due to PPA maturities and higher local currency expenses, despite improved thermal margins [7][8] - Gas production reached a record 11.2 million cubic meters per day in June, growing 38% year-on-year and 14% quarter-on-quarter, with significant contributions from the El Mangrullo block [11][12] - Petrochemicals delivered an adjusted EBITDA of $19 million, up from $16 million year-on-year, driven by broader margin spreads and increased demand [18][21] Market Data and Key Metrics Changes - The company reported a free cash flow outflow of $62 million, mainly due to working capital impacts from seasonal billing and payment delays from CAMMESA [22][23] - Gross debt remained at $1.5 billion, with a net leverage ratio of 1.3 times, reflecting a stable debt profile despite cash outflows [24][25] Company Strategy and Development Direction - The company aims to maintain gas production levels of 11 million cubic meters per day and is preparing for a new gas treatment plant to increase capacity [30][31] - Expansion projects include the Ensenada Barragán and PEPE III wind farm, with expected completion dates in early 2023 [10][37] - The company is optimistic about the new pipeline's impact on production capacity and is actively discussing PPA adjustments with authorities [70][71] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the energy sector's direction, citing recent government measures to reduce subsidies and improve tariff structures [54][78] - The company anticipates a strong performance in the petrochemical segment for the remainder of the year, despite some segments slowing down [41][42] - Future production growth is contingent on the new gas pipeline's completion and market conditions [39][40] Other Important Information - The company successfully refinanced its 2023 maturity, allowing it to focus on growth and production [77][78] - The company is currently facing delays in payments from CAMMESA, which have increased to approximately 90 days [45][62] Q&A Session Summary Question: Expectations for oil and gas output over the next two to three years - Management indicated that production growth is dependent on new transportation capacity and ongoing discussions with partners regarding drilling plans [29][30] Question: Scheduled maintenance for power plants - Maintenance is typically scheduled for Q3, focusing on combined cycles and turbines [35] Question: Changes in PPAs expected in 2022 and beyond - Management confirmed ongoing work with YPF to finalize a new PPA for the Ensenada Barragán project, with no maturities expected until 2026 [36][38] Question: Impact of new gas pipeline on production growth - Production growth is fully dependent on the new pipeline, with current evacuation capacity reached [39][40] Question: Outlook for petrochemical business amid margin decreases - Management remains optimistic for Q3, though visibility for Q4 is less certain [41][42] Question: Reasons for slight increase in net debt - The increase is attributed to working capital issues and high CapEx expenditures [43][44] Question: Buildup of accounts receivable and collection days from CAMMESA - Collection days have increased to nearly 90 days due to seasonal delays [45][46] Question: Expectations for gas exports during off-peak season - The company expects to export around 2 million cubic meters of gas per day during the off-peak season [58][59] Question: Expectations for additional gas production next winter - Management anticipates the possibility of increasing production to 16-17 million cubic meters per day, depending on market conditions [59][60] Question: Percentage of revenues from state counterparts - Approximately 70% of revenues are affected by state payment delays [62] Question: CapEx planning for E&P business - CapEx for E&P is projected at around $350 million for the year, with expectations for a decrease next year [64][65] Question: Commercialization plans for Loma De La Lata and Piquirenda - Upon PPA expiration, production will migrate to the spot market [67] Question: Expectations for new gas supply options - A new pipeline is expected to increase capacity significantly by 2024 [68][69] Question: Adjustments to legacy capacity remuneration - Management is optimistic about potential adjustments to legacy capacity remuneration due to inflation [71][72] Question: Reduction in payment days from CAMMESA - Management is hopeful for improved collection days due to seasonal factors and increased consumer payments [72]

Financial Statements [Consolidated Condensed Interim Statement of Comprehensive Income](index=6&type=section&id=Consolidated%20Condensed%20Interim%20Statement%20of%20Comprehensive%20Income) For Q1 2022, the company reported a significant increase in profitability, with revenue growing **53.7%** year-over-year to **$44,011 million Argentine Pesos**, and net profit surging to **$10,454 million Argentine Pesos** from $3,694 million, with basic and diluted earnings per share increasing to **$7.46** from $2.17 Q1 2022 vs Q1 2021 Performance (in millions of Argentine Pesos) | Metric | Q1 2022 | Q1 2021 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 44,011 | 28,635 | +53.7% | | **Gross Profit** | 17,624 | 12,282 | +43.5% | | **Operating Income** | 14,345 | 9,766 | +46.9% | | **Profit of the period** | 10,454 | 3,694 | +183.0% | | **Total comprehensive income** | 30,226 | 19,550 | +54.6% | - The prior year's results (Q1 2021) included a profit of **$525 million** from discontinued operations (Edenor), which was not present in Q1 2022[16](index=16&type=chunk) Earnings Per Share (EPS) | EPS Type | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Basic and diluted EPS from continuing operations** | $7.46 | $2.17 | | **Total basic and diluted EPS** | $7.46 | $2.17 | [Consolidated Condensed Interim Statement of Financial Position](index=8&type=section&id=Consolidated%20Condensed%20Interim%20Statement%20of%20Financial%20Position) As of March 31, 2022, total assets increased to **$450,789 million Argentine Pesos** (a **13.6%** rise), total equity grew by **16.3%** to **$214,024 million Argentine Pesos**, and total liabilities increased by **11.4%** to **$236,765 million Argentine Pesos** Key Balance Sheet Items (in millions of Argentine Pesos) | Account | March 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | 450,789 | 396,653 | | Non-Current Assets | 318,212 | 281,011 | | Current Assets | 132,577 | 115,642 | | **Total Liabilities** | 236,765 | 212,613 | | Non-Current Liabilities | 194,139 | 177,506 | | Current Liabilities | 42,626 | 35,107 | | **Total Equity** | 214,024 | 184,040 | - Key drivers for the asset increase include growth in Property, Plant and Equipment (up **$16,550 million**), Investments in joint ventures and associates (up **$12,720 million**), and Financial assets at fair value (up **$5,405 million**)[21](index=21&type=chunk) - The increase in liabilities was primarily driven by a rise in non-current borrowings, which grew by **$13,818 million** during the quarter[23](index=23&type=chunk) [Consolidated Condensed Interim Statement of Changes in Equity](index=10&type=section&id=Consolidated%20Condensed%20Interim%20Statement%20of%20Changes%20in%20Equity) Total equity increased to **$214,024 million Argentine Pesos** as of March 31, 2022, driven by **$10,454 million Argentine Pesos** in net profit and **$19,772 million Argentine Pesos** in other comprehensive income, partially offset by own share acquisitions Equity Movement in Q1 2022 (in millions of Argentine Pesos) | Description | Amount | | :--- | :--- | | **Equity at Dec 31, 2021** | **184,040** | | Profit for the period | 10,454 | | Other comprehensive income | 19,772 | | Acquisition of own shares | (183) | | Stock compensation plans | (59) | | **Equity at March 31, 2022** | **214,024** | [Consolidated Condensed Interim Statement of Cash Flows](index=12&type=section&id=Consolidated%20Condensed%20Interim%20Statement%20of%20Cash%20Flows) For Q1 2022, net cash from operating activities was **$12,642 million Argentine Pesos**, investing activities used **$8,007 million Argentine Pesos**, and financing activities used **$2,129 million Argentine Pesos**, resulting in a net increase in cash of **$2,506 million Argentine Pesos** Cash Flow Summary Q1 2022 vs Q1 2021 (in millions of Argentine Pesos) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 12,642 | 15,507 | | **Net Cash used in Investing Activities** | (8,007) | (6,232) | | **Net Cash used in Financing Activities** | (2,129) | (9,105) | | **Increase in Cash and Cash Equivalents** | 2,506 | 170 | - Investing activities were dominated by payments for property, plant, and equipment amounting to **$7,848 million**[30](index=30&type=chunk) - Financing activities included proceeds from borrowings of **$2,564 million**, offset by interest payments of **$4,327 million** and acquisition of own shares for **$183 million**[30](index=30&type=chunk) Notes to the Financial Statements [Note 1: General Information](index=13&type=section&id=NOTE%201%3A%20GENERAL%20INFORMATION) Pampa Energía is a fully integrated Argentine power company with significant operations across electricity and gas value chains, including generation, oil and gas, petrochemicals, and holding segments - The company has an installed electricity generation capacity of **4,970 MW**, representing approximately **12%** of Argentina's total capacity, with an additional **361 MW** under expansion[33](index=33&type=chunk) - In the oil and gas segment, production for Q1 2022 reached **9 million m3/day** of natural gas and **5.1 barrels/day** of oil equivalent[34](index=34&type=chunk) - The petrochemicals segment holds a dominant domestic market share of **86% to 99%** in styrene, synthetic rubber, and polystyrene[35](index=35&type=chunk) - Through its holding segment, the company has joint control of Transener (**86%** market share in high-voltage transmission) and TGS (major gas transportation network)[36](index=36&type=chunk) [Note 2: Regulatory Framework](index=14&type=section&id=NOTE%202%3A%20REGULATORY%20FRAMEWORK) The company's operations were impacted by Q1 2022 regulatory updates, including a significant increase in spot generation remuneration, tariff adjustments for transmission businesses, and continued restrictions on foreign exchange market access - SE Resolution No. 238/22 mandated a cumulative **43%** increase in spot generation remuneration from June 2022[38](index=38&type=chunk) - ENRE approved substantial tariff increases for Transener (**67%**) and Transba (**69%**) effective February 1, 2022, following motions for reconsideration[44](index=44&type=chunk) - The Central Bank (BCRA) extended restrictions on accessing the Foreign Exchange Market (MLC) for foreign debt payments and imports until December 31, 2022[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 5: Group Structure](index=17&type=section&id=NOTE%205%3A%20GROUP%20STRUCTURE) This note details the company's interests in subsidiaries, associates, and joint ventures, including discontinued operations from the 2021 Edenor sale, and an impairment loss recognized on the investment in Refinor - The results of Edenor's operations for Q1 2021 are disclosed under 'Discontinued operations' following the transfer of control on June 30, 2021[58](index=58&type=chunk) - The company recognized a pre-tax impairment loss of **$1,242 million Argentine Pesos** (**US$11 million**) on its **28.5%** stake in Refinor, following an offer to sell the stake at a price below its book value[67](index=67&type=chunk) - The closing to combined cycle project at CTB is progressing, with an estimated total investment of **US$233 million** and commercial commissioning expected in Q4 2022[71](index=71&type=chunk) - On May 6, 2022, the company transferred its rights and obligations in its Venezuelan mixed companies to Integra Petróleo y Gas S.A., with consideration contingent on future payments received by the assignee[73](index=73&type=chunk) [Note 7: Segment Information](index=25&type=section&id=NOTE%207%3A%20SEGMENT%20INFORMATION) In Q1 2022, the Generation segment was the largest contributor to operating income, followed by Oil and Gas, with all segments reporting positive operating income and improved profitability compared to Q1 2021 Segment Performance Q1 2022 (in millions of US$) | Segment | Revenue | Gross Profit | Operating Income | | :--- | :--- | :--- | :--- | | **Generation** | 166 | 82 | 97 | | **Oil and Gas** | 113 | 65 | 29 | | **Petrochemicals** | 126 | 10 | 5 | | **Holding and others** | 7 | 7 | 2 | | **Total Consolidated** | **412** | **164** | **133** | Segment Operating Income Comparison (in millions of US$) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Generation** | 97 | 91 | | **Oil and Gas** | 29 | 0 | | **Petrochemicals** | 5 | 17 | | **Holding and others** | 2 | 1 | [Note 8 & 9: Revenue and Cost of Sales](index=30&type=section&id=NOTE%208%20%26%209%3A%20REVENUE%20AND%20COST%20OF%20SALES) Total revenue for Q1 2022 increased **53.7%** to **$44,011 million Argentine Pesos**, driven by strong segment performance, while cost of sales rose **61.4%** to **$26,387 million Argentine Pesos** due to higher purchases and depreciation Revenue by Segment (in millions of Argentine Pesos) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | **Generation** | 17,753 | 14,370 | | **Oil and Gas** | 12,045 | 4,478 | | **Petrochemicals** | 13,494 | 9,196 | | **Holding and others** | 719 | 591 | | **Total Revenue** | **44,011** | **28,635** | Key Components of Cost of Sales (in millions of Argentine Pesos) | Component | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Purchases of inventories, energy and gas | 14,455 | 8,407 | | Depreciation of property, plant and equipment | 5,007 | 3,683 | | Canons and royalties | 1,921 | 1,119 | | Salaries and social security charges | 1,917 | 1,100 | | **Total Cost of Sales** | **26,387** | **16,353** | [Note 11: Non-Financial Assets and Liabilities](index=36&type=section&id=NOTE%2011%3A%20NON-FINANCIAL%20ASSETS%20AND%20LIABILITIES) As of March 31, 2022, net property, plant, and equipment stood at **$186,940 million Argentine Pesos**, net deferred tax assets increased to **$15,477 million Argentine Pesos**, and total provisions for contingencies and environmental remediation reached **$16,221 million Argentine Pesos** - The company recorded increases of **$7,878 million** in property, plant, and equipment during Q1 2022, primarily in 'Work in progress' and 'Wells'[102](index=102&type=chunk) - Net deferred tax assets increased from **$8,675 million** to **$15,477 million** during the quarter, mainly due to changes related to PP&E and tax loss carryforwards[106](index=106&type=chunk) - Total provisions (current and non-current) increased from **$15,004 million** to **$16,221 million**, with the largest component being for contingencies (**$11,800 million**)[109](index=109&type=chunk)[110](index=110&type=chunk) [Note 12: Financial Assets and Liabilities](index=42&type=section&id=NOTE%2012%3A%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) As of March 31, 2022, total borrowings stood at **$161,194 million Argentine Pesos**, with the company issuing its first green bond for **$3,107 million Argentine Pesos** in January 2022 to finance the PEPE III wind farm expansion - On January 18, 2022, the company issued **$3,107 million** in Class 8 Corporate Bonds, its first green bond, to finance the expansion of the PEPE III wind farm[126](index=126&type=chunk)[127](index=127&type=chunk) Borrowings Breakdown (in millions of Argentine Pesos) | Type | March 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Non-Current Borrowings** | 153,448 | 139,630 | | **Current Borrowings** | 7,746 | 8,165 | | **Total Borrowings** | **161,194** | **147,795** | - Current trade receivables increased to **$30,125 million**, with significant balances from CAMMESA (**$13,111 million**), oil and gas sales (**$8,061 million**), and petrochemistry sales (**$6,379 million**)[116](index=116&type=chunk) [Note 13: Equity Components](index=50&type=section&id=NOTE%2013%3A%20EQUITY%20COMPONENTS) As of March 31, 2022, share capital was **$1,386 million Argentine Pesos**, with the company suspending its share repurchase program after acquiring **0.1 million ADRs** for **US$1.8 million**, and basic and diluted earnings per share were **$7.46** - The Board suspended the share repurchase Program 11 on March 10, 2022, after acquiring **0.1 million ADRs** for **US$1.8 million** during the quarter[135](index=135&type=chunk)[136](index=136&type=chunk) Earnings Per Share Calculation Q1 2022 | Item | Amount | | :--- | :--- | | Earning attributable to equity holders (million ARS) | $10,304 | | Weighted average outstanding shares (million shares) | 1,382 | | **Basic and diluted earnings per share (ARS)** | **$7.46** | [Note 20: Subsequent Events](index=59&type=section&id=NOTE%2020%3A%20SUBSEQUENT%20EVENTS) Subsequent to Q1 2022, the General Shareholders' Meeting approved the allocation of the 2021 fiscal year profit, primarily to the voluntary reserve, and resolved to reduce capital stock by cancelling **2.8 million shares** - On April 27, 2022, the Shareholders' Meeting approved the allocation of the **$27,097 million** profit from fiscal year 2021, with **$31,907 million** being allocated to the voluntary reserve after other adjustments[160](index=160&type=chunk) - The shareholders also approved a capital stock reduction through the cancellation of **2.8 million shares**, which is pending registration[160](index=160&type=chunk)

Investor Presentation April 2022 We are environmentally friendly Be GREEN, keep it on SCREEN Pampaenergía Disclaimer The material that follows is a presentation of general backqround information about Pampa Energia S.A.("Pampa" or the "Company") as of the date of the resentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation is strictly confidential and may not be disclosed to any other person. ...

Pampa Energia SA (NYSE:PAM) Q1 2022 Earnings Conference Call May 13, 2022 10:00 AM ET Company Participants Margarita Chun - Investor Relations Lida Wang - Investor Relations and Sustainability Officer Gustavo Mariani - Chief Executive Officer Nicolas Mindlin - Chief Financial Officer Margarita Chun Good morning, everyone, and thank you for waiting. I'm Margarita Chun from IR, and we would like to welcome everyone to Pampa Energia's First Quarter 2022 Results Video Conference. We inform you that this event i ...

[Key Information](index=10&type=section&id=Item%203.%20Key%20Information) This section provides an overview of key financial and operational data, including exchange rates and a comprehensive analysis of various risk factors affecting the company's operations and financial performance [Exchange Rates](index=10&type=section&id=EXCHANGE%20RATES) The Argentine Peso has experienced significant depreciation against the U.S. Dollar over the past several years, impacting the U.S. Dollar equivalent of the company's share price and any dividends paid Peso to U.S. Dollar Exchange Rates (Year-End) | Year Ended Dec 31 | Period End (Ps. per US$) | | :--- | :--- | | 2017 | 18.649 | | 2018 | 37.700 | | 2019 | 59.890 | | 2020 | 84.150 | | 2021 | 102.720 | - Exchange rate fluctuations directly impact the U.S. Dollar amounts received by ADS holders from cash dividends, which are paid in Pesos, and can affect the market price of the ADSs[31](index=31&type=chunk) [Risk Factors](index=11&type=section&id=RISK%20FACTORS) The company faces a wide range of risks categorized into those related to Argentina's volatile macroeconomic and political environment, specific operational risks within the company and its business segments, and risks associated with its shares and ADSs [Risks Related to Argentina](index=13&type=section&id=Risks%20Related%20to%20Argentina) The company's performance is highly dependent on Argentina's vulnerable economy, characterized by high inflation, currency devaluation, and political instability, with government interventions posing significant threats - High inflation remains a major risk, with the National CPI variation reaching **50.9% in 2021**, affecting the company's costs, competitiveness, and the overall economic environment[65](index=65&type=chunk) - The Argentine Peso has been subject to significant devaluation, depreciating **22.1% against the U.S. Dollar in 2021**, affecting results as revenues are largely in Pesos while a significant portion of debt is in U.S. Dollars[48](index=48&type=chunk)[69](index=69&type=chunk) - Government intervention in the economy is a key risk, including measures like expropriation, price controls, and exchange controls which can adversely affect business operations and financial results[87](index=87&type=chunk)[89](index=89&type=chunk) - The Argentine government has historically intervened in the electricity sector, implementing measures such as tariff freezes and enabling intervention in regulatory authorities through the Social Solidarity and Productive Reactivation Law[112](index=112&type=chunk)[114](index=114&type=chunk) [Risks Relating to our Company](index=23&type=section&id=Risks%20Relating%20to%20our%20Company) Company-specific risks include dependence on public concessions, reliance on key personnel, potential labor disputes, financial risks from currency exposure and debt covenants, and operational risks like cybersecurity threats and payment delays from CAMMESA - A significant portion of the business operates under public concessions from the Argentine Government, and their revocation or termination would materially harm the business[117](index=117&type=chunk) - The company faces cybersecurity risks, including cyber-attacks that could disrupt operations, leading to various measures taken in 2021 to improve security, such as training, assessments, and developing disaster recovery plans[126](index=126&type=chunk)[128](index=128&type=chunk) - CAMMESA, the wholesale electric market administrator, could alter and delay payments to power generators, and any shortfall in its government-covered funds could impact the company's cash flow[134](index=134&type=chunk) - The company is exposed to uncertainty related to the phasing out of LIBOR, as some of its financing is indexed to this rate, potentially leading to disputes or increased expenses during the transition to alternative rates like SOFR[151](index=151&type=chunk) [Risks Relating to Our Generation Business](index=28&type=section&id=Risks%20Relating%20to%20Our%20Generation%20Business) The generation business is exposed to risks such as electricity transmission constraints, potential payment delays from CAMMESA, regulatory changes affecting remuneration, and the critical availability and price of fuel, particularly natural gas - Electricity transmission constraints in Argentina can prevent the company from dispatching all generated power, which could adversely affect financial results[152](index=152&type=chunk) - The ability to collect payments from CAMMESA in a timely manner is a significant risk, with payments delayed from the standard **42 days to approximately 80 days** since November 2019[159](index=159&type=chunk)[160](index=160&type=chunk) - Thermal generation depends on the availability of natural gas, and supply disruptions or price fluctuations could materially affect operational results, especially since fuel supply has been recentralized under CAMMESA[166](index=166&type=chunk)[167](index=167&type=chunk)[169](index=169&type=chunk) - Hydroelectric generation can be negatively affected by poor hydrological conditions, which have been unfavorable since 2006, with 2014 water intake being over **60% lower than the 2006 peak**[178](index=178&type=chunk) [Risks Relating to our Oil and Gas Business](index=36&type=section&id=Risks%20Relating%20to%20our%20Oil%20and%20Gas%20Business) The oil and gas business is subject to risks from government measures, including changes to the regulatory framework, export duties, and price controls that can limit profitability, alongside operational risks like concession non-renewal and commodity price volatility - The Argentine government has imposed significant changes on the oil and gas sector, including the nationalization of YPF and modifications to concession terms, royalties, and levies through Law No. 27,007[207](index=207&type=chunk)[210](index=210&type=chunk) - Volatility in crude oil and natural gas prices presents a major risk, with recent price rises due to the Russia-Ukraine conflict contrasting with a collapse in early 2020 due to disputes and the COVID-19 pandemic[213](index=213&type=chunk) - Export duties and import regulations can negatively affect profitability, with the government imposing duties on hydrocarbon exports at a rate tied to the Brent crude price[216](index=216&type=chunk) - Estimating oil and gas reserves is a subjective process with inherent uncertainties, and actual recovered quantities may differ materially from estimates, which could adversely impact operational results[232](index=232&type=chunk)[235](index=235&type=chunk) [Risks Relating to our Shares and ADSs](index=41&type=section&id=Risks%20Relating%20to%20our%20Shares%20and%20ADSs) Investors in Pampa's shares and ADSs face risks related to Argentina's capital controls, which may restrict the ability to receive dividends and sale proceeds in foreign currency, and potential limitations on shareholder rights under Argentine law - Argentine government restrictions on converting Pesos to foreign currencies and remitting funds abroad can impair the ability of ADS holders to receive dividends and proceeds from sales[245](index=245&type=chunk) - Shareholder rights under Argentine law may be fewer or less well-defined than in other jurisdictions like the U.S., potentially disadvantaging holders of common shares and ADSs[248](index=248&type=chunk) - ADS holders may face practical limitations in exercising their voting rights due to the procedural steps involving the depositary, which can take longer than for direct shareholders[249](index=249&type=chunk) [Information on the Company](index=44&type=section&id=Item%204.%20Information%20on%20the%20Company) This section details the company's history, business segments, and strategic focus within the Argentine energy sector [History and Development of the Company](index=44&type=section&id=HISTORY%20AND%20DEVELOPMENT%20OF%20THE%20COMPANY) Pampa Energía S.A., incorporated in 1945, has evolved into Argentina's largest independent integrated energy company, significantly expanding through acquisitions and corporate reorganization to streamline its structure and focus on core energy value chains - The company was acquired by its current principal shareholders in **2005** to serve as a corporate vehicle for investments in Argentina[259](index=259&type=chunk) - A major milestone was the **2016 acquisition of 67.2% of Petrobras Argentina**, which significantly expanded Pampa's presence in the oil and gas sector[260](index=260&type=chunk) - Since **2017**, the company has been implementing a corporate reorganization strategy, merging various subsidiaries like Petrobras Argentina, CPB, and Pampa Cogeneración into Pampa Energía S.A. to simplify its structure and improve efficiency[261](index=261&type=chunk)[272](index=272&type=chunk) [Our Business](index=45&type=section&id=OUR%20BUSINESS) Pampa Energía is Argentina's largest independent integrated energy company, with significant operations across power generation, oil & gas, petrochemicals, and holding interests in key infrastructure, strategically focusing on expanding its core generation and natural gas production assets Pampa Energía Business Overview (as of Dec 31, 2021) | Segment | Key Metrics | Value | | :--- | :--- | :--- | | **Power Generation** | Total Capacity | 5,331 MW (incl. expansions) | | | Thermal | 3,812 MW | | | Hydro | 938 MW | | | Wind Power | 206 MW | | **Oil & Gas** | Total Production | 51.8 k boe/d | | | Gas Production | 8.0 million m³/d | | | Crude Oil Production | 4.7 k bbl/d | | **Petrochemicals** | Styrene Capacity | 160 k tons/year | | | Polystyrene Capacity | 65 k tons/year | | **Other Businesses** | TGS Gas Pipelines | 9,231 km | | | Transener Power Lines | 21,414 km | Financial Performance by Segment (FY 2021) | Segment | Revenue (US$M) | Operating Income (US$M) | | :--- | :--- | :--- | | Power Generation | 656 | 350 | | Oil and Gas | 453 | 130 | | Petrochemicals | 490 | 45 | | Holding and Other | 22 | 54 | - A key strategic move was the sale of the company's **51% controlling stake in the electricity distributor Edenor**, which closed on June 30, 2021, as part of a strategy to focus investments on core businesses: power generation and natural gas production[308](index=308&type=chunk)[313](index=313&type=chunk) - The COVID-19 pandemic impacted operations, particularly in **2020**, by reducing electricity demand, fuel demand, and oil/gas prices, with recovery noted in **2021** supported by government programs like Plan Gas.Ar and a rebound in economic activity[320](index=320&type=chunk)[321](index=321&type=chunk)[323](index=323&type=chunk) [Our Generation Business](index=56&type=section&id=Our%20Generation%20Business) As of December 31, 2021, Pampa's generation business had an installed capacity of **4,970 MW**, representing approximately **12%** of Argentina's total, with a portfolio dominated by thermal generation but actively expanding its hydroelectric and wind power assets Generation Assets Summary (as of Dec 31, 2021) | Technology | Installed Capacity (MW) | Market Share (%) | Net Generation 2021 (GWh) | | :--- | :--- | :--- | :--- | | Thermal | 3,826 | 8.9% | 15,252 | | Hydroelectric | 938 | 2.2% | 1,342 | | Wind | 206 | 0.4% | 838 | | **Total** | **4,970** | **11.6%** | **17,433** | Committed Expansion Projects | Project | Technology | Capacity (MW) | Estimated Commissioning | | :--- | :--- | :--- | :--- | | CTEB | Thermal (CC) | 280 | Q3 2022 | | PEPE III | Renewable (Wind) | 81 | Q2 2023 | - The company's largest thermal generation plant is CTGEBA, with an installed capacity of **1,253 MW**, representing **2.9%** of Argentina's total installed capacity[266](index=266&type=chunk)[339](index=339&type=chunk) - Pampa is expanding its renewable energy footprint with the PEPE III wind farm expansion, which will increase its capacity from **53.2 MW to 134.2 MW** with an estimated investment of **US$128 million**[395](index=395&type=chunk) [Our Oil and Gas Business](index=65&type=section&id=Our%20Oil%20and%20Gas%20Business) Pampa's oil and gas segment focuses on developing profitable reserves, particularly unconventional gas, holding interests in **13 production blocks and 5 exploration blocks** in Argentina, with proved reserves totaling **157 million boe** as of year-end 2021 Oil & Gas Key Metrics (FY 2021) | Metric | Value | | :--- | :--- | | Proved Reserves | 157 million boe | | - % Natural Gas | 92% | | - % Proved Developed | 61% | | Average Daily Production | 51.8 k boe/d | | - Natural Gas | 283 million scf/d | | - Crude Oil | 4.7 k bbl/d | - The company's proved reserves increased by **11% in 2021**, rising from **141.8 million boe** at year-end 2020 to **157.0 million boe** at year-end 2021, driven by extensions, discoveries, and positive revisions[450](index=450&type=chunk)[451](index=451&type=chunk) - Pampa is a key participant in the Argentine government's Plan Gas.Ar, committing to produce significant volumes of natural gas to support domestic supply, including a base volume of **4.9 million m³/day** and additional winter volumes in 2021[292](index=292&type=chunk)[437](index=437&type=chunk) - The company's reserves estimation process is audited by the independent firm Gaffney, Cline & Associates, which audited **96%** of Pampa's estimated proved reserves as of December 31, 2021[440](index=440&type=chunk)[463](index=463&type=chunk) [Our Petrochemicals Business](index=79&type=section&id=Our%20Petrochemicals%20Business) Pampa's petrochemicals division is a key player in the Argentine market, operating as the country's sole producer of styrene, polystyrene, and styrene-butadiene rubber (SBR), with dominant domestic market shares and increased sales volumes in 2021 - The company is the only producer of styrene, polystyrene, and elastomers in Argentina, and the only integrated producer of plastics derived from oil production[514](index=514&type=chunk) Petrochemical Sales Volumes (in thousand tons) | Product | 2021 | 2020 | | :--- | :--- | :--- | | Styrene (incl. propylene & ethylene) | 57 | 47 | | SBR | 49 | 37 | | Polystyrene | 48 | 47 | | Others | 254 | 205 | - In **2021**, **63%** of petrochemical sales were to the domestic Argentine market, while **37%** were exported[515](index=515&type=chunk) [Our Holding and Other Business](index=80&type=section&id=Our%20Holding%20and%20Other%20Business) This segment comprises Pampa's significant indirect interests in key energy infrastructure companies, including a **29.2%** interest in TGS (Argentina's largest gas transportation company) and a **26.33%** indirect interest in Transener (operating **86%** of the country's high-voltage electricity transmission grid) - Pampa holds a **29.2%** direct and indirect interest in TGS, the largest gas transportation company in Argentina, which owns **9,231 km** of gas pipelines[273](index=273&type=chunk)[520](index=520&type=chunk) - The company has a **26.33%** indirect interest in Transener, which operates approximately **86%** of the high-voltage electricity transmission system in Argentina, covering **21,414 km** of lines (including its subsidiary Transba)[273](index=273&type=chunk)[541](index=541&type=chunk)[544](index=544&type=chunk) - Pampa holds a **28.5%** interest in Refinor, which owns a refinery in Salta with a capacity of **25,800 barrels per day** and a network of **92 gas stations**[273](index=273&type=chunk)[571](index=571&type=chunk)[572](index=572&type=chunk) - Both TGS and Transener have been impacted by tariff freezes and are in renegotiation processes (RTI) with the government, with transitory tariff updates granted to both companies in early **2022**[565](index=565&type=chunk)[567](index=567&type=chunk)[568](index=568&type=chunk) [The Argentine Energy Sector](index=93&type=section&id=THE%20ARGENTINE%20ENERGY%20SECTOR) Argentina's energy sector is highly regulated and has been subject to significant government intervention, with recent efforts to address structural deficits through tariff adjustments and incentive programs, despite ongoing challenges from policies like tariff freezes [Electricity Regulatory Framework](index=93&type=section&id=Electricity%20Regulatory%20Framework) The electricity framework, established by Law No. 24,065, has been heavily modified by emergency regulations since 2002, creating structural deficits in the Wholesale Electricity Market (WEM) by capping prices below generation costs, despite recent attempts to normalize the sector - The regulatory framework separates electricity into generation, transmission, and distribution, each with its own regulations, with the main regulatory authorities being the Secretariat of Energy (SE), ENRE, and CAMMESA[644](index=644&type=chunk)[660](index=660&type=chunk) - The Social Solidarity and Productive Reactivation Law (Dec 2019) froze energy tariffs and enabled the President to intervene in regulatory authorities ENRE and ENARGAS[658](index=658&type=chunk) - The remuneration scheme for generation not covered by contracts was modified by SE Resolution 31/20, which converted prices to Argentine Pesos, with subsequent increases by SE Resolution 440/21 (retroactive to Feb 2021) and SE Resolution 238/22 in 2022[707](index=707&type=chunk)[720](index=720&type=chunk)[721](index=721&type=chunk) - Argentina aims for **20%** of its energy demand to be met by renewable sources by **2025**, driven by programs like RenovAr and the Renewable Energy Term Market (MAT ER)[745](index=745&type=chunk) [Oil & Gas Regulatory Framework](index=112&type=section&id=Oil%20%26%20Gas%20Regulatory%20Framework) The oil and gas sector is governed by the Hydrocarbons Law, significantly amended in 2014 to promote investment, particularly in unconventional resources, with recent policies like Plan Gas.Ar incentivizing domestic natural gas production to reduce LNG imports - Law No. 27,007 amended the Hydrocarbons Law, introducing specific terms for unconventional hydrocarbon exploitation concessions (**35 years**), conventional concessions (**25 years**), and offshore concessions (**30 years**)[771](index=771&type=chunk)[774](index=774&type=chunk) - The Plan Gas.Ar was created in November 2020 to promote Argentine natural gas production via a tender system, offering producers stable prices over a four-year term to reduce LNG imports[799](index=799&type=chunk) - Pampa was a successful bidder in Plan Gas.Ar, being awarded a base volume of **4.9 million m³/day at US$3.6/MBTU** and additional winter volumes, committing to an investment of approximately **US$250 million** over four years[808](index=808&type=chunk)[810](index=810&type=chunk) - Export duties on crude oil and LPG are in effect, with a rate that varies based on the international Brent price, capping at **8%** when Brent is at or above **US$60/bbl**[834](index=834&type=chunk)[841](index=841&type=chunk) [Operating and Financial Review and Prospects](index=120&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section provides a detailed analysis of the company's financial performance, liquidity, capital resources, and capital expenditures over recent fiscal years [Results of Operations](index=129&type=section&id=Results%20of%20Operations) The company's financial performance is analyzed through comparisons of fiscal years 2021 vs. 2020 and 2020 vs. 2019, driven by energy prices, production volumes, regulatory changes, and macroeconomic factors, with the sale of Edenor significantly impacting consolidated results Consolidated Results of Operations (in millions of US$) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Revenue** | **1,508** | **1,073** | **1,340** | | **Gross Profit** | 553 | 410 | 529 | | **Operating Income** | 579 | 243 | 462 | | **Profit (Loss) of the year** | 238 | (468) | 800 | | *Attributable to Owners* | *273* | *(367)* | *692* | - The results from the Distribution of Energy segment (Edenor) are classified as discontinued operations following the sale of the company's controlling stake, which closed on June 30, 2021[904](index=904&type=chunk)[907](index=907&type=chunk) [Comparison of Fiscal Year 2021 and 2020](index=132&type=section&id=Year%20ended%20December%2031%2C%202021%20compared%20to%20the%20fiscal%20year%20ended%20December%2031%2C%202020) In 2021, Pampa's revenue from continuing operations increased by **40% to US$1.51 billion**, and operating income more than doubled to **US$579 million**, driven by growth across all segments and a much lower impairment charge - **Generation:** Revenue increased **17% to US$656 million**, mainly due to the commercial commissioning of CTGEBA's second combined cycle and higher demand in the Energy Plus market[908](index=908&type=chunk)[909](index=909&type=chunk) - **Oil and Gas:** Revenue grew **54% to US$453 million**, driven by a **61%** increase in the average gas sales price (to **US$3.6/MBTU**) under Plan Gas.Ar and a **51%** rise in the average oil price (to **US$58.8/bbl**)[927](index=927&type=chunk)[928](index=928&type=chunk)[929](index=929&type=chunk) - **Petrochemicals:** Revenue increased **84% to US$490 million**, reflecting a substantial improvement in domestic and international reference prices and a **24%** increase in sales volumes[943](index=943&type=chunk)[944](index=944&type=chunk)[945](index=945&type=chunk) - **Discontinued Operations (Edenor):** The energy distribution segment recorded a loss of **US$75 million in 2021**, a significant reduction from the **US$592 million loss in 2020**, which included a large impairment charge related to the sale[971](index=971&type=chunk) [Comparison of Fiscal Year 2020 and 2019](index=141&type=section&id=Year%20ended%20December%2031%2C%202020%20compared%20to%20the%20fiscal%20year%20ended%20December%2031%2C%202019) In 2020, revenue from continuing operations fell **20% to US$1.07 billion**, and operating income decreased **47% to US$243 million**, primarily due to lower energy prices, reduced demand from the COVID-19 pandemic, and a significant impairment charge in the Generation segment - **Generation:** Revenue decreased **32% to US$559 million**, primarily due to lower spot energy prices following SE Resolution N° 31/20 and the centralization of fuel purchases by CAMMESA[973](index=973&type=chunk)[974](index=974&type=chunk) - **Oil and Gas:** Revenue fell **34% to US$294 million**, impacted by lower prices and demand for both oil and gas resulting from the COVID-19 pandemic[991](index=991&type=chunk)[992](index=992&type=chunk) - **Petrochemicals:** Revenue declined **17% to US$267 million** due to lower sales prices linked to a decrease in international reference prices[1007](index=1007&type=chunk)[1008](index=1008&type=chunk) - **Discontinued Operations (Edenor):** The segment recorded a loss of **US$592 million in 2020**, compared to a profit of **US$197 million in 2019**, primarily due to a **US$589 million impairment loss** recognized in anticipation of the sale[1029](index=1029&type=chunk)[1030](index=1030&type=chunk)[1851](index=1851&type=chunk) [Liquidity and Capital Resources](index=149&type=section&id=Liquidity%20and%20Capital%20Resources) The company's financial strategy focuses on maintaining solvency, an appropriate capital structure, and adequate liquidity, with total consolidated borrowings at **US$1.44 billion** and **US$110 million** in cash and cash equivalents as of December 31, 2021 Financial Condition Summary (in millions of US$) | Metric | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | :--- | | Total Borrowings | 1,438 | 1,614 | 1,947 | | Cash and Cash Equivalents | 110 | 141 | 225 | Cash Flow Summary (FY 2021, in millions of US$) | Cash Flow Category | Amount | | :--- | :--- | | Net Cash from Operating Activities | 729 | | Net Cash used in Investing Activities | (474) | | Net Cash used in Financing Activities | (342) | - As of December 31, 2021, the company's debt maturity profile shows **US$79 million** due in less than one year, **US$430 million** due in 1-5 years, and **US$929 million** due in more than 5 years[1062](index=1062&type=chunk) [Capital Expenditures](index=151&type=section&id=Capital%20Expenditures) In 2021, Pampa's capital expenditures totaled **US$264 million**, primarily directed towards the Oil and Gas segment to develop gas reserves and meet Plan Gas.Ar commitments, with a planned **US$379 million** program for 2022 continuing this focus Capital Expenditures by Segment (in millions of US$) | Segment | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Generation | 39 | 61 | 240 | | Oil and Gas | 213 | 41 | 191 | | Petrochemical | 6 | 3 | 4 | | Holding and others | 6 | 2 | 3 | | **Total (Continuing Ops)** | **264** | **107** | **438** | | *Distribution of energy (Discontinued)* | - | 135 | 173 | - The **2021** capex was heavily focused on the Oil and Gas segment (**US$213 million**) to develop gas reserves for commitments under Plan Gas.Ar[1047](index=1047&type=chunk) - For **2022**, the Board of Directors has approved a capital expenditure program of **US$379 million**, which will be mainly focused on the gas segment and the PEPE III wind farm expansion project[1053](index=1053&type=chunk) [Directors, Senior Management and Employees](index=154&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section outlines the company's corporate governance structure, including its Board of Directors, senior management, compensation policies, and employee information [Directors, Senior Management and Committees](index=154&type=section&id=Directors%2C%20Senior%20Management%20and%20Committees) The company is managed by a ten-member Board of Directors, with directors elected for three-year staggered terms, and has established an Audit Committee, a Nomination Committee, and a Supervisory Committee to oversee financial reporting, director nominations, and management compliance - The Board of Directors is composed of ten directors and an equal or smaller number of alternate directors, with **five of the ten directors being independent**[1069](index=1069&type=chunk) Key Senior Management | Name | Position | | :--- | :--- | | Marcos Marcelo Mindlin | Chairman | | Gustavo Mariani | Executive Vice president - CEO | | Ricardo Alejandro Torres | Executive Vice president | | Damián Miguel Mindlin | Executive Vice president | | Horacio Jorge Tomás Turri | Executive Director of Exploration and Production | | Nicolás Mindlin | Executive director of finances (CFO) and M&A | - The company has an Audit Committee composed of three independent members, responsible for supervising internal controls, financial reporting, and the external auditors[1112](index=1112&type=chunk)[1113](index=1113&type=chunk)[1118](index=1118&type=chunk) [Compensation of Directors and Officers](index=165&type=section&id=Compensation%20of%20Directors%20and%20Officers) Director compensation is subject to Argentine law, limiting total remuneration to a percentage of net income, and the company has implemented a stock-based compensation plan and variable compensation agreements for main executives tied to market value appreciation - For the fiscal year ended December 31, 2021, the total compensation for Pampa's directors was set at **Ps. 945,451,476**[1135](index=1135&type=chunk) - The company has a stock-based compensation plan to align employee and shareholder interests, using repurchased treasury shares to fulfill the plan[1136](index=1136&type=chunk)[1137](index=1137&type=chunk) - Main executives have compensation agreements that provide for an annual variable compensation equivalent to **3.3%** of the company's annual market value appreciation, capped at **1.65%** of adjusted EBITDA[1140](index=1140&type=chunk) [Employees](index=167&type=section&id=Employees) As of December 31, 2021, Pampa Energía had **1,937** full-time employees, with a significant portion of the workforce affiliated with a union and covered by collective bargaining agreements, maintaining a positive relationship with employee unions - As of December 31, 2021, the company had **1,937** full-time employees[1148](index=1148&type=chunk) - Approximately **53.58%** of the workforce is unionized and/or party to a collective bargaining agreement[1149](index=1149&type=chunk) [Financial Information](index=169&type=section&id=Item%208.%20Financial%20Information) This section covers the company's legal proceedings, contingent liabilities, and dividend policy [Legal Proceedings](index=169&type=section&id=LEGAL%20PROCEEDINGS) Pampa Energía is involved in various legal proceedings in the normal course of business, with established accruals of **US$106 million** for potential losses as of December 31, 2021, covering customs disputes, labor claims, tax claims, and environmental claims - The company has established accruals totaling **US$106 million** as of December 31, 2021, to cover potential losses from various lawsuits and claims[1168](index=1168&type=chunk) - Significant legal proceedings include customs disputes related to gasoline exports by Petrobras from **2008-2014**, labor claims concerning a 'Compensatory Plan' for former employees, and a tax claim from AFIP for **Ps. 54 million** regarding the tax on liquid fuels[1169](index=1169&type=chunk)[1171](index=1171&type=chunk)[1173](index=1173&type=chunk) - The company faces multiple environmental claims from various parties, including allegations of damage in the Austral and Neuquina Basins and along the Matanza-Riachuelo River Basin[1174](index=1174&type=chunk) [Dividends](index=173&type=section&id=DIVIDENDS) Pampa Energía did not declare or pay any dividends for the fiscal years ended December 31, 2019, 2020, or 2021, with any future distribution subject to the approval of the Shareholders' Meeting - No dividends were declared for the fiscal years ended December 31, 2019, 2020, or 2021[1186](index=1186&type=chunk) [The Offer and Listing](index=174&type=section&id=Item%209.%20The%20Offer%20and%20Listing) This section details the trading history of the company's shares and ADSs, along with an overview of the Argentine securities market and its regulatory framework [Trading History](index=174&type=section&id=TRADING%20HISTORY) Pampa Energía's common shares are traded on the Buenos Aires Stock Exchange (BASE) under 'PAMP', and its American Depositary Shares (ADSs) are listed on the New York Stock Exchange (NYSE) under 'PAM', with the company conducting several share repurchase programs in recent years Share and ADS Price Range (2021) | Exchange | High | Low | | :--- | :--- | :--- | | BASE (Pesos per Share) | 171.50 | 73.20 | | NYSE (U.S. Dollars per ADS) | 21.28 | 12.17 | - Each American Depositary Share (ADS) represents **25 common shares** of the company[1189](index=1189&type=chunk) - During **2021**, the Board of Directors approved share repurchase programs IX and X for a maximum of **US$30 million each**, with Program XI also approved in December 2021 for another **US$30 million**[1197](index=1197&type=chunk)[1198](index=1198&type=chunk) [The Argentine Securities Market](index=176&type=section&id=THE%20ARGENTINE%20SECURITIES%20MARKET) The Argentine securities market is regulated by the Comisión Nacional de Valores (CNV), with Bolsas y Mercados Argentinos (BYMA) as the largest authorized market, and is subject to comprehensive regulations including the Capital Markets Law and anti-money laundering provisions - The Argentine securities market is regulated by the CNV, with BYMA being the largest authorized market[1206](index=1206&type=chunk)[1208](index=1208&type=chunk) - Caja de Valores serves as the central securities depository, clearing house, and transfer agent for securities transactions in Argentina[1209](index=1209&type=chunk) - The market is subject to strict anti-money laundering (AML) regulations, with the Financial Information Unit (UIF) overseeing compliance and requiring obligated entities to report suspicious transactions[1220](index=1220&type=chunk)[1222](index=1222&type=chunk) - The Corporate Criminal Liability Law, effective March 2018, holds corporate entities criminally liable for offenses like corruption and bribery committed by their representatives[1243](index=1243&type=chunk) [Additional Information](index=181&type=section&id=Item%2010.%20Additional%20Information) This section provides further details on the company's corporate bylaws, Argentine exchange controls, and the tax implications for shareholders [Memorandum and Articles of Association](index=181&type=section&id=MEMORANDUM%20AND%20ARTICLES%20OF%20ASSOCIATION) Pampa Energía's bylaws outline its corporate purpose within the energy sector, govern shareholder rights including preemptive and withdrawal rights, detail procedures for shareholder meetings and director elections, and include mandatory public tender offer provisions triggered upon the acquisition of significant or controlling interests - The company's dividend policy allocates net income first to a legal reserve (**5%** of earnings until it reaches **20%** of capital), then to director/committee fees, then to voluntary reserves, with the remainder available for shareholder dividends[1265](index=1265&type=chunk) - Acquiring **35%** or more of the company's voting stock triggers a mandatory public tender offer for **100%** of all outstanding capital stock and securities[1283](index=1283&type=chunk) - Acquiring over **50%** of the voting stock (or the ability to remove a majority of directors) also triggers a mandatory public tender offer with a price determined by the highest of several valuation methods[1285](index=1285&type=chunk) [Exchange Controls](index=188&type=section&id=EXCHANGE%20CONTROLS) Argentina has implemented significant exchange controls managed by the Central Bank (BCRA), imposing restrictions on accessing the official Foreign Exchange Market (MLC) for both inflows and outflows, including mandatory settlement of export proceeds, requirements for servicing foreign debt, and limitations on foreign currency purchases - There is an obligation to enter and settle foreign currency from exports of goods and services into the MLC within specified terms[1293](index=1293&type=chunk) - Access to the MLC for repaying principal and interest on foreign financial debt is restricted and requires meeting several conditions, including demonstrating the initial entry of funds and adhering to specific timing[1294](index=1294&type=chunk) - Debtors with principal maturities on foreign financial debt must submit a refinancing plan to the BCRA, generally allowing access to the MLC for only up to **40%** of the maturing principal, with the remainder needing to be refinanced[1298](index=1298&type=chunk) - To access the MLC, companies must submit a sworn statement confirming that their liquid foreign assets do not exceed **US$100,000** and that they have not engaged in certain securities transactions (e.g., 'contado con liquidación') in the preceding **90 days** and will not for the subsequent **90 days**[1297](index=1297&type=chunk) [Taxation](index=193&type=section&id=TAXATION) This section outlines the principal Argentine and U.S. federal income tax consequences for holders of Pampa's shares or ADSs, covering capital gains, dividend withholding tax, personal assets tax, and the company's Passive Foreign Investment Company (PFIC) status - **Argentine Capital Gains:** Income from the sale of shares by foreign beneficiaries is exempt from income tax if the shares are publicly traded and the beneficiary is not in a 'non-cooperating jurisdiction'[1310](index=1310&type=chunk) - **Argentine Dividend Tax:** Dividends distributed from earnings accrued in fiscal years starting on or after January 1, 2018, are subject to a **7%** withholding tax for foreign shareholders[1320](index=1320&type=chunk)[1321](index=1321&type=chunk) - **Argentine Personal Assets Tax:** Argentine entities must pay a **0.5%** personal assets tax on behalf of foreign shareholders, based on the equity value of their holdings[1330](index=1330&type=chunk) - **U.S. PFIC Status:** Based on its financials and operations, the company believes it was not a Passive Foreign Investment Company (PFIC) for the **2021** taxable year and does not expect to become one for **2022**[1358](index=1358&type=chunk)

Buenos Aires, April 28, 2022 COMISIÓN NACIONAL DE VALORES BOLSAS Y MERCADOS ARGENTINOS Ref.: General Ordinary and Extraordinary Shareholder´s Meeting dated as of April 27, 2022. Dear Sirs, I am writing to Bolsas y Mercados Argentinos ("ByMA") and the National Securities Commission ("Comisión Navcional de Valores" or "CNV"), in my capacity as Responsible for Market Relations of Pampa Energía S.A. (de "Company") in accordance with article 4, Chapter II, Title II of the CNV Regulations and article 79 of the By ...