Free translation from the original prepared in Spanish for publication in Argentina UNAUDITED CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 2023 AND FOR THE THREE-MONTH PERIOD THEN ENDED PRESENTED IN COMPARATIVE FORMAT Free translation from the original prepared in Spanish for publication in Argentina REPORT ON REVIEW OF THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS To the President and Directors of Pampa Energía S.A. Legal address: Maipú, 1 Autonomous City of Buenos Aires Ta ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 amounted to $206 million, an 8% decrease year-on-year primarily due to Barragán's old PPA, PGS' lag tariffs, and higher payroll costs, but increased 12% quarter-on-quarter due to PPA additions and higher liquids margins [1][10] - Gross debt stood at $1.73 billion, similar to the last quarter, with net debt and leverage ratio decreasing to 1.2x due to solid cash flow generation [5][14] - Total cash flow generated in the quarter was $68 million, with cash at the end of the period reaching $768 million [14] Business Line Data and Key Metrics Changes - Power generation EBITDA was $108 million in Q1, down 11% year-on-year but up 26% quarter-on-quarter, influenced by the expiration of Barragán's PPA and higher labor expenses [25] - E&P business posted adjusted EBITDA of $62 million in Q1, a 10% increase year-on-year but down 14% quarter-on-quarter due to higher costs and legal expenses [10] - Petrochemical business recorded $7 million EBITDA in Q1, primarily from styrene and polystyrene sales, but shrank significantly quarter-over-quarter due to reduced supply of raw gas and export margins [30] Market Data and Key Metrics Changes - Q1 dispatch rose 11% year-on-year, with the National Power Grid growing by 8% due to record high power demand [8] - Gas production averaged almost 58,000 BOE per day, with crude oil representing 9% of that, contributing 24% to segment revenues [11] - Average gas price for the quarter was $4/MBTU, an 11% year-on-year increase, mainly due to export prices [12] Company Strategy and Development Direction - The company is focusing on aggressive investment in gas production and renewable capacity, with plans to add 45 megawatts to the PEPE VI project [4][41] - The Néstor Kirchner pipeline is expected to be commissioned by the end of June, which will significantly impact EBITDA generation for Q2 and Q3 [54][87] - The company is preparing for potential currency devaluation by issuing debt in pesos and maintaining a significant portion of income linked to U.S. dollars [65][83] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation is impacting drilling and completion costs, with a 10% to 15% increase observed [40] - The company anticipates gas demand to increase in the coming weeks, projecting production to reach around 12 million cubic meters per day [42] - Management expressed confidence in the performance of shale wells, with successful productivity noted in both Mangrullo and Sierra Chata [53] Other Important Information - The company raised a second green bond for 5 billion pesos (approximately $22 million) and issued $56 million in dollar bonds in the local market [15][27] - The lifting costs per BOE increased by 23% year-on-year but remained stable quarter-over-quarter at $7 per BOE [28] Q&A Session Summary Question: Impact of inflation on drilling and completion costs - Management indicated a 10% to 15% increase in costs related to dollar link [40] Question: Gas demand outlook for Q2 - Management expects demand to rise, projecting production to reach around 12 million cubic meters per day [42] Question: Company's strategy regarding potential tender for thermal power plants - The company will evaluate participation based on competitive pricing, focusing on gas production and renewable capacity [41] Question: Progress on the Néstor Kirchner pipeline - The pipeline is on schedule for commissioning by the end of June, expected to significantly impact EBITDA [54][87] Question: Sensitivity analysis of inflation impact on lifting costs - Management noted a trade-off between CapEx and OpEx, with shale wells being more expensive to develop but cheaper in terms of lifting costs [60] Question: Future of hydro concessions - Management stated that there are no immediate issues with hydro concessions, with the next expiration not until 2026 [76] Question: Average initial production rates for shale gas wells - Initial production rates vary by field, with Mangrullo around 500,000 cubic meters and Sierra Chata up to 800,000 cubic meters per day [80]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 Commission File Number: 001-34429 PAMPA ENERGÍA S.A. (Exact name of registrant as specified in its charter) Pampa Energy Inc. (Translation of registrant's name into English) Argentina (Jurisdiction of incorporation or organization) Maipú 1 C1084ABA, City of Buenos Aires Argentina (Address of principal ...

Financial Performance - Pampa Energía S.A. reported revenue of $242,182 million for the year ended December 31, 2022, a 67.5% increase from $144,641 million in 2021[40]. - The gross profit for 2022 was $91,291 million, up 71.2% from $53,299 million in 2021[40]. - Operating income increased to $88,451 million in 2022, compared to $56,426 million in 2021, reflecting a growth of 56.7%[40]. - Profit for the year from continuing operations was $64,900 million in 2022, a significant increase from $30,915 million in 2021, representing a growth of 109.5%[40]. - Total comprehensive income for the year reached $222,754 million, compared to $70,362 million in 2021, marking a 216.5% increase[41]. - Basic and diluted earnings per share from continuing operations were $46.97 in 2022, up from $21.94 in 2021, indicating a growth of 113.5%[42]. - The company reported a financial cost of $30,488 million in 2022, which was an increase from $17,512 million in 2021[40]. - The company reported retained earnings of ARS 84,505 million in 2022, compared to ARS 44,454 million in 2021, which is an increase of 90%[46]. - The company generated net cash of 81,197 million from operating activities in 2022, up from 72,029 million in 2021, indicating a 12% growth[54]. Assets and Liabilities - Total assets increased to ARS 840,064 million in 2022, up from ARS 396,653 million in 2021, representing a growth of 111%[44]. - Non-current assets rose significantly to ARS 601,881 million in 2022, compared to ARS 281,011 million in 2021, marking a 114% increase[44]. - Current assets also saw substantial growth, reaching ARS 238,183 million in 2022, up from ARS 115,642 million in 2021, an increase of 106%[44]. - Total liabilities increased to ARS 435,444 million in 2022, compared to ARS 212,613 million in 2021, reflecting a growth of 105%[46]. - Shareholders' equity grew to ARS 404,620 million in 2022, up from ARS 184,040 million in 2021, indicating a rise of 119%[46]. - Borrowings increased significantly to ARS 237,437 million in 2022, up from ARS 139,630 million in 2021, reflecting a growth of 70%[46]. Investments and Acquisitions - The company completed the acquisition of Vientos Solutions S.L.U. for $2,752.5 million (US$20.5 million) and Vientos de Arauco Renovables S.A.U. for $21,657.7 million (US$121.4 million) during the year ended December 31, 2022[19]. - Intangible assets recognized from the acquisition of Vientos Solutions S.L.U. amounted to $4,242.1 million, while those from Vientos de Arauco Renovables S.A.U. totaled $11,115.9 million[19]. - The company invested 51,919 million in property, plant, and equipment acquisitions in 2022, significantly higher than 19,509 million in 2021, representing a 166% increase[54]. Operational Metrics - The company has an installed capacity of 5,088 MW as of December 31, 2022, accounting for approximately 12% of Argentina's total installed capacity[56]. - The company produced 9.8 million m³/day of natural gas and 5.3 thousand boe/day of oil as of December 31, 2022, demonstrating its significant operational scale in the oil and gas segment[57]. - The company operates two high-complexity petrochemical plants in Argentina, holding a domestic market share between 94% and 100%[58]. Regulatory and Economic Environment - The Argentine economy experienced a cumulative GDP growth of 6.4% in Q3 2022, with cumulative inflation reaching 94.8% for fiscal year 2022[67]. - The Argentine government is promoting the construction of the Néstor Kirchner Gas Pipeline, which will increase transportation capacity by 24 million cubic meters of gas per day, with an estimated cost of US$ 1,500 million[64]. Audit and Compliance - The audit report confirmed that the consolidated financial statements present fairly the financial position of the group as of December 31, 2022[3]. - The total fees for auditing and related services billed to Pampa Energía S.A. during the year ended December 31, 2022 accounted for 100% of the total fees for services billed[32]. - Pampa Energía S.A. has applied procedures on the prevention of money laundering and financing of terrorism as per professional standards[32]. - The company’s management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS[22]. Impairment and Asset Valuation - Management identified impairment indicators for the Rincón del Mangrullo cash generating unit, resulting in an impairment loss of $3,682 million as of June 30, 2022[17]. - The recoverable amount of non-financial long-lived assets is determined based on projected and discounted cash flows, with significant judgments involved[17]. - The audit involved professionals with specialized skills to evaluate the discounted cash flow model and the discount rate used in impairment assessments[17]. Energy Contracts and Agreements - The company has power availability agreements in place allowing it to sell energy and power capacity for a maximum of 283 MW under the Energy Plus contracts, primarily denominated in U.S. dollars[78]. - The company has effective agreements with CAMMESA for the sale of energy and power capacity totaling 305 MW through its thermal power plants under SE Resolution No. 21/16[94]. - The company has entered into a wholesale power purchase agreement with CAMMESA for a total of 400 MW through its Genelba thermal power plant under SE Resolution No. 287/17[97]. - The company is constructing new projects with a total capacity of 280 MW for CTB and 63 MW for PEPE IV under the applicable regimes[73]. Renewable Energy Initiatives - The company has started selling renewable energy from third-party generators for an approximate volume of 2 MW under the MATER regime[83]. - The company was awarded a dispatch priority of 41 MW for the expansion of the PEPE III wind farm under the MATER calls for tenders[89]. - The company has commissioned 4 additional wind turbines with an incremental capacity of 18 MW after the fiscal year closing[84]. Gas Production and Export - The company was awarded a base volume of 4.9 million m³/day at an annual average price of US$ 3.60/MBTU under the GasAr Plan, effective from January 1, 2021[165]. - The company secured an additional volume of 1 million m³/day for the winter period at a price of US$ 4.68/MBTU, aimed at meeting high seasonal demand and reducing gas imports[166]. - The production commitment for winter periods in 2023-2024 is 15.7 million m³/day, representing a 44% increase compared to 2022[175]. - The company participated in Round 4.2, tendering for 4.8 million m³/day at a price of US$ 3.485/MBTU from July 1, 2023, to December 31, 2028[173]. - The company has been authorized for firm exports of 1.5 million m³/day to Chile for the October 2021 – April 2022 period and 1.492 million m³/day for the October 2022 – April 2023 period[184][185].

Pampa Energía S.A. (NYSE:PAM) Q4 2022 Earnings Conference Call March 13, 2023 10:00 AM ET Company Participants Margarita Chun - Chief of Investor Relations Lida Wang - Head of Investor Relations & Sustainability Gustavo Mariani - Chief Executive Officer, Executive Vice President & Vice Chairman Nicolas Mindlin - Chief Financial Officer & Executive Director of Finances, M&A Conference Call Participants Margarita Chun And we would like to welcome everyone to company Pampa Energía's Fourth Quarter 2022 Results ...

[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]