Pampa Energia(PAM)2024-11-10 07:36Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 reached 539 million, down 20% year-on-year, marking the lowest ratio in the last eight years at 0.8x to the last 12 months EBITDA [19] - Free cash flow for Q3 was 112 million, a 23% increase year-on-year, attributed to higher legacy prices and operational outperformance [9] - E&P business recorded an EBITDA of 4.4 per MBTU, a 6% decrease due to lower exports to Chile [14] - Total production averaged nearly 88,000 BOE per day, an 8% increase compared to last year [12] Company Strategy and Development Direction - The company is focusing on the Rincon de Aranda project, targeting a production plateau of 45,000 barrels per day by 2027 [15] - Pampa Energia is interested in LNG projects to monetize competitive dry gas reserves, prioritizing Vaca Muerta Sur before pursuing LNG [28][29] - The company plans to invest over 1.5 billion in CapEx between 2025 and 2027 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gas evacuation capacity improvements and ongoing discussions for the Vaca Muerta Sur project [25][27] - The company expects to maintain a solid cash position and does not foresee immediate needs for market financing [51] - Management highlighted the importance of regulatory changes in the energy market and expressed readiness to adapt to a free market environment [53][54] Other Important Information - The company issued a $410 million international bond maturing in 2031 to improve its debt profile [17] - The civil works for PEPE 6 expansion are completed, with full commercial operation expected soon [10] Q&A Session All Questions and Answers Question: Can you talk about the initial performance of Rincón de Aranda, and how should we think about the path of drilling in the coming quarters through the end of 2025? - The company plans to drill around 28 wells from November 2024 to December 2025, expecting production to reach 12,000 barrels by mid-2025 and 18,000 barrels by September 2025 [21][22] Question: Regarding the evacuation capacity, can you remind us Pampa's and Argentina's capacity today and how that should evolve into 2025? - The evacuation capacity of the Nestor Kirchner plant will increase to 21 million cubic meters per day by next winter, with ongoing discussions about additional infrastructure [25] Question: How have discussions about LNG projects evolved? Is Pampa still interested in being directly involved? - The company is very interested in LNG projects to monetize its gas reserves, prioritizing Vaca Muerta Sur before pursuing LNG [28][29] Question: What is the current status of Pampa and its subsidiaries receivables with CAMMESA? - Receivables from CAMMESA have been paid on time, with payments occurring within three to four days of billing [44] Question: Do you see any chance of renewing Mendoza's hydros concessions? - The government has not yet decided on the concessions, but the company is interested in hydro concessions if they are auctioned again [45][46] Question: What are the negotiations or extension plans for the concession of OCP Ecuador? - The government has decided that the asset should be returned to the state at the end of the concession on November 30, with plans for a new bidding process [47] Question: How do you see the upsides from gas from the local market and exports to Brazil in terms of production and pricing? - The company is developing contacts with Brazilian traders, but the competitiveness of Argentinian gas will depend on final transportation tariffs [48][49] Question: Could you give us guidance related to gas production for 2025 and onwards? - The company forecasts average production to increase slightly in 2025, reaching peaks of around 14.5 million cubic meters per day [50]