Pampa Energia(US:PAM)2025-08-07 15:00Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 amounted to $249 million, representing a 17% decline year-on-year due to soft gas sales, falling petrochemical prices, and higher operating expenses [6] - CapEx surged 140% year-on-year, reaching $354 million, primarily invested in the development of Rincon de Aranda [6] - Gross debt was nearly $1.6 billion, down 23% since December 2024, reflecting successful liability management efforts [18] Business Line Data and Key Metrics Changes - Oil and gas adjusted EBITDA was $87 million, down 28% year-on-year, largely due to reduced domestic gas sales and higher lifting costs [7] - Power generation posted an adjusted EBITDA of $112 million in Q2, a 5% increase year-on-year, mainly due to BP6 performance and higher spot prices [16] Market Data and Key Metrics Changes - Crude oil prices averaged nearly $62 per barrel in Q2, 14% lower than last year, primarily due to Brent underperformance [10] - Total gas sales fell 11% year-on-year to nearly 13 million cubic meters per day but rose 10% from Q1, attributed to seasonal effects [11] Company Strategy and Development Direction - The company aims to reach a production target of 20,000 barrels per day at Rincon de Aranda by Q4 2025 and 45,000 barrels per day by 2027 [15] - The company is focused on increasing gas exports to Chile and enhancing production capabilities through new infrastructure investments [13][15] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2025 and 2026 will be years of negative free cash flow due to significant investments in Rincon de Aranda, with expectations of cash generation improving thereafter [73] - The company remains optimistic about future production growth and the potential for improved pricing dynamics in the oil market [108] Other Important Information - The company has extended the exploratory license for Paravanera until 2027, indicating ongoing commitment to exploration activities [12] - The central processing facility (CPF) is expected to be operational by 2026, which will significantly enhance production capabilities [24] Q&A Session Summary Question: Can you provide more details on the CPF in Rincon de Aranda? - The CPF will facilitate oil and water separation, disposal of flowback water, and natural gas separation, with an output of 7,000 cubic meters per day expected to be completed by 2026 [24] Question: Have you started self-producing power with your own fuel? - Yes, self-procurement of gas has begun on a marginal basis, with current prices around $8 per million BTU [29][33] Question: What are the expected lifting costs for the second half of the year? - Lifting costs are expected to decrease from around $16 per barrel in 2025 to approximately $7 per barrel by 2026 as production ramps up [38] Question: What is the expected EBITDA contribution from the CESA project? - The EBITDA contribution will depend on LNG prices, which are currently variable and difficult to predict [130] Question: What is the current status of hydroelectric concessions? - The first tenders for hydro concessions are expected to be auctioned soon, but there is no clarity on the timing [100] Question: Are there plans for shareholder distributions in 2027? - It is too early to determine, but the company anticipates significant developments by then [132]