Pampa Energia SA (NYSE:PAM)

Q2 2026 Pampa Energia SA Earnings Call Transcript

Aug 5, 2026 / 02:00 PM GMT

Release Date Price: $83.83 (-1.13%)

Transcript

Key Points

Positve

Pampa Energia SA (PAM) achieved an all-time high quarterly oil and gas production of 107.5 thousand barrels of oil equivalent per day, driven by the successful ramp-up at Rincon de Aranda.
The company's adjusted EBITDA grew 28% quarter-on-quarter to $415 million, supported by strong spot power margins, gas seasonality, and higher petrochemical prices.
Pampa Energia SA (PAM) received approval for the RIHI framework for its Rincon de Aranda project, providing a stable 30-year tax, customs, and FX incentive regime, including export duty waivers from the second year of operation.
The company approved the FID for a $2.7 billion urea plant, which will leverage its own natural gas and power to create a high-value-added business, with an estimated annual contribution of approximately $1 billion through import substitution and exports.
Pampa Energia SA (PAM) maintains a strong balance sheet with $1.3 billion in cash and a low net leverage of 1.4x, positioning it well to finance its growth projects, including the urea plant, without seeking partners.
The company's power generation segment posted a 39% year-on-year increase in adjusted EBITDA to $155 million, benefiting from the new regulatory framework and wider spot margins.
Pampa Energia SA (PAM) expects to significantly increase its gas production to a peak of 20-22 million cubic meters per day over the next 3-4 years, supported by intercompany demand from its power, urea, and LNG projects.
The company's oil lifting costs are expected to decline to around $5 per barrel by Q2 2027 as production ramps up to the 45,000 barrels per day plateau, improving profitability.
Pampa Energia SA (PAM) has secured 3.2 million cubic meters per day of transportation capacity on the Perito Moreno pipeline, which will allow it to capture full spot margins for its gas and power generation, adding an estimated $100 million in EBITDA next year.
The petrochemical business recorded its highest quarterly EBITDA since 2023, contributing positively to the consolidated results.

Negative

Pampa Energia SA (PAM) reported negative free cash flow of $128 million in Q2, impacted by higher working capital due to increased winter sales and receivables.
The company's realized oil prices were negatively affected by its hedging strategy, resulting in approximately $64 million less in sales revenue during the quarter.
Total lifting costs increased 30% year-on-year, primarily due to the Rincon de Aranda ramp-up, although cost per BOE remained flat.
Power generation availability fell to 88% due to outages at several plants, including the ongoing outage at Neuiles and the Loma La Lata gas turbine, which impacted performance.
The company faces significant capital expenditure requirements, with net leverage expected to peak at around 2.0x over the next 2-3 years as it funds the urea project and other developments.
Pampa Energia SA (PAM) expects the petrochemical business's strong performance to be circumstantial and not sustainable in the long term.
The company's power generation segment is expected to face headwinds in 2028 as certain PPAs roll off, potentially reducing EBITDA by around $40 million.
The urea project's financing is still under negotiation, with the company unable to disclose interest costs, and it will require substantial equity contributions of around $1.4 billion over the next 41 months.
Production at Rincon de Aranda was temporarily affected by choked wells to avoid frack hits, leading to a lower-than-expected exit rate for the quarter.
The company's gas production is subject to transportation restrictions in pipelines, which limited supply procurement during the quarter.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PAMPm.BA - Pampa Energia SA
Q2 2026 Pampa Energia SA Earnings Call
Aug 05, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, everyone, and thank you for waiting. I'm Raquel Cardas from IR, and we would like to welcome everybody to Panpanargia second quarter of 2026 results video conference.

We would like to inform you that this event is being recorded. All participants will be in listen-only mode during the presentation. After the company's remarks, there will be a Q&A session. Please send your questions in writing through Zoom chat.

If anyone needs assistance, please send us a Zoom message.

Before continuing, please read the disclaimer on the second page of our presentation. Levy mentioned that forward-looking statements are based on POMPA Nerjia's management beliefs and assumptions and information currently

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