PAM Pampa Energia

Margarita Chun Investor Relations
Lida Wang Investor Relations and Sustainability Officer
Gustavo Mariani Chief Executive Officer
Gabriel Cohen Chief Financial Officer
Call transcript
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Margarita Chun

Good morning ladies and gentlemen. Thank you for waiting. I'm Margarita Chun from IR. We would like to welcome everyone to Pampa Energia's Fourth Quarter 2020 Results Video Conference. We inform you that this event is being recorded and all participants will be in listen-only mode during the presentation. the there be a platform submitted the or remarks, questions session, available company's browser only can through through the will Q&A be where at After app. the Zoom please Should any email. us the chat contact participant or through assistance, need

the please is that of read second located presentation. Before the page disclaimer proceeding, in our

relate and may from company. understand mention Energía information and they Pampa not currently on that conditions, based future They expressed statements. forward-looking Let assumptions those and the risks, to occur statements me other and in general on Pampa depend conditions of materially the that results and future. to in the and assumptions such could affect are forward-looking Energía involve Investors uncertainties management on industry beliefs or also may future events available that should because cause operating results could factors differ economic to circumstances

conference Relations may of Lida turn to Wang, the I'll the conference. Investor begin Energía. video Pampa our Now, Officer over Lida, Sustainability and you

Lida Wang

you financial and safe on will Hello call. all and you Thank you, the hope I the reviewing events and are focusing conference our for well. latest and the of everyone, time, joining summarize interest the In I quarter, figures, year and Margarita. power thank E&P.

is years Pampa of Energía, Our Mr. Cohen, a our the fifteen to for Mariani, and remember. CEO, is Gustavo us CFO, XXXX here In here to Q&A. join year was

Genelba the demanded project the complex navigate by and expansion demonstrates its achieving us milestone pandemic. helped location resiliency another to since an in significant beginning base, CCGT, availability Pampa's highly the kept most Genelba's to operating asset due of We operations. smoothly second commissioning essential exceptional efficiency our Our the waters, is and business growing history. amid important

leading doubled units. the on years, capacity, than growing seeking has Pampa generation as market the highly thermal more efficiency Argentine productive energy sustainable largest been basis, power goal has its the maximum In last through IPP. continually renewable a installed and Our power five

sale the leaner largest XX the on natural divestment our Edenor, reporting synergy to most octane Barragán team without within Also, lockdown. strategic to significantly expect megawatts December assets. lesser We developing In opportunities gas contribute I'll power becomes later. XXX on margins, businesses, the keep focusing Also, to years. year. stake Pampa's our years as with core gas light managed levels of is production. Edenor and was weakening billing volumes ago. linked thriving few we and exited levels the continue the a just After The and electricity few CCTG of of until generation expansion producing and covenants, prices a as of equal ourselves is the are the country's is by to to of over relevant of curtailing and relevant our Despite for this first comment the highlighting, at demand announced Pampa more year exporting years as discontinued petrochemical business. from parent Pampa's bonds Group, success. controlled witnessing to under the Restricted classified reservoir Brazil and fields a operated and we lowest made reorganize a industry recovery styrene not and gas company producer we This market and as years deconsolidated After subsidiaries. defined prospective Argentina. in especially Basin, our our in most grant worth difficulties, basin again surge any Neuquina is IFRS in and Therefore, four when back equivalent bases portfolio our the it XXXX, of of distributor, In easing a positioning production output, unconventional months the visibility years contributed country's the the also to largest of last could we like many to time recession, quality the the steadiness a controlling ago. controlling XX, weaker to the and of of in SBR and decision

awaiting We the the complete clearance transaction. regulator's to are

is to on Edenor. $X.X These tariff Pampa's comment to the revenues fuel quarter's charge by of mainly businesses, and moving of reduced. the but we figures affecting legacy Edenor, In and I sales effect prices due results, closing. wanted discontinued is include mainly because XX% gas the oil and before lower dropped volumes operationally figures Also, it over So, prices until grid's to utility briefly. sold, Pampa procurement, were a a CAMMESA part freeze operation, decreased annual to XXXX, gas back recorded for and devaluation in billion,

units' partially reasons explained XX% All power generation of and year-on-year, contribution, power Roughly lower EBITDA for before. linked XXXX, dollar-linked, Barragán million our Genelba, but XX% dollar XX% by of from them windfarms. roughly PEPE offset The sales our capacity $XXX our almost the new amounted coming was to in were EBITDA and of gas.

However, helped number the we driven that the fall with Power increasing not PPAs. EBITDA keeps efficiency hard. generation cost units share, the EBITDA experienced gains of by leading

Edenor, because XXXX restrictions on adjusted the significantly of to compared while pandemic we Moreover, TGS. of takes consolidated exposure – CapEx works. takes As show reducing the and XXXX, EBITDA, driven the right our gas electricity below, particularly oil to essential in especially and by XX%, excluding XX% gas decreased

and the thanks standby of our Plan activity already fully activities expansion assets, our the uncertain GSA expansion Gas completion closing almost the last was Genelba The in at we E&P this stages to By rebound investment partially E&P expect on by entering expensed Barragán to placed environment. to at importantly, in More drop service strongly the of CapEx quality at the CCGT properly the rendering of XXXX utilities. due and and CapEx. Most to offset were was Barragán. regulated XXXX, maintain to the specifically drilling XXXX

of Adjusted and only Moreover, explained in million in utilization group Quarter-on-quarter, amounting Dip] you partially EBITDA high. PPA a January and E&P. this completion X% significantly production by thanks time due decreasing OpEx capacity lesser explained prices, national gas In offset crisis, X% as compared supply and prices of lower the in excluding of Despite $XXX dropping may of tariff by to the Revenues XX, X% mainly only freeze, seasonality $XXX is legacy and oil, a projects. million, XX% and Power demand the and sales dollars partially maintained our the the pandemic reducing volumes figures. by from fourth almost record PPA to power quarter to tariff power impact lockdown recorded businesses, 'XX, see by prices normal. to mainly new to our lower the group, XXXX decreased XXXX. years fuel economic the Genelba's and for XX% the the here, life quarter's the again, global means to year-on-year, growing XXXX the decreased power the the the expansion EBITDA, XX% effect to volume EBITDA petrochemicals QX of by CapEx dollar capacity the CAMMESA, demand highlight we XX%, Moving roughly EBITDA year, to stable offset by decreased to terms year-on-year gas recovery and domestic subside. legacy year-on-year, quarter, increases, valuation last Should the by mainly uneffected, due year, followed mainly the Genelba's [Audio as and by was of consider last expect industries of the and power lockdown up but year-on-year. a back made demand The sales due ago recovered businesses, PPA. core freeze, PPA. Edenor, mainly the dollar, in efficiencies. this our continuing grew to of for On was generation linked, continue mainly exports offset new by three were ended increasing coming oil,

Moving to segment. generation power the

posted peso during in As EBITDA freeze generation sales year-on-year grid's still exceeded capacity. X%, were XX power of also of requested. will our fourth fuel spot XX% well net quarter, by -- Pilar until legacy of impact the peso lower XXXX, than EBITDA our of winter driven up seen These the Quarter-on-quarter, the explained and the by Loma, the offset change renewal dispatch. the which energy as CCGT's the mainly growth senior QX million, extent, BXB was end adjustment. in Plus mainly by XXXX, of by our and before, prices. dual the on shrinking XX% $XXX quarter-on-quarter, only an to season, with we while they contribution, spot grants of prices and as To XX% efficient lesser driven devaluation Slide the higher nominated higher our at Generation on as QX export in of X%, national EBITDA Parque a inflation quarter fulfilled It has and our were XX% in went X, the and effects Genelba keep comprises and represented dispatch White, demand Ingeniero of decreasing expenses. the partially regulator unit, with QX Genelba higher XXXX, as by CCGTs

Piedra relies thermal they that Güemes, quarter. in and payments. business lesser on generation the efficient However, as capacity units, Buena the dispatch Keep model such mind hardly power in

as to overhauls does of XX%, the slightly force one capacity as especially Güemes. in performance, at standing, X Pampa, dispatch and PPA GWh as turbines our the the well due with impact rate reached for install and by operated was the long quarter-on-quarter not decreased in an HINISA So energy, Barragán and as year-on-year mainly major Dip] QX availability [Audio revenue-making lower based gas availability of as

is and facility. Argentina's cycle treatment Barragán CCGT critical Slide Buenos Thermal pivotal cooling is facility, pipeline, remaining a We've combined water with as in This our in works week. the of project, project advanced. closing starting see Regarding south is the it can infrastructure Ensenada our treatment at XX% XXX-megawatt the greater Power at X. tower Aires The doing been crucial expansion to Plant, a project on you for almost new

installing years weak site, than more mind Therefore, of Keep stable. right the the and the is We Pampa They began other The year-on-year operates the fuels demand, most is plant the to shows working the with fourth investment X equipment one continue which in efficient building project was install ago. about inside effected was grid, the imports the for the remains gas now that will see are still minimize capacity of the in strictest main CCGT and people thermal at more was inefficient. but imported of to The In XXX this closed, this After currency fuels. also in Once and this way remaining the the we building. fairly and the XXXX, have reliance shrank, that liquid landscape expensive and Barragán, graph but covered protocols asset turbine amount pipelines and XXXX. evolution liquid and production units. the megawatts with all fulfilled production by on gas XXX circulation us. gas national of imports slide COVID. to production contributed demand X% until that gas increase, with is issues. the local XXXX, the massive production tendency demand will

to We of place expect on trend January negative is as production this Gas in since reverse year. this Plan

XX% last XXXX, on year-on-year we XXXX, competitive activity because quarter-on-quarter only cost of and lifting country's of more higher of with year, we seasonality. blocks, adjusted XX. By XX% the gas cost, similar costs, valuation see The recorded environment, produced, barrels but quarter-on-quarter BOE $X XX% is by So million our seasonality. and lifting can of to Mangrullo. improvement prices, QX and explained such the than by BOE less million, posted gas maybe the productivity down Despite reduction into compared to XXXX, decreased an the which day, we production QX was of quarter-on-quarter The by harsh of variations the QX volumes mainly the are E&P reaching QX X% In of efficiency. EBITDA lesser changes. in XXXX, X% XX,XXX at the partially reached $XX related line results term driven per $XX of to because lower as oil in Slide gas. and same the and We period higher offset

Chirete, since sold On This day, formerly the of side, discovered to the oil conventional although improving which decreased significantly barrels X,XXX of revenue production partially per represented marginally the from the by volume Blancos, year-on-year lockdown, a Basin. Noroeste oil offset we XX% in years the XX impacted productive quarter, by mainly December. after was part block the segment’s in where

since of the sharp oil the of beginning than September lockdown. the back in remaining is gradually but prices pre-quarantine exported. our barrel, During local decreased reaching the QX, placing Domestic $XX production demand XX% market year-on-year, still per and levels, recovered – from bouncing fall at the XX% XX% lower

see the sold, an with cubic and due the as Therefore, gas, increases since quarter, which but lockdown. year-on-year, Regarding lower breakeven day wholly-owned million recovering to million effects production partially than on offset per seasonality. we our at last our XX% demand, gas, partially of productivity volume activity Slide gas-producing equation, overall by to block reached the feet and per mainly a sold lower Chile was due on exports El XXX These by to QX of XXX reached can ranked average place. XX, higher higher depletion cubic to the higher negatively still our of by the outstanding weak X% XX% impacted XX% of was volume collapsed gas-bearing to last in Compared volumes to basin. and CCGT production, In the operated Genelba. feet took therefore new the QX, Lower and fourth and CAMMESA Mangrullo, close is largest at Neuquina offset were block year El contributing lower us. industrial day blocks at pricing Mangrullo decreased

$XXper the in lower due the the the were the reflecting Though and off-peak the the million quarter of and Neuquina DistCos. power XXXX, During Plan resumed X.X XX% during we was are CAMMESA that CAMMESA’s reductions affected since season, by impacted price, our industrial exports, of demand fourth XXXX exports, fulfill Basin, to just year, last also XX% on than reference December price our prices. of XXXX in less average explained around about selling GSA to CAMMESA in gas also higher BTU, to QX spot under tenders CAMMESA Gas

CAMMESA, increasing share right Genelba you below, is rising towards with now. for skewed see vertical the XX% XX% Plus XXXX share can CCGT, last placing call’s right from an production As integration but to

Plan was scheme, expect least at natural assigned cubic period. that to CAMMESA as XX% as the of the government – supply gas in production continue us part million to long-awaited gas XXXX, XXXX, gas cash However, an production tender, flow at which revert than a GSA to winter. of per Plan base increasing the priced day an plan, are on development setting on for we average annual which winter year’s production, XX% The generation. Gas BTU the business. to four-year $X.X $XXX an will declining million allows of the we the base year on of more By million Gas. and gas per of will agreement Plan point of the the during to are gas, market. sold seeks from trend day end be XX turning committed Neuquina we with peak the at Pampa per four gas tight will Under million This feet of spot awardee per Thus, in cubic this and the third-largest to and priced years XX% growing in investment Argentina. $X.X additional feet new we Basin, deliver million production over focusing destined of the Gas the of producing the surplus additionally year-on-year, launched aggregate XXX profitability BTU

our reassessed drilling registered activities given in we XXXX, completion the activity sector’s prices, QX the lowest the and XXXX. in And gas line with Before in and we with mood. Gas tender in uncertainties Plan no the

despite recovery challenging higher production ratio grow positive El this period X.X players. year nine Los oil-bearing I lesser increase the peak the Gas and average to better block since the The mainly is tender and the In reached recorded gas, we new well last during XX% an is consecutive years. by that XXX a reserves factor XXXX, before, to life the X% Blancos. of proven and highest GSA, extent, almost mentioned performance BOE, for Plan to at year the and a XXXX, context, leading explained XX% compared reserve million in estimated production gas Mangrullo, replacement among third of the than our However, award the

shale We volume the also in Muerta from Vaca X.X XXXX. formation, succeeded the certifying reserves in times recorded

our Finally, freedom show we to other all industry balance purposes. compared to on slide, Group sound degrees grants this but Restricted the this during XX, us of on Slide sheet In moving challenging layers, some the covenant Company’s peers focus let’s environment. for

higher to compared $X.X times. of leverage with recorded million equivalent September, last of highlighting cash ratio X.X increase net $XX which consolidated mainly billion worth cumulative from quarter, to less dollars, than due amounted by to to flow The The due days mainly X$.X As life positive decreased XX% group September working XX% group’s positive billion, of September. last improved at offset the in of operating which and amounted two net X% of XX% days, last similar times, decreased quarter. from amounting slightly at billion, in million cash pesos. X.X%. and improved in like denominated the until outstanding the payment the gross of years. to XX was year-end, maturities is sales XXXX, ratio interest now and the a $XXX partially deconsolidation and than debt an in is buybacks. just recorded was DSOs, to last bearing XXXX, $X.X net Average that debt X.X September and Edenor. debt Peso restricted as increased Net to maintained which recorded rate million, X.X stabilized $XXX the Pampa is XXXX It to almost XX% cash times capital restricted debt to leverage affiliates

of meeting X.X the registration treasury Organizations. December Registry Regarding process million to Argentine before in ADRs, the share of cancel buybacks, last the approved Public of shareholders’

million to our board new a of also The capital cap outstanding XX.X ADRs. $XX program amounts $XX of today, million, with ADR. up to per approved a price As

So, this presentation. concludes the

she for organize floor questions. Thank you so turn will Now, I the to will Margarita, much.

Margarita Chun

question you, Thank Our from [Operator Instructions] comes Morgan Guilherme first Stanley. Levy Lida. from

is What quarters the next think of And in context the following starts question Gas? contemplated E&P Gas? new as Plan is up going the business. of pick terms in segment in industrial in should in also first about gas E&P business. it the we second The cost the segments should of the among What Plan production natural question not terms that, expect to prices the the for was since we forward, to related

Lida Wang

Good are are per it's how lifting I cost at you? are also to little About be production increasing production a – $X.XX morning. gained. we much. bit might Guilherme, think the of But Hi, not a to BTU. that million stable stabilize BTU per costs, going change BTU. million going $X.XX to be gaining efficiencies It's decreasing as the lot or All million per

The my by second will question answered be boss.

Gustavo Mariani

for they level. prices industrial know depressed Gustavo Guilherme, segment, are very you the speaking regarding a coming Mariani Hi from here, that

the So for segments, significant going are a in prices industrial forward. way going this up year

has which segment, digested by reality not be easy. to is that something that So

So good are having the on adjusted think the segment the very all I going that the of Gas, price so credit. the But by It that time. tough based a segments our are time. commercial Plan fact has forward guys a industrial average going towards

think for forward. going number initially, is that, slightly Maybe expect going something the be $X.XX passes, should that the be but industrial than segment $X.XX, to average of prices that's the not where less as around I Plan price time the Gas, going. we So so a

Margarita Chun

Gustavo. you, Thank

and Our regarding Daniel E&P BTG Guardiola second questions questions regarding generation. two has from question from Pactual. He power two comes

be I'm in the in for own also Plan the what XXXX? about IV? E&P to with is order by XXXX, production seen question is us gas our especially and interested you in And reactivate expected XXXX? first EBITDA in Gas Gas considering will production And in EBITDA the the in is is, What XXXX segment, to XXXX. in Plan upstream it upstream in upstream the that IV XXXX gas challenging can grow share place, under-investments The it CapEx now the down break unit. expected expected is how to for

Lida Wang

day EBITDA. you? our are for budget So, Hi million have the delivering Gas question. Plan to fact It's start now, $XXX production per is right We are Daniel, upstream give – under are May. pick that deliver additional guidance, is though, contains testing The expected but XX% it’s reactivated. we all May, already we to we numbers the season production of at meters X June. Basically This winter – and is of peaking cubic public. around and don't approved this million that, will This are we already of E&P the In up board one that it's GSA. in be the – how EBITDA production

now XXXX, the $XXX Yes, second second on project in the gas because but flow. E&P, than in the for doing related approved of underestimating another that, go X-X-X, be but we cash the only, Board basically chapter. another everything CapEx, said was. Yes. to million, The side question And inside E&P that's you might Gus? that's XXXX? it But discipline higher might

Gustavo Mariani


think the what I approved, at Board higher where what last this committed more next Gas, this Probably going of $XXX were of gas area for we $XXX million Plan winters. be the account to year. of the we approved aggressive, of we is figure Round the in four Just million, taking year end the winter and X volume the for which the into the – was and

of planned are increased – be investment Pampa CapEx that will we committed most up. keep the done year. gas why the volume forward, all that's you with So going for investment the But comply order this infrastructure see that to the when going or in have in mind,

compensate infrastructure wells. in maintain following in of in maintain following to just of and the So what are production. to of production and order There order years is be this infrastructure in the nothing level this will because to year CapEx almost highest wells we of decline and production spending the the the in

the order highest So commitments to in Gas this going is in with Plan of year CapEx comply the project. to be

Margarita Chun

Gustavo. you, Thank

one power business. it's generation from the Daniel follow-up We question regarding Guardiola, have

total generation it the So the comparisons – of what the portion is was in legacy from regarding came about Pampa specification PPA? the spot question revenue affect already that of the the And could potential segment with power PPA, specified? how

Lida Wang

of came And It's the rest than what revenues it. portion XX%, from segment [Foreign it's basically it's from second decreasing, power the So legacy. question, the I more the and don't generation PPA? XX%, total PPAs, have Language].

Gustavo Mariani


the but see I it potential the the regarding PPAs. – specification question, Regarding I don't was think the of

is the impact vis-à-vis So answering be the be would the – peso devaluation what adjustment for happen, something forward impossible because pace of this on wouldn't that's so it has adjusted contracts that Pampa on the going that the will not happened. depend of if And the it local will how currency. forward, and going

going in to the is decision It to of consequences contracts took that tremendous would in the even was this government those the terrible in contract. that which this could respecting has year it's regarding I of within was And – term, under a situation year administration is don't to But – hard if pandemic. first give I would impact. point, happen. that didn't believe respect two that medium answer because consequences situation, that negative for sorry, that new to this not macro control. XXXX, the would we I've happen years happen. how the repeat the – like situation correcting is very already. myself an been This you on make – this So saying a would I because And And something the

dollar as now. only in that the infrastructure same thing for Argentina since right XXXX, government you And required a is long-term energy way generation As sector that power contracts. doing through know, general is investment attracted huge this

the there during basically again, of devaluation, is are macro we not variables, year. go For year, I we example, were so macro huge of Plan that want that is that. a huge much a Gas, more more several the we which through is much, meaning XXXX something and the Actually, macro like that can Later much – this we disruption going because year. with under but talk too than all variables, at concerned of unless to want think control – reasons I we the last don't don't situation forward, this envisioning

we're a terms variables. not of macro year envisioning in distorted So

we I PPAs, couple touch there So when go year don't PPAs maturing a of quite you more I which this beginning information, give are and see also – are a next being year. year. unilaterally this few

maturing in is year, about PPAs And our another that end XX the are is capacity the it's in case, by of think our And months. fear own about those within important XX we or So, X Resolution that is next I PPAs of XXX are also of the maturing. under gigawatt of this. concerned megawatts who XXX for

in many If you generation XX% were – XX% in country. and in our only the colleagues to say, colleagues significant financial reduce of cost distress, in impact Reducing PPAs prices, the PPAs be of tremendous X% total be would that situation. around in something on would sector a the impact and even state-owned by, let's will will have would be that under the

analyze do doesn't when after this they the why to make that So and having issue reason even it conclusion it that didn't the I'm the and campaign sure talked during consequences numbers tremendous look because you at the came the sense. was and last government electoral year has

of So time that's and been sorry, – are that, – concerned already, as convinced more of we that concerned. more and more not long for we more a time and – passes, are

Margarita Chun

you, Thank Gustavo.

Our has He by other. Ezequiel one from next read Fernández question three questions. comes it Balanz. will I from

increase regarding power remuneration the conversation with one first is legacy the update is how for an going on government units? The in any

Lida Wang

They And very nothing need Hi. we in exposed. case. this, authorities, will some but know. already of critical presented they far as capacity larger – functioning for that already understand generation as with people adjustment. is too their we Well, know – also capacity showed power important know some them the a so legacy IPP gather they our it. we with in we many for regions Argentina legacy yet, there's – urgently other that – said very times but kind They few formal IPPs they We

Barragán Central of require closing the Gabi? equity could was any contribution. question second The additional

Gabriel Cohen

any performing completed Yes. we XXXX not advancing leverage a there or capacity, is of for that capital be equity once Barragán funded to And no we'll low extent leverage additional and be the but will expecting some done. expected No, semester well, schedule. Barragán. should contribution to it's already Hello. so is programs on first even commitment company. remind It be for any are by additional

Margarita Chun

Gabi. you, Thank

We have from in without total your Edenor? more much Ezequiel. one was considering How QX question CapEx

Lida Wang

This the Ezequiel. Hi, presentation. is in

in without our the – with Edenor QX, without X, million, the Edenor without Edenor This Page affiliates ownership. okay, $XXX it's without million also the including only right. is it's all So but at Edenor, in that's $XX now Edenor,

Margarita Chun

you, Thank Lida.

next from the you payment comes Plan sales indicate Alejandro Gas? how for gas you question please NAU CAMMESA Securities. also cycle Our under seeing and from from Could Demichelis are

Lida Wang

so already. ago, from Hi, for the XX. So average that That's we it XX, That's payment rule now peak cycle days How the are are witnessing The Alejandro. exceeding means collection That's days. it's XX that three the CAMMESA months was, is to three that's anything and from months we is was right delays. around XX now peaked you? That being like the right now. days.

of record the reach – we CAMMESA we the DSO, XXX. that remember history Now, of

invoice that if or few payment the can implemented paying such ago. used the days a Gas, didn't Plan few about final but get right invoice collecting I mention totally that something the tax RS obligations the that that ugh. approved can quite be Once is stipulated in thing stipulates few this important transaction. next is it's as that in and government, yet. you be January used be fall you use say, – GSA – delayed And will to there's any income and highlights the already the for due money the and I soon, because Gas, I Argentine in regulation commitment, for is the online was the platform. Very Gas for VAT, paid, can well, situation important XX, credit. Plan should there So Plan a that a it – seen. haven't And tax happens, anytime it from any we it's very be tax, as not days, should

Margarita Chun

Lida. pull more we Thank Please hold you, questions. for while


[ph]. is Our of question Gas question. could expect next X? we from Plan comes Yes, excess above volumes first What Konstantinos the destination that Papalias

Gustavo Mariani


the producing Is will produce are the thinking about more that is the excess you more used what to think Lida, placing it these where and are we to refers that correct in he gas to? referring in I fact are winter? we he that we winter questions, that

Lida Wang

Plan No Gas.

with So produce. the GSA it's not gas the says, that you happens to basically, what have he under

So That's the the will spot market. of the excess under we nature select volumes.

Gustavo Mariani

Gas. [Indiscernible] Plan

the million the excess sorry, per for IV Plan We committed five muted. flat was million that, natural – cubic gas of about have of I Pampa, part committed that and meters wasn't roughly Gas of that explanation The production five have roughly will we will day, that we throughout because – sold CAMMESA to In distribution year. of Plan have the Gas. companies be we committed of

commit additional were for XX%. to obliged You an

to we the be in will it’s, around per really that selling case day. around natural refer. prices based That the our So, industry I at cubic million of gas X.X meters

During an for are the obtain for – order we the place contract but soon government the also season, gas also of winter that optimistic will government an we is in that in summertime, to will awaiting not that export produce excess approval will are important contract we portion that approval, during presented winter. we have

this cubic nine July total our take day, almost is cubic this million to per that million will production meters two year. in or August starting meters So, of

So the answers that question.

Lida Wang

see prices Do user you follow-up XXXX? business. converting Gustavo. Plan you, Thank a is Gas prices gas There Okay. on in EMP industrial question to

Gustavo Mariani

talked some keep time. the sooner than would in distribution exposure CAMMESA company’s see I is take pace mind the less. And think I've it I because also that probably will and it. conversion, about industry already

will a collection of of sooner the risk. industry And discount Plan prices vis-à-vis So the the have it's automize your Gas, also good to because collection.

So, I discount is the to next to few a small That expectation. in think be years. going my that there's going narrow is

Margarita Chun

Thank you, Gustavo.

follow-up Our in growth? any the next you power question of Konstantinos. see Do organic generation,

Gustavo Mariani

right continue plans expanding. have don't now we to No,

are small new there some not projects, a analyzing We us conditions for to commit investment. yet but with are

Margarita Chun

Gustavo. you, Thank

question discuss you – for Morgan. a exchange discuss also comes you updates of XXXX? from muted, JP next a not Can on second – Andrade somebody potential any Our Alejandra can wait also is

Gabriel Cohen

to ready look as you thing successful transactions at And our we about execution. on that to a we if to and in the address XXXX. the well, group, our that say. policy is be market try time past of respect, hello, go conditions, trying feel That's the the transaction that we all at say expectation market comfortable whenever is look only can that thing Yes can only that before the we

Margarita Chun

question XXXX? an guidance follow-up of the of Gabby. for Thank There Can give is CapEx Alejandra. us you, update you a

Lida Wang

projects of we We have is don’t year – This million restricted budget restricted group. any have it’s power again projects group, give generation. We expansion but The a $XX guidance, maintenance. in the for just approved do CapEx. don’t

with And because like and it’s We with JV for we million, just site $XXX link projects might the holding YPF, the be have E&P, million What is over we a is budget but $XX to else? it’s $XXX program looks XX-XX. year, then approved, it outside, gas the that now funded, going execute. that’s though this that million. that’s have petchem and X-year

around the group, it’s million. XXXX, So restricted $XXX

Margarita Chun

you, Lida. Thank

opportunities, question next you And any looking looking opportunities? any seeing actively that Citibank. at Andres assets are your M&A from you comes from particular When are is portfolio, in existing sector you noncore? Our there Cardona in which consider at

Gustavo Mariani

no actively Andres, No. we there’s the within to asset noncore looking are consider moment, our portfolio at that that we this vest.

it’s part history. opportunities, our M&A of Regarding

probability segment. at it was the generation But occurrence. with monitor time be, high all only opportunities market are was would That anymore. been one active on the we studying at of in We’ve one the opportunities. the looking very and not point, would I it’s So that say, power

significant – or that are of at So nothing point, for. relevant M&A there in looking this transaction terms no we are

Margarita Chun

you. Thank

from Our By complete? when funding to He two XXXX? any for Rahul question And sale questions. have next expect needs Bhatt. has comes you do do you Edenor

Gabriel Cohen

free to expect year, extent, year. base any to some this our cash Unless any we we basically, or new this new positive. based development, transaction case, are flow is No, there on debt reduce some

As have have a free that $XXX of flow we cash should approximately a interest year CapEx base case, per and you guideline payment. after million

Lida Wang


be on not February limited Pampa need shareholders we need we But minute limit to. any of this regulator’s approval. can of just Edenor just because It’s it the asked in You The already but – year. approved to, sale.

it. that’s So

Margarita Chun

Instructions] you. [Operator you, Thank Thank Lida.

So this concludes question-and-answer section. the

for will final We to turn remarks. Lida

Gustavo Mariani

why that A to of so has of far. price Gas and perspective, comments competitive a couple IV of originally, regarding was from One XXXX. Plan But that It’s that a has supply from perspective, that answered official. program I that been the I my the generate would not process what don’t Gas Plan best been complete a in it resulted has has called that Gas, make. incentive it’s designed Plan generated of it like and one third it’s my the it decision know terms the from but program to like is several resolution won’t the distortions from benefits imbalances the demand. government market of for bidding six since

fiscal of terms secure this has been discuss the In improved of certificates. because greatly

in use case the there Lida this payment, it delay is taxes. explained, a use allow cancel us in to So to certificate as and fiscal that

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That’s colleagues expensive important natural is when keep reserves, So not provide Argentina at most and very keep and is them in our gas, good unfortunately, especially them of Argentina winter using when period. international for the to of home. is prices to needs at special being in terms more aggressive most able were which to the gas, of much

for are the we this So Gas have have if two the we great more news our But sure, It’s it’s E&P suffering again, the year, turning And better are program, page. only – industry, turning segment past – early page I’m Plan for is Pampa. I has for the years. with last that the that come wouldn’t and that have aggressively. be on reacted been would it critique it’s we would the

is are early very XXXX, to our – year beginning the optimistic we more we new year this on about round production during a in still there there going And point three are the capacity figure would going year. believe late it We if have even at forward. or have and forward this increase that impact winter rounds some next Pampa’s if

very country. good excellent it’s for Pampa. news – also I it’s the So for And news

important. pays reserves, better the As we the to Argentina of it imports, produce improves always saves is also very much more it’s and which figures less that it international locally say, macroeconomically and because also than fiscal

in repurchased than own Since perspective, shares put the news So think highlight thing late Plan a that about then, in changer about game the we the have more that, and to for of think we that don’t it thin it’s for been were I doing the questions capital. we the Gas there just any excellent is XX% our to repurchase of XXXX. I about started other and And – ties. wanted our – shares have to Pampa own repurchase also I was

million million from So in XX XX to total if terms outstanding currently. ADRs we ADR, of year went a

own XX% that because on throughout do the depressed of XX% reduction. of of advantage also or while repurchasing terms as on And than a meantime, levels. so able going Gas we’ve been And Genelba that huge cash down. debt And at the market net So taking of our year. we this we has period, debt, are very this our been the did side is around in drops mentioned. indebtedness flow as of also were and doing that it Plan XX% expansion just the to Gabby project more been strong able we And generation in to aggressive very do so doing has

You can say the...

Gabriel Cohen

is Just if free cash a for normalized above free consider we’ll to we very $XXX flow of highlight us. net saying, debt cash about slightly around healthy consider and that Xx, what million, is to flow our Gustavo

Gustavo Mariani

no or more to questions during highlight, the Any more Q&A. enough that were That these questions? cover is think not issues two what I I wanted

Margarita Chun

I questions. No think time the up. that more is

If us. reach any just have questions, you

today. We be Give to is leave, and small a care Have We are please, time suggestion for and taking a contact you. us. and before good appreciate always have. you us really any you it. take available there poll. Please going Thank for And day. you your feedback us your joining

Gabriel Cohen

you, Thank bye-bye.

Gustavo Mariani

Bye. joining. for Thank you

Margarita Chun

Thank Thank you. for today’s joining. This you presentation. concludes

disconnect may You at this Goodbye. time.