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Pampa Energia (PAM)
:PAM
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Pampa Energia SA
(NYSE:PAM)
70Outperform
Positive Factors
Financial Management
Net debt decreased by US$150mn, highlighting a positive financial management aspect for Pampa Energia.
Market Valuation
Pampa is trading at approximately 3.6x EV/EBITDA, a 15% discount to historical levels, indicating potential value.
Strategic Initiatives
Pampa Energia has joined a project to monetize its shale gas resources through LNG exports, marking its entrance into the LNG market.
Negative Factors
Earnings Performance
Pampa Energia reported 3Q24 results slightly below estimates, with adj. EBITDA at US$212mn, a 10% decrease from the previous year.
Infrastructure Limitations
Existing export infrastructure is operating close to maximum capacity, which presents a challenge for continued gas production.
Investment Concerns
There is concern regarding the required investments in large-scale projects due to limited visibility on internal rates of return.
Pampa Energia SA (PAM) vs. S&P 500 (SPY)
Market Cap
$4.62B
Dividend YieldN/A
Average Volume (3M)248.08K
Price to Earnings (P/E)8.7
Beta (1Y)0.55
Revenue Growth8.89%
EPS Growth24.01%
CountryUS
Employees2,013
SectorUtilities
Sector Strength83
IndustryIndependent Power Producers
Share Statistics
EPS (TTM)2.80
Shares Outstanding54,540,813
10 Day Avg. Volume230,060
30 Day Avg. Volume248,080
Financial Highlights & Ratios
PEG Ratio-1.07
Price to Book (P/B)1.25
Price to Sales (P/S)0.00
P/FCF Ratio-118.83
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit9.26
Enterprise Value/Ebitda1.26
Forecast
1Y Price Target
$82.50Price Target Upside0.28% Upside
Rating ConsensusHold
Number of Analyst Covering1
Pampa Energia SA Business Overview & Revenue Model
Company DescriptionPampa Energía S.A. (PAM) is a leading integrated energy company in Argentina, engaged in the generation, transmission, and distribution of electricity. It operates through various segments, including electricity generation, oil and gas exploration and production, refining and distribution of petroleum products, and petrochemicals. The company is one of the largest independent electricity producers in Argentina, with a diversified portfolio of power plants utilizing various energy sources such as thermal, hydroelectric, and wind energy.
How the Company Makes MoneyPampa Energía S.A. generates revenue through multiple streams. The primary source of income is the electricity generation segment, where it sells electricity in the Argentine wholesale electricity market. The company also earns from the distribution of electricity to residential, commercial, and industrial customers. In addition to electricity, Pampa Energía is involved in the exploration and production of oil and gas, contributing to its revenue by selling these resources in local and international markets. The company's refining and distribution operations add another revenue layer by processing crude oil into refined products and selling them through its distribution channels. Partnerships with other energy companies and participation in joint ventures also play a role in enhancing its revenue, along with strategic investments in renewable energy projects to tap into the growing demand for sustainable energy solutions.
Pampa Energia SA Financial Statement Overview
Summary
Pampa Energia SA presents a mixed financial picture. The income statement reflects strong profitability margins, but revenue volatility raises concerns. The balance sheet is robust with a solid equity position and moderate leverage, but cash flow statements highlight challenges in cash generation, impacting overall liquidity.Income Statement
Pampa Energia SA has shown a fluctuating revenue trend, with a revenue decrease from 2022 to 2024. Gross profit margin in 2024 was approximately 31.7%, indicating a solid profitability level. However, the net profit margin improved significantly to 32.6% in 2024, suggesting enhanced net income efficiency. The EBIT and EBITDA margins also reflect stable operational efficiency.65
Positive
Balance Sheet
The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.64 for 2024, indicating moderate leverage. The equity ratio stands at 51.8%, reflecting a stable financial structure. ROE for 2024 increased to 16.6%, which signals improved profitability for shareholders.70
Positive
Cash Flow
Free cash flow showed volatility with negative figures in recent years, indicating potential cash management concerns. The operating cash flow to net income ratio was 0.68 in 2024, suggesting a decent conversion of net income to cash. However, the free cash flow to net income ratio was negative, highlighting issues in cash generation relative to profitability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.88B | 1.73B | 1.83B | 1.51B | 1.07B | Gross Profit |
| 597.00M | 620.00M | 686.00M | 555.00M | 409.00M | EBIT |
| 440.00M | 424.00M | 507.00M | 436.00M | 261.00M | EBITDA |
| 511.12M | 658.00M | 719.00M | 641.00M | 465.00M | Net Income Common Stockholders |
| 547.88M | 302.00M | 456.00M | 273.00M | 225.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.67B | 835.00M | 700.00M | 573.00M | 491.00M | Total Assets |
| 6.34B | 4.72B | 4.74B | 3.86B | 4.89B | Total Debt |
| 2.09B | 1.47B | 1.62B | 1.45B | 1.62B | Net Debt |
| 1.36B | 1.29B | 1.52B | 1.34B | 1.48B | Total Liabilities |
| 3.05B | 2.31B | 2.46B | 2.07B | 3.12B | Stockholders Equity |
| 3.29B | 2.40B | 2.28B | 1.78B | 1.43B |
| Cash Flow | Free Cash Flow | |||
| -12.45M | -183.00M | 203.00M | 523.00M | 569.00M | Operating Cash Flow |
| 370.65M | 575.00M | 619.00M | 729.00M | 693.00M | Investing Cash Flow |
| -295.64M | -446.00M | -575.00M | -474.00M | -255.00M | Financing Cash Flow |
| 455.26M | -57.00M | -46.00M | -342.00M | -445.00M |
Pampa Energia SA Technical Analysis
Positive
82.27
Price Trends
76.18
Positive
80.50
Positive
73.09
Positive
Market Momentum
1.83
Negative
61.06
Neutral
86.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAM, the sentiment is Positive. The current price of 82.27 is above the 20-day moving average (MA) of 75.76, above the 50-day MA of 76.18, and above the 200-day MA of 73.09, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAM.
Pampa Energia SA Risk Analysis
Pampa Energia SA disclosed 99 risk factors in its most recent earnings report. Pampa Energia SA reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pampa Energia SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.80B | 25.52 | 29.32% | ― | 68.95% | -34.72% | |
71 Outperform | $31.13B | 25.07 | 44.91% | 1.04% | 2.57% | -10.19% | |
70 Outperform | $4.62B | 8.68 | 16.31% | ― | 8.89% | 24.01% | |
69 Neutral | $4.90B | 23.52 | 8.37% | 3.01% | 10.10% | 149.78% | |
68 Neutral | $2.04B | 36.03 | 3.52% | 2.72% | -14.28% | -85.93% | |
63 Neutral | $8.53B | 10.18 | 4.66% | 4.38% | 3.77% | -12.97% | |
55 Neutral | $8.69B | 6.67 | 29.79% | 5.68% | -3.22% | 141.11% |
* Utilities Sector Average
Performance Comparison
PAM
Pampa Energia SA
82.27
33.40
68.34%
NRG
NRG Energy
159.20
78.87
98.18%
TXNM
TXNM Energy
52.88
15.64
42.00%
AES
AES
12.21
-8.32
-40.53%
CEPU
Central Puerto SA
12.99
2.99
29.90%
TLN
Talen Energy Corp
244.86
137.26
127.57%
Pampa Energia SA Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q4-2024)
| % Change Since: 1.24%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong performances in gas production and power, significant growth in EBITDA, and strategic financial management leading to reduced debt. However, challenges such as higher operating costs and seasonal decreases in margins were noted.Q4-2024 Updates
Positive Updates
Record Gas Production
Reached a new all-time high in 2024 with a 21% growth in average gas output and an 80% increase since 2017, driven by top-performing wells in Vaca Muerta.
PEPE 6 Wind Farm Commissioned
Commissioned the PEPE 6 Wind Farm, adding 140 megawatts of clean energy, marking nearly a 50% growth since 2017 with a 95% availability rate in 2024.
EBITDA Growth
EBITDA grew 19% year-on-year and 29% compared to 2017, primarily from power and gas segments, contributing to a decrease in net debt to $410 million.
Strong Q4 Gas and Power Performance
Gas production rose 11% year-on-year in Q4, and power units recorded a 94% availability rate with improved PPA performance.
Successful Debt Management
Issued a $360 million international bond maturing in 2034, reducing net debt to $410 million, the lowest since 2016, with a net leverage ratio of 0.6 times.
Proven Reserves Increase
Total proven reserves rose 16% to 231 million barrels of oil equivalent, driven by increased activity in Sierra Chata and El Mangrullo.
Negative Updates
Higher Operating Costs
Higher operating costs and lower exports at the blended FX partially offset gains, with lifting costs per boe rising to $8.7 per boe.
Decrease in Oil and Gas Margins
Margins in oil and gas were lower in the last quarter of 2024 due to reduced production volumes and lower prices compared to previous quarters.
Seasonal EBITDA Decrease
Notable quarter-on-quarter EBITDA decrease due to seasonality, despite an increase in gas deliveries from thermal power generation.
Company Guidance
In the Pampa Energia Fourth Quarter 2024 Results Video Conference, the company reported several key metrics and developments. The gas production saw a remarkable 21% year-over-year increase and an 80% surge from 2017, hitting an all-time high, driven primarily by top-performing wells in Vaca Muerta. Pampa's power segment also expanded, commissioning the PEPE 6 Wind Farm to add 140 megawatts, achieving a 95% availability rate. The company's EBITDA grew by 19% compared to the previous year and 29% since 2017, while net debt decreased to $410 million, the lowest since 2016. In Q4 alone, gas production rose by 11% year-over-year, with the power units achieving a 94% availability rate. Adjusted EBITDA for Q4 was $182 million, marking a 60% increase from the previous year. The company's CapEx was down 20% year-over-year, reflecting shale gas ramp-up operations, and proven reserves rose by 16% to 231 million barrels of oil equivalent, with shale reserves growing by 60%. The company also issued a $360 million bond to improve the debt profile, resulting in gross debt increasing to $2 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.