Pampa Energia SA (PAMPN) Q1 2026 Earnings Report

The call emphasized strong operational momentum (record production, rapid Rincon de Aranda ramp-up, significant YoY EBITDA growth, improved drilling/completion efficiency, and strategic capacity wins) while also highlighting near-term cash and working capital pressures (negative free cash flow, hedge collateral, prepayments for pipeline capacity), some operational outages and mark-to-market volatility from hedges. Management communicated credible plans to sustain ramp-up, access financing (recent bond issuance) and gradually deleverage as EBITDA grows, while noting several near-term cash commitments and hedge effects.

Management guided that Q1 momentum should continue, with upstream and power synergies driving growth: production already topped 100,000 boe/d (Q1), Rincon de Aranda is ~25,000 bpd today (avg Q1 18,200 bpd, exit >21,000 bpd) with a target of 28,000 bpd by mid‑2026 and a 45,000 bpd plateau (full‑field development ~$4.5bn) after CPF and pipeline, and plans to tie in ~20 more wells this year; they expect gas production ~14 mcm/d (Q1), exports 1.5 mcm/d, ~40% of gas to self‑supply power, and secured 3.2 mcm/d (27% of Perito Moreno expansion) with a ~$330m prepayment (35‑year contract) and operations targeted winter 2027; financials: Q1 adjusted EBITDA $325m (+48% YoY, +41% QoQ) with Oil & Gas EBITDA $104m (2.5x YoY) and Power EBITDA $144m (+11% YoY, +30% QoQ), CapEx $242m (+36% YoY, $163m to Rincon de Aranda), lifting costs $6.1/boe (down 11% YoY), gas lifting $0.90/mmbtu, realized oil $58/bbl (hedged; without hedge >$69/bbl), free cash flow negative $404m in Q1, cash $677m, gross debt ~$1.9bn, net debt $1.2bn (net leverage 1.5x LTM EBITDA); management expects an incremental ~ $100m EBITDA for power and ~€50–60m for E&P from additional pipeline‑enabled dispatch, plans to reduce hedge ratios from ~100% during ramp‑up toward ~50%, and to keep net leverage around 1.5x this year while deleveraging as Rincon ramps.