Pampa Energía (PAMP) Q2 2026 earnings summary

Executive summary

• Approved FID for Latin America's largest urea plant with a $2.7B investment and 2.1M ton annual capacity, leveraging Vaca Muerta gas reserves and vertical integration.

• Achieved all-time high quarterly oil and gas production at 107.5 kboe/day, driven by Rincón de Aranda and gas vertical integration with power generation.

• Q2 adjusted EBITDA reached $415M, up 75% year-over-year and 28% sequentially, with a margin of 44%, driven by record oil and gas production and strong power margins.

• Net income attributable to shareholders was $172M, 4.3x higher than Q2 2025, due to stronger operating margins and lower income tax.

• Power generation segment benefited from new spot market framework, boosting EBITDA and margins.

Financial highlights

• Adjusted EBITDA: $415M (+75% YoY, +28% QoQ); margin 44%; Oil & Gas segment contributed 58% of consolidated adjusted EBITDA.

• Oil and gas production reached 107.5 kboe/day (+28% YoY), with crude oil output at 23.4 kbpd (+194%) and gas production at 84.1 kboepd (+10%).

• CapEx for Q2: $279M (down 21% YoY), with $165M for Rincón de Aranda; full-year CapEx expected at $1B, dropping to $700M next year.

• Free cash flow was negative $128M in Q2, but improved YoY and QoQ due to higher EBITDA and lower CapEx.

• Cash and equivalents at quarter-end: $1.3B; gross debt: $2.6B; net debt: $1.3B; net leverage: 1.4x LTM EBITDA.

Outlook and guidance

• Multiple large-scale projects under the RIGI regime, including a 2.1 MTPA urea plant and major oil and gas infrastructure, are in various stages of approval and execution.

• Net leverage expected to peak at 2x over next 2-3 years due to urea project CapEx, then decline as projects mature.

• Fértil Pampa urea plant scheduled for completion by year-end 2029.

• Oil production at Rincón de Aranda targeted to reach 28,000 bpd by year-end and 45,000 bpd in 2027.

• Gas production expected to plateau at 20-22M m3/day for 25 years, with $250-300M annual maintenance CapEx.