Diario | Latin America

Research evidence excerpt

Diario | Latin America

increase in production to 45kboe/

d within two years, backed by new processing and transport infrastructure. The development

is a key growth driver for Pampa and envisages US$4.5bn of lifetime investment, including 259

wells, with roughly US$1.5bn to be deployed in 2026-28.

Cencosud (Hold) | Acquisition of Makro in Colombia for US$158m. Cencosud announced

the acquisition of Makro in Colombia for US$158m, bringing 21 stores in 16 cities, including

Bogotá, Medellín, Cali, and Barranquilla, further expanding its presence in the wholesale format

in the region, complementing the acquisition of Makro in Argentina in January 2025 and the .Source: Jefferies, FactSet

Giga operation in Brazil. Cencosud's presence in Colombia hitherto includes the Jumbo, Metro

and SPID brands, together accounting for c. 6% of consolidated sales.

Femsa (Buy) | Murphy USA: ST Fuel Margin Upside + LT Store Growth Visibility = Upgrade

to Buy, PT to $625. We are upgrading MUSA to Buy as improving fuel margins and stronger

execution drive a materially higher EBITDA outlook, with our estimates now ~20–25% above

initial 2026–2028 guidance and targets pulled forward. Our valuation is now based on 12.0x

FY2 EV/EBITDA (vs. 11.4x previously; 5-year average: ~10.2x; peak: ~12.7x), which we believe

is justified by stronger conviction in the durability of the earnings algorithm. Femsa's Oxxo

has also been delivering resilient growth with accelerating SSS and continued store expansion,

with similar EBITDA CAGR (9% at Femsa, 11% at Oxxo) to US peers. FMX still attractive trading Diego Sarmento Pereira * | Equity Analyst

at ~6.7x FY'2 EV/EBITDA ex-KOF. +44 (0)20 7029 8515 | dsarmentopereira@jefferies.com

Inigo Vega ^ | Equity Analyst

Charting LatAm #3: Tariffs, Trade & Treaties.