Pampa Straight from the Call

Research evidence excerpt

J P M O R G A N

Latin America Equity Research

05 August 2026

Pampa

Straight from the Call

Pampa just hosted its 2Q26 conference call. Overall, discussions centered on the

next phase of growth at Rincón de Aranda, gas and power monetization

opportunities, and progress on key strategic projects. For more details on reported

numbers, refer to Pampa 2Q26 Results: Strong Upstream and Power Generation

Growth in line with Expectation. See our notes below:

Rincón de Aranda on track to ramp up production, with RGGI approval

strengthening the project's next development phase. With an equipment set

of two high-spec rigs and one frac fleet, and 11 pads/43 wells online, Rincón

de Aranda reached a record production of 27kbd during the quarter (on May

21st), while average output increased 22% q/q to 22.4kbd despite no new wells

being tied in since March. Management indicated that two recently completed

pads are expected to be connected during August, supporting a recovery in

production, while another ten wells have already been drilled and are expected

to be tied in before year-end, supporting a targeted exit rate of 28kbd. Looking

further ahead, the company's target remains a production plateau of 45kbd once

the CPF and Vaca Muerta Oil Sur pipeline become operational next year.

Management also highlighted the recent approval of the RIGI application as a

long-term strategic export project, covering the drilling and completion of 259

wells and the construction of the CPF, providing regulatory visibility and

supporting the next phase of development at the block.

Increasing self-supply volumes support the gas strategy, while new

transportation capacity underpins future development plans. Gas

production increased 10% y/y and 4% q/q to more than 14MMm³/d, supported

by higher deliveries to Pampa's own power generation assets under the new

power market framework. As a result, intersegment consumption represented

31% of total gas sales during the quarter, up from just 3% a year ago following

the transfer of GSAs to the company's power plants. Management expects

approximately 40% of this year's production to be directed toward self-supply

demand.…