Pampa Energia Sa · BCBA:PAMP

Pampa Energia Sa — Q4 2019 Earnings Presentation

21 slides from Pampa Energia Sa's earnings presentation, Mar 11, 2020

  1. Slide 1: Q4 2019 Results Conference Call

    Q4 2019 Results Conference Call March 11, 2020 10 AM EST / 11 AM ART We are environmentally friendly Be GREEN, keep it on SCREEN Disclaimer in the back

  2. Slide 2: Disclaimer

    Disclaimer The material that follows is a presentation of general background information about Pampa Energía SA @ the date of the presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentat

  3. Slide 3: Reporting Considerations to Take Into Account

    Reporting Considerations to Take Into Account Q4 2019 Q4 2018 FC = Functional Currency Reporting Reporting Chosen Proxy Nominal AR$ as Pampa reported in Q4 2018 at stand-alone, FC AR$, adj. by inflation FC US$ avg FX 37.11 gencos and other @ December 31, 2018 subsidiaries ≈ FC US$ Edenor FC AR$ @ FC

  4. Slide 4: FY 2019's Key Takeaways

    FY 2019’s Key Takeaways Consolidated Figures, in US$ million Revenues1 Consolidated Adj. EBITDA2 Consolidated Adj. EBITDA Breakdown2,3 EBITDA/Sales 1,081 Oil & Gas 3,586 3,470 915 31% 40% 3,261 841 38% 1 ,0 0 2 E&P EDN 31% 36% 34% 19% 17% 802 % TRX4 4% 28% 32% 602 30% TGS4 12% 23% 28% 402 26% Power

  5. Slide 5: Q4 2019's Key Takeaways

    Q4 2019’s Key Takeaways Consolidated Figures, in US$ million Revenues1 Consolidated Adj. EBITDA1 -9% yoy EBITDA margin +5% yoy -39% qoq 818 +16% qoq 300 277  Lower prices in E&P & 80% genco’s legacy 778  More power capacity 70% 250 & gas production 187 170  High FX depreciation 60% at reg. utilit

  6. Slide 6: Q4 2019's Key Takeaways

    Q4 2019’s Key Takeaways Consolidated Figures, in US$ million Adj. EBITDA Adj. EBITDA Q4 19* 107 3 20 (2) 41 170 Holding, Power Electricity Petro- Q4 18‡ Generation1 Distribution Oil & Gas2 chemicals Others3 & Q4 19* Eliminations Note: *Under FC US$; FC AR$ adj. by inflation @ Dec 2019. ‡For convenie

  7. Slide 7: Power Generation

    Power Generation Adj. EBITDA1, in US$ million Generation Performance, in GWh +14% yoy -8% qoq EBITDA margin 140 131 +13% yoy 150% 4,138  Higher thermal 107 -18% qoq 3,805 dispatch at self-fuel 95 3,325 procured units 120 130% 100  Additions of wind 110%  New wind & thermal farms, Genelba+’s capac

  8. Slide 8: Update to the Legacy Remuneration Scheme

    Update to the Legacy Remuneration Scheme Impact Over Thermal Units Capacity pricing US$/MW-month 7,000 High performance units Genelba & CTLL 6,000 5,000 Before, Res 1/19 4,000 Low utilization rates’ units CTG & CPB 3,000 2,000 1,000 Load 0 factor100% 86% 72% 58% 44% 31% 17% 3% New scheme/during high

  9. Slide 9: Genelba Thermal Power Plant

    Genelba Thermal Power Plant Footage before expansion works, October 2017 Aerial view of CTGEBA, October 2017 Pampa Energía  9

  10. Slide 10: Genelba Thermal Power Plant

    Genelba Thermal Power Plant CCGT’s commissioning scheduled for Q2 2020 383 MW expansion project Estimated investment of US$350 million Employed an avg of 1,500 people Higher power generation without consuming additional nat gas reaching an efficiency level of 53% Aerial view of CTGEBA, 2020 Pampa En

  11. Slide 11: Ensenada Barragán Thermal Power Plant

    Ensenada Barragán Thermal Power Plant Expansion to CCGT 280 MW expansion project COD estimated by the end of 2022 Investment budgeted at US$200 million Labor to employ at avg of 600 people Higher power generation without consuming additional nat gas reaching an efficiency level of 57% Aerial view of

  12. Slide 12: Oil & Gas

    Oil & Gas Adj. EBITDA1, in US$ million Production Performance, in kboe/d -60% yoy EBITDA margin -61% qoq 51 52 49.8 60 150%  Lower gas prices +12% yoy 50  FX freeze for crude 130% 47.7 -4% qoq 40 oil prices 110% 42.5  Greater gas transp. & 90% exploration costs 20 30 42%  Higher gas prod. 70% 20

  13. Slide 13: Oil & Gas

    Oil & Gas Weighted Avg Gas Price for Pampa, Gas Production Performance, in mcf/d Without Subsidy, in US$/MBTU +15% yoy 4.8 5.0 -5% qoq 4.8 4.7 270 4.7 4.5 Price 4.8 2017 256  CAMMESA 4.5 4.4 2016  Exports to Chile 4.2 Production 3.8 3.3 222  Vertical integration 3.1 3.1 3.4  El Mangrullo 2019 av

  14. Slide 14: First Time DoP Setting in CAMMESA Gas Auctions, Drove Prices Up

    First Time DoP Setting in CAMMESA Gas Auctions, Drove Prices Up Cammesa avg daily Neuquina Basin Tendered Prices at Wellhead, in US$ per MBTU consumption 2.70 2.40 2.10 1.80 1.50 1.20 0.90 - 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Jan 2020 Feb 2020 Mar 2020 Reference Price Source: MEGSA, Pamp

  15. Slide 15: 2019 Reserves

    2019 Reserves Positive Replacement Ratio, Booking Shale for the First Time Crude oil 10% ND 48% % Dev'd 52% Gas 90% 1.3x IRR 8-year average reserve life Six shale wells drilled in 2019 8% of Pampa’s current production Two shale wells to connect in 2020 El Mangrullo Block, 2019 Pampa Energía  15

  16. Slide 16: Q4 2019's Key Takeaways

    Q4 2019’s Key Takeaways Results compared as reported Net Income to Shareholders, in US$ million Reported Q4 19* NI to (38) (15) (10) 9 63 9 Shareholders Power Electricity Petro- Holding, Q4 18† Generation Distribution Oil & Gas chemicals Others & Q4 19* Eliminations Note: *Under FC US$, FC AR$ adj.

  17. Slide 17: Unlevered Company in a Highly Intense Capital Sector

    Unlevered Company in a Highly Intense Capital Sector, Maturities Well Distributed Over the Next Years In US$ million, @ December 31, 20191 Principal Debt Profile, Net of Repurchases, in US$ million Pampa Edenor Transener @ O/S TGS @ O/S Other affiliates @ O/S Consolidated debt from FS US$1,947 milli

  18. Slide 18: Thank you for listening our FY and Q4 Results Conference Call

    Q&A Thank you for listening our FY and Q4 Results Conference Call GUSTAVO MARIANI THE PAMPA ENERGÍA BUILDING ri.pampaenergia.com/en CEO Maipú 1 (C1084ABA) investor@pampaenergia.com GABRIEL COHEN Ciudad Autónoma de Buenos Aires CFO Argentina LIDA WANG +54 (11) 4344 6000 Investor Relations Officer pam

  19. Slide 19: Electricity Distribution

    Electricity Distribution +2% yoy Adj. EBITDA, in US$ million Sales Performance , in GWh -12% qoq  Income from EBITDA margin +US$8m yoy retroactive & social  Higher temperature -95% qoq tariff caps 5,362  Price-demand 70 64  Lower penalties 70% 4,652 7% 4,745 inelasticity 60  Inflation>depreciat

  20. Slide 20: Petrochemicals

    Petrochemicals Adj. EBITDA, in US$ million Sales Performance, in thousand ton EBITDA margin 955 956 897 4 3 5% +3% yoy 3 -3m yoy 88 91 +21% qoq 75 4%  Higher styrenics 2 1 4% -5m qoq 3%  Lesser reforming 1  Lower int’l spread 62% demand 70% -  Lower prices 63% Other 2%  Lower gas & naphta ( 1 )

  21. Slide 21: Holding & Others

    Holding & Others Adj. EBITDA2, in US$ million Main News 43 40 -7% yoy • Solidarity Law 2 +47% qoq 9 5 27 9 10 Transener 24 26 TGS 20 Holding 8 Refinor (2) (1) Q4 18 … Q3 19* Q4 19* Affiliates’ EBITDA Performance @ 100% Ownership, in US$ million Transener TGS Refinor 39 94 96 18 76 YoY YoY YoY  Liqu

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