Q2 2018 Results Call August 14, 2018 10 AM EST / 11 AM ART - - PowerPoint PPT Presentation

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Q2 2018 Results Call August 14, 2018 10 AM EST / 11 AM ART - - PowerPoint PPT Presentation

Q2 2018 Results Call August 14, 2018 10 AM EST / 11 AM ART Disclaimer The material that follows is a presentation of general background information about Pampa Energa SA as of the date of the presentation. It is information in summary form


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Q2 2018 Results Call

August 14, 2018 10 AM EST / 11 AM ART

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The material that follows is a presentation of general background information about Pampa Energía SA as of 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 presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation contains information and statements that are forward-looking within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current assumptions, expectations and projections about future events. Forward-looking statements may be identified by the words 'believe', 'expect', 'anticipate', 'target', or similar expressions. While Pampa' s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Pampa, which could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, changing business, regulatory, political or other market conditions in Argentina and elsewhere, the completion of our new generation projects, the completion of our distribution and transmission subsidiaries' tariff revision process, the prospects for growth anticipated by our management, and the other risks and uncertainties discussed in our reports and other documents filed with the U.S. Securities and Exchange Commission. Further, Pampa undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise, nor makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied upon as a promise

  • r representation that any such forward looking statements will be achieved. Management is not making and you should not infer

any representation about the likely existence of any particular future set of facts or circumstances. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any

  • ffering of securities to be made in the United States will be made by means of a prospectus or offering prepared in connection with

any such offering.

Pampa Energía ● Q2 2018 Earnings Call

Disclaimer

2

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  • Presented by Lida Wang, IRO
  • Q2 2018 consolidated EBITDA
  • Results & news by business segment
  • Power generation
  • Electricity distribution
  • Oil & gas upstream
  • Refining & marketing
  • Petrochemicals
  • Holding

– TGS – Transener

  • Q2 2018 consolidated net income
  • Cash and debt
  • Q&A session

Pampa Energía ● Q2 2018 Earnings Call 3

Today’s Agenda

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420 1,364 1 45 20 (29) 1,583 2,069 338 1,585 848 2,491

3,208 7,505

Q2 17 Q2 18

Pampa Energía ● Q2 2018 Earnings Call 4

Adjusted EBITDA from Continuing Businesses1

In million AR$

Q2 2018 Consolidated Results

Q2 18 Q2 17

(1) Consolidated adjusted EBITDA represents the consolidated results before net financial results, income tax and minimum notional income tax, depreciations and amortizations, non-recurring and non-cash income and expense, equity income and other adjustments from the IFRS implementation and includes affiliates EBITDA’s at ownership. For more information, please refer to section 3 of the Earnings Release.

Segment Q2 17 Q2 18 ∆$ ∆% Power Generation 848 2,491 1,643 +194% Electricity Distribution 338 1,585 1,247 NA Oil & Gas* 1,583 2,069 486 +31% Refining & Marketing* 20 (29) (49) NA Petrochemicals 1 45 44 NA Holding and Others 420 1,364 944 +225% Eliminations (2) (20) (18) NA Total 3,208 7,505 4,297 +134% * Does not include discontinued operations Assets sold to Vista & Trafigura

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3,208

+1,643 +1,247 +486

  • 49

+44 +926

Total Q2 17 Power Generation Electricity Distribution Oil & Gas Refining & MarketingPetrochemicals Holding and Others Total Q2 18

Pampa Energía ● Q2 2018 Earnings Call 5

Adjusted EBITDA from Continuing Businesses

In million AR$

Q2 2018 Consolidated Results

Q2 17

Power Generation Electricity Distribution Oil & Gas Refining & Marketing Petro- chemicals Holding, Others & Eliminations

Q2 18

2,491 1,585 2,069 (29) 45 1,344

  • Adj. EBITDA

Q2 18

7,505

+134% yoy

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86.5% 98.2%

Q2 17 Q2 18

Hydro 10% 11% Wind 1% Thermal 90% 89%

3,794 3,659

Q2 17 Q2 18

848 2,491

Q2 17 Q2 18

3,871 MW

Pampa Energía ● Q2 2018 Earnings Call 6

Generation Performance

In GWh

Availability Performance

In % to Installed Capacity

Adjusted EBITDA

In million AR$

  • Commissioning of Mario Cebreiro 100 MW wind farm
  • Expansions’ status: Genelba & renewables

News Update

Power Generation

Q2 18 Q2 17

AR$ devaluation Full fare for legacy capacity New PPAs in force  Higher costs for energy purchases and larger operation  Lower dispatch requested at CPB & CTGEBA TG #3  Lower water at HIDISA Commissioning of CTPP, CTLL’s TG05 & CCGT enhancement, CTIW & PEMC wind farm Higher generation at HPPL

Q2 18 Q2 17

3,451 MW

Q2 18 Q2 17

Commissioning

  • f PEMC, CTPP,

CTLL’s TG05 & CTIW CTLL’s steam turbine capacity increase

+194% +14% +12%

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Power Generation

Pampa Energía ● Q2 2018 Earnings Call 7

Genelba Expansion

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Power Generation

PEPE II Wind Farm Expansion

Pampa Energía ● Q2 2018 Earnings Call 8

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43% 43% 16% 16% 35% 35% 6% 6%

5,359 5,344

Q2 17 Q2 18

2.9 3.0

Q2 17 Q2 18

1,190

  • Def. income 395

338 1,585

Q2 17 Q2 18 Pampa Energía ● Q2 2018 Earnings Call 9

Sales Performance

In GWh

  • New reference price for electricity purchases
  • Semiannual costs update with deferral

News Update Adjusted EBITDA

In million AR$

Number of End-Users

In million

Electricity Distribution

RTI’s full fare implementation + costs update in Aug ‘17 and Feb ‘18 Income from deferred tariff increase in 2017  Higher losses rate and costs  Higher labor & 3rd party costs

Q2 18 Q2 17 Q2 18 Q2 17 Q2 18 Q2 17

Market discipline actions

+3%

Public lighting & shantytowns Industries SMEs Residential  Lower demand from SMEs Stable demand from residential and large users, peaked in June due to low temperatures

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7.4 4.8

Q2 17 Q2 18

Argentina 49.1 45.9

Abroad 1.6 0.3

50.7 46.2

Q2 17 Q2 18

250 247

Q2 17 Q2 18

1,583 2,069

Q2 17 Q2 18 10

Total Production Performance (Argentina + Abroad)

In kboe per day

Argentina Crude Oil Production Performance

In kb/d

Adjusted EBITDA from Continuing Businesses

In million AR$

Argentina Gas Production Performance

In mcf/d

Oil & Gas

Q2 18 Q2 17 Q2 18 Q2 17 Q2 17 Q2 18 Q2 18 Q2 17

US$52.4/bbl US$63.2/bbl

Pampa Energía ● Q2 2018 Earnings Call Average Price

US$6.3/MBTU

End of service at Medanito La Pampa Higher oil prod. at El Tordillo

+31%

FX impact Better oil sale price in US$ Incl. OldelVal’s EBITDA @ 23.1%  Lower accrual of Plan Gas 2  End of service at Medanito La Pampa in Oct-17  Price excludes Plan Gas 2 from PEPASA Price incl. higher Plan Gas 2 from Pampa’s blocks  Lower production at R.del Mangrullo Higher production at El Mangrullo & Río Neuquén  End of service at Medanito La Pampa in Oct-17  Lower production abroad Higher gas production at El Mangrullo & Río Neuquén

US$5.5/MBTU

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Pampa Energía ● Q2 2018 Earnings Call 11

  • 35-year period unconventional exploitation concession at El Mangrullo and Sierra Chata blocks
  • Cammesa’s new reference price of gas for power generation
  • Program for the financing of gas winter consumptions to distribution companies

News Update

Oil & Gas

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47% 41% 23% 21% 16% 16% 14% 17% 1% 6%

480 377

Q2 17 Q2 18

Cont'ing 20 (29)

Discont'd (46) 456

(26) 427

Q2 17 Q2 18 Pampa Energía ● Q2 2018 Earnings Call 12

Sales Performance

In thousand m3

Adjusted EBITDA

In million AR$

  • No news

News Update

Downstream: Refining & Marketing

Q2 18 Q2 17 Q2 18 Q2 17

Crude Oil Other distillates Fuel Oil, IFOs & Asphalts Gasolines Diesel Oil Lower load factor at refinery Lower diesel imports Lower demand Inventory sales at the divest. closing Refinor’s EBITDA @28.5%

US$550/m3 US$538/m3

Higher sale prices in AR$ Excludes gain from assets’ sale  Higher costs of imported diesel & crude oil

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29% 35%

7% 8%

64% 56%

107 95

Q2 17 Q2 18

1 45

Q2 17 Q2 18 Pampa Energía ● Q2 2018 Earnings Call 13

Sales Performance

In thousand ton

Adjusted EBITDA

In million AR$

  • No news

News Update

Downstream: Petrochemicals

Q2 18 Q2 17 Q2 18 Q2 17

Other SBR Styrene & Polystyrene  Lower reforming products due to lack of virgin naphtha provision Higher export of styrene products and SBR Better int’l sale prices in US$ Excludes ex PZE’s contingencies  Lower output  Higher operating & raw material’s cost

US$984/ton US$1,161/ton

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1,281 3,789

Q2 17 Q2 18

847 1,189

Q2 17 Q2 18 (130) 85 223 313 327 966

420 1,364

Q2 17 Q2 18

Pampa Energía ● Q2 2018 Earnings Call 14

Affiliates’ EBITDA Performance @ 100% Ownership

In million AR$

Adjusted EBITDA

In million AR$

  • Corporate reorganization status
  • Final exchange of former Petrobras Argentina shares
  • 2017’s merger: final swap scheduled on August 15
  • Share repurchase program
  • Pampa’s second program for US$200 million –

28% disbursed

  • TGS for AR$1.7 billion - 45% disbursed
  • TGS
  • South tranche at Vaca Muerta gas midstream project
  • Payment of dividends
  • Award in the arbitration complaint against TGS
  • Withdrawal to the arbitration complaint before the ICSID
  • Transener: RTI for independent power transmitters

News Update

Holding & Others

TGS

Q2 18 Q2 17 TGS Transener Q2 17 Q2 17 Q2 18 Q2 18

RTI RTI FX impact Better liquids margin Higher liquids volume sold

+225%

Transener Holding

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(91)

  • 1,800
  • 71
  • 2,517

+753

  • 517

+1,582

Pampa Energía ● Q2 2018 Earnings Call 15

Net Income to Shareholders

In million AR$

Q2 2018 Consolidated Results

(2,661) Q2 17

Power Generation Electricity Distribution Oil & Gas Refining & Marketing Petro- chemicals Holding, Others & Eliminations

Q2 18

(1,748) (91) (2,908) 633 (616) 2,069

Reported Q2 18 NI to Shareholders

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Pampa 81% Greenwind 2% Edenor 10% TGS 6% Transener 1% Refinor 0%

%

AR$ 5% US$ Link 1% US$ 94%

%

Pampa Energía ● Q2 2018 Earnings Call 16

News Update Principal Debt Profile as of June 30, 20181 + Share Repurchases After Q2 18

In US$ million

Gross Debt by Currency Gross Debt by Company

Strong Cash & Debt Position

Notes: Affiliates TGS, Transener, Greenwind, OldelVal and Refinor are included at O/S. (1) FX AR$28.85/US$. (2) Includes financial interests. (3) As of August 13, 2018.

Current Credit Ratings for Pampa B+ B2 B+ AA- (arg)

Consolidated debt from FS US$2,087 million + Affiliates' debt @ O/S US$225 million Total gross debt2 US$2,312 million Consolidated cash from FS US$930 million + Affiliates' cash @ O/S US$187 million

  • Share repurchase program3

US$(17) million Total cash US$1,100 million Pampa's net debt US$1,213 million Net Debt/LTM Adj. EBITDA 1.0 x

167 71 146 122 34 69 19 20 237 90 200 122 189 513 18 141 13 750 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 US$ US$ Link AR$

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Pampa Energía ● Q2 2018 Earnings Call

Thank you! Any Questions?

For further information, contact:

  • Gustavo Mariani

Vice President

  • Ricardo Torres

Vice President

  • Mariano Batistella

Planning, Strategy & Related Companies Executive Director

  • Lida Wang

Investor Relations Officer The Pampa Energía Building, Maipú 1 (C1084ABA), Ciudad Autónoma de Buenos Aires, Argentina +54 (11) 4344 6000 http://www.pampaenergia.com/ir investor@pampaenergia.com @PampaEnergia

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