Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART - - PowerPoint PPT Presentation

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Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART - - PowerPoint PPT Presentation

Q4 2018 Results Call March 12, 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 and


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Q4 2018 Results Call

March 12, 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 ● Q4 2018 Earnings Call

Disclaimer

2

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  • Presented by Lida Wang, IRO
  • Reporting considerations to take into

account

  • 2018 key takeaways
  • Q4 2018 consolidated EBITDA
  • Results & news by business segment
  • Power generation
  • Electricity distribution
  • Oil & gas upstream
  • Petrochemicals
  • Holding

– TGS – Transener

  • Q4 2018 consolidated net income
  • Cash and debt
  • Q&A session

Pampa Energía ● Q4 2018 Earnings Call 3

Today’s Agenda

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841 1,101

2017 2018

3,586 3,697

2017 2018

37% 27% 4% 7% 24% 25% 25% 25% 8% 19% 190 184 162 274 382 702 725 1,026

1,096

2010 2011 2012 2013 2014 2015 2016 2017 2018 Power Generation Transener Edenor Oil and Gas TGS

Pampa Energía ● Q4 2018 Earnings Call 4

Consolidated Revenues1 Consolidated Adj. EBITDA2 2018 EBITDA Adjusted by Our Ownership3

2018’s Key Takeaways, in US$ Million

Total CapEx by Business Unit4

Note: FX: AoP 2018 AR$28.13/US$, AoP 2017 AR$16.57/US$. Only continuing operations. (1) Figures include Plan Gas and affiliates’ sales at O/S. (2) Figures include affiliates’ EBITDA at O/S. Under IFRS, Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in our FS. (3) It does not consider petrochemicals, residual R&M, holding and eliminations. (4) All businesses units’ investments at 100%.

2017 2018

+3% +31%

Edenor 11%

Transener 5%

Power 42% TGS 13% E&P 29%

Electricity 58% Oil & Gas 42%

%

2017 2018

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Pampa Energía ● Q4 2018 Earnings Call 5

Adjusted EBITDA from Continuing Businesses

In nominal terms, million AR$

Q4 2018 Consolidated Results

Q4 17

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

Q4 18

3,546 (114) 1,805 9 35 1,562

  • Adj. EBITDA

Q4 18

6,843

+87% nominal AR$

  • 12% in US$

FX: AoP Q4 17 AR$17.56/US$, AoP Q4 18 AR$37.11/US$.

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94.7% 94.2%

Q4 17 Q4 18

Hydro 27% 18% Wind 3% Thermal 73% 82%

2,693 3,325

Q4 17 Q4 18

1,274 3,546

Q4 17 Q4 18

3,871 MW

Pampa Energía ● Q4 2018 Earnings Call 6

Generation Performance

In GWh

Availability Performance

In % to Installed Capacity

Adjusted EBITDA

In million AR$, nominal terms

  • New remuneration scheme for legacy capacity
  • Fuel self-procurement developments
  • Expansions’ status: Genelba & wind farms

News Update

Power Generation

Q4 18 Q4 17

AR$ devaluation New PPAs in force & full fare for legacy energy Mario Cebreiro wind farm’s EBITDA @ 50%  Higher costs for gas, transp., O&M from new units Technical problem at CTGEBA in Q4 17 Major maintenance at CTLL in Q4 17 Full operation of CTIW & MC wind farm  Lower dispatch requested at CTG, CTPP and CTP  Lower water flow at hydros

Q4 18 Q4 17

3,756 MW

Q4 18 Q4 17

Commissioning

  • f MC wind farm

& CTIW CTLL’s steam turbine capacity increase

+178%

  • 0.6%

+3%

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Power Generation

Pampa Energía ● Q4 2018 Earnings Call 7

Genelba Expansion

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Pampa Energía ● Q4 2018 Earnings Call 8

PEPE II & III Wind Farms Expansions

Power Generation

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40% 39% 17% 17% 38% 38% 5% 6%

5,063 4,652

Q4 17 Q4 18

2.95 3.04

Q4 17 Q4 18

(495)

  • Def. income 381

539 (114)

Q4 17 Q4 18 Pampa Energía ● Q4 2018 Earnings Call 9

Sales Performance

In GWh

  • WEM seasonal programming
  • Semiannual remuneration update
  • Transfer of Edenor’s concession jurisdiction

News Update Adjusted EBITDA

In million AR$, nominal terms

Number of End-Users

In million

Electricity Distribution

Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17

Market discipline actions Installation of MIDEs

+3%

Public lighting & shantytowns Industries SMEs Residential  Lower demand  Mild weather  Economic recession  Price-demand elasticity  8% lower demand  Higher rate & cost

  • f energy losses

 Higher penalties and operating costs RTI’s full fare implementation + costs update Income from deferred tariff increase in 2017

  • 8%
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5.9 5.4

Q4 17 Q4 18

46.5 42.5

Q4 17 Q4 18

244 222

Q4 17 Q4 18 10

Domestic Production Performance

In kboe per day

Argentina Crude Oil Production Performance

In kb/d

Adjusted EBITDA from Continuing Businesses

In million AR$, nominal terms

Argentina Gas Production Performance

In mcf/d

Oil & Gas

Q4 18 Q4 17 Q4 18 Q4 17 Q4 17 Q4 18 Q4 18 Q4 17

US$53.9/bbl US$60.3/bbl

Pampa Energía ● Q4 2018 Earnings Call Average Price

US$6.2/MBTU

Price Export parity Production  End of service at Medanito La Pampa Slight increase of

  • il prod. at El

Tordillo

+39%

Price  End of Plan Gas 2  CAMMESA & industries Residential Production  R. del Mangrullo El Mangrullo & Río Neuquén  Lower gas production at R. del Mangrullo  End of service at Medanito La Pampa in Oct-17 Higher gas production at El Mangrullo & Río Neuquén blocks

US$3.4/MBTU

1,295 1,805

Q4 17 Q4 18

FX impact Better oil sale price in US$ Incl. OldelVal’s EBITDA @ 23.1%  Lower gas prices in US$  End of Plan Gas 2  Lower production

  • f hydrocarbon
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Pampa Energía ● Q4 2018 Earnings Call 11

  • Natural gas price for power generation
  • Changes to the Unconventional Gas Plan
  • Public tender for gas supply on a firm basis for distributors
  • Operation update

News Update

Oil & Gas

Developed 59% Undeveloped 41% Liquids 12% Natural Gas 88% Argentina 100%

%

Pampa’s certified proven reserves evolution

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31% 25%

8% 5%

61% 70%

104 88

Q4 17 Q4 18

(142) 35

Q4 17 Q4 18 Pampa Energía ● Q4 2018 Earnings Call 12

Sales Performance

In thousand ton

  • No news

News Update

Petrochemicals

Q4 18 Q4 17 Q4 18 Q4 17

Other SBR Styrene & Polystyrene  Lower local and int’l demand of styrene products and SBR  Closing of BOPS plant operation in Zárate FX impact Fixed costs’

  • ptimization

Excludes contingencies & impairments  Lower int’l sale prices in US$  Lower demand  Export duty

US$1,021/ton US$955/ton Adjusted EBITDA

In million AR$, nominal terms

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1,574 3,621

Q4 17 Q4 18

1,241 1,331

Q4 17 Q4 18

(81) 260

327 350 401 925

647 1,535

Q4 17 Q4 18

Pampa Energía ● Q4 2018 Earnings Call 13

Affiliates’ EBITDA Performance @ 100% Ownership

In million AR$, nominal terms

Adjusted EBITDA

In million AR$, nominal terms

  • TGS
  • Midstream project in Vaca Muerta
  • Public hearing
  • Proposal of dividends
  • Transener
  • Semiannual remuneration update
  • Distribution of cash dividends
  • Status of repurchase program
  • Corporate governance:
  • Appointment of CEO and CFO
  • +GC Panel

News Update

Holding & Others

TGS

Q4 18 Q4 17 TGS Transener Q4 17 Q4 17 Q4 18 Q4 18

 Inflation update RTI + cost update FX impact Lower int’l price and volume

+137%

Transener Holding

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Pampa Energía ● Q4 2018 Earnings Call 14

Net Income to Shareholders

In million AR$, nominal terms

Q4 2018 Consolidated Results

6,384 Q4 17

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

Q4 18

2,365 (1,136) 5,763 56 (7) (657)

Reported Q4 18 NI to Shareholders +AR$4.9bn nominal +100% in US$

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153 166 93 8 129 25 25 176 26

311 197 122 189 513 18 141 13 741 2019 2020 2021 2022 2023 2024 2025 2026 2027

Pampa Edenor Transener @ O/S TGS @ O/S Other affiliates @ O/S

Pampa Energía ● Q4 2018 Earnings Call 15

Summary @ Dec-181 + Debt Cancellations

In US$ million

Gross Debt by Currency Gross Debt by Company

Strong Cash & Debt Position

Principal Debt Profile as of December 31, 20181

In US$ million

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

Consolidated debt from FS US$2,054 million + Affiliates' debt @ O/S US$226 million Total gross debt2 US$2,280 million Consolidated cash from FS US$682 million + Affiliates' cash @ O/S US$163 million

  • Debt reduction after Dec-183

US$(129) million Total cash US$716 million Pampa's net debt US$1,565 million Net Debt/LTM Adj. EBITDA 1.4 x

Pampa US$750m @ 7½ Pampa US$500m @ 7⅜ Edenor US$176m @ 9¾ Transener US$99m @ 9¾ TGS US$500m @ 6¾ Debt cancelled after Q4 18 closing

AR$ 1% US$ Link 2% US$ 97%

%

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

%

Notes: Affiliates TGS, Transener, Greenwind, OldelVal and Refinor are included at O/S. (1) FX AR$37.7/US$. (2) Includes financial interests. (3) Debt prepayments and settlements at maturity after Q4 18 closing.

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Pampa Energía ● Q4 2018 Earnings Call

Thank you! Any Questions?

For further information, contact:

  • Gustavo Mariani

CEO

  • Ricardo Torres

Vice President

  • Mariano Batistella

Executive Director of Planning, Strategy, Downstream & Affiliates

  • 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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