Pampa Energía Announces Second Quarter 2025 Results: Shale Oil Ramp-up, Gas Production Record

Rhea-AI Summary

Pampa Energía (NYSE:PAM) reported Q2 2025 financial results, with sales reaching US$486 million, marking a 3% year-over-year decline. The company's performance was impacted by lower gas deliveries and declining petrochemical and crude oil prices, partially offset by contributions from PEPE 6 wind power and increased export volumes.

Key financial metrics include Adjusted EBITDA of US$239 million (down 17% YoY) and net income of US$40 million (60% decrease YoY). The company maintained a healthy balance sheet with a net debt of US$712 million and a net debt-to-EBITDA ratio of 1.1x. Operationally, crude oil production increased by 47% to 8.0 kbpd, while gas production decreased 11% to 76.1 kboepd.

Positive

• Crude oil production increased significantly by 47% year-over-year
• Power generation gross margin improved by 5% to US$25.8/MWh
• Petrochemical sales volume grew 12% to 125k tons
• Healthy leverage with net debt-to-EBITDA ratio of 1.1x
• Increased export volumes across gas, crude and reformer products

Negative

• Sales declined 3% year-over-year to US$486 million
• Net income dropped 60% to US$40 million
• Adjusted EBITDA decreased 17% to US$239 million
• Gas production fell 11% to 76.1 kboepd
• Average oil prices declined 14% to US$61.6/bbl
• Petrochemical prices decreased 18% to US$978/ton

News Market Reaction – PAM

-6.59% 1.9x vol

11 alerts

-6.59% News Effect

-$319M Valuation Impact

$4.52B Market Cap

1.9x Rel. Volume

On the day this news was published, PAM declined 6.59%, reflecting a notable negative market reaction. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $319M from the company's valuation, bringing the market cap to $4.52B at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

BUENOS AIRES, ARGENTINA / ACCESS Newswire / August 6, 2025 / Pampa Energía S.A. (NYSE:PAM)(Buenos Aires Stock Exchange:PAMP), an independent company with active participation in Argentine oil, gas and electricity, announces the results for the six-month period and quarter ended on June 30, 2025.

Pampa reports its financial information in US$, its functional currency. For local currency equivalents, transactional exchange rate ('FX') is applied. However, Transener and Transportadora de Gas del Sur's ('TGS') figures are adjusted for inflation as of June 30, 2025, and converted into US$ using the period-end FX. Previously reported figures remained unchanged.

Second quarter 2025 ('Q2 25') main results¹

Sales recorded US$486 million in US$486 million in Q2 25², a 3% year-on-year slight decline, driven by lower deliveries under the Plan Gas Long-term gas sale agreement ('GSA') and a drop in petrochemical and crude oil prices, partially offset by contributions from Parque Eólico Pampa Energía 6 ('PEPE 6'), higher spot energy prices and increased export volumes of gas, crude and reformer products.

During Q2 25, oil production rose at Rincón de Aranda and wind power generation achieved a high load factor.

Pampa's main operational KPIs				Q2 25				Q2 24			Variation
Oil and gas	Production (k boe/day)			84.1				90.8				-7	%
	Gas production (kboepd)			76.1				85.4				-11	%
	Crude oil production (kbpd)			8.0				5.4				+47	%
	Average gas price (US$/MBTU)			4.0				4.0				-1	%
	Average oil price (US$/bbl)			61.6				71.8				-14	%
Power	Generation (GWh)			4,704				5,067				-7	%
	Gross margin (US$/MWh)			25.8				24.7				+5	%
Petrochemicals	Volume sold (k ton)			125				111				+12	%
	Average price (US$/ton)			978				1,199				-18	%

Adjusted EBITDA reached US$239 million in Q2 25, 17% less than Q2 24, explained by lower gas deliveries under Plan Gas and weaker domestic demand, a decline in petrochemical prices and higher operating expenses, partially offset by higher spot prices, PEPE 6 and increased oil output and gas exports.

Net income attributable to shareholders was US$40 million, 60% decrease year-on-year³, mainly explained by higher non-cash deferred tax charges and a lower operating margin, offset by gains from holding financial instruments and the absence of impairments recorded on Q2 24.

Net debt totaled US$712 million, representing a net-debt to EBITDA ratio of 1.1x, mainly due to higher working capital needs and continued investments in the development of Rincón de Aranda.

¹ The information is based on financial statements ('FS') prepared according to International Financial Reporting Standards ('IFRS') in force in Argentina.
² Sales from the affiliates CTBSA, Transener and TGS are excluded, shown as 'Results for participation in joint businesses and associates.'
³ Consolidated adjusted EBITDA represents the flows before financial items, income tax, depreciations and amortizations, extraordinary and non-cash income and expense, equity income, and includes affiliates' EBITDA at our ownership. Further information on section 3.1.

Consolidated balance sheet
(As of June 30, 2025 and December 2024, in millions)

		As of 06.30.2025								As of 12.31.2024
Figures in million		AR$				US$				AR$				US$
ASSETS
Property, plant and equipment			3,519,259				2,921				2,690,533				2,607
Intangible assets			111,806				92				99,170				95
Right-of-use assets			11,481				10				11,330				11
Deferred tax asset			139,295				116				161,694				157
Investments in associates and joint ventures			1,274,813				1,058				1,024,769				993
Financial assets at amortized cost			-				-				-				-
Financial assets at fair value through profit and loss			32,842				27				28,127				27
Other assets			436				-				366				-
Trade and other receivables			166,569				139				76,798				75
Total non-current assets			5,256,501				4,363				4,092,787				3,965
Inventories			294,050				244				230,095				223
Financial assets at amortized cost			51,012				42				82,628				80
Financial assets at fair value through profit and loss			814,863				676				877,623				850
Derivative financial instruments			45,748				38				979				1
Trade and other receivables			720,687				598				503,529				488
Cash and cash equivalents			193,570				161				761,231				738
Total current assets			2,119,930				1,759				2,456,085				2,380
Total assets			7,376,431				6,122				6,548,872				6,345
EQUITY
Equity attributable to owners of the company			4,199,021				3,485				3,391,127				3,286
Non-controlling interest			10,344				9				9,167				9
Total equity			4,209,365				3,494				3,400,294				3,295
LIABILITIES
Provisions			125,411				104				141,436				137
Income tax and minimum notional income tax provision			411,483				341				77,284				75
Deferred tax liability			58,729				49				50,223				49
Defined benefit plans			36,817				31				31,293				30
Borrowings			1,650,036				1,369				1,416,917				1,373
Trade and other payables			99,868				83				87,992				84
Total non-current liabilities			2,382,344				1,977				1,805,145				1,748
Provisions			10,215				8				10,725				10
Income tax liability			19,732				16				265,008				257
Tax liabilities			43,865				36				30,989				30
Defined benefit plans			6,942				6				7,077				7
Salaries and social security payable			28,461				24				40,035				39
Derivative financial instruments			2				-				2				-
Borrowings			267,715				222				728,096				706
Trade and other payables			407,790				339				261,501				253
Total current liabilities			784,722				651				1,343,433				1,302
Total liabilities			3,167,066				2,628				3,148,578				3,050
Total liabilities and equity			7,376,431				6,122				6,548,872				6,345

Consolidated income statement
(For the six-month periods and quarters ended on June 30, 2025 and 2024, in millions)

		First half																Second quarter
Figures in million		2025								2024								2025								2024
		AR$				US$				AR$				US$				AR$				US$				AR$				US$
Sales revenue			1,008,884				900				783,788				901				570,169				486				446,412				500
Domestic sales			839,685				750				649,186				742				466,791				398				374,607				416
Foreign market sales			169,199				150				134,602				159				103,378				88				71,805				84
Cost of sales			(700,707	)			(625	)			(487,428	)			(565	)			(399,697	)			(340	)			(272,245	)			(307	)
Gross profit			308,177				275				296,360				336				170,472				146				174,167				193
Selling expenses			(47,845	)			(43	)			(31,582	)			(36	)			(25,355	)			(22	)			(18,002	)			(20	)
Administrative expenses			(93,701	)			(84	)			(71,674	)			(83	)			(48,646	)			(41	)			(37,436	)			(42	)
Exploration expenses			(225	)			-				(167	)			-				(167	)			-				(85	)			-
Other operating income			60,181				53				70,781				83				24,708				21				41,789				48
Other operating expenses			(44,759	)			(40	)			(43,054	)			(52	)			(21,048	)			(18	)			(16,669	)			(21	)
Impairment on PPE, int. assets & inventories			(776	)			(1	)			(142	)			-				31				(1	)			(110	)			-
Impairment of financial assets			(2,508	)			(2	)			(49,592	)			(56	)			(2,296	)			(2	)			(19,762	)			(22	)
Results for part. in joint businesses & associates			91,347				76				31,894				39				43,203				30				(19,522	)			(22	)
Income from the sale of associates			-				-				5,765				7				-				-				4,307				5
Operating income			269,891				234				208,589				238				140,902				113				108,677				119
Financial income			38,744				35				2,009				2				3,250				2				662				-
Financial costs			(111,459	)			(99	)			(81,688	)			(94	)			(68,615	)			(58	)			(37,733	)			(41	)
Other financial results			138,110				122				62,861				74				100,060				85				19,056				22
Financial results, net			65,395				58				(16,818	)			(18	)			34,695				29				(18,015	)			(19	)
Profit before tax			335,286				292				191,771				220				175,597				142				90,662				100
Income tax			(115,125	)			(99	)			121,166				147				(118,154	)			(103	)			(1,521	)			(1	)
Net income for the period			220,161				193				312,937				367				57,443				39				89,141				99
Attributable to the owners of the Company			220,570				193				313,160				367				58,684				40				90,061				100
Attributable to the non-controlling interest			(409	)			-				(223	)			-				(1,241	)			(1.0	)			(920	)			(1	)
Net income per share to shareholders			162.2				0.1				230.3				0.3				43.2				0.0				66.2				0.1
Net income per ADR to shareholders			4,054.6				3.5				5,756.6				6.7				1,078.8				0.7				1,655.5				1.8
Average outstanding common shares1			1,360								1,360								1,360								1,360
Outstanding shares by the end of period1			1,360								1,360								1,360								1,360

Note: 1 It considers the Employee stock-based compensation plan shares, which amounted to 3.9 million common shares as of June 30, 2024 and 2025.

Consolidated cash flow statement
(For the six-month periods ended on June 30, 2025 and 2024, in millions)

		First half 2025								First half 2024
Figures in millions		AR$				US$				AR$				US$
OPERATING ACTIVITIES
Profit of the period			220,161				193				312,937				367
Adjustments to reconcile net profit to cash flows from operating activities			170,306				163				52,945				47
Changes in operating assets and liabilities			(267,928	)			(209	)			(294,654	)			(350	)
Increase in trade receivables and other receivables			(310,052	)			(254	)			(369,488	)			(432	)
Increase in inventories			(23,792	)			(20	)			(24,392	)			(30	)
Increase in trade and other payables			66,873				65				71,280				81
(Decrease) Increase in salaries and social security payables			(11,709	)			(10	)			3,122				3
Defined benefit plans payments			(1,314	)			(1	)			(1,074	)			(1	)
Increase in tax liabilities			13,739				13				26,664				30
Decrease in provisions			(4,245	)			(4	)			(916	)			(1	)
Collection for derivative financial instruments, net			2,572				2				150				-
Net cash generated by (used in) operating activities			122,539				147				71,228				64
INVESTING ACTIVITIES
Payment for property, plant and equipment acquisitions			(473,948	)			(444	)			(216,377	)			(260	)
Payment for intangible assets acquisitions			-				-				(2,457	)			(3	)
Collection for sales of public securities and shares, net			350,106				316				32,883				86
Subscription of mutual funds, net			(4,906	)			(4	)			(755	)			(1	)
Capital integration in companies			(44,726	)			(41	)			(19,750	)			(23	)
Payment for right-of-use			-				-				(11,192	)			(13	)
Collection for equity interests in companies sales			-				-				15,802				18
Collection for joint ventures?? share repurchase			-				-				30,138				37
Collections for intangible assets sales			4,608				3				-				-
Dividends collection			4				-				6,955				8
Collection for equity interests in areas sales			2,410				2				-				-
Collection (Payment) of loans			-				-				(115	)			-
Net cash generated by (used in) investing activities			(166,452	)			(168	)			(164,868	)			(151	)
FINANCING ACTIVITIES
Proceeds from borrowings			434,160				380				265,785				306
Payment of borrowings			(115,152	)			(108	)			(60,169	)			(69	)
Payment of borrowings interests			(113,675	)			(101	)			(71,365	)			(83	)
Repurchase and redemption of corporate bonds			(804,524	)			(725	)			(66,329	)			(75	)
Payments of dividends			-				-				(37	)			-
Payments of leases			(2,035	)			(2	)			(1,564	)			(2	)
Net cash (used in) generated by financing activities			(601,226	)			(556	)			66,321				77
(Decrease) Increase in cash and cash equivalents			(645,139	)			(577	)			(27,319	)			(10	)
Cash and cash equivalents at the beginning of the year			761,231				738				137,973				171
Exchange difference generated by cash and cash equivalents			77,487				n.a.				27,860				n.a.
Decrease in cash and cash equivalents			(645,139	)			(577	)			(27,319	)			(10	)
Cash and cash equivalents at the end of the period			193,570				161				138,514				161

For the full version of the Earnings Report, please visit Pampa's Investor Relations website: ri.pampa.com/en.

Information about the videoconference

There will be a videoconference to discuss Pampa's Q2 25 results on Thursday, August 7, 2025, at 10:00 a.m. Eastern Standard Time/11:00 a.m. Buenos Aires Time. The hosts will be Gustavo Mariani, CEO, Adolfo Zuberbühler, CFO, Horacio Turri, EVP and head of oil and gas and Lida Wang, IR & ESG Officer at Pampa.

For those interested in participating, please register here.

For further information about Pampa:

investor@pampa.com ri.pampa.com/en

www.argentina.gob.ar/cnv www.sec.gov

SOURCE: 1/3 Pampa Energía S.A.

View the original press release on ACCESS Newswire

FAQ

What were Pampa Energía's (PAM) key financial results for Q2 2025?

PAM reported sales of US$486 million (down 3% YoY), Adjusted EBITDA of US$239 million (down 17%), and net income of US$40 million (down 60% YoY).

How did Pampa Energía's oil and gas production perform in Q2 2025?

Crude oil production increased 47% to 8.0 kbpd, while gas production decreased 11% to 76.1 kboepd.

What is Pampa Energía's current debt position as of Q2 2025?

The company reported a net debt of US$712 million with a net debt-to-EBITDA ratio of 1.1x.

How did commodity prices affect Pampa Energía's Q2 2025 results?

Average oil prices declined 14% to US$61.6/bbl and petrochemical prices fell 18% to US$978/ton, negatively impacting revenues.

What were the main factors driving Pampa Energía's revenue decline in Q2 2025?

The revenue decline was driven by lower gas deliveries under Plan Gas, weaker domestic demand, and declining petrochemical and crude oil prices.