Pampa Energía S.A. (NYSE:PAM) Q4 2023 Earnings Call Transcript

So, we increased our capacity by 80 megawatts of wind farm. We, Pampa, did a huge increase in its natural gas production capabilities in 2023. In 2022, we had capability — the capability to produce 11 million cubic meters of natural gas per day at a peak production. In winter 2023, we raised that capability to 16.5 million cubic meters of natural gas per day. That’s a 45% increase in production capacity. That is not only drilling new wells, but also building pipelines, building gas treatment plants. So, significant effort in terms of capital expenditures. And while doing so, thanks to, again, several things, basically the strong free cash flow generation of our assets, thanks to a very successful management of our liquidity, and an excellent – and excellent liability management.

As we explained given by the peso that we took at the beginning of the year, Pampa was able to reduce its net debt by one-third. We went — we had net debt position of $900 million at the end of 2022. We now have — at the end of 2023, we have a net debt of $600 million. So, we were able to reduce indebtedness by $150 million, and increase cash position by $100 million. So, $300 million reduction of net debt, putting us in a situation of very strong financial situation with a net debt of less than one time EBITDA. That gives an idea of Pampa capacity to finance future growth. So, I wanted to end with this optimistic comment.

Raquel Cardasz: Thank you. So there are no more questions. Thank you very much for your questions. I will now turn to Lida for final remarks.

Lida Wang: Okay. Thank you everybody. I hope all this answers your questions. If you have any more just contact us. We will more than happy to help you. I will bid you a good day. Bye.