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Pampa Energia (PAM)
:PAM
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Pampa Energia SA
(NYSE:PAM)
Rating:68Neutral
Price Target:
$81.00
▲(8.42% Upside)
Positive Factors
Financial Management
Net debt decreased by US$150mn, highlighting a positive financial management aspect for Pampa Energia.
Market Valuation
Pampa is trading at approximately 3.6x EV/EBITDA, a 15% discount to historical levels, indicating potential value.
Strategic Initiatives
Pampa Energia has joined a project to monetize its shale gas resources through LNG exports, marking its entrance into the LNG market.
Negative Factors
Earnings Performance
Pampa Energia reported 3Q24 results slightly below estimates, with adj. EBITDA at US$212mn, a 10% decrease from the previous year.
Infrastructure Limitations
Existing export infrastructure is operating close to maximum capacity, which presents a challenge for continued gas production.
Investment Concerns
There is concern regarding the required investments in large-scale projects due to limited visibility on internal rates of return.
Pampa Energia SA (PAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.10B
Dividend YieldN/A
Average Volume (3M)238.91K
Price to Earnings (P/E)8.7
Beta (1Y)0.49
Revenue Growth6.57%
EPS Growth38.25%
CountryUS
Employees2,013
SectorUtilities
Sector Strength88
IndustryIndependent Power Producers
Share Statistics
EPS (TTM)0.70
Shares Outstanding54,540,813
10 Day Avg. Volume311,271
30 Day Avg. Volume238,906
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.45
Price to Sales (P/S)2.55
P/FCF Ratio-398.66
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.42
Enterprise Value/Gross Profit7.83
Enterprise Value/Ebitda4.95
Forecast
1Y Price Target
$83.00Price Target Upside11.10% Upside
Rating ConsensusHold
Number of Analyst Covering3
Pampa Energia SA Business Overview & Revenue Model
Company DescriptionPampa Energía S.A., an integrated power company, engages in the generation and transmission of electricity in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through combined thermal generation plants, open-cycle gas turbines, and hydroelectric power generation systems, as well as through a wind farm. The company has an installed electricity generation capacity of approximately 4,970 megawatts; and 21,414 kilometers of high voltage electricity transmission network in Argentina. It is also involved in the exploration and production of oil and gas. In addition, the company offers petrochemicals, such as styrene, synthetic rubber, and polystyrene. As of December 31, 2020, it had approximately 12.625 thousands of barrels of oil and LNG, as well as 24.537 millions of cubic meters of natural gas; owned a refinery with an installed capacity of approximately 25.8 thousand barrels per day; and operated a network of 92 gas stations. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.
How the Company Makes MoneyPampa Energia generates revenue through multiple streams, primarily from the sale of electricity generated by its power plants to the national grid and private customers. The company benefits from regulated tariffs for its electricity sales, which provide a stable revenue base. Additionally, it earns income from oil and gas production activities, including the exploration and extraction of hydrocarbons, which are sold in domestic and international markets. Strategic partnerships with government entities and private sector companies help Pampa Energia secure contracts and expand its operations. The company's focus on renewable energy projects also positions it to capitalize on growing demand for sustainable energy solutions, further diversifying its revenue sources.
Pampa Energia SA Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -3.62%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. The company experienced significant operational achievements such as the production ramp-up in Rincón de Aranda and contributions from the new wind farm, alongside proactive financial management. However, these were balanced by declines in adjusted EBITDA, oil and gas performance, and free cash flow issues driven by high CapEx. Overall, the sentiment remains balanced due to the equal presence of both highlights and lowlights.Q2-2025 Updates
Positive Updates
Rincón de Aranda Production Ramp-Up
Successful production ramp-up in Rincón de Aranda, achieving 16,000 barrels per day from 4 pads and expecting to reach 20,000 barrels per day by Q4 2025.
Wind Farm Contribution
The new 140 megawatts wind farm, PEPE 6, contributed positively to the quarter's figures, along with higher spot prices.
Proactive Liability Management
Extended the 2029 notes to 2034 with a $140 million recap issued at the lowest spread over U.S. treasuries in Pampa's history.
CapEx Surge
CapEx surged 134% year-on-year to $354 million, with significant investment in Rincón de Aranda development.
Power Generation EBITDA Increase
Power generation adjusted EBITDA increased by 5% year-on-year to $112 million, driven by PEPE 6 performance and higher spot prices.
Successful Gas Export to Chile
Increased gas exports to Chile, reaching 1.1 million cubic meters per day by June.
Negative Updates
Decline in Adjusted EBITDA
Adjusted EBITDA fell 17% year-on-year to $239 million, driven by soft gas sales, falling petchem prices, and higher operating expenses.
Oil and Gas EBITDA Drop
Oil and gas adjusted EBITDA decreased by 28% year-on-year to $87 million, largely due to reduced domestic gas sales and higher lifting costs.
Production Decline
Total production averaged 84,000 barrels per day, down 7% year-on-year due to output decreases at El Mangrullo and nonoperating blocks.
Free Cash Flow Outflow
Posted a free cash flow outflow of $307 million, mainly due to high CapEx at Rincón de Aranda.
Crude Oil Price Decline
Crude oil prices averaged nearly $62 per barrel in Q2, 14% lower than last year, affecting exports.
Company Guidance
During Pampa Energia's second quarter 2025 results call, the company reported an adjusted EBITDA of $239 million, a 17% year-on-year decline, primarily due to soft gas sales, falling petchem prices, and increased operating expenses. Despite these challenges, contributions from the new 140 megawatt PEPE 6 wind farm, increased gas exports to Chile, and higher production at Rincón de Aranda provided some offset. The quarter saw a CapEx surge of 134% year-on-year, reaching $354 million, with $249 million allocated to Rincón de Aranda's development. Oil and gas adjusted EBITDA was reported at $87 million, down 28% year-on-year, affected by decreased domestic gas sales and higher lifting costs. The company also highlighted a successful liability management transaction, extending the maturity of 2029 notes to 2034 with a $140 million recapitalization issued at the lowest spread over U.S. treasuries in the company's history.Pampa Energia SA Financial Statement Overview
Summary
Pampa Energia SA shows strong profitability margins with stable operational efficiency. However, revenue volatility and cash flow challenges, such as negative free cash flow, raise concerns about liquidity.Income Statement
Pampa Energia SA has shown a fluctuating revenue trend, with a revenue decrease from 2022 to 2024. Gross profit margin in 2024 was approximately 31.7%, indicating a solid profitability level. However, the net profit margin improved significantly to 32.6% in 2024, suggesting enhanced net income efficiency. The EBIT and EBITDA margins also reflect stable operational efficiency.65
Positive
Balance Sheet
The balance sheet shows a strong equity position with a debt-to-equity ratio of 0.64 for 2024, indicating moderate leverage. The equity ratio stands at 51.8%, reflecting a stable financial structure. ROE for 2024 increased to 16.6%, which signals improved profitability for shareholders.70
Positive
Cash Flow
Free cash flow showed volatility with negative figures in recent years, indicating potential cash management concerns. The operating cash flow to net income ratio was 0.68 in 2024, suggesting a decent conversion of net income to cash. However, the free cash flow to net income ratio was negative, highlighting issues in cash generation relative to profitability.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.87B | 1.88B | 1.73B | 1.83B | 1.51B | 1.07B |
| Gross Profit | 576.67M | 597.00M | 620.00M | 686.00M | 555.00M | 409.00M |
| EBITDA | 912.65M | 511.12M | 658.00M | 719.00M | 641.00M | 465.00M |
| Net Income | 506.56M | 619.00M | 302.00M | 456.00M | 273.00M | 225.00M |
Balance Sheet | ||||||
| Total Assets | 6.20B | 6.34B | 4.72B | 4.74B | 3.86B | 4.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.67B | 835.00M | 700.00M | 573.00M | 491.00M |
| Total Debt | 1.69B | 2.09B | 1.47B | 1.62B | 1.45B | 1.62B |
| Total Liabilities | 2.72B | 3.05B | 2.31B | 2.46B | 2.07B | 3.12B |
| Stockholders Equity | 3.47B | 3.29B | 2.40B | 2.28B | 1.78B | 1.43B |
Cash Flow | ||||||
| Free Cash Flow | -70.85B | -12.00M | -183.00M | 203.00M | 523.00M | 569.00M |
| Operating Cash Flow | 94.29B | 435.00M | 575.00M | 619.00M | 729.00M | 693.00M |
| Investing Cash Flow | -50.87B | -344.00M | -446.00M | -575.00M | -474.00M | -255.00M |
| Financing Cash Flow | -443.51B | 476.00M | -57.00M | -46.00M | -342.00M | -445.00M |
Pampa Energia SA Technical Analysis
Neutral
74.71
Price Trends
73.25
Positive
75.00
Positive
78.30
Negative
Market Momentum
1.22
Negative
51.70
Neutral
29.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAM, the sentiment is Neutral. The current price of 74.71 is above the 20-day moving average (MA) of 74.47, above the 50-day MA of 73.25, and below the 200-day MA of 78.30, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PAM.
Pampa Energia SA Risk Analysis
Pampa Energia SA disclosed 99 risk factors in its most recent earnings report. Pampa Energia SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pampa Energia SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $29.51B | 64.55 | 17.66% | 1.13% | 2.09% | -74.13% | |
69 Neutral | $1.92B | 19.14 | 5.84% | 2.81% | -9.99% | -73.66% | |
68 Neutral | $4.10B | 8.75 | 14.22% | ― | 6.57% | 38.25% | |
68 Neutral | $6.01B | 29.36 | 6.36% | 2.82% | 10.23% | 114.67% | |
66 Neutral | ¥376.10B | 6.84 | 9.30% | 2.60% | 3.14% | -4.77% | |
65 Neutral | $17.12B | 106.98 | 9.95% | ― | 125.17% | -74.67% | |
64 Neutral | $9.34B | 9.26 | 21.17% | 5.47% | -3.19% | 30.48% |
* Utilities Sector Average
Performance Comparison
PAM
Pampa Energia SA
75.58
23.75
45.82%
NRG
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152.03
73.39
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TXNM
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56.76
18.02
46.52%
AES
AES
12.80
-2.98
-18.88%
CEPU
Central Puerto SA
12.89
4.02
45.32%
TLN
Talen Energy Corp
369.95
250.19
208.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.