Pampa Energía: Rincón de Aranda Drives a Record Quarter and a $4.5B RIGI Ambition
From gas utility to integrated shale oil powerhouse: Perito Moreno capacity, self-procurement, and a potential urea plant reshape the outlook.
PAM · Earnings Call · 2026-05-09
Record Quarter, Vertical Integration, and the Perito Moreno Bet
Pampa Energía's Q1 2026 report confirmed a transformation brewing for two years: the company is no longer just a power generator with gas assets—it is becoming a shale oil producer with a fully integrated gas-power value chain. Production hit an all-time high, EBITDA jumped 48% year-over-year, and management laid out a $4.5 billion RIGI-funded expansion of Rincón de Aranda, its flagship unconventional play.
“Production exceeded 100,000 barrels of oil equivalent per day, reaching a new quarterly all-time high” — Lida Wang, Investor Relations or Communications · 2026-05-09, driven by the sustained ramp-up at Rincón de Aranda and higher gas output under the new power generation framework. Rincón de Aranda alone contributed 17% of total EBITDA, up 8x from a year earlier. The synergies are visible: gas from Loma de la Lata and Genelba now self-supplies Pampa's CCGTs, self procurement reducing fuel costs and boosting spot margins.
Management was quick to monetize the new wholesale electricity market rules, which reward efficient thermal units with full dispatch margins. The Perito Moreno pipeline expansion is the latest move. Pampa secured 3.2 million cubic meters per day of firm capacity in the first tranche, paying $330 million in prepaid tariffs for 15 years. CEO Gustavo Mariani sees this as a way to “capture the full margin, not only the 15%” — Gustavo Mariani, Chief Executive Officer (CEO) · 2026-05-09 allowed under legacy rules, estimating “$100 million” — Gustavo Mariani, Chief Executive Officer (CEO) · 2026-05-09 of incremental EBITDA for power generation and another $50-60 million from E&P. This marks a strategic pivot from a pure asset owner to a trader of its own gas in its own plants.
The goal when we decided the hedging policy was to ensure stability of results, especially during the ramp-up and the first phase of the development of Rincon de Aranda.
Rincón de Aranda: The Engine and the RIGI Boost
Rincón de Aranda is now producing ~25,000 bbl/d, and management expects to reach 45,000 bbl/d once the central processing facility and the Vaca Muerta Sur pipeline come online. The RIGI application for the northern area represents a $4.5 billion investment, “including new shale oil wells and associated infrastructure” — Lida Wang, Investor Relations or Communications · 2026-05-09. In the prior quarter, the CEO had only said they were “starting to apply for the upstream part of Rincón de Aranda” — Gustavo Mariani, CEO · 2026-03-03; now the full-field development is on the table, with a longer plateau and better economics. The Perito Moreno award and the RIGI filing underscore a company that is aggressively converting its gas reserves into cash.
Urea, Hedge, and the Path to Deleveraging
The next catalyst could be the urea project, with a FID expected by Q3/Q4 2026. Mariani: “we hope to take the final investment decision by the end of the third quarter or at some point in the fourth quarter of this year” — Gustavo Mariani, Chief Executive Officer (CEO) · 2026-05-09. The plant would monetize cheap local gas to supply a regional deficit of 10 million tons of urea per year. While the quarter's free cash flow was negative $404 million, largely due to hedge collateral and CapEx, the balance sheet remains solid with net leverage at 1.5x. CFO Adolfo Zuberbuhler reiterated that without new projects the company would deleverage to zero in 2-3 years, but they plan to keep investing. The oil hedge at $65 Brent for the next 12 months provides a floor, though management intends to reduce the hedged percentage to ~50% as production grows. As Horacio Turri noted, “The average price until April next year is $65” — Horacio Jorge Tomas Turri, Head of Oil and Gas · 2026-05-09—a deliberate trade-off between stability and upside.
The contrast with the past is stark. A year ago, Pampa was still exporting gas to Chile and relying on Plan Gas contracts. Today, the B2B market and the new wholesale framework are reshaping the power segment, and the company is a top player in shale oil. In the Q4 2025 call, CFO Adolfo Zuberbuhler had projected “the EBITDA of the segment will improve by at least 15% next year due to these resolutions” — Adolfo Zuberbuhler, Chief Financial Officer · 2025-11-05. The question now is execution: RIGI approval, pipeline construction, and the urea plant all carry execution risk. But the trajectory is clear—Pampa is doubling down on its most valuable asset: its own gas.