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Pampa Energia SA (PAM)
NYSE:PAM
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Pampa Energia SA
(NYSE:PAM)
66Neutral
Positive Factors
Financial Management
Net debt decreased by US$150mn, highlighting a positive financial management aspect for Pampa Energia.
Market Entry
Pampa Energia has joined a project to monetize its shale gas resources through LNG exports, marking its entrance into the LNG market.
Negative Factors
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. S&P 500 (SPY)
Market Cap
$4.70B
Dividend YieldN/A
Average Volume (3M)265.40K
Price to Earnings (P/E)12.6
Beta (1Y)0.68
Revenue Growth-0.88%
EPS Growth-47.59%
CountryUS
Employees1,924
SectorUtilities
Sector Strength76
IndustryIndependent Power Producers
Share Statistics
EPS (TTM)5.94
Shares Outstanding54,540,813
10 Day Avg. Volume225,977
30 Day Avg. Volume265,398
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.48
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$105.50Price Target Upside41.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pampa Energia SA Business Overview & Revenue Model
Company DescriptionPampa Energia SA is a leading energy company based in Argentina, primarily operating in the electricity and oil and gas sectors. The company is engaged in the generation, transmission, and distribution of electricity, as well as the exploration and production of oil and gas. Pampa Energia also has investments in renewable energy projects, contributing to Argentina's energy matrix diversification.
How the Company Makes MoneyPampa Energia SA generates revenue through multiple streams. In the electricity sector, the company makes money by producing and selling electricity to the national grid, which is then distributed to residential, commercial, and industrial customers. The company operates thermal, hydroelectric, and renewable power plants, providing a diverse energy portfolio. In the oil and gas sector, Pampa Energia earns revenue by exploring, extracting, and selling crude oil and natural gas. The company also benefits from its involvement in midstream activities, such as the transportation and processing of oil and gas. Additionally, Pampa Energia engages in strategic partnerships and joint ventures to enhance its operational capabilities and expand its market reach. These partnerships, along with government contracts and regulatory frameworks, play a significant role in stabilizing and growing the company's revenue.
Pampa Energia SA Financial Statement Overview
Summary
Pampa Energia SA demonstrates robust profitability with a strong net profit margin and operational efficiency. However, challenges in cash flow management, with negative free cash flow and declining revenue, present ongoing financial risks.Income Statement
Pampa Energia SA shows a mixed performance in its income statement. The revenue decreased from $1.83 billion in 2022 to $1.73 billion in 2023, indicating a negative growth trend. However, the gross profit margin remains robust at 35.8%, and the net profit margin is strong at 17.4%. EBIT and EBITDA margins are healthy, reflecting efficient operations and strong profitability despite the revenue decline.68
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio of 0.61, indicating manageable leverage. The return on equity stands at 12.6%, showcasing effective use of equity to generate profits. The equity ratio of 50.9% suggests a balanced capital structure, providing stability.72
Positive
Cash Flow
Cash flow analysis reveals challenges, with negative free cash flow growth and a decline to -$183 million in 2023. The operating cash flow to net income ratio is 1.90, indicating sufficient cash generation relative to net income. However, the free cash flow to net income ratio is negative, reflecting significant capital expenditures impacting liquidity.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.62B | 1.73B | 1.83B | 1.51B | 1.07B | 1.34B | Gross Profit |
| 957.20M | 620.00M | 686.00M | 555.00M | 409.00M | 528.00M | EBIT |
| 608.57M | 424.00M | 507.00M | 436.00M | 261.00M | 370.00M | EBITDA |
| 1.21B | 658.00M | 719.00M | 641.00M | 465.00M | 554.00M | Net Income Common Stockholders |
| 658.19M | 302.00M | 456.00M | 273.00M | 225.00M | 495.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 835.00M | 835.00M | 700.00M | 573.00M | 491.00M | 644.00M | Total Assets |
| 4.72B | 4.72B | 4.74B | 3.86B | 4.89B | 5.68B | Total Debt |
| 1.46B | 1.47B | 1.62B | 1.45B | 1.62B | 1.96B | Net Debt |
| 1.29B | 1.29B | 1.52B | 1.34B | 1.48B | 1.73B | Total Liabilities |
| 2.31B | 2.31B | 2.46B | 2.07B | 3.12B | 3.27B | Stockholders Equity |
| 2.40B | 2.40B | 2.28B | 1.78B | 1.43B | 1.92B |
| Cash Flow | Free Cash Flow | ||||
| -355.83M | -183.00M | 203.00M | 523.00M | 569.00M | 376.00M | Operating Cash Flow |
| 641.60M | 575.00M | 619.00M | 729.00M | 693.00M | 802.00M | Investing Cash Flow |
| -636.72M | -446.00M | -575.00M | -474.00M | -255.00M | -369.00M | Financing Cash Flow |
| 10.33M | -57.00M | -46.00M | -342.00M | -445.00M | -390.00M |
Pampa Energia SA Technical Analysis
Negative
74.72
Price Trends
84.44
Negative
80.84
Negative
65.77
Positive
Market Momentum
-2.11
Negative
39.13
Neutral
56.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAM, the sentiment is Negative. The current price of 74.72 is below the 20-day moving average (MA) of 78.33, below the 50-day MA of 84.44, and above the 200-day MA of 65.77, indicating a neutral trend. The MACD of -2.11 indicates Negative momentum. The RSI at 39.13 is Neutral, neither overbought nor oversold. The STOCH value of 56.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $92.01B | 20.54 | 9.10% | 3.56% | 4.46% | 54.09% | |
77 Outperform | $101.96B | 22.89 | 13.61% | 3.10% | 5.83% | 10.23% | |
74 Outperform | $37.66B | 19.78 | 8.44% | 3.22% | 4.23% | -27.02% | |
73 Outperform | $57.22B | 18.74 | 11.37% | 3.37% | 2.76% | 31.53% | |
73 Outperform | $156.66B | 21.59 | 14.24% | 2.90% | 26.91% | -6.43% | |
66 Neutral | $4.70B | 12.59 | 10.87% | ― | -0.88% | -47.59% | |
65 Neutral | $11.97B | 15.55 | 6.46% | 4.42% | 7.00% | -1.11% |
* Utilities Sector Average
Performance Comparison
PAM
Pampa Energia SA
75.90
36.53
92.79%
AEP
American Electric Power
104.43
24.13
30.05%
ED
Consolidated Edison
103.77
16.87
19.41%
DUK
Duke Energy
117.70
26.23
28.68%
NEE
NextEra Energy
74.03
18.45
33.20%
SO
Southern Co
90.10
23.07
34.42%
Pampa Energia SA Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -3.97% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with strong performances in gas production and power, significant growth in EBITDA, and strategic financial management leading to reduced debt. However, challenges such as higher operating costs and seasonal decreases in margins were noted.Highlights
Record Gas Production
Reached a new all-time high in 2024 with a 21% growth in average gas output and an 80% increase since 2017, driven by top-performing wells in Vaca Muerta.
PEPE 6 Wind Farm Commissioned
Commissioned the PEPE 6 Wind Farm, adding 140 megawatts of clean energy, marking nearly a 50% growth since 2017 with a 95% availability rate in 2024.
EBITDA Growth
EBITDA grew 19% year-on-year and 29% compared to 2017, primarily from power and gas segments, contributing to a decrease in net debt to $410 million.
Strong Q4 Gas and Power Performance
Gas production rose 11% year-on-year in Q4, and power units recorded a 94% availability rate with improved PPA performance.
Successful Debt Management
Issued a $360 million international bond maturing in 2034, reducing net debt to $410 million, the lowest since 2016, with a net leverage ratio of 0.6 times.
Proven Reserves Increase
Total proven reserves rose 16% to 231 million barrels of oil equivalent, driven by increased activity in Sierra Chata and El Mangrullo.
Lowlights
Higher Operating Costs
Higher operating costs and lower exports at the blended FX partially offset gains, with lifting costs per boe rising to $8.7 per boe.
Decrease in Oil and Gas Margins
Margins in oil and gas were lower in the last quarter of 2024 due to reduced production volumes and lower prices compared to previous quarters.
Seasonal EBITDA Decrease
Notable quarter-on-quarter EBITDA decrease due to seasonality, despite an increase in gas deliveries from thermal power generation.
Company Guidance
In the Pampa Energia Fourth Quarter 2024 Results Video Conference, the company reported several key metrics and developments. The gas production saw a remarkable 21% year-over-year increase and an 80% surge from 2017, hitting an all-time high, driven primarily by top-performing wells in Vaca Muerta. Pampa's power segment also expanded, commissioning the PEPE 6 Wind Farm to add 140 megawatts, achieving a 95% availability rate. The company's EBITDA grew by 19% compared to the previous year and 29% since 2017, while net debt decreased to $410 million, the lowest since 2016. In Q4 alone, gas production rose by 11% year-over-year, with the power units achieving a 94% availability rate. Adjusted EBITDA for Q4 was $182 million, marking a 60% increase from the previous year. The company's CapEx was down 20% year-over-year, reflecting shale gas ramp-up operations, and proven reserves rose by 16% to 231 million barrels of oil equivalent, with shale reserves growing by 60%. The company also issued a $360 million bond to improve the debt profile, resulting in gross debt increasing to $2 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.