Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART - PowerPoint PPT Presentation

Q4 2018 Results Call March 12, 2018 10 AM EST / 11 AM ART

Disclaimer The material that follows is a presentation of general background information about Pampa Energía SA as of the date of the presentation. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation contains information and statements that are forward-looking within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current assumptions, expectations and projections about future events. Forward-looking statements may be identified by the words 'believe', 'expect', 'anticipate', 'target', or similar expressions. While Pampa' s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Pampa, which could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, changing business, regulatory, political or other market conditions in Argentina and elsewhere, the completion of our new generation projects, the completion of our distribution and transmission subsidiaries' tariff revision process, the prospects for growth anticipated by our management, and the other risks and uncertainties discussed in our reports and other documents filed with the U.S. Securities and Exchange Commission. Further, Pampa undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise, nor makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied upon as a promise or representation that any such forward looking statements will be achieved. Management is not making and you should not infer any representation about the likely existence of any particular future set of facts or circumstances. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the Securities Act. Any offering of securities to be made in the United States will be made by means of a prospectus or offering prepared in connection with any such offering. Pampa Energía ● Q4 2018 Earnings Call 2

Today’s Agenda • Presented by Lida Wang, IRO  Reporting considerations to take into  Q4 2018 consolidated net income account  Cash and debt  2018 key takeaways  Q&A session  Q4 2018 consolidated EBITDA  Results & news by business segment • Power generation • Electricity distribution • Oil & gas upstream • Petrochemicals • Holding – TGS – Transener Pampa Energía ● Q4 2018 Earnings Call 3

2018’s Key Takeaways, in US$ Million 2018 EBITDA Consolidated Revenues 1 Consolidated Adj. EBITDA 2 Adjusted by Our Ownership 3 +31% +3% 1,101 Electricity 3,697 3,586 58% 841 Edenor 11% E&P Transener 29% 5% % TGS 13% Power 42% Oil & Gas 2017 2018 2017 2018 2017 2018 2017 2018 42% 1,096 Total CapEx by Business Unit 4 1,026 TGS 19% 8% 725 702 25% Oil and Gas 25% 24% Edenor 382 25% 274 4% 7% Transener 190 184 162 Power 37% 27% Generation 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: FX: AoP 2018 AR$28.13/US$, AoP 2017 AR$16.57/US$. Only continuing operations. (1) Figures include Plan Gas and affiliates’ sales at Pampa Energía ● Q4 2018 Earnings Call 4 O/S. (2) Figures include affiliates’ EBITDA at O/S. Under IFRS, Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in our FS. (3) It does not consider petrochemicals, residual R&M, holding and eliminations. (4) All businesses units’ investments at 100%.

Q4 2018 Consolidated Results Adjusted EBITDA from Continuing Businesses In nominal terms, million AR$ Adj. EBITDA 6,843 3,546 (114) 1,805 9 35 1,562 Q4 18 +87% nominal AR$ -12% in US$ Power Electricity Refining & Petro- Holding, Q4 17 Q4 18 Oil & Gas Generation Distribution Marketing chemicals Others & Eliminations Pampa Energía ● Q4 2018 Earnings Call 5 FX: AoP Q4 17 AR$17.56/US$, AoP Q4 18 AR$37.11/US$.

Power Generation Adjusted EBITDA Generation Performance In million AR$, nominal terms In GWh  Technical problem 3,546  AR$ devaluation at CTGEBA in Q4 17 +178% 3,325  New PPAs in  Major maintenance 2,693 force & full fare at CTLL in Q4 17 for legacy energy  Full operation of  Mario Cebreiro CTIW & MC wind 1,274 82% wind farm’s Thermal farm EBITDA @ 50% 73%  Lower dispatch Wind  Higher costs for requested at CTG, 3% gas, transp., CTPP and CTP Hydro 27% 18% O&M from new  Lower water flow at units Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 hydros Availability Performance News Update In % to Installed Capacity  Commissioning 3,871 MW of MC wind farm +3% 3,756 MW • New remuneration scheme for legacy capacity & CTIW 94.7% 94.2% -0.6%  CTLL’s steam • Fuel self-procurement developments turbine capacity increase • Expansions’ status: Genelba & wind farms Q4 17 Q4 18 Q4 17 Q4 18 Pampa Energía ● Q4 2018 Earnings Call 6

Power Generation Genelba Expansion Pampa Energía ● Q4 2018 Earnings Call 7

Power Generation PEPE II & III Wind Farms Expansions Pampa Energía ● Q4 2018 Earnings Call 8

Electricity Distribution Adjusted EBITDA Sales Performance In million AR$, nominal terms In GWh -8%  Lower demand 5,063  8% lower demand 539 4,652  Mild weather (114)  Higher rate & cost  Economic 5% of energy losses 6% recession  Higher penalties 38%  Price-demand 38% and operating Def. income 381 elasticity costs 17% 17% Public lighting &  RTI’s full fare shantytowns implementation + (495) 40% 39% costs update Industries SMEs  Income from Q4 17 Q4 18 Q4 17 Q4 18 deferred tariff Q4 17 Q4 18 Residential Q4 17 Q4 18 increase in 2017 Number of End-Users News Update In million • WEM seasonal programming +3% • Semiannual remuneration update 3.04  Market discipline 2.95 actions • Transfer of Edenor’s concession jurisdiction  Installation of MIDEs Q4 17 Q4 18 Q4 17 Q4 18 Pampa Energía ● Q4 2018 Earnings Call 9

Oil & Gas Adjusted EBITDA from Continuing Businesses Domestic Production Performance In million AR$, nominal terms In kboe per day 1,805 46.5  FX impact  Lower gas +39%  Better oil sale 42.5 production at R. price in US$ del Mangrullo 1,295  Incl. OldelVal’s  End of service at EBITDA @ 23.1% Medanito La  Lower gas prices Pampa in Oct-17 in US$  Higher gas  End of Plan Gas 2 production at El  Lower production Mangrullo & Río of hydrocarbon Neuquén blocks Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Argentina Gas Production Performance Argentina Crude Oil Production Performance In mcf/d In kb/d US$53.9/bbl US$6.2/MBTU US$3.4/MBTU 5.9 244 Price 222 US$60.3/bbl Price  End of Plan Gas 2  Export parity  CAMMESA & industries 5.4 Production  Residential  End of service at Medanito La Production Pampa  R. del Mangrullo  Slight increase of  El Mangrullo & Río oil prod. at El Neuquén Tordillo Q4 17 Q4 17 Q4 18 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Average Price Pampa Energía ● Q4 2018 Earnings Call 10

Oil & Gas News Update • Natural gas price for power generation • Changes to the Unconventional Gas Plan • Public tender for gas supply on a firm basis for distributors • Operation update Pampa’s certified proven reserves evolution Liquids 12% Undeveloped 41% % Developed 59% Natural Gas 88% Argentina 100% Pampa Energía ● Q4 2018 Earnings Call 11

Petrochemicals Adjusted EBITDA Sales Performance In million AR$, nominal terms In thousand ton  FX impact 35 US$1,021/ton US$955/ton  Fixed costs’ optimization 104 88  Excludes contingencies & impairments 61% Other  Lower int’l sale 70% prices in US$ SBR 8%  Lower demand Styrene & (142) 5% 31% Polystyrene 25%  Export duty Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18 Q4 17 Q4 18  Lower local and int’l demand of styrene products and SBR News Update  Closing of BOPS plant operation in • No news Zárate Pampa Energía ● Q4 2018 Earnings Call 12