Argentinian integrated energy conglomerate Pampa Energia (NYE:PAM) has reported its full-year 2022 results. The company, which operates in unconventional natural gas production, energy generation, and petrochemicals, has an installed capacity of 5 GW and generates 11.5% of Argentina’s electricity capacity. The company’s hydro production is tied to base energy prices, the wind portion is tied to power purchase agreements, and the thermal is divided between base energy contracts and PPAs. The base energy contracts carry significant price risk, with gross margins affected by inflation adjustments that are not always made, and the company generates a lot of its electricity under contracts that depend on political stability. Pampa Energia’s natural gas production, which comes from Vaca Muerta, is completely hedged at average prices of $3.6 per thousand cubic feet thanks to long-term contracts with the Argentine government until 2028. This covers the expansion of production, with the company granted contracts for 413 million cubic feet daily going into 2028. Pampa Energia produced 127 billion cubic feet of natural gas in 2022, 22% above 2021, while oil production was smaller, at 2 million barrels.
Pampa Energia Stock Analysis
According to forecasts from one analyst, the average target price for Pampa Energia SA ADR stock over the next 12 months is USD 0.00, with an average analyst ratings of “Hold.” Stock Target Advisor’s analysis of the stock suggests a slightly bullish sentiment, based on 9 positive signals and 7 negative signals. As of the last closing, Pampa Energia SA ADR’s stock price was USD 28.40, reflecting a -3.99% change over the past week, -14.20% change over the past month, and +32.40% change over the last year.
Company Overview
Pampa Energía S.A. is an Argentinean company that generates and transmits electricity through various sources such as thermal plants, gas turbines, hydroelectric power, and wind farms. The company also explores and produces oil and gas, manufactures petrochemicals, and operates a refinery and a network of gas stations. Pampa Energía has an installed capacity of approximately 4,970 megawatts and a high voltage electricity transmission network spanning over 21,000 kilometers in Argentina. The company was founded in 1945 and is headquartered in Buenos Aires.
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