Pampa Energia: Rincon De Aranda And Fertilizers Add New Legs To The Bull Case

Pampa Energia’s Q2 results reinforced the long-term bullish thesis, with adjusted EBITDA up 75% Y/Y to $415M as Rincón de Aranda and power generation drove performance. Rincón de Aranda is scaling rapidly, while its RIGI approval and the $2.7B Fértil Pampa urea project add two major long-term catalysts. Despite rising capex and net debt, PAM retains manageable leverage; its diversified exposure to oil, gas, power, transport, and fertilizers differentiates it from pure-play peers. I maintain a Buy rating, as the market is still mispricing PAM’s multi-year Vaca Muerta growth runway, with $80-$90 offering an attractive entry range and $120 as a long-term target.

During my previous coverage of Pampa Energía ( PAM ), I noted that the company was going through a transitional period amid a key strategic shift in its production matrix. Since then, the energy company’s ADRs have