Pampa Energia : - Q3 17 Earnings Release

Results for the nine-month period and quarter ended on September 30, 2017

Pampa Energía S.A. ('Pampa' or the 'Company'), the largest independent energy integrated company in Argentina, which through its subsidiaries participates in the electricity and oil and gas value chain, announces the results for the nine-month period and quarter ended on September 30, 2017.

Buenos Aires, November 10, 2017

Buenos Aires Stock Exchange Ticker: PAMP

New York Stock Exchange Ticker: PAM 1 ADS = 25 ordinary shares

Stock Information

Share capital in diluted basis: 1,938.4 million ordinary shares /

77.5 million ADSs

Market Capitalization:

AR$90,425 million / US$5,182 million

For further information, contact:

Gustavo Mariani

Executive Vice-president

Ricardo Torres

Executive Vice-president

Mariano Batistella

Executive Director of Planning, Strategy & Affiliates

Lida Wang

Investor Relations Officer

The Pampa Energía Building Maipú 1 (C1084ABA)

Buenos Aires City, Argentina Tel: [phone]

[e-mail] www.pampaenergia.com/ir

Main Results for the Nine-Month Period ended on September 30, 2017 ('9M17')

Consolidated net revenues of AR$48,158 million1, 163.4% higher than the AR$18,280 million for the same period of 2016 ('9M16'), explained by increases of AR$3,813 million in power generation, AR$8,459 million in electricity distribution, AR$7,811 million in oil and gas, AR$9,529 million in refining and distribution, AR$4,459 million in petrochemicals and AR$254 million in holding and others segment, partially offset by higher eliminations as a result of intersegment sales for AR$4,447 million.

 Power Generation of 11,494 GWh from 10 power plants

 Electricity sales of 16,440 GWh to 2.9 million end-users

 Production of 70.4 thousand barrels per day of hydrocarbons:

285 million cf/d of gas and 23 kboe/d of oil and NGL

 Sales of 1.4 million m3 of refined products and 354 thousand tons of petrochemical products

Adjusted consolidated EBITDA2 of AR$12,811 million, compared to AR$3,252 million for 9M16, mainly due to increases of AR$2,145 million in power generation, AR$2,594 million in electricity distribution, AR$3,708 million in oil and gas, AR$556 million in refining and distribution, AR$198 million in petrochemicals, AR$343 million in holding and others segment, and AR$15 million in intersegment eliminations. Consolidated gain of AR$3,970 million, of which AR$3,094 million is attributable to the owners of the Company, higher than the AR$993 million of loss attributable to the owners in 9M16, explained by higher reported gains in power generation (AR$2,199 million), electricity distribution (AR$1,733 million), oil and gas (AR$1,629 million), refining and distribution (AR$408 million) and intersegment eliminations (AR$16 million), partially offset by losses in petrochemicals (AR$146 million) and higher losses in holding and others segment (AR$1,752 million).

1 Under the International Financial Reporting Standards ('IFRS'), Greenwind, OldelVal, Refinor, Transener and TGS are not consolidated in Pampa's income statement and balance sheet, its equity income being shown only as 'Results for participation in associates' and 'Results for participation in joint businesses'. For more information, please refer to section 3 of this Earnings Release.

2 Consolidated adjusted EBITDA represents the consolidated results before net financial results, income tax and minimum notional income tax, depreciations and amortizations, non-recurring incomes and expenses and non-controlling interests, and includes other incomes not accrued and other adjustments from the IFRS implementation. For more information, please refer to section 3 of this Earnings Release.

Main Results for the Third Quarter of 2017 ('Q3 17')3‌

Consolidated net revenues of AR$17,357 million, compared to AR$9,897 million recorded in the third quarter 2016 ('Q3 16'), mainly explained by increases of AR$1,339 million in power generation, AR$3,047 million in electricity distribution, AR$1,157 million in oil and gas, AR$1,379 million in refining and distribution, AR$998 million in petrochemicals and AR$88 million in holding and others segment, partially offset by higher eliminations from intersegment sales of AR$548 million.

 Power generation of 3,724 GWh from 10 power plants

 Electricity sales of 5,583 GWh to 2.9 million of end-users

 Production of 70.6 kboe/d of hydrocarbons: 287 million cf/d of gas and 22.7 kboe/d of oil and NGL

 Sales of 447 thousand m3 of refined products and 124 thousand tons of petrochemical products

Consolidated adjusted EBITDA of AR$5,090 million, compared to AR$1,464 million in Q3 16, due to increases of AR$998 million in power generation, AR$1,406 million in electricity distribution, AR$647 million in oil and gas, AR$223 million in refining and distribution, AR$8 million in petrochemicals and AR$390 million in holding and others segment, partially offset by decreases of AR$46 million in intersegment eliminations. Consolidated gain of AR$1,624 million, of which AR$1,284 million is attributable to the owners of the Company, higher than the loss of AR$932 million attributable to the owners of the Company in the Q3 16, explained by reported higher earnings in our segments of power generation (AR$779 million), electricity distribution (AR$578 million), oil and gas (AR$179 million), refining and distribution (AR$225 million) and in our holding and others segment (AR$633 million), partially offset by losses in petrochemicals (AR$133 million) and intersegment eliminations (AR$45 million).

3 The financial information presented in this document for the quarters ended on September 30, 2017 and of 2016 are based on unaudited financial statements prepared according to the IFRS accounting standards in force in Argentina corresponding to the nine-month period ended on September 30, 2017 and of 2016, and the quarter ended on June 30, 2017 and 2016.

Table of Contents

Main Results for the 9M17 1

Main Results for the Q3 17 2

1. Relevant Events 4

2. News from Power Generation Segment 4

3. Transener: Response to the Motion for Reconsideration of the Integral Tariff Review ('RTI') Applicable to the 2017 - 2021 Period 5

4. Call for Public Hearings 5

5. Recognition of Edenor's Investments 6

6. News from Oil and Gas, and Refining and Distribution Segments 7

7. Corporate Reorganization 8

8. Modifications in the Company's Board of Directors and Supervisory Committee 9

9. Debt Securities Transactions 10

10. Financial Highlights 12

11. Consolidated Balance Sheet 12

12. Consolidated Income Statement 13

13. Cash and Financial Borrowings 14

14. Analysis of the Q3 17 15

15. Analysis of the Power Generation Segment 16

16. Analysis of the Electricity Distribution Segment 18

17. Analysis of the Oil and Gas Segment 20

18. Analysis of the Refining and Distribution Segment 22

19. Analysis of the Petrochemicals Segment 24

20. Analysis of the Holding and Others Segment 25

21. Analysis of the Nine-Month Period, by Subsidiary 27

22. Analysis of the Quarter, by Subsidiary 28

23. Information about the Conference Call 29

25. Relevant Events‌

26. News from Power Generation Segment‌
27. Awarding of Closing to Combined Cycle Project at Genelba Thermal Power Plant ('CTGEBA')

    On October 18, 2017, under the call for closing to combined cycle and co-generation projects, Resolution No. 926-E/2017 of the Secretariat of Electric Energy ('SEE') was published, whereby the Ministry of Energy and Mining ('MEyM') selected projects to enter into Wholesale Power Purchase Agreement ('PPA') with the Wholesale Electricity Market Company ('CAMMESA').

    Genelba Plus's closing to combined cycle, which will add an incremental capacity of 383 MW to CTGEBA's current facilities owned by the Company (the 'Project'), is among the twelve selected projects, which altogether will add more than 1.8 GW of power capacity to the grid.

    The Project consists of the installation of a new gas turbine and a steam turbine, as well as other enhancement works over the current Genelba Plus's gas turbine, which altogether will complete the second combined cycle at CTGEBA, with a gross power capacity of 552 MW and 52% of efficiency. The Project's investment budget is estimated around US$360 million, and the Project's engineering, equipment procurement and construction ('EPC') will be jointly carried out by Siemens and Techint. Its commissioning at open cycle is expected for the second quarter of 2019, and as closed cycle for the second quarter of 2020. The PPA will be effective for a term of fifteen years and will remunerate a fixed price of US$20,500 per MW per month and a variable price of US$6 per MWh.

    Along with this expansion, CTGEBA, which is located in Marcos Paz, Province of Buenos Aires, will have two combined cycles and will reach a total installed capacity of 1.2 GW. Currently, Genelba generates power with a 674 MW combined cycle and a 169 MW Genelba Plus's gas turbine, in which the Project will be conducted. Once all expansion projects are commissioned, Pampa Energía will contribute a total installed capacity of 4.3 GW to the Argentine grid.

28. Commissioning of the New Thermal Power Plant Parque Pilar ('CTPP')

    On August 31, 2017, CAMMESA granted the commercial operation of CTPP, pursuant to the PPA executed between CAMMESA and Pampa as awardee under the Call for New Generation Capacity pursuant to SEE Resolution No. 21/2016.

    The project, which consisted of the construction of a new thermal power plant in the Pilar Industrial Complex (located at Pilar, Province of Buenos Aires), is made up of 6 cutting-edge high-efficiency Wärtsilä engines, with a total power capacity of 100 MW and able to fire either natural gas or, alternatively, fuel oil. It is worth pointing out that said commissioning was achieved before the terms stipulated in the PPA, as from which time the applicable supply obligations became effective.

29. II RenovAr Tender

30. Pursuant to MEyM Resolution No. 275-E/2017 published in the Public Gazette ('BO') on August 17, 2017, it opened the National and International Call 'RenovAr Program II Round' for the electric energy from renewable sources contracted within the Wholesale Electric Market ('WEM'). The Call's purpose is to install power capacity for up to 1.2 GW, taking into consideration the source, power capacity, technology and region, with a maximum price for each specific technology.