Memoria y Estados Financieros 2019

Pampa Energía ● 2020 Annual Report ● 2

Contents

Glossary of terms 5

1. 2020 results and future outlook 10

2. Corporate governance 13

3. Our shareholders/stock performance 20

4. Macroeconomic context 22

5. The Argentine electricity market 23

6. The Argentine oil and gas market 41

7. Relevant events 54

8. Description of our assets 70

9. Human resources 93

10. Community and Pampa Energía Foundation 96

11. Information Technology 101

12. Quality, health, safety and environment 102

13. The fiscal year’s results 105

14. Dividend policy 117

15. The Board’s proposal 118

Appendix I: Corporate governance report 119

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2020 Annual Report

To the shareholders of Pampa Energía S.A. (‘Pampa,’ the ‘Company’ or the ‘Group’):

Pursuant to the statutory rules and Bylaws currently in force, we submit to your consideration the Annual Report and Financial Statements for the 77th fiscal year ended December 31, 2020.

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Glossary of terms

Term Definition

+GC Panel ByMA’s Corporate Governance Plus Panel ABOL Argentine Business Organizations Law No. 19,550 ADR/ADS American Depositary Receipts Administración Federal de Ingresos Públicos (Federal Administration of Public AFIP Revenue) AR$ Argentine Pesos Aislamiento social, preventivo y obligatorio (Preventive and mandatory social ASPO isolation) Bbl Barrel Banco Central de la República Argentina (Central Bank of the Republic of BCRA Argentina) BNA Banco de la Nación Argentina (Argentine National Bank) BO Boletín Oficial (Public Gazette) Board of Directors / Pampa Energía’s Board of Directors The Board Boe Barrels of oil equivalent BTU British Thermal Unit Share buyback programs approved on April 27, 2018, June 22, 2018, Buyback Programs March 27, 2019, August 12, 2019, November 8, 2019, March 9, 2020, April 13, 2020, October 30, 2020, and March 1, 2021 Bylaws Pampa Energía’s Bylaws ByMA Bolsas y Mercados Argentinos (Buenos Aires Stock Exchange) Compañía Administradora del Mercado Mayorista Eléctrico S.A. (Argentine CAMMESA Wholesale Electricity Market Clearing Company) CAU Cargo de Acceso y Uso (Access and Use Position) CB Corporate Bonds CC Combined Cycle CEE Comité Ejecutivo de Emergencia (Emergency Executive Committee) CEO Chief Executive Officer CFO Chief Financial Officer CH Hydroelectric power plant CIESA Compañía de Inversiones de Energía S.A. CITELEC Compañía Inversora en Transmisión Eléctrica Citelec S.A. CMA Capital Markets Act No. 26,831 CNG Compressed Natural Gas CNV Comisión Nacional de Valores (National Securities and Exchange Commission) Code Pampa’s Code of Corporate Governance COVID-19 Coronavirus disease CPB Central Piedra Buena S.A.

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CPD Costo Propio de Distribución (Own Distribution Cost) CPI Consumer Price Index CT Thermal Power Plant CTBSA CT Barragán S.A. CTEB Central Térmica Ensenada Barragán CTG Central Térmica Güemes CTGEBA Central Térmica Genelba CTIW Central Térmica Ingeniero White CTLL Central Térmica Loma de la Lata CTP Central Térmica Piquirenda CTPP Central Térmica Parque Pilar CVP Costo Variable de Producción (Variable Production Cost) Dam3 Cubic decameters DDJJ Affidavit DIGO Guaranteed Availability Commitments Distanciamiento social, preventivo y obligatorio (Preventive and mandatory DISPO social distancing) High-Voltage Electric Power Transmission System and/or DisTro Main Distribution Electric Power Transmission System DNU Decreto de Necesidad y Urgencia (Necessity and Urgency Decree) DoP Deliver or Pay E&P Exploration and Production EBITDA Earnings before interest, tax, depreciation and amortization EcoEnergía EcoEnergía Co-Generation Power Plant Edenor Empresa Distribuidora y Comercializadora Norte S.A. ENARGAS Ente Nacional Regulador del Gas (National Gas Regulatory Entity) ENARSA / IEASA Integración Energética Argentina S.A. (former Energía Argentina S.A.) Energía Plus Energía Plus Program, SE Res. No. 1,281/06 Ente Nacional Regulador de la Electricidad (National Electricity Regulatory ENRE Entity) ESG Environmental, Social and Governance FO Fuel Oil FOB Free on Board Fondo de Obras de Consolidación y Expansión de Distribución Eléctrica (Fund FOCEDE for Electricity Distribution Expansion and Consolidation Works) Foundation Fundación Pampa Energía FS Financial statements FV Face Value FX Nominal Exchange Rate(s) GB Great Britain

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GDP Gross Domestic Product GE General Electric GHG Greenhouse gases GO Gas Oil (Diesel Oil) Government / National Administration / Federal Government of the Republic of Argentina Federal Government GS Gas stations GT Gas turbine GU Large Users GU300 Large Users with demands over 300 kW GUDI Large Distribution Company Users GWh Gigawatt-hour GyP Gas y Petróleo de Neuquén S.A.P.E.M. HI Hydroelectric Plants HIDISA Hidroeléctrica Diamante S.A. HINISA Hidroeléctrica Los Nihuiles S.A. HMRT Hours of Maximum Thermal Demand HPPL Hidroeléctrica Pichi Picún Leufú Hydrocarbon Investments National Plan for Hydrocarbon Investments’ Strategic Planning and Committee Coordination Committee ICBC Industrial and Commercial Bank of China Dubai Branch IFRS International Financial Reporting Standards IGJ Inspección General de Justicia (Public Registry of Organizations) Instituto Nacional de Estadística y Censos de Argentina INDEC (National Institute of Statistics and Censuses) IPIM Índice de Precios Internos al por Mayor (Wholesale Domestic Price Index) Kb/kbbl/kboe Thousand barrels/thousand barrels of oil equivalent kCal Kilocalories Km Kilometer kton Thousand tons kW Kilowatt kWh Kilowatt-hour LNG Liquefied Natural Gas LPG Liquefied Petroleum Gas M&A Mergers and acquisitions M3 Cubic meters MAT Term Market MAT ER Term Market from Renewable Energy Sources MBTU Million BTU

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MDP Ministry of Productive Development (former SGE) MEGSA Mercado Electrónico de Gas S.A. Merval Mercado de Valores de Buenos Aires (Buenos Aires Securities Market) MEyM Former Ministry of Energy and Mining MinEn Former Ministry of Energy (former MEyM) MLC Mercado Libre de Cambios (Free Foreign Exchange Market) MMC Cost Monitoring Mechanism MW Mega watt MWh Mega watt-hour N.a. Not applicable N/A Not available NGL Natural Gas Liquids NYSE New York Stock Exchange OCP Oleoducto de Crudos Pesados OldelVal Oleoductos del Valle S.A. PACOGEN Pampa Cogeneración S.A. Pampa / the Company / Pampa Energía S.A. and its subsidiaries the Group / the Issuer PE Wind Farm PEMC Parque Eólico Ingeniero Mario Cebreiro PEN Poder Ejecutivo Nacional (National Executive Branch) PEPE Parque Eólico Pampa Energía PHA PHA SAU. Transportation System Entry Point, or PIST natural gas price at the wellhead Argentine Natural Gas Production Promotion Plan – 2020 – 2024 Supply and Plan Gas.Ar Demand Scheme (DNU No. 892/20 and supplementary provisions) Polisur PBB Polisur S.A. PPA Power Purchase Agreement Set of residential users, hospitals, schools, healthcare centers and other Priority Demand essential services (as from the launching of Plan Gas.Ar, it does not include CNG) PUREE Program for the Rational Use of Electric Power PyME Small and Medium-sized Enterprises QHSE Quality, Health, Safety and Environment R&D Refining and Distribution segment RCD Campo Durán Refinery RECPAM Results from Net Monetary Position Refinor Refinería del Norte S.A. RENPER Registry of Renewable Electric Power Generation Projects Res. Resolution(s)

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RTI Integral Tariff Review S&P Standard & Poor’s Global Ratings SADI Sistema Argentino de Interconexión (Argentine Electricity Grid) SDG Sustainable Development Goals SE Former Secretariat of Energy SEC Security and Exchange Commission Sect. Section(s) SEE Subsecretariat of Electric Energy (former Secretariat of Electric Energy) SGE Former Government Secretariat of Energy (former MinEn) SHC Subsecretariat of Hydrocarbons and Fuels SME Subsecretariat of Electricity Market Social Solidarity and Productive Reactivation Law No. 27,541 within the Solidarity Law framework of Public Emergency SOX Sarbanes-Oxley Act Subsecretariat of Hydrocarbon Resources (former Secretariat of Hydrocarbon SRH Resources) SRRYME Secretariat of Renewable Resources and Electricity Market ST Steam turbine Telcosur Telcosur S.A. TGS Transportadora de Gas del Sur S.A. TJSM Termoeléctrica José de San Martín TMB Termoeléctrica Manuel Belgrano Ton Metric ton ToP Take or pay Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Transba Provincia de Buenos Aires Transba S.A. Transelec Transelec Argentina S.A. Transener Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. TWh Terawatt-hora Encouragement Program for the Investment in Development of Natural Gas Unconventional Plan Gas Production from Unconventional Reservoirs Program, MEyM Res. No. 46, 419, 447 /17 and 12/18 UNIREN Public Utility Contract Renegotiation and Analysis Unit US$ USS Dollars VAD Distribution Added Value VAT Value-added tax VRD Debt Securities WEM Wholesale Electricity Market YPF YPF SA.

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1. 2020 results and future outlook

The year 2020 has been unprecedented in history, as it was marked by the global impact of COVID-19. Pampa Energía proudly celebrated the 15th anniversary of its accomplishments in this unusual context, with the same enthusiasm for investing and growth. We succeeded in building a leading company in the Argentine power industry during this period of changing environments, focusing on electricity generation and gas upstream. We have become a regional benchmark, standing out for our operating excellence and financial resilience. Despite the pandemic, in 2020 we’ve managed to ensure our operations’ continuity at an optimal level in line with our commitment to the country and our values, thanks to the enormous effort and support of all our employees, suppliers, financial relationships, investors and customers. The atypical impact of COVID-19 in the communities where we operate has generated a reaction of the same magnitude in our Corporate Social Responsibility activities, breaking all previous records. Besides, our volunteering programs demonstrate the human quality of our employees. From the companies controlled and co-controlled by Pampa, we have invested a total of US$528 million1. This plan highlights the timely and proper conclusion of important projects despite the pandemic’s unthinkable impact. Out of the total investment, US$347 million were disbursed for the maintenance of our assets, specifically, the provision of quality service by our regulated subsidiaries, and approximately US$181 million were allocated to expansions and non-recurring investments, mainly distributed between the closings to combined cycle at Genelba and Ensenada Barragán, and midstream projects in TGS. Moreover, we have continued with our plan to strategically reorganize our asset portfolio given a complex and uncertain prospect. After 15 years of controlling the country’s largest electricity distributor, we announced the sale of our controlling stake in Edenor, Pampa’s most relevant strategic divestment decision made over the last few years. Convinced that our Company’s synergy is increasingly limited, we made this divestment decision to continue focusing on developing our core businesses: power generation and natural gas production. We are very proud of the work carried out as Edenor’s controlling company. In these 15 years, the company has achieved outstanding customer satisfaction levels despite the challenging context under which we had to manage it. We have always prioritized expediting as much as possible service quality recovery, for which we had to relegate the interests of our shareholders. Edenor is a company that reinvests 100% of its financial capacity in its business without distributing dividends since the year 2001. With this decision, a significant chapter in the history of Pampa is closed, one that, although not economically profitable and implying an accounting impairment of US$382 million, has left us profound knowledge of the sector as a whole, and that we will certainly be able to capitalize on in the future. Our deep gratitude to all the excellent professionals who have accompanied us during this stage. Moving on to Pampa’s core businesses, for the third consecutive year, we have positioned ourselves as the largest independent power producer in Argentina, representing 12% of the country’s total generation. Despite the challenging scenario, on July 2, 2020 we set another milestone by commissioning the second combined cycle at Genelba, investing approximately US$320 million, 9% less than the budgeted amount. We timely and properly finishing the most ambitious expansion project in the history of Pampa, adding 400 MW of efficient energy to the grid, with an exceptional availability level since the beginning of operations. Thanks to the investments made over the last few years, even though the new capacity represents 41% of our 4,955 MW, its contribution to the EBITDA reaches 78% of the segment. We continued with the development of expansion projects, and we expect that within the next year, we will contribute an additional 295 MW, of which 280 MW will come from the closing to combined cycle at Ensenada Barragán, an affiliate co-controlled and operated by Pampa, with an existing capacity of 567 MW. This expansion project is vital to meet the industrial area’s growing consumption needs neighboring Greater La Plata. The project will require a US$200 million investment and currently provides direct employment to an average of 800 people. The leap in efficiency this work implies, that is, increased generation without additional fuel, contributes to environmental improvement by reducing the carbon

1 The amount includes Edenor and 100% of the investments in affiliates CTEB, PEMC, TGS, Transener, OldelVal and Refinor, which under IFRS are not consolidated in Pampa’s FS and are denominated in nominal AR$ converted at the year’s average FX.

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footprint. Our goal in the power generation sector has always been growing on a sustainable basis, seeking maximum efficiency through renewable energy and highly productive thermal units. We want to stress the high availability level of our power plants again, reaching 97%, well above the average of the national power grid and even above the global standards for each of the technologies we operate. However, the remuneration update for legacy capacity is imperative to continue with the proper maintenance of these plants, which are being remunerated at minimum historical values. 2020 was another challenging year in the E&P business, which was marked again by a steep drop in prices. This situation, which we had already warned about last year, generated a standstill in investment in the industry that started to become evident halfway through 2019, and resulted in an 11% year-on-year drop in domestic gas production. Despite all these vicissitudes, at Pampa, we have kept production essentially stable, positioning ourselves as the country’s sixth largest gas producer. We produced sustainably and pursued new paths for monetizing our products: for the first time, we exported Medanito crude oil, and in the off-peak period, we delivered gas to Chile. Faced with an even more complex outlook for the winter of 2021, at the end of 2020 the federal authorities, fortunately, reacted with the Plan Gas.Ar’s implementation and tender, a turning point for the business. This 4-year program seeks to promote and contractualize Argentine natural gas production and limit imports’ foreign exchange expenditures. Pampa was the third largest awardee in the Neuquina Basin, which involves an average 15% growth commitment in annual production and a 28% increase in the winter, the year’s peak period. Under this new scheme, we will continue focusing on the development of tight gas, with an aggregate investment of more than US$250 million over the four years of the program, which allows us to expect an increase in profitability and cash flow generation.

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Moreover, we succeeded in certifying shale reserves from the Vaca Muerta formation for the second consecutive year, 2.5 times larger than the certified volume recorded in 2019. Despite the conditions prevailing in the sector, we have registered for the third straight year a positive reserve replacement ratio of 1.4, with proven reserves reaching 142 million boe and an average life of approximately 8.6 years. As regards the petrochemicals segment, despite the country’s recessive context, 2020 was an excellent year for this segment, with record volumes of rubber exported to Brazil and growing demand for styrene and octane bases linked with the industry recovery and the easing of the lockdown. In 2020 we continued our public securities buyback activity at depressed prices, with the conviction that it represents a proper use of our liquidity generation. During the year, we have repurchased 11% of the original capital stock and 10% of the international corporate bonds maturing in 2023, 2027 and 2029. The pandemic reinforced the importance of sustainability, hence our continuous dedication and effort towards improving ESG variables and accountability, leading this area in Argentina. Our report has incorporated more management information and further developed material issues related to our industry, such as environmental performance and gender diversity. In 2020 we joined CDP, and we were the only Argentine power company to obtain a positive score. Additionally, we continue participating in ByMA’s corporate governance panel and sustainability index and Bloomberg’s gender equality index. The year 2020 was exceptional from every single point of view. Confronted with a historic downturn in economic activity, Pampa has shown strength and robustness in all its business segments, with a healthy cash flow generation even in this difficult context. We were prepared to handle adversity, and we remain enthusiastic about facing a challenging future. All this would not have been possible without the effort and dedication of the Company’s employees and advisors, our families, suppliers, financial institutions and investors, who have shown the continuous trust they place in us.

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2. Corporate governance

At Pampa, we believe that the best way of preserving and protecting our investors is to adopt and implement the best corporate governance practices, which consolidate us as one of the most trustworthy and transparent companies in the market. For such purpose, we constantly strive to incorporate those practices by considering international market trends and domestic and foreign applicable corporate governance standards and rules.

In this line, in December 2018, Pampa joined the special stock quote panel called +GC Panel, sponsored by ByMA. The +GC Panel has no precedents in Argentina. It includes companies already listed at ByMA with single-vote shares that comply with the best corporate governance and transparency practices even beyond the required regulatory level, which Pampa entirely fulfills. These practices, which are subject to periodic review for compliance, are aligned with the Corporate Governance principles of the Organization for Economic Co-operation and Development (OECD) and adopted by the G20.

Beyond the information contained in this section, further information on Pampa’s corporate governance practices can be found in Appendix I to this Annual Report, which includes the corporate governance report required under the Code pursuant to Section 1, Title I, Chapter I, Part IV of the CNV Rules, following the text restated in 2013 as amended by CNV General Res. No. 797/19.

2.1 Pampa’s corporate structure

Board of Directors

According to the ABOL, amended from time to time, the CMA and Pampa’s Bylaws, decision-making within the Company is vested in the Board. The Board consists of ten regular directors and an equal or smaller number of alternate directors as determined by the Shareholders’ Meeting, a percentage of whom will be independent according to the independence criteria set out in the CNV rules. All our directors are elected for a term of three years. They may be re-elected indefinitely, except for the restrictions arising from the independence standards set out in the CNV rules. The expiration and further renewal of terms of office are made on a partial and staggered basis every year, with the election of three directors for two years and four directors on the third year. Currently, Pampa’s Board is composed as follows:

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Name Position Independence Term expiration*

Marcos Marcelo Mindlin Chairman Non-Independent 12/31/2020 Gustavo Mariani Vice-chairman Non-Independent 12/31/2022 Ricardo Alejandro Torres Director Non-Independent 12/31/2022 Damián Miguel Mindlin Director Non-Independent 12/31/2020 Miguel Ricardo Bein Director Independent 12/31/2022 María Carolina Sigwald Director Non-Independent 12/31/2020 Gabriel Cohen Director Non-Independent 12/31/2021 Carlos Correa Urquiza Director Independent 12/31/2021 Juan Santiago Fraschina Director Independent 12/31/2021 Darío Epstein Director Independent 12/31/2021 Horacio Jorge Tomás Turri Alternate Director Non-Independent 12/31/2022 Victoria Hitce Alternate Director Non-Independent 12/31/2022 Gerardo Carlos Paz Alternate Director Non-Independent 12/31/2020 Mauricio Penta Alternate Director Non-Independent 12/31/2020 Brian Henderson Alternate Director Non-Independent 12/31/2020 Diego Martín Salaverri Alternate Director Non-Independent 12/31/2021 Pablo Díaz Alternate Director Non-Independent 12/31/2021 Silvana Wasersztrom Alternate Director Independent 12/31/2021 Nicolás Mindlin Alternate Director Non-Independent 12/31/2021 Haroldo Adrián Montagu Alternate Director Independent 12/31/2021

Note: *They will be in office until their reelection or the election of their substitutes.

Senior management

The following table includes information on our senior management:

Name Position

Marcos Marcelo Mindlin Chairman Gustavo Mariani Executive vice president and CEO Ricardo Alejandro Torres Executive vice president Damián Miguel Mindlin Executive vice president Gabriel Cohen CFO Horacio Jorge Tomás Turri Executive director of oil and gas María Carolina Sigwald Executive director of legal affairs Nicolás Mindlin Director of M&A, petrochemicals and affiliates

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Supervisory committee

Our Bylaws provide that the oversight of Pampa will be in charge of a Supervisory Committee consisting of three regular members and three alternate members appointed by our shareholders under the legal provisions in force. The Supervisory Committee will be composed of duly registered lawyers and/or accountants admitted to practice in Argentina, who will serve for a term of three fiscal years.

The Supervisory Committee’s primary function is to exercise statutory control over the Board, complying with the provisions outlined in the ABOL, the Bylaws, their regulations, if any, and the Shareholders’ Meeting decisions. In accomplishing these duties, the Supervisory Committee neither monitors our operations nor assesses the merits of the Board’s members’ decisions.

Currently, Pampa’s Supervisory Committee is composed as follows:

Term Name Position expiration** Germán Wetzler Malbrán Statutory Auditor* 12/31/2020 José Daniel Abelovich Statutory Auditor 12/31/2020 Martín Fernández Dussaut Statutory Auditor 12/31/2020 Tomás Arnaude Alternate Statutory Auditor 12/31/2020 Marcelo Héctor Fuxman Alternate Statutory Auditor 12/31/2021 Damián Burgio Alternate Statutory Auditor 12/31/2021

Note: *Chairman of the Supervisory Committee. **They will be in office until their reelection or the election of their substitutes.

Audit committee

According to Section 109 of the CMA, Pampa has an Audit Committee integrated by three regular members and one alternate member, whom all hold independent status according to the independence standards set out in the CNV Rules. The Audit Committee members have professional expertise in financial, accounting, legal, and/or business matters.

Under the applicable legislation and its own Internal Regulations, the Audit Committee is responsible for compliance with the following duties, among others:

i. Supervising the operation of internal control and administrative/reporting systems, as well as the latter’s reliability and of all financial information or any other significant events that may be disclosed to the CNV and the markets, in compliance with the applicable reporting system; ii. Rendering opinion on any Board’s proposal appointing external auditors to be hired by the Company, and ensuring their independence; iii. Reviewing the plans submitted by external and internal auditors, assessing their performance, and issuing an opinion on the presentation and disclosure of annual FS, all under the CNV rules. For the supervision of external auditor’s performance, the Committee may determine a series of objective indicators to assess their commitment, efficiency and independence; iv. Supervising the implementation of risk management information policies within the Company; v. Providing the market with complete information on transactions where there may be a conflict of interest with members of corporate bodies or controlling shareholders; vi. Rendering its opinion on remunerations and stock options plans’ proposals for the Company’s directors and managers submitted by the Company’s Board;

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vii. Rendering its opinion on the compliance with legal requirements and the reasonableness of the conditions for the issuance of shares or convertible securities in capital increases with the exclusion or limitation of preemptive rights; viii. Issuing a well-founded opinion on related-party transactions in the cases provided by law and disclosing it in compliance with law whenever there is or may be an alleged conflict of interest within Pampa; ix. Supervising the operation of a channel whereby the Company’s executives and staff may report accounting, internal control and audit issues under the applicable provisions to such effect; x. Providing any report, opinion or statement required by the current regulations in force, with the scope and frequency required by such regulations, as amended, etc.; xi. Fulfilling all obligations provided for in the Bylaws, as well as laws and regulations binding the Company; xii. Checking compliance with applicable standards of ethical conduct; and xiii. Drawing up an annual action plan, for which it will be held accountable to the Board and the Audit Committee. The Audit Committee will submit such action plan within a term of 60 calendar days from the beginning of the fiscal year.

Currently, Pampa’s Audit Committee is composed as follows:

Name Position

Miguel Ricardo Bein Chair Darío Epstein Regular Member Carlos Correa Urquiza Regular Member Silvana Wasersztrom Alternate Member

2.2 Minority shareholder protection

Pampa’s Bylaws include safeguards aimed at the protection of minority shareholders, such as: (i) only one class of shares granting equal economic and political rights; (ii) special majorities of up to 66.6% of the votes to amend specific clauses of the Bylaws; and (iii) possibility to call a shareholders’ meeting upon request of shareholders representing at least 5% of the capital stock.

2.3 Corporate governance policies

Integrity program – Law No. 27,401

Upon enacting and entering into force of the Legal Entities’ Criminal Liability Law, Pampa’s Board assessed the Integrity Program’s compliance level, outlined in Sections 22 and 23 of such law. Said law seeks to implement internal proceedings, mechanisms and actions for integrity, supervision and control, geared at preventing, detecting and correcting the irregularities and illegal acts covered by such law.

The Program set forth by law has mandatory and optional requirements, and Pampa has defined the need to comply with all of them. It is worth highlighting that all mandatory requirements had already been implemented at Pampa before said law’s effective date.

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Furthermore, the Integrity Program is periodically reviewed by the Board, including identifying potential improvement opportunities. The Board has defined that Pampa’s Internal Audit Department will be the body internally responsible for the program, including its development, coordination and supervision.

Code of business conduct – ethics hotline

Pampa has a Code of Business Conduct in place, which lays down the ethical principles for the relationships’ foundation between Pampa and all stakeholders (employees, customers, suppliers, government, shareholders, community, etc.) by providing guidelines and instruments that guarantee transparency of affairs and proper Company management.

Moreover, Pampa has a Procedure for handling complaints. This document describes the process to be followed from the reception of the complaint, the investigation’s conclusion and the application of any appropriate corrective action. One of the available instruments is the Ethics Hotline, an exclusive channel to report any suspected misconduct or breach of the Code of Business Conduct on a strictly confidential basis. This line can be accessed through different channels (website, toll-free telephone number or e-mail) and is managed by a third-party provider to ensure higher transparency. The Audit Committee is responsible for supervising the channel’s operation and resolving complaints in issues within its authority.

Policy against fraud, corruption and other irregularities

In 2020, Pampa’s Board of Directors approved an update to the policy against fraud, corruption and other irregularities, reaffirming transparency and ethics as necessary behaviors to lead the Company’s business and achieve its sustainable growth.

In this sense, this policy prohibits fraud, corruption in any form, or acts of misconduct within Pampa. Moreover, it sets Pampa’s stance on preventing corruption and other acts of misconduct, complementing the principles and values defined in our Code of Conduct; therefore, both documents should be read in conjunction. Finally, this policy also stipulates the obligation to report any actual or suspected violation of laws and/or regulations, as well as the prohibition of retaliation against any employee or third party for filing a report legitimately and in good faith or for refusing to participate in acts of corruption.

Policy on best security market practices

This policy sets certain restrictions and rules regarding marketable securities trading in a stock exchange, whether Pampa’s and/or any related companies. Therefore, it ensures higher transparency and guarantees that no Pampa employee may be rewarded of any economic advantage or benefit from using material non-public information about Pampa and/or any of its affiliates.

This policy applies to Pampa and its subsidiaries’ employees deemed ‘covered individuals,’ including, but not limited to, directors, members of the Supervisory Committee, and Senior Management lines.

Policy on related-party transactions

Since 2008, the Company has a Policy on Related-Party Transactions where, under the CMA, all high-value transactions made between Pampa and individuals and/or legal entities that could be deemed as ‘related parties’ according to the applicable regulations in force, shall be subject to a specific prior authorization and control procedure under the supervision of Pampa’s Legal Affairs Executive Department and involves both Pampa’s Board and its Audit Committee (if applicable).

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Money laundering and terrorist financing prevention policy

In its capacity as trustee under the CIESA Trust, Pampa qualifies as an ‘Obliged Subject’ according to Subsection 22, Section 20 of Law No. 25,246 on Concealment and Laundering of Proceeds of Crime, as amended. This policy was approved to meet the obligations resulting from its condition as ‘Obliged Subject,’ even though Pampa neither acts as a trustee in companies nor any other activity set out in Section 20 of Law No. 25,246 are among the Company’s main activities as of this date. Said law is based on and geared at possible risks for the Company resulting from its role as trustee under a single trust.

Board of Directors’ self-assessment questionnaire

Since 2008, Pampa’s Board has implemented a self-assessment questionnaire that allows for annually examining and assessing its performance and management.

The Company’s Legal Affairs Executive Department oversees the examining and filing of each individual questionnaire; afterward, based on the results, it will submit to Pampa’s Board all measures deemed valid to improve the performance of the Board’s duties.

Policy on material information disclosure

Since 2009, the Company has a Relevant Information Disclosure Policy approved by Pampa’s Board, which sets the basic principles guiding the process when information relevant to Pampa is published, as per regulatory requirements imposed by the stock exchanges where Pampa’s securities are traded or those in which Pampa is a registered issuer.

QHSE policy

This policy, approved by Pampa’s Board in 2017, seeks to consolidate the QHSE standards into the operating processes of E&P, power generation, electricity distribution, R&D and petrochemicals with the highest safety possible within the ordinary course of each activity.

Dividend policy

Approved by Pampa’s Board in 2018, this policy outlines the guidelines to reach a proper balance between distributed amounts and Pampa’s investment plans. Aiming at a clear, transparent and consistent practice allowing shareholders informed decision-making, all of this consistent with the Company’s Bylaws and the applicable legal and regulatory framework in force.

Compensation policy

Pampa’s Board approved the Compensation Policy in 2018, which aims to establish general rules to determine the composition, update and handling of directors’ remunerations and the rules for the reimbursement of their expenses.

Under the Compensation Policy, the Board created the Compensation Committee, which reports to Pampa’s Board and comprises three regular members and an equal or smaller number of alternate members, who may not exercise executive functions in the Company. Currently, Pampa’s Compensation Committee is composed as follows:

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Term Name Position Independence expiration Miguel Ricardo Bein Chairman Independent 12/31/2022 Carlos Correa Urquiza Regular Member Independent 12/31/2021 Darío Epstein Regular Member Independent 12/31/2021 Silvana Wasersztrom Alternate Member Independent 12/31/2021

Nomination policy

Pampa’s Board approved the Nomination Policy in 2018, which sets the general guidelines regarding independence, incompatibilities and diversity in the Board, and describes the process to be followed by both the Board and shareholders for the identification and evaluation of Board’s nominees to be presented for consideration by the Shareholders’ Meeting.

Under the Nomination Policy, the Board created the Nomination Committee, which assists Pampa’s Board and Shareholders’ Meeting in the nomination and appointment process for Board members. The Nomination Committee reports to Pampa’s Board. It comprises three regular members and an equal or smaller number of alternate members, the Chairman having to be independent according to the criteria stipulated by the CNV rules. Currently, Pampa’s Nomination Committee is composed as follows:

Term Name Position Independence expiration Miguel Ricardo Bein Chairman Independent 31/12/2022 Gustavo Mariani Regular Member Non-Independent 31/12/2022 Ricardo Alejandro Torres Regular Member Non-Independent 31/12/2022 Silvana Wasersztrom Alternate Member Independent 31/12/2021 Victoria Hitce Alternate Member Non-Independent 31/12/2022 María Carolina Sigwald Alternate Member Non-Independent 31/12/2020

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3. Our shareholders/stock performance

On December 31, 2020, Pampa held 1,747,873,239 issued common shares with a par value of AR$1 each, each granting the right to one vote. However, Pampa’s Shareholders Meetings held on April 7 and December 10, 2020, approved capital stock reductions of 151,585,025 and 140,786,959 common treasury shares, respectively, which Pampa and its subsidiaries have acquired. These reductions are in the process of registration with the IGJ, and once approved, Pampa Energía’s issued capital stock would amount to 1,455,501,255 common shares2.

The remaining treasury shares are out of free float, and their cancellation will be timely submitted for shareholder’s approval.

The following table shows the information on Pampa’s common shareholdings:

In million % of Holders % of issued outstanding as of December 31, 2020 capital stock Shares ADR capital stock

Management1 381.4 15.3 21.8% 26.2% Free float on NYSE and ByMA 1,068.2 42.7 61.1% 73.5%

Treasury shares 294.0 11.8 16.8% -

Pending cancellation 292.4 11.7 16.7% -

In treasury2 1.6 0.1 0.1% - Employee stock-based 4.3 0.2 0.2% 0.3% compensation plan Issued capital 1,747.9 69.9 100.0% 100.0% Outstanding capital 1,453.9 58.2

Note: All figures are rounded, so the total may not equal the sum of the figures. 1 It includes direct and indirect stakes of Messrs. Marcos Marcelo Mindlin, Damián Miguel Mindlin, Gustavo Mariani and Ricardo Alejandro Torres. 2 Shares repurchased as of December 31, 2020.

Pampa is listed on the ByMA, takes part in the S&P Merval and the sustainability (non-traded) indexes, and is a member of the special stock quote panel, known as +GC Panel, which selects listed companies having the best corporate governance practices.

Moreover, Pampa has a Level II ADS program listed on the NYSE, and each ADS represents 25 common shares. Our ADR participates in the MSCI Argentina index and the Bloomberg’s gender-equality stock index (non-traded), in which Pampa is the only Argentine company jointly with other 14 Latin American companies.

2 For further information, see section 7.7 of this Annual Report.

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The following chart shows the price evolution per share and Pampa’s traded volume on the ByMA from January 2006 to December 31, 2020:

AR$ per share* Volume (AR$ million) 90 300

80 250 70

60 200

50 150 40

30 100

20 50 10

- - Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 Jan-18 Jan-20

Note: *Price adjusted to preemptive subscription rights and issuances. Source: ByMA/Bloomberg.

The following chart shows the price evolution per ADS and Pampa’s traded volume on the NYSE from October 9, 2009, to December 31, 2020:

Volume US$ per ADS* (US$ million) 80 270

70 240 210 60 180 50 150 40 120 30 90 20 60

10 30

- - Oct-09 Oct-11 Oct-13 Oct-15 Oct-17 Oct-19

Note: *Price adjusted as per issuances. Source: Bloomberg.

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4. Macroeconomic context

As of the third quarter of 2020, the economic activity recorded an accumulated 11.8% decrease compared to the same period of the previous year, mainly due to the impact of COVID-19, with 14.6%, 5.4% and 22.3% decreases in private and public consumption, and investment, respectively. The activity contraction reached 15 out of 16 identified sectors of the economy, the most affected ones being hotels and restaurants (-47.6%), construction (-32.1%), transportation and communications (-16.5%), manufacturing industry (-11.0%) and wholesale and retail business and repairs (-8.5%). These drops were partially offset by net exports, against net imports in 2019, mainly because of the sharp decline in imports from the beginning of the lockdown.

Regarding the evolution of prices, the National Cost of Living Index published by the INDEC showed a 36.1% variation in 2020. The most important variations were recorded in clothing and footwear (+60.0%), leisure and culture (+48.0%), and food and non-alcoholic beverages (+42.1%). The sectors affected to a lower extent were communications (+7.6%), housing, water, electricity utilities and other fuels (+17.6%) and education (+20.1%). Furthermore, salaries, as measured by the registry of the Stable Workers’ Average Taxable Remuneration (Remuneración Imponible Promedio de los Trabajadores Estables, RIPTE), experienced a 34.9% year-on-year increase between December 2020 and the same month of 2019.

Moreover, as of December 2020 Non-Financial Public Sector’s fiscal accounts accumulated a 7.0% and 9.1% primary and total deficit to GDP, respectively. The annual variation in aggregated tax revenues, measured in AR$ based on figures published by the AFIP, ended with a 32.2% year-on-year increase. Besides, in 2020 recorded primary expenditures by the National Treasury showed a 63.5% year-on-year variation.

As regards the financial situation, the BCRA’s US$ currency wholesale FX rate (Res. A3500) closed at AR$84.15/US$ on December 31, 2020, showing a cumulative 40.5% increase compared to the end of 2019 and a 46.3% average year-on-year variation. The BCRA’s international reserves amounted to US$39.4 billion at year-end, which represents a US$5.5 billion decrease compared to the previous year. Moreover, the monetary base reached AR$2,470 billion at the end of 2020, showing a 30.3% increase compared with last year. Furthermore, the BCRA’s debt stock in issued bonds totaled an equivalent amount expressed in dollars of US$35.0 billion as of the closing of 2020, which represents a 97% year-on-year increase.

Finally, at the external front, according to INDEC’s data, the cumulative current account surplus amounted to US$4.3 billion as of the third quarter of 2020, which represents 1.2% of the GDP. This phenomenon is mainly accounted for by the trade balance surplus, where the Free on Board value of exports totaled US$41.9 billion. In contrast, the Cost, Insurance and Freight value of imports amounted to US$30.4 billion. Primary exports increased by 5.4% during this period, whereas agricultural and industrial manufactured exports recorded an 8.3% and 31.1% contraction, respectively. Fuel and energy exports reversed their trend, showing a 28.5% year-on-year decline. Imports recorded a contraction compared to the same period of 2019, explained by decreases in the automotive (-45.4%), fuels and lubricants (-40.3%), parts and accessories (-34.2%), capital goods (-21.8%), intermediate goods (-9.6%) and consumables goods (-7.7%).

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5. The Argentine electricity market

5.1 Power generation

During 2020, electricity consumption experienced a slight decrease due to the lockdown, with a 1.3% variation compared to 2019, and a total electricity demand volume of 127,306 GWh and 128,946 GWh for 2020 and 2019, respectively.

The following chart shows the breakdown of electricity consumption in 2020 by type of customer:

Electricity demand by type of customer

Large users 14%

Non- residential ≥ 300 kW 9%

Residential % < 10 kW 49% Non- residential < 300 kW 28%

Source: ADEERA

Peak power capacity records

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Capacity (MW) 21,564 21,949 23,794 24,034 23,949 25,380 25,628 26,320 26,113 25,791 Date 1-Aug 16-Feb 23-Dec 20-Jan 27-Jan 12-Feb 24-feb 8-Feb 29-Jan 4-Feb Temperature (ºC) 3.5 34.2 35.4 29.6 35.6 35.1 27.7 30.2 34.0 29.5 Hour 20:18 15:10 14:20 15:05 14:13 14:35 14:25 15:35 14:25 14:57

Source: CAMMESA.

On January 25, 2021, at 14:41, there was a 26,450 MW record-breaking demand for electricity in the SADI.

Evolution of the electricity supply

2020 recorded a 2% increase in power generation, with 133,584 GWh and 130,804 GWh volumes for 2020 and 2019, respectively, mainly due to the rise in exports, partially offset by the lockdown.

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Thermal power generation remained as the primary resource to meet the electricity demand, fired with natural gas or liquid fuels (GO and GO) and mineral coal, supplying an electricity volume of 82,333 GWh (62%), followed by hydroelectric power generation, which contributed 28,505 GWh net of pumping (21%), renewable power generation with 12,734 GWh (10%), and nuclear power generation with 10,011 GWh (7%) Additionally, there were imports for 1,204 GWh (56% lower than in 2019), exports for 3,089 GWh (higher than the 261 GWh recorded in 2019), and losses for 4,392 GWh (1% higher than in 2019).

Hydroelectric power generation net of pumping decreased its contribution volume by 18% compared to 2019, mainly due to the droughts that affected the Yacyretá and Salto Grande dams. This decrease was partially offset by the increase in renewable (64%), thermal (3%) and nuclear (26%) generation compared to 2019, mainly on account of the commissioning of the PPA under RenovAr, MAT ER and MEyM Res. No. 287/17, added to the higher nuclear generation as from the start-up of Central Nuclear Embalse’s reconditioning at the end of the first quarter of 2019.

The following chart shows the evolution of electric power generation by source:

Generation by type of power plant In % and TWh, 2011 - 2020

118.3 124.7 129.0 129.3 134.6 136.1 136.1 137.2 130.8 133.6 2% 2% 2% 2% 6% 5% 5% 4% 4% 5% 6% 4% 5% 10% 6% 7% 33% 29% 31% 31% 29% 26% 29% 29% 27% 21%

62% 66% 64% 64% 64% 66% 65% 64% 61% 62%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Thermal Hydroelectric Nuclear Renewable

Note: It includes WEM and Patagonian WEM systems. Hydroelectric power generation net of pumping. Source: CAMMESA.

During 2020, power generation facilities recorded an increase in their installed capacity compared to the previous year, totaling 41,951 MW (+2,247 MW compared to 2019). This increase was mainly due to the commissioning of renewable units under the RenovAr and MAT ER programs for 1,408 MW. In the thermal area, 817 MW were commissioned, mostly under MEyM Res. No. 287/17, including the completion of Genelba Plus’ closing to CC project (199 MW).

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The following table describes the incorporation of new power units in 2020:

Region Technology Capacity (MW)

Biogas 4.1

Buenos Aires Metro Area - CC 395.9 1,146.7 Northwest Litoral Wind 477.2 GT 269.5 Biogas y biomass 4.6 CC 55.6 Center 91.1 Wind 22.8 Diesel y ST 8.1 Midwest - Comahue Wind 100.5 100.5 Renewable hydro 11.6 Cuyo 23.3 Solar 11.7 Northeast Biomass 51.0 51.0 CC 199.0 Northwest Wind 99.8 598.8 Solar 300.0 Wind 101.6 South - Patagonia 134.1 Diesel 32.5

Total 2,145.5 Thermal 44.6% Renewable 55.4%

Source: CAMMESA and Pampa Energía’s analysis.

Additionally, the power capacities of CH were adjusted based on their reservoirs for +22 MW, CT for +30 MW, wind power for +213 MW and solar generation for +8 MW. Additionally, GT agreements for - 171 MW were terminated.

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The following chart shows the composition of the Argentine installed power capacity as of December 31, 2020:

2020 Argentine installed power capacity 100% = 42.0 GW

Hydroelectric 25.8%

Thermal 60.5% Nuclear % 4.2% Renewable 9.5%

Source: CAMMESA.

Fuel supply and consumption3

According to MDP Res. No. 12/19, the fuel supply for power generation and fuel commercial management and procurement was centralized again in CAMMESA as of December 30, 2019, except for generators with Energía Plus and SEE Res. No. 287/17 contracts. Additionally, following the implementation of Plan Gas.Ar, on December 2, 2020 SE Res. No. 354/20 was published, which, among other measures, established an optional scheme for the operating assignment of natural gas and its transportation to CAMMESA, effective as of January 2021 for such exempted generators. Pampa adhered to this scheme. This new scheme set a new thermal dispatch order centralized in CAMMESA, prioritizing units supplied with gas imported from Bolivia under a ToP condition, followed by those provided under Plan Gas.Ar and, lastly, those with gas assigned to CAMMESA.

Regarding fuel consumption, the natural gas used for power plants amounted to 16.3 million dam3 in 2020, representing a 5% decrease compared to the previous year, mainly accounted for by the 7% year- on-year decrease in domestic supply. Consequently, the shortage of fuel to meet electric power generation worsened. Therefore, the purchase of LNG and its re-gasification in Escobar continued, as well as natural gas imports from Bolivia, which experienced an 8% year-on-year increase. Moreover, alternative fuels (FO, GO and mineral coal) were used to meet the demand, in volumes significantly higher than in 2019. The use of FO tripled to 0.6 million ton, whereas the demand for GO and mineral coal doubled.

Price of electricity

The energy authority has continued with the policy launched in the year 2003 whereby the WEM spot price is determined according to the available power generating units’ CVP with natural gas, even if these units are not generating electricity with such fuel (SE Res. No. 240/03). The additional cost for consuming liquid fuels is recognized outside the specified market price as a temporary dispatch surcharge. Moreover, the WEM bears the costs of natural gas and its regulated transportation, in addition to the associated costs in the case of import (SGE Res. No. 25/18 and SE Res. No. 354/20).

3 For further information, see sections 6.1, 7.3 and 7.4 of this Annual Report.

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Evolution of WEM prices

As of November 2019, according to SEE Res. No. 38/19, the approved average monthly spot price for energy is AR$720/MWh. However, the following chart shows the average monthly price that all electricity system users should pay so that the power grid would not run into a deficit. This cost includes the energy price and the power capacity fee, the generation cost, fuels such as natural gas, FO, GO and mineral coal, and other minor items.

Average monthly monomic price In US$ / MWh

2019 64 65 average 63 62 60 68 58 2020 55 54 54 54average 51 51 58

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Source: CAMMESA, converted to US dollars at the official FX rate.

Remuneration scheme for generation not covered by contracts

SRRYME Res. No. 1/19: March 2019 - February 2020

SRRYME Res. No. 1/19, which was in effect until January 31, 2020, reduced CT’s remuneration, both for power capacity and operation and maintenance. It also introduced an adjustment factor correlated to the average load factor per thermal unit over the last 12 months.

Thermal power generators

The following chart shows base prices for power capacity applicable to generators not offering DIGO:

Capacity’s base price Technology / scale (US$ / MW-month) Large CC capacity > 150 MW 3,050 Small CC capacity ≤ 150 MW 3,400 Large ST capacity > 100 MW 4,350 Small ST capacity ≤ 100 MW, internal combustion engines 5,200 Large GT capacity > 50 MW 3,550 Small GT capacity ≤ 50 MW 4,600

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For agents with a DIGO declaration, a remuneration scheme for seasonal power capacity was established: a) summer (December through February); b) winter (June through August), and c) ‘other,’ which comprises two quarters (March through May, and September through November). The power capacity price was set at US$7,000/MW-month in the summer and winter quarters and at US$5,500/MW-month in the ‘other’ quarters.

Additionally, whether or not the agent had a DIGO declaration, the power capacity weighed a load factor equivalent to the average dispatch factor for the generating unit during the rolling year before the calculation month and applied a coefficient to the power capacity remuneration if the load factor was: i) higher than 70%, 100% was paid; ii) lower than 30%, 70% was paid; and iii) between 30% and 70%, the power capacity remuneration was linearly associated with between 70% and 100%.

Generated energy remuneration values were reduced by US$1/MWh for all technologies except for internal combustion engines, where the reduction was US$3/MWh. The remuneration value for operated energy was reduced from US$2/MWh to US$1.4/MWh.

Finally, the additional remuneration schemes were abrogated: capacity remuneration to encourage DIGO during peak demand periods, variable remuneration for efficiency, and power capacity remuneration for low-dispatch CT.

Hydropower generators

SRRYME Res. No. 1/19 maintained the base prices for power capacity established by SEE Res. No. 19/17, as well as remuneration values for generated and operated energy. However, regarding the power capacity payment, the hours during which a hydroelectric generator was not available due to programmed and agreed maintenance were no longer computed to calculate the power capacity remuneration. However, to mitigate this impact, in May 2019, SME Note No. 46631495 provided a 1.05 factor on the capacity payment.

Other considerations

For generation from unconventional sources, a single remuneration value for generated energy was established at US$28/MWh, or 50% of this value if it is generated before commercial commissioning.

Regarding the refund of the amounts disbursed to generators under the loan agreements for the overhaul in their units, it was established the application of all accrued receivables in favor of agents, as well as a discount scheme in the generator’s revenues equivalent to the maximum between US$1/generated MWh or US$700/MW-month for the unit’s actual availability.

SE Res. No. 31/20: current remuneration scheme

On February 27, 2020, SE Res. No. 31/20 was published in the BO, which modified certain aspects of the remuneration scheme set forth by SRRYME Res. No. 1/19, effective as of February 1, 2020. The new Res. converts the entire remuneration scheme to the local currency at an FX of AR$60/US$ and establishes an update factor from the second month of its application, which follows a formula consisting of 60% CPI and 40% IPIM. Later on, through SE Note NO-2020-24910606-APN-SE#MDP dated April 8, 2020, the SE instructed CAMMESA to postpone applying this factor until further decision. As of the issuance of this Annual Report, the Company has not been notified of any update.

Thermal power generators

Regarding the values of the previous remuneration scheme, SE Res. No. 31/20 reduces the power capacity remuneration, whether base or guaranteed, depending on its technology. However, for CT with a

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total installed power capacity lower than or equal to 42 MW, the base power capacity values are set out by SRRYME Res. No. 1/19 remain in effect.

Variation vs. Capacity base price Technology / scale SRRYME Res. (AR$/MW-month) No. 1/19* Large CC capacity > 150 MW 100,650 -45% Small CC capacity ≤ 150 MW 112,200 -45% Large ST capacity > 100 MW 143,550 -45% Small ST capacity ≤ 100 MW, 171,600 -45% Internal combustion engines capacity > 42 MW Large GT capacity > 50 MW 117,150 -45% Small GT capacity ≤ 50 MW 151,800 -45% Small CC capacity ≤ 15MW 204,000 - Small ST capacity ≤ 15MW 312,000 - Small GT capacity ≤ 15MW 276,000 - Internal combustion engines capacity ≤ 42 MW 312,000 -

Note: * It assumes an FX of AR$60/US$.

As regards the remuneration for the offered guaranteed power capacity, the following scheme is in effect:

Capacity base Variation vs. price Period SRRYME Res. (AR$/MW- No. 1/19* month) Summer (December - February) and winter (June - 360,000 -14% August) Other (March - May and September - November) 270,000 -18% Internal combust engines ≤ 42 MW, summer/winter 420,000 - Internal combust engines ≤ 42 MW, other 330,000 -

Note: * It assumes an FX of AR$60/US$.

Moreover, SE Res. No. 31/20 maintains the dispatch factor formula. Still, if the usage factor is lower than 30%, 60% of the power capacity payment is collected (except for internal combustion engines ≤ 42 MW, which maintain the scheme provided for by SRRyME Res. No. 1/29).

The new scheme introduces an additional remuneration in the HMRT of the month, which consists of the 50 recorded hours with the highest thermal generation dispatch each month, grouped in two blocks of 25 hours each. The following will be applied to the average generated capacity:

First 25 HMRT Second 25 HMRT Period, in AR$/MW-HMRT hours hours Summer (December - February) 45,000 22,500 and winter (June - August) Other (March - May and September - November) 7,500 -

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As regards the variable remuneration, it remained unchanged in US$ at an FX of AR$60/US$, and was set at AR$240/MWh for generated units with natural gas, AR$420/MWh with FO, AR$600 with biofuels (except for internal combustion engines, AR$720/MWh) and AR$720/MWh with mineral coal. The remuneration for operated energy was set at AR$84/MWh.

Hydropower generators

SE Res. No. 31/20 adjusted the capacity remuneration and added a new item for HMRT. The 1.05 factor over the power capacity to compensate for programmed maintenance’s impact remained unchanged, and the 1.20 factor for units maintaining control structures on river courses and not having an associated power plant.

Capacity base Variation vs. price Scale SRRYME Res. (AR$/MW- No. 1/19* month) Large HI capacity > 300 MW 99,000 -45% Medium HI capacity > 120 ≤ 300 MW 132,000 -45% Small HI capacity > 50 ≤ 120 MW 181,500 -45% Renewable HI capacity ≤ 50 MW 297,000 -45% Large pumped HI capacity > 300 MW 99,000 +10% Medium pumped HI capacity > 120 ≤ 300 MW 132,000 -12%

Note: * It assumes an FX of AR$60/US$.

As regards the HMRT additional remuneration, the following will be applied to the average operated power capacity:

Capacity HMRT price Scale AR$/MW-HMRT Large HI capacity > 300 MW 27,500 Medium HI capacity > 120 ≤ 300 MW 32,500 Small HI capacity >50 ≤ 120 MW 32,500 Renewable HI capacity ≤ 50 MW 32,500 Large pumped HI capacity > 300 MW 27,500 Medium pumped HI capacity > 120 ≤ 300 32,500

Weighted by the following coefficients:

December - February, HMRT Other June - August First 25 HMRT hours 1.2 0.2 Second 25 HMRT hours 0.6 -

The prices for generated and operated energy remained unchanged in US$ at an FX of AR$60/US$, being set at AR$210/MWh and AR$84/MWh, respectively. The remuneration for operated energy should correspond with the grid’s optimal dispatch. The provision does not indicate, as it does for thermal generators, which would be the consequence otherwise.

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Implementation criteria

Power plant Generating unit Technology Size Capacity

BBLATV29 ST Large >100 MW CPB BBLATV30 ST Large >100 MW GUEMTV11 ST Small ≤100 MW CTG GUEMTV12 ST Small ≤100 MW GUEMTV13 ST Large >100 MW GEBATG01 CC Large >150MW GEBATG02 CC Large >150MW CTGEBA GEBATG041 GT Large >50 MW GEBATV01 CC Large >150MW LDLATG01 GT Large >50 MW LDLATG02 GT Large >50 MW CTLL LDLATG03 GT Large >50 MW LDLATG042 GT Large >50 MW between 120 MW and ADTOHI HI Medium 300 MW between 120 MW and HIDISA LREYHB Pumped HI Medium 300 MW ETIGHI Renewable HI - ≤ 50 MW between 50 MW and 120 NIH1HI HI Small MW between 50 MW and 120 HINISA NIH2HI HI Small MW between 50 MW and 120 NIH3HI3 HI Small MW between 120 MW and PPLEHI01 HI Medium 300 MW between 120 MW and HPPL PPLEHI02 HI Medium 300 MW between 120 MW and PPLEHI03 HI Medium 300 MW Note: 1 It applied until the commercial commissioning of Genelba Plus’ CC (July 2, 2020). 2 Only applies the unit’s 26 MW. 3 A 1.20 coefficient applies to remuneration.

With the agreement of ‘Energía Plus’ power generators, CTG’s GUEMTG01 and CTGEBA’s GEBATG03 units’ both energy and available power capacity delivered to the spot market and not committed under the Energía Plus contracts will be remunerated based on the items set out for legacy capacity, the cost of the fuel provided by CAMMESA being excluded from the transaction (SE Res. No. 482/15).

Other considerations

SE Res. No. 31/20 provides a single remuneration value of AR$1,680/MWh for energy generated from an unconventional source, which equals the previous remuneration converted at an FX of AR$60/US$, or 50% of this value if it is generated before commercial commissioning.

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As regards the repayment of the loans for the execution of overhauls, the application of all receivables accrued in favor of generators is established, as well as a discount scheme in the generator’s revenues equivalent to the maximum between AR$60/MWh, or AR$42,000/MW-month for the unit’s actual availability. It is worth highlighting that all overhauls financing owed by Pampa were settled under the Agreement for the Regularization and Settlement of Receivables with the WEM, executed with CAMMESA in August 2019.

Non-spot remuneration for conventional energy

Energía Plus

In September 2006, the SE approved Res. No. 1281/06 implementing Energía Plus scheme to encourage the development of new power generation supply. Power generators, co-generators and self- generators, which as of the date of such Res. are neither WEM agents nor have facilities or interconnection with the WEM, may sell to GU300 the energy used over the Base Demand (the electrical consumption for the year 2005), at a price negotiated between the parties. These power plants should procure fuel and transportation. New GU300 entering the grid consider their Base Demand equal zero.

Under this framework, CTG, EcoEnergía and CTGEBA provide the Energía Plus service to different WEM clients, representing 283 MW gross capacity. It is worth highlighting that, effective as of May 2019, CTG transferred its contracts to CTGEBA, selling its electricity in the spot market. However, as of August 2020, CTG gradually began to sell energy under Energía Plus contracts.

If an agent cannot meet its Energía Plus demand, they should purchase that power in the spot market at the operated marginal cost. Moreover, SE Note No. 567/07, as amended, provided that those GU300 not purchasing their Surplus Demand in Energía Plus should pay the Surplus Demand Incremental Average Charge (Cargo Medio Incremental de la Demanda Excedente, CMIEE). The difference between the actual cost and the CMIEE would be accumulated in an individual account monthly for each GU300 within CAMMESA’s scope. From June 2018, under SE Note No. 28663845/18, the CMIEE became the greater between AR$1,200/MWh or the temporary dispatch surcharge. Additionally, it was provided that movements in each GU300’s account would temporarily not be recorded until further instruction.

Energía Plus contract values are denominated in US$. In certain contracts, prices are adjusted by CAMMESA’s price variation. During the lockdown’s first months, a substantial drop in demand was evidenced, which recovered towards the end of 2020 until reaching 2019 levels. Additionally, Energía Plus continues to be affected by the migration to the MAT ER.

Finally, with the implementation of Plan Gas.Ar, as of January 2021, generators have the option of assigning the operation of gas supply and transportation to CAMMESA, and a centralized dispatch order was set, taking into consideration the fuel designated for generation. Pampa adhered to this scheme.

SE Res. No. 220/07

Aiming to encourage new investments to increase the generation supply, the SE passed Res. No. 220/07, which empowers CAMMESA to enter into ‘WEM Supply Commitment Agreements’ with WEM generating agents for the energy produced with new generation equipment. These are long-term PPA denominated in US$, and the price payable by CAMMESA should compensate the investment made by the plant at a rate of return to be accepted by the SE. CTLL, CTP and CTEB have entered into PPAs with CAMMESA under this Res. for a gross power capacity of 856 MW4.

4 It includes CTLL’s TG04 built under the Agreement to increase thermal generation availability executed in 2014, and which power capacity is partially remunerated under this agreement as from July 2016.

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It is worth highlighting that the 10-year term of the PPA for CTP (30 MW) and CTLL’s TV01 (180 MW) expires in July and November 2021, respectively. On the other hand, CTEB has an expansion project underway to add 280 MW under this scheme, which commissioning is estimated for the first quarter of 2022.

SEE Res. No. 21/16

As a result of the state of emergency in the national electricity sector declared under PEN Executive Order No. 134/15, on March 22, 2016, the SEE issued Res. No. 21/16 launching a call for bids for new thermal power generation capacity with the commitment to making it available through the WEM for 2016/2017 summer, 2017 winter, and 2017/2018 summer periods. Successful bidders entered into a PPA for a fixed price (in US$/MW-month) and a variable price excluding fuels (in US$/MWh) with CAMMESA, which acted as counterparty on behalf of distributors and WEM’s GU.

305 MW are remunerated under this scheme: CTLL’s GT05 for 105 MW and CTPP for 100MW as of August 2017, and CTIW for 100 MW of December 2017.

SEE Res. No. 287/17

On May 10, 2017, the SEE issued Res. No. 287/17 launching a call for tenders for co-generation projects and the closing to CC over existing equipment. The projects should have low specific consumption (lower than 1,680 kcal/kWh with natural gas and 1,820 kcal/kWh with alternative liquid fuels). Moreover, the new capacity should not increase electricity transmission needs beyond the existing capacity; otherwise, the bidder would bear the cost of the necessary extensions.

Awarded projects will be remunerated under a PPA for a term of 15 years, for an available power capacity price plus the non-fuel CVP for the delivered energy and the fuel cost (if tendered), less penalties and fuel surpluses. Power capacity surpluses would be remunerated as legacy capacity.

In September 2017, Pampa was awarded the closing to CC in the Plus unit at CTGEBA for 400 MW within this framework. Commercial operations at open cycle (201 MW) started in June 2019 with the incorporation of GT02, and at closed-cycle mode on July 2, 2020, with the installation of ST02 (199 MW), meeting the originally committed term despite the impacts of COVID-19.

Moreover, and as previously indicated, with the implementation of Plan Gas.Ar, as of January 2021, a scheme for the operating assignment of natural gas supply and transportation to CAMMESA was established under the new centralized dispatch scheme. Pampa acceded to this scheme and agreed to execute an addendum to the PPA with CAMMESA to set the applicable modifications. This addendum has not been executed as of this date.

Non-spot remuneration for renewable energy

In October 2015, Law No. 27,191 (regulated by DNU No. 531/16) was passed, which amends Law No. 26,190 on promoting renewable energy sources. Among other measures, it provided that by December 31, 2025, 20% of the total demand for energy in Argentina should be covered with renewable energy sources5. To meet such objective, WEM’s GU and CAMMESA should cover 8% of their demand with such sources by December 31, 2017, the percentage rising every two years until meeting this objective. The agreements entered with GU and GUDI may not have an average price exceeding US$113/MWh.

Additionally, said law stipulates several incentives, including tax benefits (advance VAT return, accelerated depreciation on the income tax return, import duty exemptions, etc.) and the creation of the Fund for the Development of Renewable Energy (Fondo para el Desarrollo de Energía Renovables, FODER),

5 As from December 2016, CH with a power capacity lower than 50 MW are classified as renewable sources of energy.

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which is destined, among other objectives, to the granting of loans, capital contributions, etc. for the financing of these projects.

RenovAr

In 2016, rounds 1 and 1.5 under the RenovAr Program were launched under MEyM Res. No. 71/16 and 252/16, respectively. In round 1, 29 projects were awarded for a total of 1,142 MW (97% of which were wind and solar energy projects), including our 100 MW PEMC project in the Province of Buenos Aires commissioned in June 2018. In round 1.5, 30 projects were awarded for 1,281.5 MW (100% wind and solar energy projects). In 2017, round 2 was launched according to MEyM Res. No. 275/17, under which 88 projects were awarded for a total of 2,043 MW (89% of which were wind and solar energy projects). Finally, in 2018 round 3 (MiniRen) was launched for smaller-scale renewable projects (up to 10 MW), and 246 MW projects were awarded.

It is worth highlighting that the GHG reductions resulting from the power capacity installed throughout the national territory under RenovAr —including any other project to meet the WEM’s renewable goal set by Law No. 27,191— should be considered as the Federal Government’s contribution to the United Nations Framework Convention on Climate Change and the Paris Agreement.

MAT ER

MEyM Res. No. 281/17 issued on August 18, 2017, regulated the MAT ER regime, which sets the procurement conditions for WEM GU and GUDI’s demand obligation from renewable sources through the individual purchase within the MAT ER or self-generation from renewable sources. Furthermore, it regulates the conditions applicable to generation projects. Specifically, it created the RENPER, where such projects should be registered.

Projects destined to the MAT ER should not be committed under other remuneration mechanisms (e.g., the RenovAr Program). Surplus power generation exceeding commitments with MAT ER is remunerated for up to 10% of the power generation at the minimum price for the applicable technology under the RenovAr Program. The balance will be sold in the spot market.

Furthermore, agreements executed under the MAT ER regime should be administered and managed following the WEM Procedures. The contractual terms —life, allocation priorities, prices and others, except for the maximum price set forth by Law No. 27,191— may be freely agreed upon between the parties. However, the committed volumes should be limited by the generator’s renewable energy or supplied by other generators or suppliers with MAT ER agreements in place.

Pampa registered the PEPE II and III projects with the RENPER and requested the corresponding dispatch priority, which was granted for both projects’ total capacity. On May 10, 2019, CAMMESA gave the commissioning of PEPE II and III. The generated energy is sold under PPA in US$ with private parties; therefore, when expressed in AR$, they are exposed to nominal exchange rate variations. The average term amounts to approximately five years.

In terms of volume, the drop in energy demand by GU as a result of COVID-19 and the macroeconomic context has not significantly affected the MAT ER segment, as these contracts were mainly destined to meet the base demand. In this sense, on top of our own generation from PEPE II and III, the Company began commercializing third-party generators’ renewable energy for an approximate volume of 2 MW, contributing to increasing the MAT ER margin segment.

Pampa Energía ● 2020 Annual Report ● 34

5.2 Transmission6

Evolution of the high-voltage transmission system

The following chart shows the evolution of the transformation capacity’s cumulative growth and the number of km of high-voltage transmission system lines, compared to the cumulative percentage growth of peak demand since 1992.

Evolution of the transmission system Cumulative growth (in %)

158% 148% 151% 142% 144% 134% 132% 121% 126% 141% 147% 145% 110% 101% 101% 90% 91% 79%

52%

24% 34% 34% 25% 34%

0% 15% 16%

1992 … 1996 … 2000 … 2005 … 2011 … 2015 2016 2017 2018 2019 2020

Transformers capacity Km of lines Maximum generated capacity

Source: Transener and CAMMESA.

As illustrated in the graphic above, the High-Voltage Transmission System has grown significantly since 2005, mainly due to the implementation of the 500 kV Transmission Federal Plan. Implementing this Federal Plan has provided the SADI with more stability and better conditions to meet the rising demand.

Transener’s tariff situation

2005 Memorandum of Understanding

The Public Emergency and Exchange Rate Regime Reform Law (Law No. 25,561) imposed public utilities, such as Transener and its subsidiary Transba, to renegotiate their agreements in force with the Government while continuing to supply electricity services. This scenario has significantly affected Transener and Transba’s economic and financial situation.

In May 2005, Transener and Transba signed with the UNIREN the Memorandums of Understanding stipulating the terms and conditions for updating the Concession Agreements. The parties agreed to perform an RTI before the ENRE, to establish a new tariff regime for Transener and Transba, which should have come into force in 2006, and to stipulate a recognition of variations in operating costs incurred until the entry into effect of the new tariff regime resulting from the RTI.

Since 2006, Transener and Transba have repeatedly requested the ENRE to regularize compliance with the commitments stipulated in the Memorandum of Understanding, expressing the demand to launch

6 For further information, see sections 7.2 and 8.5 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 35

the RTI process. Moreover, Transener and Transba filed their respective tariff claims for their assessment, holding a public hearing and the definition of the new tariff scheme.

Instrumental Agreement

In December 2010, Transener and Transba entered into an Instrumental Agreement to UNIREN’s Memorandum of Understanding with the SE and the ENRE, which mainly recognized a credit claim in favor of Transener and Transba for cost fluctuations incurred between June 2005 – November 2010, calculated as per the Cost Variation Index established in the Memorandum of Understanding. These receivables were assigned in consideration of disbursements by CAMMESA, which were executed through loan agreements.

Upon collecting these receivables and still without the RTI, in May 2013 Transener and Transba, respectively, executed with the SE and the ENRE a Renewal Agreement, effective until December 31, 2015, which, among other provisions, acknowledged a credit claim for cost variations recorded during the December 2010 – December 2012 period. Given the repeated delays in implementing the Memorandum of Understanding’s RTI, the SE and ENRE successively extended the recognition of higher costs up to and including November 2015. The Renewal Agreement expired in May 2016 and, without any pending recognized receivables, Transener and Transba continued collecting the loans granted by CAMMESA, which were disclosed as liabilities. Finally, on December 26, 2016, Transener executed the final agreement with the SE and the ENRE, which recognized credits for cost variations in favor of Transener and Transba for the December 2015 - January 2017 period. On June 19, 2017, CAMMESA made the last disbursement, thus offsetting all receivables for cost variations.

RTI

ENRE Res. No. 66/17 and No. 73/17 in February 2017, as amended, established the 2017/2021 five- year period’s tariffs. Moreover, the ENRE established the remuneration update mechanism, the service quality system and applicable penalties, the reward system, and the investment plan to be executed by both companies during such period. In October 2017, the ENRE issued Res. No. 516/17 and No. 517/17 partially upholding the Motions for Reconsideration filed by Transener and Transba and establishing, retroactively as of February 2017, an AR$8,629 million and AR$3,575 million recognized capital base and AR$3,534 million and AR$1,604 million annual regulated income for Transener and Transba, respectively.

The purpose of the semiannual adjustment mechanism stipulated in the RTI is to keep real-term values for remunerations collectible by Transener and Transba during the whole RTI’s five-year period. The adjustment formula considers the variations during such semester in the IPIM, ‘Manufactured Products’ item, the CPI and the Salary Index published by the INDEC, which are weighted based on the cost structure and average investments for the 2017-2021 period in the RTI. This mechanism contemplates a trigger clause that weighs the IPIM and the CPI semiannual variations published by the INDEC, ascertained at a deviation equal to or higher than 5%.

For the December 2016 – June 2017 period, the trigger clause reached 9.02%, and, therefore, the semiannual adjustment for Transener and Transba remuneration was activated but deferred until December 15, 2017, when ENRE issued Res. No. 627/17 and No. 628/17 updating Transener and Transba’s remunerations by 11.35% and 10.96%, respectively, for the December 2016 – June 2017 period, retroactively to August 1, 2017.

ENRE Res. No. 37/18 and No. 38/18 issued on February 19, 2018, later amended by ENRE Res. No. 99/18 and 100/18 on April 5, 2018, updated Transener and Transba’s remunerations by 24.15% and 23.39%, respectively, for the December 2016 – December 2017 period as from February 1, 2018. On November 16, 2018, the ENRE issued Res. No. 280/18 and No. 281/18 updating Transener and Transba’s remunerations by 42.55% and 43.25%, respectively, for the December 2016 – June 2018 period, effective as from August 1, 2018.

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On March 22, 2019, the ENRE issued Res. No. 67/19 and No. 68/19 updating Transener and Transba’s remunerations by 78.41% and 81.26%, respectively, for the December 2016 – December 2018 period, effective as from February 1, 2019. On September 25, 2019, the ENRE issued Res. No. 269/19 and No. 267/19 updating Transener and Transba’s remunerations by 112.41% and 115.75%, respectively, for the December 2016 – June 2019 period, retroactively to August 1, 2019.

The Solidarity Law and its supplementary provisions, which entered into force on December 23, 2019, provided that electricity tariffs under federal jurisdiction would remain unchanged for a maximum term of 450 days or until new transitory tariff schemes are in force. The PEN was vested with the power to begin an extraordinary review of the current RTI. The ENRE has not instructed CAMMESA regarding Transener’s semiannual update, which according to the RTI, should have been applied on February 1 and August 1, 2020, and February 1, 2021. On the other hand, on December 17, 2020, DNU No. 1020/20 was issued, launching the RTI renegotiation for a term that could not exceed two years from its publication. Finally, on March 3, 2021, the ENRE called for a public hearing to consider Transener and Transba’s transitory tariff regime, which will occur on March 29, 2021 (Res. No. 54 and 55/21, respectively).

Distribution of transmission costs among WEM users

SEE Res. No. 1085/17 issued on November 28, 2017, and effective as of December 1, 2017, established the methodology for distributing costs associated with the remuneration of transmission companies among its users (distributors, GU, self-generators and generators). These costs are allocated based on the demand and/or contribution of energy by each WEM agent directly and/or indirectly associated with the DisTro, after discounting costs assigned to generating agents as operational and maintenance costs for connection and transformation equipment.

It is worth highlighting that distribution companies' prices in consideration of electric power transmission within the WEM are calculated together with each Seasonal Programming or Quarterly Reprogramming. In the case of distributing agents whose demand is connected to different DisTros, their demand’s percentage corresponding to each DisTro will be established, and the price will contemplate the demand and the price on a weighted basis. Furthermore, prices applicable to GU within the WEM are calculated in the economic transaction monthly. In the case of WEM’s GU not directly associated with the high-voltage transmission and/or DisTro, the applicable monthly value will correspond to the connecting agent.

5.3 Distribution7

Edenor’s tariff situation

Memorandum of Understanding with the Federal Government

In February 2006, Edenor entered into a Contract Renegotiation Memorandum of Understanding with the UNIREN, which established, effective as from November 2005, a 23% increase in the average VAD and a 5% additional VAD increase to be allocated to certain specific investments in capital goods. Furthermore, it provides for the inclusion of a social tariff, quality standards for the service to be rendered, and a minimum investment plan in the electricity grid to be performed by Edenor and the performance of an RTI. Upon the failure to perform the RTI, the SE and the ENRE passed several transitory measures seeking to reduce Edenor’s operating and asset deterioration resulting from the tariff freeze. The background and the current tariff situation are disclosed below.

7 For further information, see sections 7.2, 7.5 and 8.2 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 37

SE Res. No. 250/13

Since May 2013, the SE provided the recognition of costs owed to Edenor resulting from the partial application of the MMC, which was lower than the actual increase. MMC was stipulated in the 2007 Contractual Renegotiation Agreement, which was not duly passed on to tariffs. SE Res. No. 250/13 implemented this measure and its subsequent extensions, which allowed for the offsetting of this recognition with Edenor’s liabilities under PUREE and with CAMMESA for energy purchases. However, in February 2016, the SE issued Res. No. 6/16 abrogating the MMC.

ENRE Res. No. 347/12

ENRE Res. No. 347/12 applied a differential fixed amount to each of the different tariff categories, except for customers exempt from paying the tariff scheme provided for by ENRE Res. No. 628/08. Such amounts —which continued to be deposited in a special account and were used exclusively to execute infrastructure and corrective maintenance works in Edenor’s facilities within the concession area— were managed by the FOCEDE. ENRE Res. No. 2/16 terminated the FOCEDE trust on January 31, 2016, and established a new system for the funds collected according to ENRE Res. No. 347/12, which Edenor managed. With RTI’s implementation in February 2017, these amounts ceased to be charged as a special item on customer bills.

Loan Agreements – Extraordinary investments plan

Due to the delay in obtaining the RTI, the Federal Government granted Edenor loans to the investments plan it may deem appropriate. Under MEyM Res. No. 7/16, CAMMESA suspended, as from February 2016 and until receiving further instructions, all effects from the executed loan agreements and the transfer of resources to distribution companies on behalf of the FOCEDE trust and, therefore, the new works plan would be financed exclusively with tariff proceeds. The Federal Government offset the amounts owed by Edenor under loan agreements and works in the Liabilities Regularization Agreement entered on May 10, 2019.

SE Res. No. 32/15

SE Res. No. 32/15, passed in March 2015, implemented a transitory increase in Edenor’s income from February 2015 to be charged against the RTI. Moreover, according to this provision, the amounts collected under the PUREE program were deemed part of Edenor’s income. This Res. did not generate tariff increases for customers but was directly transferred by the Federal Government.

However, in January 2016, ENRE Res. No. 7/16 ordered the performance of all necessary acts to conduct Edenor’s RTI, annul the tariff schemes of SE Res. No. 32/15, and adjust the VAD to be charged against the RTI, thus canceling the PUREE and suspending the investments loan agreements. Consequently, the ENRE issued Res. No. 1/16 and 2/16 granting a new tariff scheme for Edenor effective as from February 2016. In September 2016, Edenor filed its RTI tariff proposal, clarifying that it did not contemplate the damages resulting from the failure to timely and adequately implement the Memorandum of Understanding or the collection of income necessary to face the liabilities Edenor had to incur as a result.

RTI

ENRE Res. No. 63/17, as amended, established the final tariff schemes, the review of costs, required quality levels and other rights and obligations by Edenor for the five years starting February 2017. A 42% cap was set in the VAD increase resulting from the RTI as from February 2017, the remaining increase being completed in November 2017 and February 2018. The VAD difference resulting from the gradual application was updated in real terms and incorporated in 48 installments payable as of February 2018. However, both

Pampa Energía ● 2020 Annual Report ● 38

the 11.6% CPD update contemplated for August 2017 and the 18% VAD increase scheduled for November 2017 were deferred to December 2017 and adjusted retroactively (ENRE Res. No. 603/17).

In February 2018, the last 17.8% VAD increase and the 22.5% CPD update were applied. The total deferred amount of AR$6,343 million was considered recoverable in 48 installments, subject to an annual review each February for 2019 through 2021. It is worth highlighting that the 22.5% CPD update contemplated a -2.51% E-factor adjustment stimulating efficiency, passing on to the distributor’s users the expected efficiency gains as from i) X factor, which captures gains resulting from management optimization and the existence of economies of scale, which reduces the CPD; and ii) Q investments factor, which captures the impact of the cost of capital and the evolution of exploitation costs resulting from investments made by the company, which increases the CPD. In August 2018, the CPD for February - July 2018 was calculated at 15.85%. Still, in agreement with the MinEn, only 7.925% was applied, the balance being payable in six consecutive monthly installments effective as from February 2019 (ENRE Res. No. 208/18).

In March 2019, there was a 24%8 CPD update corresponding to the July 2018 – January 2019 semester, retroactive to February 2019, and a 7.925% increase which was timely deferred in August 2018, retroactive to that date (ENRE Res. No. 27/19). Compensatory amounts for the retroactivity were collected in five installments. In September 2019, Edenor agreed to postpone the 19.05% CPD update for August 2019 until January 2020, maintaining the retroactive amounts applied in March - July 2019 period for the CPD, the balance being recoverable in 7 consecutive monthly installments as from January 2020. Besides, the payment of penalties was postponed until March 2020 in 6 monthly installments.

With the entry into effect of the Solidarity Law and its supplementary provisions, on December 23, 2019, it was established that electricity tariffs under federal jurisdiction would remain unchanged for a maximum term of 450 days or until new transitory tariff schemes are in force, ratified by the ENRE on December 27, 2019. Edenor has not received instructions from the ENRE for the semiannual remuneration update, which according to the RTI, should have been applied on August 1, 2019, February 1 and August 1, 2020, and February 1, 2021. Moreover, the PEN was vested with the power to begin an extraordinary review of the current RTI. On December 17, 2020, DNU No. 1020/20 was issued, launching the RTI renegotiation for a term that could not exceed two years from its publication. Finally, on March 3, 2021, the ENRE called for a public hearing to consider Edenor’s transitory tariff regime, which will occur on March 30, 2021 (Res. No. 53/21).

Seasonal electricity prices

In February 2019, SGE Res. No. 366/18 and ENRE Res. No. 25/19 abrogated the Federal Government’s social tariff and the savings discount scheme. Moreover, the power capacity reference price was set at AR$80,000/MW-month, the stabilized price for DisTro and Edenor’s main distribution remained at AR$64/MWh and AR$0/MWh, respectively. Energy reference prices were set at AR$2,762/MWh for GUDI and at AR$1,852/MWh for the remaining users. This resolution provided for certain gradual increases in 2019, but they were suspended in April 2019, except for energy reference prices for GUDI and non- residential users at AR$2,911/MWh and AR$1,985/MWh as from May 2019, respectively, which as of this date have not been passed on to the tariff schemes (SRRYME Res. No. 14/19).

As of March 2021, according to SE Res. No. 131/21, the reference price for GUDI increases to AR$5,500/MWh (except for public health and education bodies and entities). In contrast, the rest of the prices applicable to the final demand have not been modified.

Regularization of liabilities and Edenor’s concession jurisdiction

As regards the debt for electricity purchases that distributors owe CAMMESA as of September 2020, on January 21, 2021, the SE established a Special Liabilities Regularization Scheme, aiming to grant a solution for a sustainable balance sheet and guarantee the service quality in the context of extended tariff

8 Including the -1.59% E Factor stimulating efficiency.

Pampa Energía ● 2020 Annual Report ● 39

freeze exacerbated by the pandemic. The Scheme recognizes receivables to offset debt equivalent to up to 5 times the monthly average bill for the last rolling year or reaching 66% of the existing debt and offers a payment plan for the surplus amount.

Moreover, on January 19, 2021, it was agreed to nullify the transfer of concession jurisdiction of Edenor from the Federal Government to the Province of Buenos Aires and the City of Buenos Aires. Consequently, the ownership and nature of the Granting Power of the public electricity distribution utility in the concession area of Edenor remain in the jurisdiction of the Federal Government.

New Framework Agreement

On December 16, 2020, the Agreement for the Development of the Preventive and Corrective Work Program for the Electrical Distribution Grid of the Metropolitan Area of Buenos Aires was entered into with the Federal Government. To guarantee electricity supply to said area’s low-income neighborhoods, the Federal Government’s amounts due to Edenor for electricity consumptions in shantytowns and low-income communities as of December 31, 2020, will fund the grids’ preventive and corrective maintenance Works Program.

Edenor’s residential tariff positioning Consumption: 275 kWh per month; monthly bill in US$ including taxes

Edenor Other Countries

March 2019 74 75 64 54 42 35 13 7

Social Normal Chile Brazil Peru France UK Spain tariff tariff 19% of clients

Note: For the social tariff, it is considered without savings and without cap. Reference FX: AR$84.15/US$. Source: Edenor.

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6. The Argentine oil and gas market

6.1 Hydrocarbon exploration and exploitation

The Argentine energy matrix

Natural gas and oil constitute the main energy sources in the national primary energy matrix. The following chart illustrates their shares as of December 31, 2019, as there is no available information for the year 2020:

2019 Argentine energy matrix 100% = 77.2 million TOE

Renewable Nuclear 0.8% 2.9% Hydro 3.9% Coal 0.9%

Natural gas 54.5% % Oil 30.7%

Note: The chart does not include other primary sources for 6.3%. Source: SGE.

Natural gas

In 2020, the total gross natural gas production amounted to 123 million m3 per day, representing a 9% decrease compared to the volumes produced in 2019. This variation is due to the decline recorded in the country’s basins, mainly in the Neuquina Basin (-8 million m3 per day) and, to a lesser extent, in the Golfo de San Jorge and Austral Basins (-3 million m3 per day) as a result of the lower activity on account of the continuous fall in market prices and the demand contraction resulting from the impact of COVID-19.

Although domestic consumption experienced a 5% year-on-year decrease for the second consecutive year, domestic gas production could not meet the demand, a deficit evidenced since 2003, so the Federal Government resorted mainly to natural gas imports and the use of alternative fuels. In 2020, Bolivia's supply averaged 15 million m3 per day (6% higher than in 2019), and seaborne LNG at the Escobar port recorded an average of 5 million m3 per day (5% higher than in 2019). Moreover, as in 2019, no imports of regasified LNG from Chile were recorded in 2020. On the other side, gas and LNG exports decreased by 29% compared to 2019, to a total of 4 million m3 per day, representing 3% of the total domestic production in 2020.

Based on the last annual information published by the SGE, as of December 31, 2019, the country's total natural gas reserves and resources reached 1,140,445 million m3, of which 35% were proven reserves. Moreover, 57% of the total reserves and resources were unconventional. In a year-on-year comparison, total reserves and resources have experienced a slight 1% increase, especially resources, which have risen by 4%, totaling 415,020 million m3.

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Evolution of natural gas production, and reserves and resources* In billion m3, 2006-2020

1,200 60

52.3 51.1 50.6 48.4 1,000 47.1 50 45.5 45.0 45.1 44.1 42.9 41.7 41.5 49.4 47.0

800 44.7 40

600 30 1,131 1,140 1,073 1,052 987 971 951 921 878 855 400 823 808 820 848 20

200 10

0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Reserves and resources Production

Note: * There is no available information on reserves and resources for the year 2020. Production is gross. Source: SGE.

Oil

In 2020, total oil production amounted to 77 thousand m3 per day, 5% lower than the volumes produced in 2019 (81 thousand m3 per day), thus reversing the upward trend over the last two years, mainly on account of the demand contraction resulting from the impact of COVID-19, experiencing a 12% decline compared to 2019. In April and May, the months most impacted by the lockdown, the consumption of crude oil decreased by 35% compared to the same period of 2019, then gradually recovering although without reaching 2019 consumption levels and finishing the month of December -7% year-on-year variation.

Based on the last annual information published by the SGE, as in 2019, no oil imports were recorded in 2020. On the other hand, due to the sharp drop in domestic demand caused by the ASPO, oil exports amounted to 12.3 thousand m3 per day in 2020, a volume 18% higher than in 2019. This volume represented 16% of the total domestic production during 2020.

As of December 31, 2019, total oil reserves and resources within the country totaled 832,098 thousand m3, of which 49% were proven reserves. In addition, 32% of the total reserves and resources were unconventional. In a year-on-year comparison, total reserves and resources have recorded a 4% increase. Furthermore, resources totaled 163,252 thousand m3, 4% lower than the levels recorded as of December 31, 2018.

Pampa Energía ● 2020 Annual Report ● 42

Evolution of oil production, and reserves and resources* In million m3, 2006-2020

38.3 1,000 37.3 36.6 40 35.0

900 34.2 32.1 32.0 35 31.3 30.9 30.9 800 29.7

27.8 28.0 30

700 29.5 28.4 25

600

500 20

400 808 829 832 799 15 755 742 739 741 753 749 701 674 707 687 300

10

200

5

100

0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Reserves and resources Production

Note: * There is no available information on reserves and resources for the year 2020. Source: SGE.

The Argentine Hydrocarbons Law

On October 29, 2014, the National Congress enacted Law No. 27,007 amending Hydrocarbons Law No. 17,319, which considered new drilling techniques in the industry and mainly introduced changes to terms and extensions of exploration permits and exploitation concessions, levies and royalty rates, the incorporation of concepts for on and off-shore unconventional exploration and exploitation, and a promotion regime according to Executive Order No. 929/13, among others. The main changes introduced by Law No. 27,007 are detailed below:

Unconventional hydrocarbons exploitation

The Law conferred legal status to the concept of ‘Hydrocarbon Unconventional Exploitation Concession’ created by Executive Order No. 929/13. The term hydrocarbon unconventional exploitation is defined as the extraction of liquid and/or gaseous hydrocarbons by unconventional stimulation techniques applied in reservoirs situated in geological formations of schist rock or slate (shale gas or shale oil), tight sandstone (tight sands, tight gas, tight oil), coal bed methane and/or deposits characterized, in general, by the presence of low permeability rocks.

Holders of exploration permits and/or exploitation concessions will be entitled to request a hydrocarbon unconventional exploitation concession to the enforcement authority under the following terms:

• The exploitation concessionaire may request, within its block, the subdivision of the existing block into new hydrocarbon unconventional exploitation blocks and the granting of a hydrocarbon unconventional exploitation concession. Such request will be based on developing a pilot plan aiming at the commercial exploitation of the discovered reservoir according to acceptable technical and economic criteria. • Holders of a hydrocarbon unconventional exploitation concession also being holders of a preexisting and adjacent exploitation concession may request both blocks' unification as a single hydrocarbon

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unconventional exploitation concession, provided they duly demonstrate the geological continuity of these blocks. Such request should be based on the development of a pilot plan.

Terms for exploitation concessions and permits

The terms for the exploration permits will be established in each tender issued by the enforcement authority according to the exploration’s purpose (conventional or unconventional):

i. Conventional exploration: the basic term is divided into two periods of up to three years each, plus an optional extension of up to five years. In this way, the maximum extension for exploration permits is reduced from fourteen to eleven years; ii. Unconventional exploration: the basic term is divided into two periods of four years each, plus an optional extension of up to five years, that is, up to a maximum of 13 years; and iii. On and off-shore exploration: the basic term is divided into two periods of three years each, plus an optional extension of one year each.

Upon expiring the first period of the basic term, the exploration permit holder will decide whether to continue exploring the block or transfer it back in whole to the Government. The whole originally granted block may be kept provided the obligations arising from the permit have been appropriately met. Upon the expiration of the basic term, the holder of the exploration permit will revert the whole block unless it exercises its right to extend the period, in which case the reversion will be limited to 50% of the remaining block.

Exploitation concessions will be granted for the following terms, which will be computed as from the granting resolution’s date:

i. Conventional exploitation concession: 25 years; ii. Unconventional exploitation concession: 35 years; and iii. On and off-shore exploitation concession: 30 years.

Moreover, the holder of an exploitation concession may, with a minimum one-year notice before the concession’s expiration, request indefinite extensions for a 10-year term each, provided it has adequately met its obligations as exploitation concessionaire, hydrocarbons are produced in said block and files an investment plan consistent with the concession’s development.

Awarding of blocks

Law No. 27,007 proposes drafting a standard bid form that the SE and the provincial authorities will jointly make and adjust to all tenders. Also, said law introduces a specific criterion for awarding permits and concessions by incorporating the specific parameter of ‘greater investment or exploration activity’ as tie- breaker, at the PEN or the Provincial Executive Branch’s duly supported discretion, as applicable.

Levy and royalties

The amended Argentine Hydrocarbons Law set the values for the exploration and exploitation levy established by Executive Order No. 1,454/07; such values may, in turn, be generally updated by the PEN. The current values for each levy and royalty are detailed below.

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Levy

Law No. 27,007 set the levy values per km2 or fraction to be paid annually and in advance by the permit holder. The exploitation permit will amount to AR$4,500. In contrast, for the exploration permit, the following values will apply: AR$250 in the first period and AR$1,000 in the second period of the basic term; and AR$17,500 during the first year of the extension, with a 25% annual cumulative increase.

The amount payable for the second period of the basic term and the extension period may be readjusted by offsetting it with exploration investments made until reaching 10% of the levy per km2 applicable for the period.

On September 26, 2019, the Province of Neuquén published new levy values per km2 or fraction effective for the said province as from 2020. The exploitation levy was set at AR$22,410, and the exploration levy, at AR$1,245 for the first period, AR$4,980 for the second period, AR$7,470 for the third period, and AR$87,150 for the extension period (Executive Order No. 2032/19).

As of 2021, PEN Executive Order No. 771/20 set a maximum levy in AR$ equivalent to a certain volume of oil at the average domestic market price9, at the BNA’s FX rate effective last business day before payment. This scheme is applicable nationwide (including the Province of Neuquén). The exploitation concession amounts to 8.28 barrels. The exploration permit applies 0.46 barrels in the first period and 1.84 barrels in the second period of the basic term; and 32,22 barrels during the extension period.

Royalties

Royalties are defined as the only revenue the jurisdictions holding title to the hydrocarbons will collect, in their capacity as grantors, from hydrocarbons production. The percentage the exploitation concessionaire should pay monthly to the grantor as royalty remains at 12% of the proceeds derived from liquid hydrocarbons production extracted at the wellhead. Natural gas production will bear a like percentage of the value of extracted and used volumes and will be payable monthly. In the case of extension, up to 3% additional royalties’ payment is applicable upon the first extension but limited to an 18% rate.

For the conduction of hydrocarbon conventional exploitation complementary activities, from the granted concession's expiration and within the hydrocarbon’s unconventional exploitation concession, the enforcement authority may fix additional royalties up to 3% above the current royalties, up to a maximum of 18%, as applicable.

The PEN or the Provincial Executive Branch, as applicable, acting in its capacity as granting authority, may reduce by up to 25% the applicable royalties to the hydrocarbons production during a term of 10 years after the conclusion of the pilot project in favor of companies requesting a hydrocarbon unconventional exploitation concession within a period of 36 months as from Law No. 27,007’s effective date.

Extension bond

For exploitation concession extensions, Law No. 27,007 empowers the enforcement authority to establish the payment of an extension bond, capped by the amount resulting from multiplying the remaining proven reserves at the expiration of the concession by 2% of the average basin price applicable to the specific hydrocarbon during a term of 2 years before the granting of the extension.

9 Corresponding to the first semester of the year prior to settlement.

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Exploitation bond

The enforcement authority may establish the payment of an exploitation bond, capped by the amount resulting from multiplying the remaining proven reserves associated with the exploitation of conventional hydrocarbons at the expiration of the granted concession by 2% of the average basin price applicable to the specific hydrocarbons for the two years before the granting of the unconventional hydrocarbon exploitation concession.

Transportation concessions

Transportation concessions (so far granted for 35 years) are now awarded for the same term as the originating exploitation concession, with the possibility of receiving subsequent extensions up to 10 years each. Thus, transportation concessions originating in a conventional exploitation concession will have a basic 25-year term. In contrast, an unconventional exploitation concession will have a basic 35-year term, each plus any granted extension term. After these terms expire, the facilities will be transferred back to the Federal or Provincial Government, as applicable, by operation of law and without any charges or encumbrances.

Uniform legislation

Law No. 27,007 provides for two types of non-binding commitments between the Federal Government and the provinces regarding tax and environmental issues:

i. Environmental Legislation: it provides that the Federal Government and the provinces seek to establish uniform environmental legislation primarily aiming to apply the best environmental management practices to hydrocarbon exploration, exploitation, and/or transportation to further develop the activity while adequately protecting the environment. ii. Tax System: it provides that the Federal Government and the provinces will seek to adopt a uniform fiscal treatment encouraging the development of hydrocarbon activities in their corresponding territories in adherence with the following guidelines: − The gross receipts tax rate applicable to the extraction of hydrocarbons will not exceed 3%; − The freezing of the current stamp tax rate and the commitment not to charge with it any financial contracts executed to structure investment projects, guarantee and/or warrant investments; and − The provinces and their municipalities commit not to impose new taxes —or increase the existing ones— on permit and concession holders. Exceptions are service compensation rates, improvement contributions and general tax increases.

Restrictions on the reservation of blocks for national or provincial government-controlled companies

The amendment to the Argentine Hydrocarbons Law restricts the Federal Government and the provinces from reserving new blocks in the future in favor of public or mixed companies or entities, irrespective of their legal form. Thus, contracts entered by local companies for the exploration and development of reserved blocks before this amendment are safeguarded.

Associative schemes may be used in blocks that have already been reserved in favor of public companies and have not yet been awarded under joint venture agreements with third parties. In which case, such companies' participation during the development stage will be proportional to their investments. In this way, the ‘carry’ system during the blocks’ development or exploitation stage has been done away. Such system has not been prohibited for the exploration stage.

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Conventional and unconventional hydrocarbon investment promotion regime

On July 11, 2013, the PEN issued Executive Order No. 929/13, which created the Investment promotion regime for the exploitation of hydrocarbons —both conventional and unconventional— to encourage investments and the concept of unconventional exploitation concession.

Law No. 27,007 extended the benefits of the Promotion Regime to hydrocarbon projects involving a minimum of US$250 million direct investment denominated in foreign currency, assessed at the time the hydrocarbon exploitation investment project is presented, to be invested during its first three years. Before the amendment, the Promotion Regime benefits reached investment projects denominated in foreign currency for a minimum of US$1,000 million amount during a term of 5 years.

Holders of exploration permits and/or hydrocarbon exploitation concessions, and/or third parties associated and registered with the National Registry of Hydrocarbon Investments submitting this kind of projects will enjoy, as from the third year of execution, the right to freely sell abroad 20% and 60% of the liquid and gaseous hydrocarbon production in the case of conventional and unconventional exploitation projects and offshore projects, respectively, with a 0% export duty, if applicable. Moreover, they will have free availability of 100% of the foreign currency derived from the exportation of these hydrocarbons, provided the applicable projects have involved a minimum of US$250 million entry of foreign currency into the Argentine financial market.

During periods in which the national hydrocarbon production is insufficient to meet domestic supply under Section 6 of the Argentine Hydrocarbons Law, the subjects covered by the Promotion Regime will have, as from the third year following the execution of their respective investment projects, the right to obtain a price not lower than the reference export price (without computing the incidence of any applicable withholdings) from the exportable liquid and gaseous hydrocarbon percentage produced under such projects.

According to these investment projects, Law No. 27,007 provides for two contributions payable to the producing provinces, where the investment project is developed: (i) 2.5% of the investment amount paid by the project holder, destined to corporate social responsibility projects; and (ii) an amount determined by the Hydrocarbon Investments Committee paid by the Federal Government, based on the size and scope of the investment project, destined to infrastructure projects.

Regulations specifically applicable to the gas market10

Plan Gas.Ar

On November 16, 2020, Plan Gas.Ar was created to promote the production of Argentine natural gas and manage the impact of gas's cost on the tariff of the Priority Demand. The term for onshore production is four years, with an additional four years for offshore production, as from January 2021 (DNU No. 892/20).

The SE instrumented a tender between producers as sellers, and CAMMESA, natural gas distributors and IEASA as purchasers, for a total base volume of 70 million m3/day, extendable for the winter period (May – September), with 100% daily DoP and 75% monthly ToP condition for CAMMESA and quarterly for gas distributors and IEASA. The DoP constitutes 70% of the awardees’ production commitment.

The maximum base price was set at US$3.7/MBTU. A 0.82 factor will adjust the award price for the non-winter period, 1.25 for the winter period, and 1.30 for the additional volume during winter. The purchasers, CAMMESA and IEASA, will pay the price awarded in the tender. In contrast, gas distributors will pay the price from the tariff scheme in force, and the Federal Government will offset the balance of the awarded price.

10 For further information, see sections 7.2, 7.4 and 8.3 of this Annual Report.

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On December 15 and 29, 2020, the SE awarded 67.4 million m3/day of natural gas (55% destined to power plants) at an average annual base price of US$3.5/MBTU and an additional volume during the winter period of 3.6 million m3/day at US$4.7/MBTU. Pampa was awarded a base volume of 4.9 million m3/day at US$3.6 per million BTU and an additional 1.0 million m3/day volume during the winter period at US$4.7 per million BTU.

Finally, on February 22, 2021, under Res. No. 129/2021, the SE called for a second round to award additional winter gas volumes in the Neuquina and the Austral Basins, with a daily growing DoP and a monthly 100% ToP. The first round awardees may tender up to a maximum price equivalent to the price awarded in the first round. According to SE Res. No. 169/21, a total amount of 3.3 million m3/day at US$4.7/MBTU. Pampa participated in this round and tendered 0.8 million m3/day at US$4.7/MBTU. Additionally, the awarded companies will enter into a contract with IEASA.

Natural gas for the residential and CNG segment

Priority Demand and CEE

In June 2016, criteria were established to guarantee the Priority Demand's meeting through the CEE in case of operational emergencies that may affect its regular operation (MEyM Res. No. 89/16, as amended). In June 2017, the procedure for the administration of dispatch in the CEE was approved (ENARGAS Res. No. 4502/17). If the CEE did not reach an agreement, ENARGAS defines the required supply considering each producer’s available quantities, deducting the amounts previously contracted to meet the Priority Demand, with a progressive allocation until matching the proportional quota of each producer/importer in the Priority Demand.

Natural gas price within the PIST

In December 2017, the extension period set forth by Law No. 27,200 to the public emergency declared in 2002 terminated. Therefore, Law No. 24,076 was reinstated, which provides that the price of natural gas supply should be determined by the free interaction of supply and demand.

In mid-February 2019, a tender was launched to supply natural gas to distribution companies on a firm basis to ToP and DoP up to 70% of the maximum daily volume and for a term of 12 months starting April 2019. For the Noroeste Basin, 9.4 and 3.8 million m3 per day were assigned for the winter (April – September 2019) and summer (October 2019 – April 2020), respectively, at an average tender price US$4.35/MBTU. For the rest of the basins, 36.1 and 14.4 million m3 per day were assigned for the winter and summer, respectively, at an average tender price of US$4.62/MBTU. Pampa submitted and was awarded.

Producers billed to distribution companies in AR$ considering BNA’s average currency FX for the first 15 days of the month immediately preceding the beginning of each seasonal period or, if lower, the FX stipulated in the agreements (ENARGAS Res. No. 72/19). However, the FX update, which should have been implemented on October 1, 2019, applicable to the October 2019 - April 2020 summer seasonal period, was deferred on several occasions. These agreements expired on March 31, 2020. Given the devaluation of the AR$ added to the tariff freeze (Solidarity Law), as from April 2020, pricing agreements began to be based on the range recognized by ENARGAS in the tariff schemes.

In December 2020, the tender under Plan Gas.Ar was conducted, agreeing on the supply to gas distributors and power plants for the 2021 – 2024 period for a total of 67.4 million m3/day, 35% of which will be destined to distributors. The average tendered annual base price was US$3.5/MBTU, and an additional winter volume of 3.6 million m3/day was awarded at a yearly average base price of US$4.7/MBTU to be exclusively destined to the Priority Demand. Pampa submitted and was awarded.

Besides, PEN Executive Order No. 1053/18 provided that the Federal Government would bear the difference between the price of gas purchased by distributors and that recognized in final tariffs between April 2018 and March 2019. As of this date, Pampa has collected the first installment of AR$41 million.

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However, on December 14, 2020, Law No. 27,591 was published, which abrogated this executive order. Pampa is evaluating the courses of action to take.

It is worth mentioning that as from 2021 and under SE Res. No. 354/20, the new reference price at the PIST was set for natural gas production out of Plan Gas.Ar, being US$2.30/MBTU in the summer (October – April) and US$3.50/MBTU in the winter (May – September) for the Neuquina Basin.

Natural gas for power generation11

From December 30, 2019, the supply of fuel for power plants was again centralized in CAMMESA (except for generators under Energía Plus and SEE Res. No. 287/17 contracts). CAMMESA has launched successive tenders to cover its monthly consumption. On December 27, 2019, it tendered gas for January 2020 on an interruptible basis, at an average PIST price of US$1.73/MBTU in the Neuquina Basin. However, from February to December 2020, CAMMESA tendered for the purchase of gas on a partially firm basis, with a 30% DoP, the resulting average PIST price being US$2.24/MBTU for the Neuquina Basin. Pampa participated in these tenders.

As of 2021, most of Pampa’s gas to CAMMESA is channeled through the Plan Gas.Ar, for the volumes committed under this program for a term of 4 years. Pampa submitted and was awarded. However, CAMMESA’s monthly tender mechanism is still in force, complementary to the Plan Gas.Ar and, therefore, on December 22, 2020, and January 27 and February 24, 2021, CAMMESA launched tenders for gas consumption in the months of January, February and March 2021, respectively. The resulting average price at the wellhead for the three months was US$2.30/MBTU for Neuquina Basin, respectively. For producers not awarded under Plan Gas.Ar, the tender was under a 30% DoP condition, whereas for beneficiaries of Plan Gas.Ar, it was on an interruptible basis. Pampa participated in these tenders.

Generators covered by Energía Plus and SEE Res. No. 287/17 contracts had the option of assigning the natural gas operation and transportation to CAMMESA.

Natural gas export

SGE Res. No. 417/19 issued in July 2019 established the procedure for the authorization of natural gas exports, the security of supply to the Argentine domestic market being a condition in all cases. It is worth mentioning that the exported volume does not qualify for calculating the incentive for domestic production encouragement programs.

In this sense, in September 2019, Pampa obtained a permit to export gas on a firm basis to Refinerías ENAP in Chile until May 15, 2020. In November 2020, Pampa obtained new permits to export gas to several customers in Chile on an interruptible basis, expiring between April 2021 and January 2022.

Moreover, awardees tendering lower prices under Plan Gas.Ar have preferential access to firm exports during the summer period, extendable to the winter period when there is an oversupply in a specific basin, and with the prior approval of the applicable authority.

In the case of higher costs are incurred by the Federal Government as a result of the use of alternative fuels for the WEM’s power generation (imported LNG, coal, FO, or GO), between September 15, 2019, and May 15, 2020, exporting companies should compensate CAMMESA (SGE Res. No. 506/19). The range between US$0.1 and 0.2/MBTU was set for the exported volume, which could be offset by receivables from CAMMESA held by each exporter for the sale of gas in the domestic market. Said compensation would be included in the cost of electricity in the WEM.

Finally, there was an export duty of AR$4 per exported US$ in effect as of September 2018, with a maximum 12% rate (PEN Executive Orders No. 793/18 and 865/18). The Solidarity Law provided, effective

11 For further information, see sections 5.1, 7.3 and 7.4 of this Annual Report.

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as of December 23, 2019, this rate may not exceed 8% of the taxable value or the FOB price. However, until its regulation, PEN Executive Orders No. 793/18 and 865/18 continued to apply. PEN Executive Order No. 488/20 issued on May 19, 2020, stipulated an export duty exemption as long as the international Brent price was equal to or below US$45/bbl. The rate could rise to 8% proportionally with the international reference price, the cap to be recognized when the reference price equals or exceeds US$60/bbl. As of this date, the rate amounts to 8%.

Regulations specifically applicable to the crude oil market12

Crude oil commercialization in the domestic market

In response to the sharp drop in international reference prices and the domestic demand resulting from the ASPO, Executive Order No. 488/20 established a local commercialization reference price for Medanito-type crude oil of US$45/bbl, effective from May 19 to December 31, 2020. This measure was rendered ineffective on August 28, 2020, the date on which the Brent reference price exceeded US$45/bbl for ten consecutive days.

Liquid hydrocarbons export duty

As with natural gas exports, as of September 2018, there was an export duty of AR$4 per exported US$, with a maximum 12% rate (PEN Executive Orders No. 793/18 and 865/18). The Solidarity Law provided that, effective as of December 23, 2019, this rate may not exceed 8% of the taxable value or the FOB price. However, until its regulation, PEN Executive Orders No. 793/18 and 865/18 continued to apply. PEN Executive Order No. 488/20 issued on May 19, 2020, provided for an export duty exemption as long as the international Brent price was equal to or below US$45/bbl, rising gradually as the international reference price increased until reaching 8%, the cap to be recognized when the reference price equals or exceeds US$60/bbl. As of this date, the rate amounts to 8%.

6.2 Midstream13

Regulations specifically applicable to gas main pipeline transportation

Tariff situation before the RTI

Public Emergency and Exchange Rate Regime Reform Law No. 25,561, enacted in January 2002 and extended on several occasions until December 31, 2017, provided for the turning into pesos of utility service tariffs, with the transportation tariff remaining unchanged in AR$ as from 1999, despite the sharp increase in price indexes and operating costs. This mismatch directly affected the operating costs of this business segment, deteriorating its economic and financial situation. From 2002 to 2015, TGS only had two tariff increases: 20% as from April 2014, as a result of the implementation of the transitory agreement entered in 2008; and, in May 2015, a 44.3% increase in the natural gas transportation tariff and a 73.2% increase in the CAU.

To normalize the segment, on February 24, 2016, TGS entered into a transitory agreement with the Federal Government and, consequently, on March 29, 2016, the MEyM issued Res. No. 31/16, which among other measures, instructed ENARGAS to conduct the RTI process and to grant a transitory tariff increase to be charged against the RTI. Within this framework, on March 31, 2016, ENARGAS passed Res. No. 3724/16 approving a 200.1% increase in tariff schemes effective as from April 1, 2016, applicable to the natural gas transportation utility service and the CAU. However, on August 18, 2016, the Supreme Court of Justice of the Argentine Nation established the obligation to perform a public hearing for setting tariffs and prices

12 For further information, see sections 7.2, 7.4 and 8.3 of this Annual Report. 13 For further information, see sections 7.2, 7.6 and 8.5 of this Annual Report.

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without market intervention and declared the nullity of MEyM Res. No. 28/16 and 31/16 regarding residential users; therefore, tariff schemes were taken back to the values effective as of March 31, 2016. The public hearing took place on October 6, 2016. Consequently, ENARGAS approved a 200.1% transitory tariff increase effective from October 7, 2016, executing the investment plan and restrictions on dividends distribution (Res. No. 4054/16).

RTI

In December 2016, the public hearing required for the RTI process took place. On March 30, 2017, under ENARGAS Res. No. I-4362/17, a transitory tariff scheme was approved, with a 214.2% and 37% increase in the natural gas transportation utility service and the CAU, respectively, applicable as of April 1, 2017. The RTI contemplates a semiannual non-automatic tariff adjustment mechanism subject to the IPIM published by the INDEC. As a result, TGS executed the 2017 Comprehensive Memorandum of Understanding and the 2017 Transitory Agreement to implement the tariff update; to such effect, ENARGAS Res. No. 4362/17 was issued, which applied the tariff increase resulting from the RTI in three stages, 58% in April 2017, and the remaining in December 2017 and April 2018.

The RTI considered the needed income to execute a Five-Year Investments Plan between April 2017 and March 2022 for AR$6,787 million, expressed as of December 2016 values, which are essential to operate and maintain the main gas pipelines under TGS’s concession and guarantee the safety and continuity of the gas transportation utility service to meet the system’s expected higher demand resulting from the development of reserves.

The public hearing to present costs variations occurred on November 14, 2017, and under ENARGAS Res. No. 120/17, an average 78% increase in tariff schemes was established, effective as from December 1, 2017, including a 15% increase on account of the non-automatic adjustment set in the RTI for the January – October 2017 period. This increase was deemed charged against the amounts resulting from the Comprehensive Renegotiation Memorandum of Understanding for the License executed by TGS on March 30, 2017.

The Federal Government ratified the Comprehensive Renegotiation Memorandum of Understanding on March 28, 2018 (PEN Executive Order No. 250/18). Hence, it ended the RTI process launched in April 2016, and as a result, on June 26, 2018, TGS voluntarily dismissed the Arbitration Proceeding it had brought before the International Centre for Settlement of Investment Disputes (ICSID). Moreover, ENARGAS issued Res. No. 310/18 approving, effective as from April 1, 2018, the last installment of the tariff increase established by Res. No. 4362/17, equivalent to a 50% increase in tariff schemes, including a 13% recognition on account of IPIM variations for the November 2017 – February 2018 period and a compensation for the programmed deferral of the increase payable in installments.

For the February – August 2018 period costs variations applicable from October 2018, TGS requested an approximate 30% tariff increase based on the IPIM variation. However, on September 27, 2018, ENARGAS issued Res. No. 265/2018 set a 19.7% increase based on the simple average of the IPIM, the Construction Cost Index and the Salary Variation Index (provisional as of June 2018). The ENARGAS alleged that according to the RTI, under certain macroeconomic conditions and circumstances and the semiannual update being a non-automatic adjustment mechanism, it may use other indexes different from the IPIM to determine the tariff increase.

ENARGAS Res. No. 192/19 determined a 26.0% increase in cost variations as effective as from April 2019. This increase was calculated based on the IPIM semiannual variation for the August 2018 – February 2019 period. Later, 22% of the bills issued during the July – October 2019 period were deferred to be recoverable in five installments from December 2019, under SGE Res. No. 336/19. Residential users could opt-out of this benefit.

According to several regulations, the semiannual update that should have been applied since October 1, 2019, was deferred. With the entry into force of the Solidarity Law and its supplementary regulations, it was established that gas tariffs under federal jurisdiction would remain unchanged for a maximum term of

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450 days or until the entry into effect of the new transitory tariff schemes. The PEN was vested with the power to begin an extraordinary review of the current RTI.

Consequently, TGS has not received instructions by ENARGAS for the semiannual remuneration update, which according to the RTI, should have applied on October 1, 2019, and April 1 and October 1, 2020. Additionally, on December 17, 2020, DNU No. 1020/20 was published, launching the RTI renegotiation for a term that could not exceed two years from its publication. Finally, ENARGAS called for a public hearing for March 16, 2021, to consider the transitory tariff regime.

Public tender for the Litoral main gas pipeline

SGE Res. No. 437/19 issued on July 30, 2019, launched a national and international public tender for the award of a gas transportation license to connect the town of Tratayén, in the Province of Neuquén, with the city of Salliqueló, in the Province of Buenos Aires (phase 1), and Salliqueló with the City of San Nicolás de los Arroyos, in the Province of Buenos Aires (phase 2).

The new license provided for a Temporary Special Regime for the first 17 years of the total 35-year concession term for the repayment of the construction and, for the rest of the concession period, Gas Law No. 24,076 would be in effect. Moreover, the license agreement provides an irrevocable transportation offer of 10 million m3 per day to CAMMESA for 15 years.

The tenders' opening date was successively postponed, and on December 30, 2020 SE Res. No. 448/20 was published, which renders this call for tenders ineffective, and instructs the Under secretariat of Hydrocarbons to evaluate other alternatives for constructing a new gas pipeline and/or transportation capacities’ extension.

Regulations specifically applicable to the LPG business

Household Gas Bottles’ Program and Propane for Grids Agreement

Currently, the butane supply for gas bottles at subsidized prices program is in force, created by PEN Executive Order No. 470/15 and encompassed under the Household Gas Bottles’ Program (SRH Res. No. 56/17, as amended). The program provides a defined LPG quota to fractionation companies, under a maximum reference price, to benefit low-income residential users. The sales price for butane and propane traded under the Household Gas Bottles’ Program is determined by the SRH, which set a price of AR$9,895/ton for butane and AR$9,656/ton for propane as of July 1, 2019 (SHC Provisions No. 104/19). Later, prices were updated to AR$10,885/ton for both products effective as from October 19, 2020 (SE Res. No. 30/20). Consequently, this program's participation forces TGS and Refinor to produce and sell LPG at prices ostensibly lower than market prices, which entails adopting the necessary mechanisms to minimize its negative impact.

As regards the Agreement for the Supply of Propane Gas for Undiluted Propane Gas Distribution Grids, on May 30, 2018, TGS executed the 16th extension to the agreement, which set a new methodology for the determination of the price and volumes to be sold for the April 1, 2018 – December 31, 2019 period under this program. On January 14, 2020, TGS was instructed by the SE to proceed with the deliveries according to such extension. On August 25, 2020, TGS executed the 17th extension to the Propane for Grids Agreement, effective until December 31, 2020. As of the date of release of this Annual Report, this program has not been postponed.

Both the Household Gas Bottles’ Program and the Propane for Grids Agreement provide compensation to participants, payable by the Federal Government, which is calculated as the difference between the sale price under such agreement and the export parity published by the SRH monthly, although with significant delays in collection terms.

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Natural gas import financing charges

Regarding Res. I-1,982/11 and I-1,991/11 issued by ENARGAS, which at the time provided for an approximate 700% increase in the natural gas import financing charge (created by PEN Executive Order No. 2,067/08), on March 26, 2019, TGS was served notice of the first-instance ruling upholding its claim for unconstitutionality and nullity of the provisions mentioned above. The Federal Government appealed this ruling on March 29, 2019; the appeal was granted on April 3, 2019, and has not been resolved as of the date hereof.

On December 1, 2020, the Court hearing the case resolved, taking into consideration the ruling and given the reasons alleged by TGS, to extend the validity of the granted injunction for a term of six months in such ordinary proceeding and/or until a final and conclusive ruling is issued.

Export duty

As with hydrocarbon exports, as of September 2018, there was an export duty of AR$4 per exported US$ for propane, butane and LPG, with a maximum 12% rate (PEN Executive Orders No. 793/18 and 865/18). The Solidarity Law provided that, effective as of December 23, 2019, this rate should be lower than or equal to 8% of the taxable value or the FOB price. However, until its regulation, PEN Executive Orders No. 793/18 and 865/18 continued to apply. PEN Executive Order No. 488/20, issued on May 19, 2020, established an export duty exemption for as long as the international Brent price was equal to or below US$45/bbl, rising gradually as the reference price increases up to 8%, the cap to be recognized when the Brent equals or exceeds US$60/bbl. As of this date, the rate amounts to 8%14.

Regulations specifically applicable to crude oil transportation

In June 2016, OldelVal requested the performance of the RTI to the MEyM as tariffs were insufficient to develop a maintenance and investment plan that may guarantee the integrity, efficiency and reliability of the facilities and transportation service. Consequently, on March 10, 2017, a new US$-denominated tariff scheme was published, providing for an average 34% increase, effective for a term of 5 years as from March 2017 (MEyM Res. No. 49/17).

In November 2018, Pampa divested 21% of Oldelval’s capital stock to ExxonMobil Exploration Argentina S.R.L., keeping a 2.1% equity interest in OldelVal.

14 For further information, see section 7.2 of this Annual Report.

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7. Relevant events

7.1 Main impacts of COVID-19

Essential industry

As a result of the COVID-19 pandemic, under DNU No. 297/20 and amending provisions, the Federal Government established the nationwide ASPO and DISPO, effective as of March 20 and December 21, 2020, respectively. At first, all the Group’s businesses were deemed essential except for SBR at the petrochemicals segment, halted until it was declared essential, resuming operations halfway through May 2020.

To safeguard our personnel's integrity, the minimum personnel was working at operations. We have implemented strict hygiene and safety protocols set up by an interdisciplinary committee reporting to the CEO and in line with the requirements set forth by the enforcement authorities. Moreover, home office working scheme was developed for all positions allowing so.

As of the date, the end of the pandemic measures is uncertain, depending on its evolution.

Energy infrastructure works

On April 7, 2020, Administrative Order No. 468/20 was issued, which deemed private energy infrastructure works as essential, including the expansions at CTGEBA and CTEB. However, the pace and productivity of the expansion works were affected because certain activities by contractors and suppliers were not deemed essential, the closure of national borders blocked the entry of specialists, and special operating protocols were established.

Consequently, according to Note NO-2020-37458730-APN-SE#MDP, on June 10, 2020, the SE instructed CAMMESA to temporarily suspend COD incompletion claims for certain PPAs entered into with CAMMESA, including those under SEE Res. No. 287/17, regarding the execution of guarantees as well as the imposition of fines. This suspension was in force between March 12 and September 12, 2020.

Although both terms and estimated costs for the expansion works were affected, on July 2, 2020, CTGEBA’s expansion was commissioned15, achieving it within the scheduled term. Moreover, regarding CTEB’s expansion to CC, Q1 22is the best estimate for the commercial commissioning.

Increase in delinquency and suspension of service disconnections for certain users

DNU No. 311/20 provided that as from March 25, 2020, and for 180 days, electricity distribution utilities (including Edenor), as well as gas, water and sewage, telephone, internet and cable TV companies may not suspend or disconnect services to specific users in case of delinquency or nonpayment of up to 3 consecutive or alternate bills due as from March 1, 2020. Later extended to 7 bills and postponed until December 31, 2020 (DNU No. 756/20).

It is worth highlighting that this measure addresses certain residential users, including, but not limited to, beneficiaries of the universal child allowance, electro-dependent customers, retirees, pensioners and employees with a gross wage lower than or equal to two minimum wages. Moreover, it comprises certain non-residential users, including, among others, certain PyME and healthcare institutions affected by the emergency, as established by the regulation. It does not prevent any disconnection or suspension under safety reasons provided by distribution companies.

15 For further information, see section 7.3 of this Annual Report.

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Additionally, Edenor’s collection levels were significantly affected as the main taxes and utilities’ collection branches accepting cash payment were closed during the lockdown. Despite this, online and telephone payment transactions remained operational. According to Administrative Order No. 524/20, as of April 20, 2020, these collection branches and on-site banking activities, among others, have been included as waived activities. Thus, collection rates have been recovering since the low levels recorded at the beginning of the lockdown.

‘Criollo Barrel’ and other measures in the hydrocarbon sector

As a result of the sharp drop in international reference prices and domestic demand, Executive Order No. 488/20 established a local commercialization reference price for Medanito-type crude oil of US$45/bbl (adjusted by quality for other types of crude oil and loading port), effective from May 19 to December 31, 2020. This measure would be rendered ineffective if the Brent reference price16 exceeded US$45/bbl for ten calendar days, an event that occurred on August 28, 2020, ending the validity of the Criollo Barrel.

Moreover, while said executive order was in force, producers had to keep the activity levels recorded in 2019, maintain the employees’ payroll as of the closing of 2019, access to the FX market was limited, penalties for obligations unfulfillments were updated, and tax increases were postponed for certain refined products.

Besides, oil imports were restricted as long as the domestic supply was available, and exports (hydrocarbons and certain products derivatives) were exempted from export duties provided that the international price (Brent price published at the end of each month by the SE) was lower than or equal to US$45/bbl. The duty increases gradually as the international reference price increases until reaching 8% rate, the cap to be recognized when this price equals or exceeds US$60/bbl.

In 2020 oil sales represented only 22% of the segment’s sales and that, between May and August 2020, the Company managed to export most of its production to moderate the impact of the sharp drop in domestic demand. The export duty rate remained at 0% until September 2020, reaching 8% in March 2021 due to the reference price increase.

7.2 Main impacts of the Solidarity Law

On December 23, 2019, the Solidarity Law No. 27,541 entered into effect, which declares a public emergency in economic, financial, fiscal, administrative, pension, tariff, energy, health and social matters, vesting in the PEN the powers conferred by such Law until December 31, 2020.

Tariff freeze

The Solidarity Law provided for the suspension of updates on electricity and natural gas tariff schemes under federal jurisdiction up to 180 days, extended for additional 180 days (PEN Executive Order No. 543/20) and an additional term of 90 days or until new transitory tariff scheme is effective (DNU No. 1020/20). It also vested the PEN with the power to begin an extraordinary review of the current RTI.

On December 27, 2019, the ENRE instructed Edenor to maintain the tariff schedules in force since May 1, 2019, halting the semiannual updates that should have been applied since February and August 2020 for Edenor and Transener, the CPD update for Edenor deferred in August 2019, as well as scheduled increases in the seasonal price for GU and non-residential users. Furthermore, gas tariff increases that had been previously deferred in October 201917 and the corresponding semiannual updates that should have

16 Average of the last 5 quotes published by PLATTS Crude Marketwire for futures. 17 Pursuant to SGE Res. No. 521/19, 751/19 and 791/19.

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been applied since February 2020, both on account of cost variations in TGS’s regulated business as well as the price variation in AR$ of natural gas as a raw material sold by our E&P business.

Furthermore, ENARGAS Res. No. 27/20 issued on April 27, 2020, abrogated ENARGAS Res. No. 72/19, which used to set up the methodology for passing the gas price on to tariffs, notwithstanding the possible consequences that may result from the applicable reviews to the Solidarity Law and supplementary regulations, which will be dealt with on an individual basis.

Beginning of the RTI renegotiation

Executive order No. 1020/20 was published on December 17, 2020, which established the beginning of the RTI renegotiation for a term that may not exceed two years from its publication date. Therefore, the order halted all agreements under the RTI in force, with the scopes be determined each case by the ENRE and ENARGAS. The renegotiation process will be completed with the execution of the RTI Final Memorandum of Understanding.

On March 3, 2021, the ENRE called for a public hearing to consider the transitional tariff scheme of Edenor, to be held on March 30, 2021, (Res. No. 53/21), and for Transener and Transba on March 29, 2021, (Res. No. 54 and 55/21, respectively).

As regards gas utilities, on February 22, 2021, the ENARGAS called for a public hearing on March 16, 2021, to consider the transitional tariff scheme (Res. No. 47/21).

WEM seasonal programming

Reference energy and power values remained unchanged in the successive seasonal programming since August 2019 under SRRYME Res. No. 14/19 (November 2019 – April 2020 (SRRYME Res. No. 38/19), May – October 2020 (SE Res. No. 70/20) and November 2020 – April 2021 (SE Res. No. 24/21)). It is worth highlighting that even though these seasonal prices apply to the energy costs of Edenor, tariff schemes for end-users reflect the seasonal prices effective as of May 2019, especially for GUDI and the rest of non- residential users, amounts that are lower than the seasonal programming, and detrimental to Edenor.

As of March 2021, according to SE Res. No. 131/21, the reference price for GUDI increases to AR$5,500/MWh, except for public health and education bodies and entities. The rest of the electricity prices applicable to the final demand have not been modified.

Export duty

The Solidarity Law established that the hydrocarbon export duty rate might not exceed 8% of the taxable value or the FOB price from December 23, 2019, without this implying a decrease in the PIST for the payment of royalties. However, until its regulation, the AR$4 per exported US$ duty, with a maximum 12% rate, continued being applied (PEN Executive Orders No. 793/18 and 865/18).

PEN Executive Order No. 488/20 issued on May 19, 2020, established an export duty exemption (both for hydrocarbons and certain products derived from hydrocarbons) as long as the international Brent price was lower than or equal to US$45/bbl, increasing gradually as the international reference price increased until reaching 8%, the cap to be recognized when the reference price equals or exceeds US$60/bbl. The export duty rate remained at 0% until September 2020, reaching 8% in March 2021 due to the reference price increase.

Said measure mainly affected the E&P and petrochemicals segments, and TGS. However, for the petrochemicals segment, under PEN Executive Order No. 1060/20, a 4.5% rate was established as from 2021 for most products (styrene, polystyrene, rubber and toluene), whereas for others such as naphthas, aromatics and solvents, the provisions of PEN Executive Order No. 488/20 remain in effect.

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Other aspects of the Solidarity Law

The Solidarity Law also vests the PEN with the power to intervene the ENRE administratively and the ENARGAS (implemented pursuant PEN Executive Orders No. 277/20, 278/20 and 963/20), and provides that the ENRE will continue being the regulatory authority over the concession of Edenor until December 31, 2020, extended for one year or until the RTI is renegotiated (PEN Executive Order No. 1020/20).

Furthermore, for fiscal years 2020 and 2021, the scheduled income tax rate decrease is suspended, remaining at 30%, and the rate increase in the tax on dividends is postponed, remaining at 7%. Besides, a new mechanism for charging the tax inflation adjustment was established for the next two fiscal years as from 2019.

7.3 Power generation18

Commissioning of Genelba Plus’s closing to CC

As of July 2, 2020, at midnight, CAMMESA granted the commercial clearance to the second ST (GEBATV02) at CTGEBA for a gross installed capacity of 199 MW. This commissioning set the beginning of operations of CTGEBA’s second CC, a project in which Pampa finally disbursed approximately US$320 million to add 400 MW, 9% lower than the amount budgeted, and employed an average of 1,500 people during 30.5 months of works. With the completion of the expansion project, CTGEBA’s total installed capacity amounts to 1,253 MW, becoming the country’s largest power capacity CT, with an outstanding efficiency of 55% average and capacity to supply electricity to 2.5 million households in the Buenos Aires metro area.

It is worth highlighting that despite COVID-19, Pampa managed to comply with the commitments stipulated in the PPA with CAMMESA, which was executed under tender launched through SEE Res. No. 287/1719.

In line with the Company’s strategy to develop core businesses, this milestone joins Pampa’s efforts to increase power generation infrastructure during the last 12 years, which demanded investments for more than US$1.5 billion. Hence, Pampa becomes Argentina’s largest independent power producer, operating a total of 4,955 MW of installed capacity, representing 12% of the national grid.

Updates to the remuneration scheme for capacity without PPA

On February 27, 2020, SE Res. No. 31/20 was published in the BO, which modified certain aspects of the remuneration scheme set forth by SRRYME Res. No. 1/19, effective as of February 1, 2020. The new Res. converted the entire remuneration scheme to the local currency at an FX of AR$60/US$ and established an update factor from the second month of its application according to a formula consisting of 60% CPI and 40% IPIM. Moreover, it modified power capacity payments and incorporated an additional remuneration in the HMRT of the month.

Later on, through the Note NO-2020-24910606-APN-SE#MDP dated April 8, 2020, the SE instructed CAMMESA to postpone until further decision to apply the update factor. Moreover, the power capacity base price for internal combustion engines with a capacity lower than or equal to 42 MW was set at AR$312,000/MW‐month. As of this date, the Company has not been notified of any update.

18 For further information, see sections 5.1 and 8.1 of this Annual Report. 19 For further information, see section 7.1 of this Annual Report.

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Assignment of fuel supply agreements for thermal power generators

The MDP Res. No. 12/19, effective as from December 30, 2019, restored the centralization in CAMMESA of fuel procurement, a measure that does not cover generators with Energía Plus contracts and under SEE Res. No. 287/17.

Later on, within the framework of Plan Gas.Ar, SE Res. No. 354/20 defined the priority usage of natural gas firm volumes from different sources (gas from Bolivia, contracts with Plan Gas.Ar producers, etc.) to be acquired by CAMMESA. Based on the said basis, a unified dispatch scheme by CAMMESA and a priority dispatch order based on the assigned natural gas were set.

Generators under Energía Plus and PPA with CAMMESA have the option to adhere to the unified dispatch, being CAMMESA their natural gas supplier to cover their obligations. To such effect, they should maintain the necessary natural gas transportation capacity and dismiss their right to file claims due to SE Res. No. 354/20. Pampa executed contracts with CAMMESA whereby it adhered to said unified dispatch and relinquished the operation of the executed contracts of gas and transportation. As of the date hereof, the CTEGBA’s CC PPA addendum reflecting this new supply scheme has not been executed.

Repairs at PEPE II and III

After the commissioning of PEPE II and PEPE III wind farms, certain defects were evidenced in some wind turbines' blades, which resulted in their outages for their subsequent repair and/or replacement. As a consequence, the generation capacity of the wind farms has been partially reduced.

Pampa submitted the corresponding claims to the wind turbine supplier Vestas and the insurance company to move forward with repairs and cover the incurred damages. In this sense, the Company and the supplier have performed tasks for their progressive repair. PEPE II recovered 100% of its generation capacity at the end of July 2020 and PEPE III at October 2020.

It is worth highlighting that the reduced generation's economic impact was non-material, as Vestas’s guarantees and the insurance covered it.

Situation at TMB and TJSM

On January 6 and February 2, 2020, matured the PPA between CAMMESA and the BICE, in its capacity as trustee and acting on behalf of the Trusts20, for the trade of energy produced by TMB and TJSM, respectively. Consequently, as from these dates, the remunerations collectible by such power plants are those stipulated for capacity without PPA.

In parallel, the respective Trust agreements terminated, a milestone that triggered the Government's incorporation as a shareholder; once completed, the Trustee will transfer these power plants to the Trust's beneficiary, which are the managing companies, including Pampa. So far, the Government's incorporation as a shareholder has not been executed, although the Investment and Foreign Trade Bank (Banco de Inversión y Comercio Exterior – BICE) has served notice of fulfillment of the precedent condition.

As TMB and TJSM’s operating and maintenance contracts also expired on the previously indicated dates, the applicative addenda were executed on January 3, 2020, extending their tenure until the actual transfer of each Trust’s assets, setting a new remuneration for such management.

20 The ‘Timbúes Thermal Power Plant’ and ‘Manuel Belgrano Thermal Power Plant’ Trust Agreements executed on June 4, 2006 among CAMMESA, in its capacity as the WEM’s Funds and Accounts Administrator, acting as Trustor; the BICE, acting as Trustee, and the SE, as the WEM’s funds regulatory authority.

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7.4 Oil and gas21

Plan Gas.Ar

According to Executive Order No. 892/20, on November 16, 2020, Plan Gas.Ar program was created to promote Argentine natural gas production, reduce and replace LNG and liquid fuels imports, provide supply chain predictability, and manage the impact of gas's cost on the tariff of the Priority Demand. The on-shore production term is four years, with an additional four years for offshore production, as from January 2021. Beneficiaries of the Unconventional Plan Gas opting to participate in this program should previously file their waiver.

Tender methodology and purchasing conditions

The SE instrumented a tender between producers as sellers, and CAMMESA, gas distributors and IEASA (in the case of Patagonia, Malargüe and the Puna), as purchasers, for a total base volume of 70 million m3/day (67% Neuquina Basin), extendable for the winter period (May – September), with 100% daily DoP and 75% monthly ToP condition for CAMMESA and quarterly for gas distributors and IEASA. The maximum base price for the Neuquina Basin to tender was US$3.7/MBTU. Moreover, the awarded price will be adjusted by a 0.82 factor for the non-winter period, 1.25 for the winter period, and 1.30 for the additional volume during winter.

The producer commits a minimum production per basin and per month as from January 2021 equivalent to the base injection (average between May and July 2020), and a maximum production lower than or equal to 70% of the output committed for the May – July 2021 period in the case of onshore production, and May - July 2020 for offshore production. Additionally, producers should submit an investment plan to maintain the committed production and a national added-value commitment to developing direct local, regional and national suppliers.

If the injection in the months of June, July and/or August is lower than that committed, the producer may offset the shortfall with (i) own production from another basin or acquired from another signatory producer, as long as transportation capacity is available; (ii) imports on its account; (iii) a payment equivalent to two times the shortfall volume at the tendered price with a 1.25-factor adjustment.

Moreover, participating producers may export on a firm basis, with a preferential order for those tendering lower prices, up to the aggregate volume of 11 million m3/day (64% Neuquina Basin) during the non-winter period, extendable to the winter period provided there is an oversupply in a specific basin.

Regarding the price payable, purchasers CAMMESA and IEASA will pay the price awarded under the Plan Gas.Ar tender, whereas gas producers will pay the amount established in the tariff scheme in force, and the Federal Government will offset the balance of the awarded price. According to the concession, this compensation will be subject to withholding according to the province and/or the Federal Government royalties’ rate. As long as the producer submits the production’s affidavit within 30 days after the injection month's closing, they will receive a provisional payment of 75% of the compensation net of royalties within the following 30 days. The adjusted balance will be paid within 60 days from the presentation of the affidavit certified by independent auditors, considering BNA’s selling exchange rate on the last business day of the injection month.

In addition, according to the Plan Gas.Ar framework, the Federal Government created a guarantee system to secure compensation’s payment, notwithstanding other mechanisms, based on the recognition of fiscal credits, per the applicable legislation and regulated by the enforcement authority and/or AFIP. SE Res. No. 125/2021 regulated the said mechanism, which instrumented electronic certifications in foreign currency that producers may directly apply to fulfill fiscal liabilities in Plan Gas.Ar default by the Federal Government.

21 For further information, see sections 6.1 and 8.3 of this Annual Report.

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Moreover, the SE will be empowered to make the awardees’ guarantee enforceable before the AFIP. The AFIP instruments said system on March 4, 2021.

Finally, the BCRA should establish appropriate mechanisms to facilitate access to the MLC, as long as the funds have been deposited in the MLC and after the DNU entered into effect and destined for the financing of projects under the Plan Gas.Ar.

Tender award

On December 15 and 29, 2020, the SE issued Res. No. 391/20 and 447/20 awarding the volumes and prices tendered under Plan Gas.Ar. From a total of 67.4 million m3/day of natural gas under auction, the Company ranked fifth nationwide and third at the Neuquina Basin in terms of tendered gas volume, being awarded a base volume of 4.9 million m3/day at an average annual base price of US$3.60 per million BTU for a four-year term starting January 1, 2021, highlighting that Pampa’s tender positioning minimizes the demand’s contractual risks. Pampa’s tender involves a 7 million m3/day production commitment, of which 2.1 million m3/day will be priced outside Plan Gas.Ar.

Moreover, Pampa was one of the three producers tendering additional volume during the winter period, being awarded 1 million m3/day for US$4.68 per million BTU. Out of the 4.9 million m3/day of the base tender, 56% will be destined to power plants and the balance to gas distributors or IEASA. In contrast, the additional winter volume will be destined to gas distributors or IEASA.

Hence, Pampa achieved the highest growth in tendered production, being the winter peak injection 20% higher than average output between May and July 2020, with an approximate investment of US$250 million during the four years of Plan Gas.Ar. This winter volume is critical to support the highly seasonal gas demand, reduce gas imports and alternative fuels consumption, and moderate foreign currency reserves.

Finally, on February 22, 2021, through Res. No. 129/2021, the SE called for a second round to award additional winter gas volumes at Neuquina and Austral Basins, with a daily DoP between 75% and 100% for 2021 and 100% for 2022-2024, and 75% monthly ToP. The maximum bidding price was equivalent to the awarded price on the first round. Through SE Res. No. 169/21, a total average volume of 3.3 million m3/day at US$4.7 per MBTU, to be delivered as of June 2021. Pampa participated in said round, being awarded 0.8 million m3/day at US$4.7 per MBTU. Additionally, the awarded companies will have to enter into a contract with IEASA.

Natural gas for power generation22

CAMMESA launched successive tenders to cover its monthly consumption. On December 27, 2019, it tendered for January 2020 on an interruptible basis, at an average PIST price of US$1.73/MBTU in the Neuquina Basin. However, from February to December 2020, it tendered gas on a partially firm basis, with a 30% DoP, resulting in an average PIST price of US$2.24/MBTU for the Neuquina Basin. Pampa participated in all these tenders.

As of 2021, most of Pampa’s gas to CAMMESA is channeled through the Plan Gas.Ar, for the volumes committed under said program for a term of 4 years. Through SE Res. No. 354/20 published on December 2, 2020, new reference prices at the PIST were set for natural gas production out of Plan Gas.Ar, being US$2.30/MBTU for the summer (October – April) and US$3.50/MBTU for the winter (May – September) for the Neuquina Basin.

It is worth mentioning that CAMMESA’s monthly tender mechanism is still in force, complementary to the Plan Gas.Ar. On December 22, 2020, and January 27 and February 24, 2021, CAMMESA tendered gas for the consumptions in January, February and March 2021, respectively. The wellhead's resulting average price was US$2.30/MBTU in all three months for the Neuquina Basin. For awardees of the Plan Gas.Ar,

22 For further information, see section 5.1 of this Annual Report.

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including Pampa, the tender was under an interruptible basis, whereas the rest has a 30% DoP. Pampa participated in these tenders.

Natural gas for gas distribution companies

The supply agreements executed between gas producers (including Pampa) and gas distribution companies under the tenders launched in the MEGSA on February 14 and 15, 2019, expired on March 31, 2020. However, the SE issued several Notes extending such agreements until the entry into effect of the supply agreements to be executed within the Plan Gas.Ar framework (SE NO-2020-25148550, NO-2020- 39414272 and NO-2020-85912917).

The Company was not served any administrative notice. However, Pampa decided to sell gas at spot prices to certain distribution utilities. Moreover, since April 2020, the Company has received letters from certain gas distribution utilities informing on the partial payment of invoices, alleging the effects of the lockdown and the impossibility of disconnecting service to certain users in case of delinquency nonpayment. Even though in 2020 sales to gas distribution companies represented less than 3% of the segment, as of this date, the Company is assessing the courses of action to take and has reserved all rights under the agreements.

As of 2021, Pampa was awarded under Plan Gas.Ar, agreeing to supply fixed amounts to gas distributors and IEASA for a term of 4 years. Moreover, distributors should deposit into a bank account the amounts payable for the gas within the PIST to guarantee payment compliance. Furthermore, SE Res. No. 117/21 published on February 18, 2021, called for a public hearing on March 15, 2021, to discuss Plan Gas's share.Ar in the natural gas price at the PIST to be borne by the Federal Government.

Besides, regarding the FX difference between distributors’ gas purchase price and recognized in final bills, in November 2018, Executive Order No. 1053/18 was issued, stipulating on an exceptional basis that the Federal Government would bear such difference for the April 2018 – March 2019 period, in 30 consecutive monthly installments payable from October 2019. In November 2019, ENARGAS issued Res. No. 735/19 approving the payment to producers and IEASA through gas distribution companies for a total AR$24,525 million23, of which AR$1,219 million corresponded to Pampa; the Company only collected the first installment, for the amount AR$41 million, at the end of December 2019, and the remaining 29 installments plus updates are still pending. However, on December 14, 2020, Law No. 27,591 was published, which abrogated PEN Executive Order No. 1053/18. However, Pampa is assessing the courses of action to take, as this abrogation does not affect the rights to collect the owed amount that the Federal Government may bear.

Gas export

In September 2019, Pampa obtained a permit to export gas on a firm basis to Refinerías ENAP in Chile, for a maximum volume of 0.6 million m3/day or a total of 137 million m3 for US$3.1/MBTU, net of export duties and transportation costs, effective until May 15, 2020.

If higher costs are incurred because of the use of alternative fuels for power companies (imported LNG, coal, FO, or GO), it was determined that exporting producers between September 15, 2019 and May 15, 2020 should pay a compensation to CAMMESA on account of such costs (SGE Res. No. 506/19).

In November 2020, Pampa obtained new permits to export gas to several customers in Chile, on an interruptible basis, for a maximum volume of 4.4 million m3/day24. Maturities will take place between April 2021 and January 2022.

On the other hand, as the awardee of the Plan Gas.Ar, Pampa may export on a firm basis during the off-peak period, extendable to the winter period if there is an excess supply in a specific basin, with the prior

23 Original value of AR$19,532 million updated as of September 30, 2019 pursuant to ENARGAS Res. No. 735/19. 24 Or until completing the equivalent maximum total amount.

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approval of the applicable authority. It is worth mentioning that natural gas is subject to an export duty rate that, as of this date, amounts to 8%25.

Los Blancos new exploitation concession and relinquishment of the remaining area of the Chirete block

On October 15, 2020, the Province of Salta issued Executive Order No. 662/20, granting Pampa and High Luck Group Limited an exploitation concession over Los Blanco's block for a 95 km2 area and a term of 25 years as from its publication date, and relinquishing the exploration permit for the 801 km2 remaining area of the Chirete block. Moreover, an investment plan was established for a total amount of US$57 million for the 2020 – 2024 five-year period.

7.5 Edenor26

Sale of controlling stake in Edenor

As part of our strategic investment plan to continue expanding the power generation installed capacity and developing unconventional natural gas reserves, on December 28, 2020, Pampa executed an agreement with Empresa de Energía del Cono Sur S.A. and Integra Capital S.A., Messrs. Daniel Eduardo Vila, Mauricio Filiberti and José Luis Manzano. In the said arrangement, Pampa agreed to sell Edenor’s controlling stake by transferring the total Class A shares, representing 51% of the capital stock and voting rights of said company, upon the fulfillment of certain precedent conditions, including but not limited to the approvals of Pampa’s shareholder meeting -that was timely granted on February 17, 2021- and the ENRE.

The agreed purchase price consisted of (i) 21,876,856 Class B shares of Edenor, representing 2.41% of the capital stock and voting rights of Edenor; (ii) US$95 million; and (iii) a contingent payment in case the buyer of Edenor’s change in the control during the first year after the closing of the sale or as long as the balance of the price is pending of settlement for 50% of the generated gain.

The purchase price will be paid in three installments: (i) 2.41% of Edenor’s shares and US$5 million, collected on the execution date of the agreement; (ii) US$50 million upon the closing of the sale, subject to the fulfillment of the precedent conditions; and (iii) US$40 million one year after the closing of the deal, except in cases of offsetting or prepayment in advance. Said balance of the price would accrue a nominal annual fixed interest rate of 10% as from the closing of the sale, payable quarterly.

Under IFRS, Pampa has reflected in its FS an accounting impairment of US$382 million for the assets associated with its stake in Edenor, which is disclosed under discontinued operations. Moreover, as the Closing has still not taken place, the economic result will be disclosed in the Company’s FS after the sale's closing.

Edenor’s jurisdiction

On January 19, 2021, Edenor expressed its consent with the Agreement on the Joint Exercise of the Control and Regularization of the Electricity Distribution Public Utility entered into by the Federal Government, the Province of Buenos Aires and the City of Buenos Aires. This agreement acknowledges that the Granting Power’s ownership and nature over the electricity distribution utility in the concession area of Edenor remain at the Federal Government’s jurisdiction. Therefore, Edenor agreed to annul a series of instruments associated with the transfer of said utility to the local jurisdictions and commit to creating a tripartite body to regulate and control the activity.

25 For further information, see section 7.2 of this Annual Report. 26 For further information, see sections 5.3, 7.5 and 8.2 of this Annual Report.

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Regularization of liabilities

To provide a solution in achieving a sustainable balance sheet and guaranteeing the service quality amid the extended tariff freeze exacerbated by the pandemic, through Res. No. 40/21 issued on January 21, 2021, the SE established a Special Liabilities Regularization Scheme for debts that electricity distributors owe to CAMMESA and/or the WEM for energy consumptions, power capacity, interest and/or penalties accumulated as of September 30, 2020.

The scheme may recognize receivables to offset debt equivalent to up to 5 times the monthly average bill of the last rolling year or until 66% of the existing debt. If the debt exceeds the recognized receivable, a payment plan of up to 60 monthly installments, with a grace period of up to 6 months, is available at an interest rate equivalent to up to 50% of the WEM’s valid rate. Besides, distributors should submit a work plan to avoid defaults in monthly payments to CAMMESA throughout 2021.

Moreover, debt-free distributors or with reasonable obligations in line with their transaction levels with CAMMESA and/or the WEM, it was established a Special Receivables Scheme recognizing the equivalent of 5 times the monthly average bill in 2020, which can be allocated, for the user’s benefit, to CAMMESA’s bill and/or to investments to improve the quality service.

To access this scheme, distributors should waive all administrative, judicial, extrajudicial or arbitration claim, proceeding or right against the Federal Government or its bodies and/or CAMMESA regarding the 2020 tariff freeze and the measures associated with the Solidarity Law. As of this date, Edenor is evaluating the scope and implications of this scheme.

New Framework Agreement

On December 16, 2020, the Agreement for the Development of the Preventive and Corrective Work Program for the Electrical Distribution Grid of the Metropolitan Area of Buenos Aires was entered into with the Federal Government and the Province of Buenos Aires to guarantee electricity supply to low-income neighborhoods of said specific area.

As of December 31, 2020, the Federal Government owed Edenor AR$2,126 million, corresponding to the electricity supply during the October 2017 – July 2020 period to shantytowns and low-income neighborhoods. Moreover, a provision should be recognized for equivalent to total consumption by low- income neighborhoods between August and December 2020.

These amounts will be destined to the grid’s investment and maintenance Works Plan, in charge of distributors and destined to low-income neighborhoods and other zones within the concession area to improve the service and meet contingencies and possible consumption peaks, especially in the summer season.

On January 14, 2021, Edenor received the first disbursement of AR$1,500 million, whereas the second disbursement for AR$500 million is scheduled for the first quarter of 2021. The third disbursement for AR$500 million is set for the second quarter of 2021. The fourth and final disbursement is subject to the ENRE’s validation and total consumptions by low-income neighborhoods in the August - December 2020 period. These disbursements are subject to compliance with the Works Plan mentioned above and the ENRE and Federal Government’s monitoring.

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7.6 TGS27

Expansion of the Vaca Muerta midstream project

TGS completed the midstream project in December 2019, which was the construction of a 147-km gathering gas pipeline in the Vaca Muerta formation that started in April 2018. The total transportation capacity amounts to 60 million m3/day, and a conditioning plant in the town of Tratayén, with an initial capacity of 5 million m3/day and modularly expandable to 56 million m3/day.

In June 2020, TGS entered into agreements with Oilstone Energía S.A., in its capacity as the operator, to provide the gas compression and conditioning service at the Plaza Huincul Plant for the Cerro Bandera, Puesto Cortadera and Portezuelo Minas’s blocks for a term of 7 years. As part of the agreements, TGS performed the hydraulic test and connection works between an operator’s pipeline and TGS’s compression and conditioning plant, starting to provide the service in October 2020.

In July 2020, an agreement was signed with Shell Argentina S.A. whereby TGS will provide the gas dehydration, measurement and regulation service for up to 1 million m3 per day at the Bajada de Añelo field for a term of 2 years. TGS assumed the responsibility for the design, construction and operation of a plant of its own.

Moreover, TGS approved the expansion of the Tratayén plant in September 2020, which will require a US$15 million investment and a term of execution of 10 months. The expansion will consist of installing a new slug catcher and a new condensed stabilizer tower that will expand the plant’s treatment capacity by 2.4 million m3 per day. This project will contribute to secure gas evacuation committed by some customers under Plan Gas.Ar.

Additionally, Telcosur, TGS’s telecommunication subsidiary, will be in charge of the operating data transmission for the gas injected into the Vaca Muerta gathering pipeline. In 2020, a 150 km optic fiber network was installed, which allowed to improve connectivity in the area and required a US$3 million investment.

Public tender for the litoral main gas pipeline

Aiming to expand the transportation capacity of natural gas produced in the Neuquina Basin to consumption centers in the Metropolitan Area of Buenos Aires and the Litoral area, in July 2019 Res. SGE No. 437/19 launched a public tender for the award of a gas transportation license to connect the town of Tratayén, in the Province of Neuquén, with the city of San Nicolás de los Arroyos, in the Province of Buenos Aires.

On December 30, 2020, SE Res. No. 448/20 was issued, which abrogates said call for tender and instructs the Under secretariat of Hydrocarbons to assess other alternatives for constructing a new gas pipeline and/or the extension of transportation capacities.

Charge for natural gas processing plants

On March 26, 2019, TGS had been served notice of the first-instance ruling rendered by the National First-Instance Administrative Litigation Court No. 1 upholding the claim for unconstitutionality and nullity of PEN Executive Order No. 2,067/08, Res. No. 1451/08 of the former Ministry of Federal Planning, Public Investment and Services, and ENARGAS Res. No. I-1,982/11 and I-1,991/11, as well as any other provision or act issued or issued based on the provisions mentioned above. The Federal Government appealed this ruling on March 29, 2019; the appeal was granted on April 3, 2019, and has not been resolved as of the date hereof. On December 1, 2020, the Court hearing the case settled, pursuant to the ruling and given the

27 For further information, see sections 6.2, 7.6 and 8.5 of this Annual Report.

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reasons alleged by TGS, to extend the granted injunction's validity for a term of six months and/or until a final and conclusive ruling is issued.

It is important to remember that the charge resulting from PEN Executive Order No. 2,067/08 was created to finance natural gas imports carried out by the Federal Government, and it made up the variable costs for the processing of natural gas by TGS at its own expense.

7.7 Buyback of Own financial securities

Given the difference between the value of Pampa Group’s assets and the quoted market price, the buyback of own shares and bonds continued in 2020 by efficiently applying liquidity. The market price does not reflect either the value or economic reality they currently hold nor its upside potential, resulting in detriment to shareholders and bondholders’ interests.

Directors, statutory auditors and senior managers may not sell shares held or directly or indirectly managed by them while the buyback programs are in effect.

Pampa Energía

After terminating the fifth program on March 10, 2020, Pampa’s Board of Directors approved four Share Buyback Programs pursuant to the following terms and conditions:

Repurchase Program Repurchase Program Repurchase program Repurchase program Repurchase Program V VI VII VIII IX The maximum amount for US$50 million US$27.02 million AR$3.6 billion US$30 million US$30 million repurchase US$0.58/share or US$0.52/share or AR$67.34/share or AR$85.20/share or AR$92.16/share or Maximum price US$14.50/ADR US$13/ADR US$13/ADR US$15/ADR US$16/ADR 120 days since Nov 120 days since Mar 120 days since Jul 1, 120 days since Nov 3, 120 days since Mar Period in force 11, 2019 11, 2020 2020 2020 3, 2021 Status Complete Complete Complete Complete In progress

In 2020, the Company, directly and indirectly, acquired 9.1 million ADR and 0.3 million shares, at an average price of US$11.3/ADR and AR$47.0 share, respectively. After the closing of the fiscal year, the Company indirectly acquired 1.1 million ADR at an average price of US$13.4/ADR.

Moreover, on May 7, 2020, the IGJ registered Pampa’s capital stock reduction, approving the cancellation of 152.0 million shares (or 6.1 million ADR), which was previously approved by the shareholders’ meeting on October 1, 2019. Moreover, Pampa’s respective Shareholders’ Meetings held on April 7 and December 10, 2020, approved the capital stock reduction through the cancellation of 151.6 million and 140.8 million shares held in treasury (or 6.1 million and 5.6 million ADR), respectively, acquired by Pampa and its subsidiaries. These reductions are in the process of registration before the IGJ. At the end of February 2021, Pampa’s outstanding capital stock amounted to 1,426.2 million shares (equivalent to 57.0 million ADRs).

Regarding debt securities, in 2020 Pampa acquired:

i. US$96.9 million FV of its CBs maturing in 2023 at an average clean price of US$75.5 per US$100 FV which, in addition to those already held in treasury by the Company, amount to a total US$110.4 million FV; ii. US$51.0 million FV of its 2027 CBs at an average clean price of US$66.8 per US$100 FV which, in addition to those already held in treasury by the Company, amount to a total US$114.0 million FV; and

Pampa Energía ● 2020 Annual Report ● 65

iii. US$0.2 million FV of its 2029 CBs at an average clean price of US$59.0 per US$100 FV, which, in addition to those already held in treasury by the Company, amount to a total of US$7.5 million FV.

At the end of February 2021, outstanding 2023, 2027 and 2029 CBs amounted to US$389.6 million, US$636.0 million and US$292.5 million, respectively.

Edenor28

Edenor repurchased US$38.8 million FV of its 2022 CBs in 2020, at an average clean price of US$84.6 per US$100 FV. Including those already held in treasury, CBs repurchases amounted to a total of US$78.1 million FV, which were fully canceled on September 28, 2020. Moreover, Edenor received and canceled US$0.1 million FV of its 2022 CBs in January 2021 as an installment of the guarantee in the claim against Rivera Desarrollos S.A. Therefore, at the end of February 2021, outstanding 2022 CBs amounted to US$98.2 million.

Furthermore, in 2020 Pampa acquired 0.4 million Edenor’s ADR at an average cost of US$3.7/ADR. At the end of February 2021, the Company’s equity interest amounts to 55.1% of Edenor’s issued capital stock. It is worth highlighting that the Company is undergoing a divestment process of Class A shares representing 51% of Edenor.

Transener

After the end of the fiscal year 2020, Transba, Transener’s subsidiary, repurchased US$5.5 million FV of Transener’s 2021 CBs at an average clean price of US$93.5 per US$100 FV. Therefore, at the end of February 2021, outstanding 2021 CBs amounted to US$86.0 million.

Besides, in 2020 Pampa acquired US$1.3 million FV of Transener’s 2021 CBs at an average clean price of AR$91.2 per US$1 FV.

TGS

After completing the fifth program on March 9, 2020, TGS’s Board of Directors approved two Share Buyback Programs pursuant to the following terms and conditions:

Repurchase program V Repurchase program VI Repurchase program VII The maximum amount for AR$4.0 billion AR$2.5 billion AR$3.0 billion repurchase AR$130/share or AR$140/share or AR$250/share or Maximum price US$10.5/ADR US$8.5/ADR US$8.5/ADR 120 days since November 20, 180 days since March 10, 210 days since August 25, Period in force 2019 2020 2020 Status Complete Complete In process

In 2020, TGS acquired 6.2 million ADR and 0.6 million shares, at an average price of US$5.24/ADR and AR$128.78/share, respectively. At the end of February 2021, TGS’s outstanding capital stock amounted to 752.8 million shares (equivalent to 150.0 million ADR).

28 For further information, see section 7.5 of this Annual Report.

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As regards debt securities, TGS repurchased US$17.6 million FV of its 2025 CBs in 2020, at an average clean price of US$71.5 per US$100 FV. Therefore, at the end of February 2021, outstanding 2025 CBs amounted to US$482.4 million.

Furthermore, in 2020 Pampa acquired, both directly and indirectly, 0.9 million TGS’s ADR at an average purchase cost of US$4.9/ADR. After the closing of the fiscal year, Pampa acquired, directly and indirectly, 0.9 million ADR and 0.1 million shares of TGS at an average cost of US$5.2/ADR and AR$160.0/share, respectively. At the end of February 2021, the Company’s direct and indirect shareholdings amount to 28.3% of TGS’s issued capital stock.

7.8 Debt transactions

As of December 31, 2020, Pampa’s financial debt at the consolidated level under IFRS amounted to US$1,614 million29. The average interest rate for US$-bearing indebtedness was 7.5%, currency in which 88% of the gross debt is denominated, mainly at a fixed rate. AR$ indebtedness’s average interest rate was 37.7%. The life of Pampa’s consolidated financial debt averaged approximately 4.8 years. The following chart shows the debt maturity profile of the Restricted Group, net of repurchases, expressed in million US$ at the end of the fiscal year 2020:

636

447

293 196 Note: It only considers Pampa stand-alone and 8 8 subsidiaries of the Restricted Group at 100%; it does not include affiliates TGS, OldelVal, Transener, Greenwind, CTBSA and Refinor.

To reduce foreign currency-denominated indebtedness and get attractive rates in AR$, throughout 2020, the Company canceled at maturity and pre-canceled financing mainly denominated in US$, repurchased CBs denominated in US$, issued Series IV, V and VI CBs in AR$ for a total of AR$8,158 million, and executed bank loans, primarily denominated in AR$ and short-term. Moreover, in 2020 Series E, IV and V CBs for a total of AR$2,378 million were paid. As of December 31, 2020, Pampa stand-alone’s short-term principal maturities amounted to approximately US$196 million, 95% of which were denominated in AR$. After the closing of the fiscal year 2020, Pampa paid at maturity AR$-denominated bank loans for AR$3,000 million.

CB in AR$ Date of issuance FV in AR$ million Coupon Term

Series IV April 30, 2020 1,238 Badlar Privada +3% 3 months Series V April 30, 2020 565 Badlar Privada +5% 6 months Series VI July 29, 2020 6,355 Badlar Privada +2.5% 13 months

As regards affiliates, in 2020, TGS pre-canceled an export credit facility for US$17 million. Greenwind paid the first two amortizations of the credit facility executed with the Inter-American Investment Corporation (‘IIC’) for US$3.4 million. CTBSA executed a partial early redemption of US$130 million of its VRDs plus accrued interests, agreeing to modify the payment schedule for the remaining VRDs, of which principal amounts to US$94 million. Moreover, Pampa acquired US$1.3 million FV of Transener’s 2021 CBs.

29 Without considering Edenor, classified as discontinued operations in the FS.

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Regarding discontinued operations, Edenor paid at maturity the last two of the four amortizations of the loan granted by the ICBC in the amount of US$25 million in 2020. As of 2020 and up to date, Edenor canceled 100% of its 2022 CBs held in treasury for a total of US$78.2 million.

As of the date hereof, Pampa holds in treasury US$110.4 million FV of its 2023 CBs, US$114.0 million FV of its 2027 CBs and US$7.5 million FV of its 2029 CBs. TGS holds in treasury US$17.6 million FV of its 2025 CBs, and Transener, through its subsidiary Transba, holds US$8.3 million FV of its 2021 CBs30.

Finally, as of this Annual Report's issuance, the Company and its subsidiaries comply with the covenants established in their debt agreements.

Deferral of interests’ payment

As a consequence of the modifications over the FX regime in force, which extended the restricted period to access the MLC from 30 to 90 days before and after any transaction concerning the transfer of securities to depository entities abroad, on July 21 and 24, 2020, the Company informed it would proceed with the payment of the eighth and seventh interest periods to bondholders of 2023 CBs and 2027 CBs, in the amount of US$18.4 million and US$28.1 million, respectively, within the 30-day grace period stipulated in the terms and conditions of the Trust Agreements governing said CBs. Consequently, corresponding interest payments were made on August 10, 2020. Thus, it did not constitute an event of default according to the terms and conditions of the 2023 and 2027 CBs.

Credit ratings31

After enacting the Solidarity Law in January 2020, S&P downgraded the global ratings granted to Edenor’s CBs from ‘B-’ to ‘CCC+’ and from ‘raBBB’ to ‘raBB-,’ keeping the negative outlook. Moreover, in April 2020, it downgraded the global ratings of Transener’s CBs from ‘B-’ to ‘CCC+’ and the local ratings from ‘raBBB+’ to ‘raBB,’ both with a negative outlook. In May 2020, it also downgraded the global ratings of Pampa and TGS from ‘B-’ to ‘CCC+’ with a negative outlook. Given the regulatory uncertainty due to the extension of the tariff freeze, in July 2020, it modified the global ratings assigned to the CBs issued by Edenor to ‘CCC’ and the local ratings to ‘raB’, which were again changed in September 2020 to ‘CCC-’ and ‘raCCC+’, respectively.

In April 2020, in line with the change on the sovereign’s credit rating outlooks, Moody’s downgraded the global ratings assigned to Pampa, Edenor and TGS’s CBs from ‘Caa1’ to ‘Caa3’ and the local ratings assigned to Edenor from ‘Baa3’ to ‘Caa1’, in all cases with a negative outlook. Moreover, in September 2020, Moody’s changed its local credit rating methodology, updating the ratings assigned to Edenor’s CBs from ‘Caa1.ar’ to ‘A-.ar.’

In June 2020, in line with the change in the sovereign’s credit rating outlooks, FitchRatings modified the global ratings assigned to CBs issued by Pampa from ‘CCC+’ to ‘CCC’. It also kept the ‘AA-’ local ratings unchanged for the long term and assigned an ‘A1+’ rating for the short term.

Finally, in March 2021, S&P modified the global ratings assigned to the CB issued by Transener from ‘CCC+’ to ‘CCC’ and local ratings from ‘raBB’ to ‘raCCC’ due to the access restrictions to the MULC and regulatory uncertainty.

30 For further information, see section 7.7 of this Annual Report. 31 Including Edenor, classified as discontinued operations in the FS.

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Rating Company Agency Global Local

S&P CCC+ na

Moody's Caa3 na Pampa AA- (long-term) FitchRatings CCC A1+ (short-term)

S&P CCC- raCCC+ Edenor Moody's Caa3 A-.ar

S&P CCC+ na TGS Moody's Caa3 na Transener S&P CCC- raCCC

7.9 Other relevant events

Corporate reorganization

Aiming to continue simplifying the Group’s corporate structure, on March 9, 2020, Pampa and CPB’s Board of Directors approved the merger process between Pampa, as absorbing company, and CPB, as absorbed company, establishing January 1, 2020, as the actual merger date. On May 11, 2020, the respective shareholders’ meetings approved such merger.

Moreover, on June 19, 2020, Pampa, PACOGEN and PHA’s Board of Directors approved the merger process between Pampa, as absorbing company, and PACOGEN and PHA, as absorbed companies, establishing April 1, 2020, as the actual merger date. On August 7, 2020, the respective shareholders’ meetings approved the merger process. Consequently, the Company simultaneously became the beneficiary, fideicommissary and trustee under the CIESA Trust. On March 24, 2020, the Trustee transferred to PHA all the shares issued by CIESA held by the CIESA Trust, representing 40% of CIESA’s capital stock and voting rights. Until all expenses and taxes associated with the transfer of the trust estate have been canceled, the CIESA Trust will remain in effect, and the Trustee will maintain such capacity. The Company will assume all payment obligations for the applicable taxes and expenses resulting from the trust estate transfer.

Finally, on December 28, 2020, the Boards of Directors of Pampa, Pampa Participaciones, Transelec and other companies wholly owned by Pampa resolved to approve the merger between the Pampa, as absorbing company, and Pampa Participaciones, Transelec and other affiliates, as absorbed companies, effective as from October 1, 2020. On February 17, 2021, the respective shareholders’ meetings approved the merger process.

Stock compensation plan for key staff

In 2020, a total of 705,282 common shares were granted to employees under the stock compensation plan for the Company’s key personnel, a program approved by the Company’s Board of Directors on February 10, 2017. The Company currently holds 4.3 million common shares in the treasury allocated to fund such plan.

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8. Description of our assets

Pampa is the largest independent energy integrated company in Argentina, participating in the electricity and the gas value chains.

Note: As of December 31, 2020. Segments correspond to business classifications in the FS. Affiliates Greenwind, CTEB, Oldelval, Transener, TGS and Refinor are co-controlled companies, which under IFRS are not consolidated in Pampa’s FS. 1 It includes 280 MW at CTEB and 15 MW at CTLL. 2 It includes PEMC. 3 Discontinued operation. 4 2020 average production of blocks in Argentina.

We are the largest independent power generation operator in the country, with an installed capacity of 4,955 MW, representing 12% of Argentina's installed capacity. By adding the next 295 MW expansions, our total installed capacity would amount to 5,250 MW.

Edenor is in our electricity distribution segment, the largest electricity distributor in the country. On December 28, 2020, Pampa announced the sale of our controlling stake. Therefore, the company was reported as discontinued in the FS.

Our oil and gas segment comprise both operated and non-operated blocks at Pampa Energía’s stake. In 2020, the total average production in Argentina amounted to 45.0 kboe/day, 90% corresponding to gas, being the third largest gas producer in the Neuquina Basin.

In petrochemicals, Pampa owns three high-complexity plants, leading the production of styrene, SBR and polystyrene, with a domestic market share ranging between 85% and 98%.

Finally, our holding and others segment is mainly made up of our 27.7% interest in TGS, the country’s largest gas transportation company, owning 9,231 km of gas pipelines and an NGL plant, General Cerri, with a production capacity of 1 million ton/year. Moreover, Transener, in which we have a 26.3% indirect interest, operates and maintains 85% of the Argentine high voltage transmission grid, covering 21 thousand km of lines. Besides, we have a 28.5% direct interest in Refinor, a refinery with an installed capacity of 25.8 kb of oil per day and 91 GS in the country's northwest.

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Corporate structure as of December 31, 2020

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8.1 Power generation32

The following tables summarize the 15 power generation assets operated by Pampa:

Hydroelectric Wind Subtotal Power generation's hydro key performance indicators 1 2 2 HINISA HIDISA HPPL PEMC PEPE2 PEPE3 +wind

Installed capacity (MW) 265 388 285 100 53 53 1,144 New capacity (MW) - - - 100 53 53 206 Market share 0.6% 0.9% 0.7% 0.2% 0.1% 0.1% 2.7%

Fiscal year Net generation 2020 (GWh) 481 323 742 409 207 243 2,404 Market share 0.4% 0.2% 0.6% 0.3% 0.2% 0.2% 1.8% Sales 2020 (GWh) 482 323 737 409 207 246 2,404

Net generation 2019 (GWh) 499 334 823 383 122 148 2,309 Variation 2020 vs. 2019 -4% -3% -10% +7% +70% +64% +4% Sales 2019 (GWh) 500 334 822 383 130 159 2,328

Avg. price 2020 (US$/MWh) 21 37 16 70 76 68 39 Avg. price 2019 (US$/MWh) 38 58 23 69 61 71 44 Avg. gross margin 2020 (US$/MWh) 8 20 7 62 65 65 29 Avg. gross margin 2019 (US$/MWh) 23 42 15 59 52 62 33

Thermal Power generation's Total key performance indicators 3 Eco- 4 CTLL CTG CTP CPB CTPP CTIW CTGEBA CTEB Subtotal Energía Installed capacity (MW) 765 361 30 620 100 100 1,253 14 567 3,811 4,955 New capacity (MW) 364 100 30 - 100 100 565 14 567 1,841 2,048 Market share 1.8% 0.9% 0.1% 1.5% 0.2% 0.2% 3.0% 0.03% 1.4% 9.1% 11.8%

Fiscal year Net generation 2020 (GWh) 4,406 368 55 576 193 229 7,912 72 255 14,065 16,470 Market share 3.3% 0.3% 0.0% 0.4% 0.1% 0.2% 5.9% 0.1% 0.2% 10.5% 12.3% Sales 2020 (GWh) 4,399 418 55 575 193 229 7,946 89 255 14,159 16,563

Net generation 2019 (GWh) 5,096 755 53 1,106 168 312 5,550 105 128 13,273 15,582 Variation 2020 vs. 2019 -14% -51% +4% -48% +15% -27% +43% -32% +98% +6% +6% Sales 2019 (GWh) 5,307 893 53 1,107 168 312 5,891 83 125 13,938 16,266

Avg. price 2020 (US$/MWh) 36 42 123 43 na 125 27 58 na 47 46 Avg. price 2019 (US$/MWh) 53 45 113 62 na 107 46 63 na 60 58 Avg. gross margin 2020 (US$/MWh) 33 13 90 12 na 100 17 19 na 36 35 Avg. gross margin 2019 (US$/MWh) 30 26 75 23 na 80 17 10 na 32 32

Note: All figures are rounded, so the total may not equal the sum of the figures. Gross margin before amortization and depreciation. 1 Operated by Pampa (50% of equity stake). 2 Commissioned on May 10, 2019. 3 Capacity increase of GT03 and commissioning of GT04 in June 2019. Commissioning of ST02 and capacity increase of CC01 between July 2 and October 8, 2020. 4 Pampa is the operator and holds a 50% equity stake as of June 26, 2019.

32 For further information, see sections 5.1, 7.1 and 7.3 of this Annual Report.

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The following chart shows Pampa’s market share in the power generation segment:

2020 Net power generation 100% = 133,584 GWh

IEASA 0.1% Pampa Energía Nuclear 12.3% 7.5% FONINVEMEM 8% CEPU 10.7% Bi-National hydros 12% ENEL % 10.4%

AES Others 8.9% 25% YPF 6%

Note: Hydroelectric power generation net of pumping. Source: CAMMESA.

Hydroelectric generation

Located on the Atuel river, in the Province of Mendoza, HINISA has a 30-year concession for the generation, sale and marketing of electricity from the Los Nihuiles hydroelectric system since June 1994. HINISA has an installed capacity of 265 MW, which represents 0.6% of Argentina’s capacity, and consists of three dams and three hydroelectric power generation plants (Nihuil I, Nihuil II and Nihuil III), as well as a compensator dam. Los Nihuiles System extends for a total distance of approximately 40 km with a height differential between 440 m and 480 m. From 1990 to 2020, its annual average generation was 807 GWh, with a record high of 1,250 GWh in 2006 and a record low of 481 GWh in 2020. Pampa has a 52% direct and indirect stake in HINISA’s capital stock.

Also, in the Province of Mendoza, but on the Diamante river, HIDISA holds a 30-year concession, effective since October 1994, for the generation, sale and marketing of electricity from the Diamante hydroelectric system. With 388 MW, which represents 0.9% of Argentina’s installed capacity, it consists of three dams and three hydroelectric power generation plants (Agua del Toro, Los Reyunos, and El Tigre). The Diamante System extends for a total distance of approximately 55 km, with a height differential between 873 m and 1,338 m. From 1990 to 2020, its annual average generation was 545 GWh, with a generation record high of 943 GWh in 2006 and a record low of 322 GWh in 2014. Pampa holds a 61% direct and indirect stake on HIDISA’s capital stock.

The HPPL plant started operating in the year 1999 under a 30-year concession. Located on the Limay River, in the Province of Neuquén, HPPL has an installed capacity of 285 MW distributed in 3 Kaplan- type turbines, representing 0.7% of Argentina’s generation capacity. The dam is made up of loose materials with a waterproof concrete side. It has a total length of 1,045 meters, a total height of 54 m at the deepest point of the foundation, and a crest of 480.2 meters above sea level. From 2000 to 2020, HPPL’s historical average annual generation was 950 GWh, with a generation record high of 1,430 GWh in 2006 and a record low of 494 GWh in 2016. HPPL’s concession is 100% owned by Pampa.

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Wind power generation

PEMC is located on provincial route No. 51, 18 km from the City of Bahía Blanca, Province of Buenos Aires. The wind farm comprises 29 V-126 Vestas wind turbines, each with a 3.45 MW power capacity and an 87-meter hub height, with an approximate 48% load factor of P50. PEMC’s total installed capacity amounts to 100 MW, representing 0.2% of Argentina’s installed capacity. It was commissioned for service in June 2018 and sells its energy to CAMMESA under the RenovAr program. Since 2018, its average annual generation was 346 GWh. Even though Pampa is the operator, the Company has a 50% direct interest in the capital stock of Greenwind, a company which the only asset is PEMC.

PEPE II is located next to PEMC. It comprises 14 V-136 Vestas wind turbines, each with a 3.8 MW power capacity and a 120-meter hub height, with an approximate 56% load factor P50. PEPE II’s total installed capacity amounts to 53 MW, and it was commissioned in May 2019, selling its energy in the MAT ER. In 2020, PEPE II generated 207 GWh.

Finally, PEPE II’s twin wind farm, PEPE III, is located in Coronel Rosales, on national route No. 3, 45 km from the City of Bahía Blanca, Province of Buenos Aires. It was also commissioned in May 2019, with an approximate 63% load factor of P50, and it sells its energy in the MAT ER. In 2020, PEPE II generated 243 GWh. Both PEPE II and PEPE III are assets wholly owned by Pampa.

Thermal generation

CTG is in northwestern Argentina, in the City of Gral. Güemes, Province of Salta. Privatized in 1992, it has a 261 MW open cycle thermal power generation plant, with the addition in September 2008 of a GE natural gas-fired turbo generator unit of 100 MW, totaling 361 MW, which accounts for 0.9% of Argentina’s installed capacity. From 1993 to 2020, its average annual generation was 1,702 GWh, with a generation record high of 1,903 GWh in 1996 and a record low of 368 GWh in 2020.

Also, in the north of the Province of Salta is located CTP, in the small village of Piquirenda, Municipality of Aguaray, Department of General San Martín. Its construction started in early 2008 and finished in 2010; it has 30 MW consisting of ten GE Jenbacher JGS 620 gas-fired engines, representing 0.1% of Argentina’s installed capacity. From 2011 to 2020, the average annual generation was 114 GWh, with a record high of 156 GWh registered in 2017 and a record low of 53 GWh registered in 2019.

In the south of the Province of Neuquén, CTLL is located at Loma de la Lata, in the proximity of one of the largest gas fields in Latin America, which holds the same name. The plant was built in 1994 and consists of three GT with an installed capacity of 375 MW, a 180 MW Siemens ST installed in 2011 for its closing to CC and which capacity was increased in January 2018, a 105 MW GE aero-derivative GT installed in May 2016, and a 105 MW GE GT incorporated in August 2017. Therefore, CTLL’s total capacity amounts to 765 MW, representing 1.8% of Argentina’s installed capacity. From 1997 to 2020, the average annual generation was 2,093 GWh, with a record high of 5,096 GWh registered in 2019 and a record low of 272 GWh registered in 2002. Currently, works are underway to add 15 MW of MAN gas engines, which is expected in 2021.

Pampa operates six CT in the Province of Buenos Aires. Three of them are placed in the vicinity of the City of Bahía Blanca: CPB, in the port of Ingeniero White, consists of 2 ST with a 310 MW capacity each, totaling 620 MW, which represents 1.5% of Argentina’s installed capacity. The boilers can be indistinctly fed with FO or natural gas supplied through a proprietary 22 km gas pipeline operated and maintained by CPB and connecting with TGS’s main gas pipeline system. Furthermore, CPB has two tanks for the storage of 60,000 m3 of FO. From 1997 to 2020, its average annual generation was 1,987 GWh, with a generation record high of 3,434 GWh reached in 2011 and a record low of 189 GWh registered in 2002.

Located in a lot adjacent to CPB, CTIW consists of 6 dual-fuel (natural gas or FO) Wärtsilä engines, with 100 MW installed power capacity, representing 0.2% of Argentine installed capacity. The engines are high-efficiency, with a 46% performance rate. The plant is interconnected to the 132 kV grid through a Transba substation. Liquid fuel is supplied using CPB’s unloading and storage facilities and natural gas

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through CPB’s internal facilities. CTIW was commissioned on December 22, 2017, and since 2018 its average annual generation has amounted to 272 GWh.

Moreover, EcoEnergía, located in the outskirts of the City of Bahía Blanca, is a co-generation power plant located inside TGS’s General Cerri Complex. The plant, consisting of a 14 MW ST, was commissioned in 2011. The plant sells electricity in the Energía Plus market. From 2011 to 2020, EcoEnergía’s historical average annual generation amounted to 87 GWh, with a generation record high of 108 GWh in 2018 and a record low of 20 GWh in 2011.

Other two CT in the Province of Buenos Aires are located in Greater Buenos Aires: CTGEBA, in the district of Marcos Paz, in western Greater Buenos Aires, has a strategic location since it is just one km from the Ezeiza transforming station, a WEM reference node for the supply of electricity to the country’s highest demand area. CTGEBA began operating in 1999 and has two CC, one with a 684 MW installed capacity, consisting of two GT of 223 MW each and a 239 MW ST, repowered in October 2020. The second CC consists of a GT with a 182 MW power capacity, known as Genelba Plus, installed in 2009 and repowered in June 2019, another GT of 188 MW installed in 2019, and the ST of 199 MW commissioned on July 2, 2020, completing the expansion project started in 2017. CTGEBA is the largest CT in the country, with a total installed capacity of 1,253 MW, representing 3.0% of Argentina's installed capacity. From 2000 to 2020, its historical average annual generation was 4,913 GWh, with a generation record high of 7,912 GWh in 2020 and a record low of 3,438 GWh in 2001.

Furthermore, CTPP is in Northern Greater Buenos Aires, in the Pilar Industrial Complex, district of Pilar. The plant is made up of 6 Wärtsilä engines with an approximate 43% efficiency, has a total 100 MW capacity, and may indistinctly consume FO stored in own tanks or natural gas supplied through a dedicated gas pipeline which is connected with TGN’s main gas pipeline, whereas the energy is evacuated through a 132 kV line connected to the Pilar substation owned by Edenor. Its historical average annual generation since 2018 has been 184 GWh.

Finally, CTEB is the sixth CT in the Province of Buenos Aires, located in Ensenada city, Greater La Plata. It is currently composed of two Siemens GT commissioned in 2012 for 567 MW, representing 1.4% of Argentina’s installed capacity. This CT may consume natural gas or GO and has two storage tanks with a combined capacity of 45,000 m3. Moreover, the closing to CC is expected with the commissioning of a 280 MW Siemens ST. From 2012 to 2020, CTEB’s historical average annual generation amounted to 1,327 GWh, with a generation record high of 2,093 GWh in 2016 and a record low of 255 GWh in 2020. Pampa operates CTEB until July 2023, alternating its operation with YPF for 4-year terms, and has a 50% indirect equity stake in CTBSA, a company which the only asset is CTEB.

Current expansions

Awarded price Investment in Date of Project MW Marketing Currency Capacity per Variable per Total per US$ million1 commissioning MW-month MWh MWh SE Res. No. 162,000- CTLL 15 AR$ 324 728 20 Q2 2021 (est.) 31/20 427,5002 PPA for 10 CTEB3 280 US$ 23,962 10.5 43 200 CC: Q1 2022 (est.) years

Note: 1 Amount does not include VAT. 2 It considers the range of load factor coefficient and the HMRT additional remuneration. 3 Pampa holds a 50% interest.

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8.2 Electricity distribution33

On December 28, 2020, Pampa agreed on the sale of Edenor’s controlling stake. This divestment is part of our strategic plan, aiming to continue expanding the power generation installed capacity and developing unconventional natural gas reserves. Consequently, for accounting purposes, the distribution segment is disclosed as discontinued operations both in the current period 2020 and in the 2019 comparative period.

Edenor is the largest electricity distribution company in the country in terms of the number of customers and electricity sold (in GWh and monetary terms). It holds a concession until 2087 to distribute electricity on an exclusivity basis in the northern and northwestern metropolitan area of Buenos Aires, covering 4,637 km2 and approximately 9 million inhabitants.

The following table summarizes Edenor’s electricity sales and customers:

Edenor's 2020 2019 Variation key performance indicators In GWh Part. % Clients In GWh Part. % Clients % GWh % Clients Fiscal year Residential1 9,315 46% 2,786,153 8,372 42% 2,758,162 +11% +1% Commercial 2,950 15% 358,140 3,241 16% 353,113 -9% +1% Industrial 3,210 16% 6,860 3,503 18% 6,830 -8% +0% Wheeling system 3,364 17% 687 3,569 18% 684 -6% +0% Others Public lighting 676 3% 21 713 4% 21 -5% - Shantytowns and others 664 3% 482 575 3% 469 +16% +3%

Total 20,179 100% 3,152,343 19,974 100% 3,119,279 +1% +1% Note: 1 Including 558,067 and 561,915 customers covered by the Social Tariff as of December 31, 2020, and 2019, respectively.

The following chart shows Edenor’s market share:

2020 total electricity distribution 100% = 127,306 GWh

Others Edenor 80% % 20%

Source: CAMMESA.

33 For further information, see sections 5.3, 7.2 and 7.5 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 76

The following table summarizes Edenor’s main technical and financial indicators:

2019 2020

Technical information Transmission and distribution lines (Km) 40,488 40,861 Number of clients (million) 3.1 3.2 Electricity sales (GWh) 19,974 20,179 Financial information, in million AR$* Revenue from services 122,437 91,316 Fiscal year’s results, attributable to company’s shareholders 16,518 (17,698) Assets 162,633 148,796 Liabilities 82,113 85,898 Shareholders’ equity 80,520 62,898

Note: *Annual FS figures under IFRS, in million AR$, adjusted by inflation as of December 31, 2020.

Energy demand

Edenor’s energy demand in 2020 reached 25,124 GWh, which represents a 1% increase compared to 2019, despite the 1% decrease in the total WEM demand. Edenor’s maximum demanded capacity reached 5,144 MW, similar to the 5,124 MW recorded in 2019, whereas the WEM’s maximum capacity amounted to 25,791 MW in 2020, 1% lower than in 2019.

The volume of electricity distributed in 2020 across Edenor’s area, including the wheeling system, totaled 20,179 GWh. Energy purchased in the WEM amounted to 25,124 GWh, 1% higher year-on-year, resulting in an average annual monomic price of AR$2,187/MWh or US$31.0/MWh equivalent at average FX, 29% lower compared to 2019. The decrease is due to the devaluation of the AR$ and seasonal price freeze since February 2019 for residential users and since August 2019 for non-residential users (the latter being passed on to tariffs).

Evolution of peak power capacity 2000 – 2020, in MW Edenor Argentine grid 6,000 25,791 30,000 5,144 5,000 25,000

4,000 20,000

3,000 15,000

2,000 10,000

1,000 5,000

0 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Argentine grid Edenor Source: Edenor.

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Commercial management

Despite the outbreak of COVID-19, total physical electricity sales experienced a slight 1% increase compared to 2019, mainly explained by the residential segment due to the restrictions on activities and movement and, to a lesser extent, the seasonal price elasticity effect. The residential demand, which has high participation in the sold volume (46%), experienced an 11% increase compared to 2019. On the contrary, industries and PyME consumption, which represents 15% of the sold volume, decreased by 8% compared to 2019, affected by the decline in the economic activity and the lockdown, although gradually recovering from the easing of the mandatory isolation measures.

Energy losses

The annual rolling rate for total (technical and non-technical) energy losses reached 19.6% in 2020, lower than the 19.9% recorded in 2019, mainly because of lower non-technical losses in relative and absolute terms. Technical losses are those that necessarily arise from power transmission and distribution, whereas non-technical losses are attributable to consumption metering errors or failures, theft or defective installation. The use of highly inefficient home-made devices as a substitute for gas and energy theft in low-income neighborhoods accounts for non-technical losses, in addition to the socio-economic crisis.

In 2020, the plan aimed at normalizing clandestine, inactive and chronically delinquent customers continued, with a substantial increase in the installation of MIDE (Energy Integrated Meter) self-managed meters. In 2020, 25,466 MIDE were installed, 24,540 of which are already activated. It is worth highlighting that as of December 2020, the cumulative number amounts to 262,363 MIDE, exceeding the initial goal of 250,000 installed meters for 2020. Additionally, Edenor kept installing the new type of MULCON (Multiple Concentric) grid, which takes advantage of the MIDE meters functionality, enhancing invulnerability to electricity theft in neighborhoods with high fraud levels.

Moreover, the company continued developing analytical and artificial intelligence tools to enhance routing inspections' effectiveness to reduce electricity theft. In this same line, approximately 518,000 tariff 1-meter inspections were carried out, with a 54% efficiency. Regarding the recovery of energy, besides the customer normalization through MIDE, clandestine customers were recovered by installing conventional meters. The evolution of the annual rates for energy losses since the beginning of Edenor’s concession is shown below:

Energy losses: annual rolling rate (%) 1992 – 2020 % 30

25

19.61 20

15

10

5

0 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

Source: Edenor.

Pampa Energía ● 2020 Annual Report ● 78

Service quality management

The seventh semester of the RTI 2017 – 2021 five-year period started in March 2020, governed by the new sub-annex IV of the Concession Agreement established by the RTI. Besides setting district and commune-based service quality controls, a quality improvement path with increasing requirements is implemented, both regarding frequency limits and admissible times, and the cost of non-delivered energy. Additionally, an automatic penalty scheme was established so that bonuses on account of deviations from the established limits should be credited to customers within a term of 60 days from the end of the controlled semester. The final penalties values require the ENRE to render a judgment regarding the information submitted for each semester.

Under Res. No. 198/18, the ENRE provided 300 or 600 kWh additional penalties per user based on the Feeder’s Semiannual Path Factor (FSSA) and the User’s Semiannual Path Factor (FSSU) as of September 2018. Applicable penalties should be calculated and informed to the ENRE within a term of 120 calendar days from the end of the control semester and deposited in a third-party escrow account.

The average frequency and the total interruption times during the last five years are detailed below:

Checked by client* 2016 2017 2018 2019 2020

SAIFI (frequency) 8.67 9.02 6.94 6.15 4.64 SAIDI (hours) 25.84 27.55 22.65 15.94 12.23

Note: *Rolling annual rate as of December of each year.

As can be observed in the annual evolution of these indicators, the significant reduction in the SAIFI frequency compared to the previous year was reflected in a similar proportion in the SAIDI total time. As indicated in other opportunities, investment actions in distribution grids and their maturity over time usually result in a decrease in the SAIFI. Moreover, this effect is transferred to the SAIDI even when average interruption times remain invariable.

Investments

Investments made in 2020 amounted to AR$10,039 million in nominal currency and AR$11,073 million in constant currency as of December 31, 2020, prioritizing their execution on top of other expenses to preserve the safety of the utility under concession. To meet demand, improve the service quality and reduce non-technical losses, most investments were allocated to increasing the power capacity and new supplies and installing remote control equipment in the medium-voltage grid and prepaid energy meters. Furthermore, Edenor continued making investments to preserve the environment and safety on the streets.

Pampa Energía ● 2020 Annual Report ● 79

The following chart illustrates its annual distribution:

Edenor’s annual investments 1992 – 2020

AR$ million 12,000 10,039 10,000

8,000

6,000

4,000

2,000

0 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

Note: Figures in nominal terms. Source: Edenor.

8.3 Oil and gas34

Pampa is one of the leading hydrocarbon E&P companies in Argentina, with a presence in the country’s major oil basins, from which it obtains natural gas and oil. Investments in this segment amounted to US$41 million in 2020, representing a 79% decrease compared to 2019, explained by the uncertain business context and the reduction of activities due to COVID-19.

The following table summarizes the E&P’s main technical indicators:

2019 2020

Technical information Number of productive wells in Argentina 885 858 Average gas production in Argentina (thousand m3/day) 7,344 6,902 Average oil production in Argentina (thousand bbl/day) 5.0 4.4 Average total production in Argentina (thousand bbl/day) 48.2 45.0

34 For further information, see sections 6.1, 7.2 and 7.4 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 80

The following table summarizes Pampa’s blocks:

2020 average daily production License Block % Gas Basin Stake Operator expiration 3 Oil kbbl Gas dam Total kboe year 1 El Mangrullo 0.0 4,513 26.6 100% Neuquina 100.00% Pampa 2053

2 Sierra Chata 0.1 488 3.0 97% Neuquina 45.55% Pampa 2053

31.42%1 2027 3 Río Neuquén 0.5 912 5.8 92% Neuquina YPF 33.07%2 2051

4 Rincón del Mangrullo3 0.1 761 4.5 99% Neuquina 50.00% YPF 2052

5 Anticlinal Campamento - 6 0.0 100% Neuquina 15%4 Oilstone Energía 2026

6 Estación Fernández Oro 0.0 13 0.1 92% Neuquina 15%5 YPF 2026

7 Rio Limay Este (ex Senillosa) - - - na Neuquina 85.00% Pampa 2040

8 Veta Escondida - Rincón de Aranda 0.1 - 0.1 0% Neuquina 55.00% Pampa 2027

9 Gobernador Ayala 0.8 - 0.8 0% Neuquina 22.51% Pluspetrol 2036

10 Aguaragüe6 0.2 177 1.3 81% Noroeste 15.00% Tecpetrol 2023/2027

11 Los Blancos (ex Chirete)7 0.2 - 0.2 0% Noroeste 50.00% High Luck Group 2045

12 La Tapera - Puesto Quiroga 0.1 - 0.1 0% Golfo San Jorge 35.67% Tecpetrol 2027

13 El Tordillo 2.4 23 2.5 5% Golfo San Jorge 35.67% Tecpetrol 2027

Total productive blocks 4.4 6,895 45.0 90%

1 Parva Negra Este8 - 7 0.0 100% Neuquina 42.50% Pampa 2019

2 Las Tacanas Norte n.a. n.a. n.a. n.a. Neuquina 90.00% Pampa 2023

3 Río Atuel8 n.a. n.a. n.a. n.a. Neuquina 33.33% Petrolera El Trebol 2020

4 Borde del Limay9 n.a. n.a. n.a. n.a. Neuquina 85.00% Pampa 2015

5 Los Vértices9 n.a. n.a. n.a. n.a. Neuquina 85.00% Pampa 2015

Total exploratory blocks - 7 0.0 100%

Total production in Argentina 4.4 6,902 45.0 90% Note: Production at our ownership. 1 Province of Río Negro. 2 Province of Neuquén. 3 It does not include Vaca Muerta formation. 4 Over nine wells. 5 Over 13 wells. 6 It includes San Antonio Sur, expiring in 2023, and Aguaragüe, expiring in 2027. 7 Exploitation concession as from October 15, 2020. 8 Under extension process. 9 Under transfer process to GyP (exploration permit holder).

Production

Our E&P segment’s production in Argentina reached an average of 45.0 kboe per day in 2020, 90% corresponding to gas and 10% to oil. The monthly evolution is detailed below: E&P segment’s production* In kboe/day

47.5 46.3 46.9 47.2 44.4 46.1 45.3 44.2 43.6 43.2 42.4 43.2 5.6 4.3 4.4 5.4 3.7 3.6 4.1 5.0 4.2 4.0 4.5 4.3

41.9 42.6 42.6 42.8 39.2 40.9 39.5 40.7 39.2 41.2 37.9 38.9

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Gas Crude oil

Source: Pampa.

Pampa Energía ● 2020 Annual Report ● 81

In 2020, the E&P segment was affected by the industry’s uncertainty and the reduction of activities due to COVID-19. Despite the decline in the activity, 19 wells were drilled (1 gas and 18 oil wells), and 16 wells were completed (1 gas and 15 oil wells). However, at the end of 2020, Pampa was an awardee under Plan Gas.Ar, being the company with the highest growth in tendered production, with an investment of approximately US$250 million over the following four years of the program.

Gas production at our ownership was 6% lower than in 2019, whereas at the national level, the drop amounted to 9%, reaching 6.9 million m3/day, mainly due to the lower aggregate demand due to the lockdown and also the collapse in prices, which adjusted downward to moderate the production curtailment. This situation affected our blocks were lifting cost is less competitive: Rincón del Mangrullo, Río Neuquén and Sierra Chata (-749 mil m3/day year-on-year variation), which represent 31% of total production.

These effects were partially offset by the increase in the El Mangrullo block, representing 65% of total production and reaching an average production level of 4.5 million m3/day (+353 thousand m3/day year-on-year variation) in 2020. Additionally, peak production of 5.0 million m3/day was recorded in El Mangrullo in September 2020, thanks to the evacuation infrastructure expansion. It is worth highlighting that in 2020, 6% of Pampa’s gas production came from the Vaca Muerta formation as a result of the completion of two horizontal wells at El Mangrullo in August 2019.

As previously mentioned, under the Plan Gas.Ar call for tenders for the 2021 - 2024 period, Pampa was awarded a base volume of 4.9 million m3/day at US$3.6 per million BTU and an additional volume of 1.0 million m3/day during the winter period at US$4.7 per million BTU. Moreover, under Plan Gas.Ar’s second round for the winter period, Pampa was awarded 0.8 million m3/day at US$4.7/MBTU. Participation in Plan Gas.Ar guarantees a level of activity for the 2021 – 2024 period, mainly focused on the El Mangrullo, Río Neuquén and Sierra Chata blocks, with an aggregate investment of more than US$250 million over the four years of the program.

Oil production at our ownership reached 4.4 kbbl/day, 11% lower than in 2019, explained by the fall in demand since the mandatory lockdown and the shortage of storage capacity. Hence, lower market prices were realized, affecting production at El Tordillo block (-0.5 kbbl/day), in addition to a slight decrease in the associated crude oil at Río Neuquén and Rincón del Mangrullo (-0.2 kbbl/day). These effects were partially offset by the conventional production contribution from Chirete (+0.1 kbbl/day), an area converted to an exploitation concession in October 2020 over the Los Blancos lot for a term of 25 years.

A significant milestone in 2020 was that Pampa exported Medanito crude oil for the first time, becoming one of the country's first exporters. Moreover, in 2020 oil exports represented 33% of the production (whereas it was just 4% in 2019), thus softening the sharp drop in domestic demand from the beginning of the lockdown. However, domestic demand started to recover from mid-September 2020, so by the end of the year, 100% of the production was again destined to the domestic market. In 2020, 7 tankers with Medanito and Escalante oil were exported, totaling more than half a million oil barrels.

Los Blancos new exploitation concession and relinquishment over the remaining area of the Chirete block

Following the discovery of oil after 34 years with no new findings of crude oil in the Noroeste Basin, on October 15, 2020, the Province of Salta granted Pampa and High Luck Group Limited an exploitation concession over the Los Blancos block for a term of 25 years, relinquishing the exploration permit over the remaining area of the Chirete block. Moreover, an investment plan was established for a total amount of US$57 million for the 2020 – 2024 five-year period.

Gas export authorization

In September 2019 and November 2020, Pampa was granted permits to export gas to Chile on a firm basis for a maximum volume of 0.6 million m3 per day and an interruptible basis for a maximum volume of 4.4 million m3 per day, respectively.

Pampa Energía ● 2020 Annual Report ● 82

Exploration activities

Pampa considers that exploration is the main vehicle for reserves replacement. However, in 2020 the Company had to postpone certain exploration activities due to the lack of predictability in gas prices, mainly accounted for by the Plan Gas.Ar's launching delay, which calls for tenders took place at the end of 2020. Moreover, to a lesser extent, crude oil reference prices were significantly affected by the pandemic.

In February 2020, the shale oil drilling well in Rincón de Aranda, targeting the Vaca Muerta formation, was finished. However, the well completion was postponed because of the lockdown restrictions and the sharp drop in the crude oil price.

Additionally, the extension of exploration permits in Parva Negra Este and Río Atuel blocks, as well as Enarsa 1 and 3 final relinquishment, are currently underway.

Reserves

Pampa estimates its reserves at least once a year. Proven reserves are estimated by the Company’s geologists and reservoir engineers. Reserve engineering is a subjective process consisting of estimating underground accumulations of hydrocarbons that cannot be precisely measured; this process depends on the available information’s quality, engineering, geological interpretation and judgment. Accordingly, reserves estimate and future production profiles are often different from the quantities of hydrocarbons that are ultimately recovered. The validity of estimates largely depends on the underlying assumptions. Such reserves estimates were prepared according to the Modernization of Oil and Gas Reporting Presentation rules issued by the SEC.

Gaffney Cline & Associates, international technical consultants, carried out an independent assessment of our reserves, auditing 98% of Pampa’s estimated proven reserves (P1), and concluded that oil and natural gas reserve volumes subject to their independent technical assessment are reasonable.

On December 31, 2020, Pampa’s proven P1 reserves amounted to 142 million boe, 5% higher than the volumes recorded as of December 31, 2019. Considering production levels and the 2020 incorporations, the reserve-replacement ratio was 1.4, and the average life was approximately 8.6 years. Moreover, out of P1 reserves, as of the closing of the fiscal year 2020, 90% corresponded to natural gas. It is worth noting that 7% of P1 reserves correspond to shale, mainly in El Mangrullo, a block 100% owned by Pampa, compared to just 3% of P1 reserves for shale in 2019.

Proven reserves (P1) Oil, Natural gas, Total, % Gas in Argentina in kb in million cubic feet in million boe

Proven developed (P1-D) 7,761 371,999 70 89%

Proven undeveloped (P1-U) 5,765 397,520 72 92%

Total as of December 31, 2020 13,526 769,519 142 90%

Total as of December, 2019 13,551 731,082 135 90%

Estimated reserves in Argentina are shown before the deduction of royalty payments since they have characteristics similar to taxes on production and, therefore, are treated as operating costs. The composition and evolution of Pampa’s proven reserves as of December 31, 2020, both developed and undeveloped, is detailed below:

Pampa Energía ● 2020 Annual Report ● 83

Pampa’s total proven reserves Evolution of Pampa’s certified As of December 31, 2020 proven reserves 100% = 142 million boe In million boe

+7 Oil (16) +16 10%

Undeveloped 51% % 135 142 Developed 49%

Natural gas 90% Argentina 100% Stock @ (-) (+) (+) Shale Stock @ Dec 31, 2019 Production Tight/conv'tl Dec 31, 2020

Hydrocarbon transportation35

OldelVal

As of December 31, 2020, Pampa holds a 2.1% direct interest in OldelVal. OldelVal operates main oil pipelines providing access to Allen, in the Comahue area, and the Allen - Puerto Rosales oil pipeline, evacuating the oil produced in the Neuquina Basin to Puerto Rosales (a port in the City of Bahía Blanca) and the supply of the Plaza Huincul and Luján de Cuyo distilleries, all located in the pipeline’s area of influence.

In 2020, Allen's oil transportation to Puerto Rosales reached 26,817 m3/day on average, and transportation to the refineries located in the provinces of Neuquén and Mendoza totaled an average of 1,702 m3/day and 571 m3/day, respectively. The total transported volume was 29,090 m3/day, equivalent to 66.4 million bbl transported in 2020, representing a 3.7% increase compared to 2019.

Moreover, due to the effects of COVID-19, in 2020 a temporarily significant decrease in the demand for oil-based fuels was evidenced. The decline in consumption and the lack of storage capacity generated a reduction in crude oil production in the Neuquina Basin, especially in April and May, for which the transported volume also decreased. However, as from the month of June and the lockdown easing measures passed by the Federal Government, the expected transported volumes were restored.

In this way, OldelVal has managed to maintain the transportation service, ensuring operational continuity and a reliable pumping system. Furthermore, planned objectives were achieved in terms of safety and support investments.

8.4 Petrochemicals

The petrochemicals segment takes part in Pampa’s vertical integration with gas operations. The Company’s goal is to maintain its position in the styrene market by capitalizing on current conditions and maximizing the use of its petrochemical raw materials. Our assets’ production covers a wide range of products, such as octane bases for gasoline, benzene, aromatic solvents, hexane and other hydrogenated paraffinic solvents, propellants for the cosmetic industry, monomer styrene, rubber, and polystyrene for the domestic and foreign markets.

35 For further information, see section 6.2 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 84

The petrochemicals market where Pampa competes is influenced by global supply and demand, which substantially impacts our results. Pampa is the only producer of monomer styrene, polystyrene and elastomers in Argentina and the only integrated producer of goods ranging from oil and natural gas to plastics. As part of its efforts to integrate operations, it uses an important volume of its own benzene production to obtain styrene and, in turn, a substantial volume of styrene to manufacture polystyrene and SBR.

The petrochemicals division consists of the Puerto General San Martín (PGSM) integrated petrochemical complex, in the Province of Santa Fe, with an annual production capacity of 50 kton of gases (LPG, which is used as raw material and propellant), 155 kton of aromatics, 290 kton of gasoline and refined products, 160 kton of styrene, 55 kton of SBR, 180 kton of ethyl benzene and 31 kton of ethylene. This segment also includes a polystyrene plant in Zárate, Province of Buenos Aires, with a production capacity of 65 kton. As of December 31, 2020, Pampa’s estimated share in the Argentine styrene, polystyrene and rubber markets amounted to 98%, 93% and 85%, respectively.

The following table shows the petrochemicals division’s main indicators for fiscal years ended December 31, 2019, and 2020:

2019 2020

Technical information

Revenues (in kton):

Styrene (incl. propylene and ethylene) 55 47 SBR 27 37 Polystyrene 44 47 Others 217 205 Sales destination* Argentina 71% 66% Abroad 29% 34%

Note: *Percentage calculated from sales in the FS.

Styrene’s division

In 2020, the monomer styrene sales volume totaled 39 kton, a figure 13% lower than in 2019, with a 3% increase in domestic sales and a 61% decrease in exports, associated with lower sales to Brazil. Propylene sales volumes reached 8 kton, 19% lower than in 2019, mainly due to the lower styrene plant’s load. The polystyrene sales volume was 47 kton, experiencing a 6% increase compared to 2019, with an 11% increase in domestic sales, which was partially offset by a 12% decrease in exports, mainly to Chile and Brazil. Polystyrene local sales were the least affected by the lockdown, as a large volume is destined to packaging for the food industry. Moreover, in 2020 Pampa sold 37 kton of rubber, a figure 39% higher than in 2019, due to higher exports to Brazil.

Gasoline reforming division

Sales of the Reforming division decreased by 7% compared to 2019. In 2020, octane bases and gasoline sales totaled 140 kton, a volume 11% lower than in 2019, with a 29% decrease in domestic sales, associated with the drop in fuel consumption resulting from the lockdown. Hexane, paraffin solvents and aromatics sales volumes totaled 52 kton in 2020, representing a 6% increase compared to 2019, partially offset by the lower dispatched volume of octane bases. In 2020, propellant sales totaled 9 kton, experiencing a 7% decrease compared to 2019.

Pampa Energía ● 2020 Annual Report ● 85

8.5 Other businesses

Transener36

Transener is the leading company in the utility service of high voltage electric energy transmission in Argentina. It holds a concession of over 14,488 km of transmission lines and 58 transforming stations, directly operating 85% of its high-voltage lines. In turn, its subsidiary Transba holds a concession over 6,604 km of transmission lines and 107 transforming stations, which make up the Main Distribution Transmission System of the Province of Buenos Aires. The following table summarizes Transener’s most relevant technical and financial indicators:

2019 2020

Technical information Transener transmission lines (Km) 14,489 14,488 Transba transmission lines (Km) 6,492 6,604

Financial information, in million AR$* Revenues 19,712 16,289 Fiscal year’s results, attributable to company’s shareholders 5,425 4,164 Assets 41,245 45,581 Liabilities 18,075 18,257 Shareholders’ equity 23,170 27,324

Note: *Annual FS figures under IFRS, in million AR$, adjusted by inflation as of December 31, 2020.

Operation and maintenance

The extra high voltage power transmission grid, operated and maintained by Transener, is subject to significant load conditions year after year. The record-breaking demand for the power capacity of 26,320 MW, registered on February 8, 2018, was not surpassed in 2020. However, a record-breaking demand for the power capacity of 26,450 MW was registered on January 25, 2021, exceeding by 0.5% the maximum peak recorded in 2018.

Despite the great number of power grid requests in 2020, service quality has been wholly acceptable for the values required from a company like Transener, ending the year with a rate equal to 0.29 failures per each 100 km-line, consistent with international parameters accepted for companies that operate and maintain extra high voltage transmission systems. The following chart shows the evolution of the failure rate for the service provided:

36 For further information, see sections 5.2 and 7.2 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 86

Failure rate (Rate per each 100 km of lines) 2.50 Failute limit: 2.50

2.00

1.50

1.00 Transener's failure 2020 0.50 0.29

-

2002 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Transener.

Investments

In 2020, Transener invested AR$3,069 million in nominal currency and AR$3,529 million in constant currency. The following chart illustrates its annual distribution:

Transener’s annual investments In million AR$, 1999 - 2020 3,069 2,755

2,272

706 393 350 217 257 108 11 14 21 15 13 30 24 51 88 76 47 54 76

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20

Note: Figures in nominal terms. Source: Transener.

Business development

Engineering services –works

Transener has focused its activity on its competitive advantages regarding power grid expansion works, prioritizing the works to be executed on the 500 kV and 132 kV systems.

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The development of an important works program for the generation of renewable energies has entailed the demand for other services, such as the preparation of bidding documents, electricity studies, the implementation of power generation and demand monitoring systems (Automatic Export Demand and Generation Disconnection systems), and the testing and commissioning of transforming stations. Transener’s expertise has been a key factor for customers to entrust it with critical works' performance. Among the most important projects, we can mention the 132-kV expansion works for power input from wind farms.

Power transmission-related services

The operation, maintenance, and other services, such as specific testing hired by private customers owning transmission facilities for private and public use (independent transporters and international transporters), have been provided since the creation of Transener.

Among the works performed by Transener, we can mention the replacement of bushings, the performance of oil analyses, diagnostic trials, optical fiber repairs, FO connections in repeater junction boxes, the cleaning of isolators, measurements of electric and magnetic fields, automation implementation, maintenance of lines and equipment in transforming stations, among others.

All service agreements maintained actual values for Transener’s remuneration. Most contracts have been uninterruptedly renewed since their commencement, which confirms the service's quality and the level of satisfaction of its customers.

Communications

In 2020, Transener continued providing infrastructure services to several communication companies, including the assignment of dark fiber optics over its system (IV Line) and the rental of space in microwave stations and their antenna-supporting structures. The growing demand from mobile communication companies has led to a significant revenue increase from volume and better prices, offering internet services to wind farms. Moreover, Transener continued providing support services for operational communications and data transmission to WEM agents.

TGS37

TGS is the most important gas transportation company in the country, and it operates the largest pipeline system in Latin America. It is also a leading company in the production and commercialization of NGL for domestic and export markets, conducting this business from the General Cerri Complex located in Bahía Blanca, Province of Buenos Aires. TGS also provides comprehensive solutions in the natural gas area and, since 1998, it has also landed in the telecommunications area through its controlled company Telcosur. As of December 31, 2020, Pampa holds a 27.7% interest in TGS.

The following table summarizes TGS’s main technical and financial indicators:

2019 2020

Technical information Gas transportation Average firm capacity contracted (in million m3 per day) 82.6 82.5 Average delivery (in million m3 per day) 66.9 64.2

37 For further information, see sections 6.2, 7.2 and 7.6 of this Annual Report.

Pampa Energía ● 2020 Annual Report ● 88

Production and commercialization of liquids Total liquids production (in kton) 1,022.9 1,167.6 Gas processing capacity (in million m3 per day) 47.0 47.0 Storage capacity (in kton) 54.0 54.0 Financial information, in million AR$*

Revenues 66,112 55,871 Fiscal year’s results, attributable to company’s shareholders 17,433 3,286 Assets 130,152 128,594 Liabilities 64,691 62,568 Shareholders’ equity 65,461 66,026

Note: *Annual FS figures under IFRS, in million AR$, adjusted by inflation as of December 31, 2020.

Description of business segments

Regulated segment: gas transportation

Revenues from this segment result mainly from firm natural gas transportation agreements, whereby the gas pipeline capacity is reserved and paid for regardless of its actual use. Besides, TGS provides an interruptible service, where the transportation of natural gas is subject to the gas pipeline’s available capacity. Moreover, TGS provides operation and maintenance services for assets allocated to the natural gas transportation service for the expansions fostered by the Federal Government and held under trusts created to such effects. For this service, TGS receives from customers with incremental natural gas transportation capacities the CAU established by ENARGAS, which remained unchanged from its creation in 2005 until its first update in May 2015.

In constant terms, as of December 31, 2020, annual revenues from this business segment amounted to AR$23,502 million in 2020, representing 42% of TGS’s total revenues and evidencing a 24% decrease compared to the AR$30,796 million recorded in 2019. The decline is mainly due to the semiannual update deferral, which should have been applied in October 2019, and April and October 2020, compared to inflation's evolution. Larger natural gas deliveries on an interruptible basis and exchange and displacement partially offset these effects.

It is worth recalling that in 2020 transportation contracts on a firm basis represented 81% of revenues from sales in this segment, compared to 83% in 2019. Besides, as of December 31, 2020, the total capacity hired on a firm basis amounted to 82.4 million m3/day with a weighted average life of 11.5 years. In 2020, natural gas daily average injection into the gas pipeline system operated by TGS amounted to 68.2 million m3/day, a volume 8% lower than in 2019 as a result of the declines in all fields, due to the lower activity as a consequence of the continuous drop in natural gas prices and the contraction in demand because of the impact of COVID-19. In this scenario, TGS’s gas pipeline system was reasonably responsive to meet demand needs.

Non-regulated segment: production and commercialization of natural gas liquids

Unlike the gas transportation business, the production and commercialization of liquids are not regulated by ENARGAS. In 2020, this segment’s revenues accounted for 49% of TGS’s total revenues, reaching AR$27,597 million, an amount 12% lower in real terms than in 2019. This decrease is mainly attributable to the fall in international reference prices due to the COVID-19 pandemic and the mismatch between the inflation reflected in the restated financial information and the devaluation during the period

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over US$-denominated sales. These effects were partially offset by higher ethane, propane and butane sales volume.

Liquids production and commercialization activities are conducted at the Cerri Complex, located close to the City of Bahía Blanca, supplied by all TGS’s main gas pipelines. Ethane, propane, butane and natural gasoline are recovered at this complex. TGS sells liquids to both domestic and foreign markets. In the domestic market, propane and butane are sold to reseller companies. In the foreign market, the sale of these products and natural gasoline is made at international reference prices. Moreover, ethane is sold to Polisur at a price agreed by the parties.

In 2020, total sales volumes reached 1,145,375 ton, a figure 10% higher than in Sales of liquids by destination market 2019, 33% of which were destined for exports. In kton, 2016-2020 Out of the total sales destined to the domestic 1,145 market, 77% were made at US$-denominated 1,058 1,040 prices or with a US$-based adjustment clause. 912 961 379 348 399 As regards the foreign market, average 316 359 sales prices for natural gasoline, butane and propane recorded 31%, 16% and 15% decreases in 2020, respectively, mainly as a 710 642 767 result of the steep decline in international 595 602 reference prices as from the onset of the COVID- 19 pandemic, which gradually recovered in the last months of the year. As regards butane, 2016 2017 2018 2019 2020 Domestic market Foreign market although it suffered a price drop at the beginning of the year, it experienced a significant rise on the last days of 2020 due to the decrease in Source: TGS. global stock levels.

Besides, PEN Executive Orders No. 793/18, 865/18 and 488/20 established an export duty on the export of liquids, among other products. In 2020, propane and butane deliveries destined to the foreign market were operated at the spot market, capturing opportunities associated with different market niches, allowing for a considerable increase in each transaction's fixed rewards. Moreover, TGS makes inland transport exports to Chile, Paraguay and Brazil which, even at lower volumes than those exported by sea, allow TGS to capitalize on a higher operating margin. In 2020, the agreements for the export of natural gas were renewed.

Regarding the domestic market, TGS continued participating in the Household Gas Bottles’ Program and the Propane for Grids Agreement in 2020. Prices are regulated by a set of Res., provisions and agreements. The participation in these programs forces TGS to sell at prices ostensibly lower than market prices, which, under certain conditions, results in negative operating margins. Moreover, as a result of these programs' participation, the Federal Government must reimburse TGS an economic compensation denominated in AR$, currently being collected with delays. Outside these programs, TGS sold 198,127 ton of propane and 34,504 ton of butane, mainly to the reseller market and, to a lower extent, to the industrial, propellant and automotive market.

Moreover, in 2020 TGS continued selling ethane under the long-term agreement with Polisur in September 2018. This agreement stipulates commercial guidelines with improvements in the ToP clause, which guarantees TGS a gradual increase in sales volumes over the first five years of the contract. There was a significant increase in the volume of ethane sold to Polisur in 2020, which reached 360,870 ton under the current agreement, 27% higher than in 2019, due to the June 2019 accident that prevented the customer from processing the product in its plant during this period, with sales returning to normal in October 2019.

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NGL foreign market sales NGL domestic market sales Per product, in kton, 2016-2020 Per product, in kton, 2016-2020 767 399 379 710 359 348 642 316 595 602 180 118 156 122 146 121 120 141 142 99 157 226 115 91 212 81 94 81 176 177 397 361 137 144 147 165 166 277 283 284

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Propane Butane Natural gasoline Ethane Propane Butane

Source: TGS.

Moreover, in 2020 TGS continued effectively rendering logistic services at the Puerto Galván facilities, selling LPG by inland transport, dispatching approximately 16,543 trucks (379,635 tons) of own products, compared to the 13,781 trucks (311,385 tons) recorded in the fiscal year 2019.

As regards US$-denominated prices for natural gas acquired as PTR (plant thermal reduction) for processing at the Cerri Complex, a 39% decrease was recorded compared to 2019, in line with the market trend.

Finally, the potential impact of Plan Gas.Ar in the liquids segment is worth mentioning. Since its award in December 2020, an increase in natural gas injection within the PIST for power plants and gas distributors was verified, impacting the costs of natural gas processed at the Cerri Complex. However, Plan Gas.Ar would allow for reversing the fall in natural gas production over the last few years, contributing to supporting the liquids business.

Non-regulated segment: other services

ENARGAS does not regulate the other services segment. TGS provides midstream services, which mainly consist of treatment, impurity separation and gas compression. These services may also include gas extraction and transportation in fields, construction services, inspection and maintenance of compression plants and gas pipelines, and steam generation services to produce electricity. This segment also includes revenues from telecommunication services provided through its subsidiary Telcosur.

This segment represented 9% of TGS’s total 2020 revenues, experiencing a 25% increase in real terms compared to 2019, mainly because of the rise in natural gas transportation and conditioning services at Vaca Muerta and by the devaluation of the AR$ over US$-denominated sales, which were partially offset by lower construction, compression and treatment services.

In December 2019, TGS completed a 147-km gathering gas pipeline in the Vaca Muerta formation, with a 60 million m3/day transportation capacity, and a plant in Tratayén with an initial conditioning capacity of 5 million m3/day. In June 2020, TGS entered into agreements with Oilstone Energía S.A. to provide gas compression and conditioning services. TGS subscribed to an agreement with Shell Argentina S.A. in July 2020 to provide gas dehydration, measurement and regulation services. Moreover, in September 2020, TGS approved expanding the Tratayén plant’s treatment capacity by 2.4 million m3/day. This project will contribute to gas transportation safety committed by some customers under Plan Gas.Ar.

Finally, as regards the telecommunications service, Telcosur, a company controlled by TGS, 2020 finished the works started in 2019, installing 150 km of high-capacity optical fiber to provide telecommunication services in Vaca Muerta, allowing for improved connectivity in the area.

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Refinor

Pampa has a 28.5% interest in Refinor, a company that owns the only refinery in the north of Argentina, located at Campo Durán, Province of Salta. The topping unit's nominal processing capacity is 25.8 kbbl per day, whereas the two turbo-expander plants’ nominal processing capacity reaches 20.3 million m3 of gas per day. Besides, Refinor operates a 1,108 km multiproduct pipeline extending from RCD (Salta) to Montecristo (Córdoba).

RCD receives crude and condensed oil from the Noroeste Basin in Argentina and natural gas from the Noroeste Basin in Argentina and Bolivia. These operations are conducted through two oil pipelines and three gas pipelines. In 2020, the average daily processing of crude oil amounted to 4,085 bbl. In turn, gas processing reached a daily average of 1.8 million m3.

In 2012, Refinor executed an agreement with ENARSA to supply compression services for the gas that the latter imports from Bolivia. This agreement was later amended to increase the gas compression capacity (up to a volume of 26 million m3/day) and keeping its term until April 2019. The agreement was renewed in 2019 and will be in effect until April 2021, with a compression capacity of 21 million m3 of gas per day.

As of December 31, 2020, Refinor had a commercial network of 91 GS in the Provinces of Tucumán, Salta, Santiago del Estero, La Rioja, Jujuy, Catamarca, and Chaco. The network offers a high-performance fuel line: Premium Max (97 octanes), Super Max (95 octanes), Eco Diesel Max and Eco Diesel Premium Max.

In 2020, gasoline, GO, raw gasoline and other liquid fuel sales amounted to 363 dam3, representing a 24% year-on-year decrease. LPG sales amounted to approximately 47 kton in 2020, experiencing a 37% decrease compared to the previous year.

Enecor

Pampa holds a 70% interest in Enecor, an independent power transmission company under a 95- year concession due to expire in 2088. Enecor subcontracts Transener, which operates and maintains 21 km of 132 kV double-triad lines from the Paso de la Patria transforming station in the Province of Corrientes.

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9. Human resources

At Pampa, we work every day with professionalism and passion for maintaining labor relationships based on respect for people, rules of law and a positive work environment. Guided by our values, we strive for excellence and continuous improvement to meet the market demands and continue growing. The Company supports several practices aimed at human resources training, development, attraction, loyalty and management, thus creating a favorable context for achieving organizational results.

In 2020, the Human Resources Department's strategy was oriented towards our talent development, knowledge management, and all our employees' welfare within the global pandemic context. Our planning was focused on three main themes: proximity, support and safety. We also adapted our training programs to virtual formats, allowing our employees to continue their training.

9.1 Recruitment and selection

To cover vacant positions in our assets and corporate areas, we recruit dynamic profiles representing our teamwork culture, the search for excellence, and system-thinking.

We completed the second edition of the ‘Young Talent’ Program, launched in August 2019, with the incorporation of 13 young professionals with high potential in core business teams and corporate areas. We also launched our ‘Talent in Motion’ program, making internal vacancies visible and transparent to all our employees.

9.2 Professional practices/internships

In 2020, we continued conducting professional practices jointly with technical schools so students could get acquainted with the professional and work environment. This practice has allowed students to participate in the selection processes for positions similar to the functions performed during the professional experience. As a result, some of them were finally hired by the Company.

Besides, we launched an internship program that allows university students to apply in an organization the knowledge acquired in their professional studies. The program includes a tutor, an onboarding schedule for the first 90 days and a plan to accompany them as they get adapted to Pampa’s culture. In 2020, internships were performed in Accounting, Brands, Finance, Human Resources, Investor Relations and other areas.

9.3 Planning of human resources

Our human capital management processes, policies, and practices are geared towards developing talent and organizational skills, strengthening our leadership, and promoting a high-performing culture to attain business goals.

9.4 Compensation and benefits

Our policy on compensation is based on ensuring external competitiveness and maintaining in- house equality, working with surveys that allow us to adjust our benefit packages and wage structure in line with those offered in the market. In 2020, the Company granted increases aligned with those provided by the labor market to personnel not subject to collective bargaining agreements. Salaries were adjusted according to collective bargaining agreements for unionized employees.

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As regards benefits, we continued reinforcing the identity of the SUMA program to improve each employee’s experience based on five axes: family, finance, time, experiences and health. We improved accessibility and communication by customizing each of the proposals. The challenge for 2021 is enhancing or extending the current proposal according to the needs of our employees.

9.5 Relations with unions

At Pampa, we keep an ongoing relationship with unions and professional organizations in each of the businesses where we operate. Based on dialog, constructive negotiation, and mutual respect, we consolidate long-lasting relationships searching for common interests and developing activities in changing social and economic contexts.

Facing the pandemic, we worked hard in coordination with different unions and professional organizations to ensure both the individuals’ safety and our operation’s development. Moreover, we actively participated in business chambers conducting labor and conventional negotiations at national and regional levels, taking part in the committees representing them and responsible for negotiations. The negotiation processes undertaken by our subsidiaries have been monitored throughout their development.

9.6 Management of personnel

As part of incorporating technological tools into our processes, we have digitalized payslips, income tax information and other documents requiring an electronic signature. In turn, to facilitate direct access to the tools with a unique key, a Single Sign-On authentication process was incorporated.

Moreover, the LENEL system for working hours’ control management was implemented at CTG and CPB, which brought about further accuracy and automation for payroll news and the control of the staff’s entries and exits.

Furthermore, we continued updating life insurance forms for the employees of the Pampa Building, HINISA and HIDISA, unifying coverages with a substantial improvement in terms of capital, premiums and covered risks. Regarding health coverage, Swiss Medical’s virtual health care assistance was implemented for the Pampa Building and CTA Neuquén employees through a dedicated corporate box.

On September 21, 2020, the Salary Advance Policy and the Loan Policy were approved regarding corporate documentation.

9.7 Training and development

To accompany our employees’ development, we invested in 2020 in training, mainly in technical formation, business, skills and leadership areas. Due to the context, traditional programs were adapted to virtual format, including the following:

• Skills Development Program: virtual workshops and supplementary material targeted at no-staff leaders to develop skills aligned with Pampa’s culture. More than 340 employees took part in this program, with an investment of more than 1,000 hours.

• Leadership Development Program for Pampa’s leaders: targeted at directors and managers, heads and supervisors. About 400 leaders participated, with the investment of more than 4,282 hours and the contribution of 3 counselors, and more than 3 group coaching processes were carried out. We also accompanied our leaders’ training with a conference cycle with special guests who helped them understand and get inspired in different topics during the context;

• The second edition of the Introduction to Leadership Program, targeted at senior professionals to strengthen their individuals and team management skills;

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• We accompanied the academic training of 10 employees who participated in Master’s Degree and Specialization Programs, organized technical training courses, and participated in congresses both locally and abroad. Besides, we continued offering English language training, accompanying more than 95 employees, and feeding the virtual training platform with access to all employees;

• At Pampa, we encourage internal development. In 2020 we had 63 internal staff movements, including promotions, lateral transfers, changes of area, among others; and

• We designed and implemented a knowledge management process in the generation business through the specific technical skills mapping methodology. The process made it possible to define the knowledge profiles expected in business-critical positions later to analyze the existing technical education gaps and determine training plans tailored to our employees' needs and interests. In 2020, 6 of our power plants participated, and more than 230 employees were evaluated.

9.8 Internal communications, working environment and culture

Pampa’s culture is based on an integrated, professional and flexible model which articulates diversity and integrates our values, practices and objectives. A communication plan based on proximity, support, and safety for all our employees was developed in a pandemic context. The main initiatives conducted were the following:

• Awareness campaigns focused on measures to prevent COVID-19 infections and communicate Pampa’s protocols. Moreover, we implemented EAP, a 24-hour psychological and legal support service for employees and their direct relatives, as well as a weekly newsletter on active pauses, yoga classes, talks on nutrition, parents with kids, among others;

• The second edition of Pampa Inspires, an event where employees share their stories of transformation, resilience and self-improvement through inspiring 8-minute talks. The 12 speakers were selected through an open call;

• The second edition of A Round of Applause!, a recognition program for employees representing Pampa’s values daily. Since its creation, more than 230 employees have been recognized;

• Getting to know our businesses, open talks with leaders of each business and virtual contents so that all our employees get to know how Pampa’s businesses operate;

• Family Day at Pampa, virtual edition, an annual event where more than 300 employees and their families participated from their homes in a meeting with activities and shows for all ages;

• Breakfast with the CEO, virtual edition, a meeting of employees from different areas and seniority levels with Gustavo Mariani to talk about Pampa’s news and its main challenges; and

• Second Work Environment Climate Survey, with an 83% participation rate (more than 1,600 employees). We obtained a 90% of favorable answers in the commitment area and growth in the indicator of pride in belonging to Pampa. In 2021 we continued accompanying each department with action plans and team working tools.

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10. Community and Pampa Energía Foundation

Pampa's programs and social investment actions are part of a strategic model for establishing relationships with our stakeholders led jointly with the Pampa Energía Foundation. With a solid commitment to society, we develop programs oriented towards improving individuals' quality of life and strengthening the institutions in the communities where we operate.

To support the development of the community and set clear, measurable and assessable goals and intervention modalities, we have framed our social investment strategy on three axes:

• Education: a key element for individuals’ growth and autonomy, and a necessary condition to access professional and work training; • Employment: a driver for the effective development of individuals in the short term and communities in the medium and long term; and • Social inclusion: a trend consisting of bringing opportunities and resources so that individuals may actively participate in their communities' social, environmental, cultural and economic activities.

We are committed to managing our business's economic, social, and environmental impacts through our social investment and our employees' voluntary support. We intend to contribute to the SDG, especially: SDG 4 (quality education), SDG 7 (affordable and clean energy), SDG 8 (decent work and economic growth) and SDG 12 (responsible consumption and production). We rely on the background and importance of the efforts by social organizations and public bodies. Therefore, we have partnered with them to develop social investment initiatives. SDG 17 (partnerships for the goals) cross-cuts all our initiatives, using our complete knowledge towards an equitable and committed society.

10.1 Education and labor placement training

We believe that education is the key to development and social and labor market inclusion, strengthening knowledge to expand horizons. Therefore, we seek to provide equal opportunities to children and young people in vulnerable situations.

Accompaniment in educational paths

At Pampa, we seek to support the completion of technical secondary education studies and the entry into university and college of teenagers living in the Provinces of Neuquén, Salta, Mendoza, Buenos Aires and Santa Fe. Young people participating in our program receive monthly financial assistance and personalized support, training and educational trips. Our scholarship grantees can get acquainted with formal work environments and perform activities so that they may envision concrete employment possibilities in the future.

In 2020, we accompanied 1,389 students, 1,025 of whom were attending the last three years of technical secondary education, and 364 university and college students, of which 261 secondary students and ten university students graduated from courses of study associated with our businesses, mainly engineering. Besides, four scholarship grantees who were children of Pampa’s employees finished their participation in the program.

Moreover, in the pandemic context, we developed different activities complementary to those offered by the program. To get to know how they were going through the pandemic and options to improve our program, we organized 23 meetings with the participation of 117 grantees. Besides, we launched Building Tomorrow, a cycle of 8 optional workshops on comprehensive sex education and family planning, street harassment, environmental footprint, digital world and financial education, with 220 attendees.

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Lastly, we performed six virtual visits to the Holocaust Museum with the participation of 178 students from Mendoza, Salta and Buenos Aires to learn the history of the Shoa, its consequences, and the importance of memory and empathy to combat hate speeches.

While seeking to improve students’ learning, we offered in 2020 20 workshops to 204 second-cycle teachers at 146 primary schools, reaching out to 44 towns in Neuquén, Mendoza, Buenos Aires and Santa Fe under the Energy Researchers project (Investigadores de la Energía), dealing with topics associated with energy, its sources, efficiency and benefits. The tools incorporated by teachers were implemented with 2,390 children.

Additionally, we launched the Pampa Foundation Schools Network program, which accompanies 18 technical schools at 11 towns of Mendoza, Santa Fe, Buenos Aires and Salta, providing teacher training and better institutional management tools. In 2020, 84 school authorities and teachers participated in the program and implemented the learned contents with 1,882 students of the schools where we grant secondary school scholarships.

As part of our commitment to education and community institutions' improvement, we performed refurbishments and donated equipment to schools, universities, and training and community centers of the communities where we operate. In 2020, we invested more than AR$13 million. Among the contributions made, we donated P-DS-1 portable drilling and well control simulator —the first of its kind in the country— to the Municipality of Cutral Có, Neuquén to improve the professional's quality workforce and enhance the labor placement. The training program will be administered by the Neuquén Regional School of the National Technological University.

Labor placement training

At Pampa, we conducted professionalizing practices and first job workshops to consolidate, integrate and develop knowledge and capabilities matching the professional profile that secondary, college and university students are developing and increase their employability.

We continued fostering professional practices for young students attending the last years at technical schools. In 2020, we adapted the program to a 100-hour virtual modality, which allowed us to launch the program with 230 young students. In turn, since the beginning of the Educational Paths Escort program, 40 college and university grantees have performed internships and professional supervised practices, and 23 of them have been hired in different assets of the Group.

Under the AcercaRSE program, we held Technician Day’s Annual Meeting for 200 students from Zárate, Campana, and other neighboring towns and addressed first employment and entrepreneurship topics.

10.2 Local assessment and development of community impact projects

Strategic alliances for community development

We understand that the relationship between the Company and its stakeholders is cross-cutting throughout the business. In 2020, thanks to the more than 40 meetings with 96 leaders and heads at different Pampa areas, we developed a strategic map to set the direction and priorities to address concerning each stakeholder. We prioritized nine analysis matrices to define the target audiences with which we will develop action plans starting in 2021. We have accompanied 14 institutions for sustainable development throughout the country, both at corporate social responsibility tables and work groups and through funding. Moreover, we design and execute local development projects in coordination with municipalities and civil organizations. In 2020, the following were the most relevant:

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Sustainable energy

As a power company, we develop social projects facilitating access to energy through renewable sources and improving energy efficiency.

In the Province of Salta, we have been working since 2017 with Fundación Solar Inti accompanying 30 women and their families of the guaraní community in Piriquenda through self-construction of eco- stoves and kitchens, and cooking and entrepreneurship workshops. In 2019 and 2020, we measured the impact on the life of 148 people and their environment: the logging of native trees and the burning of firewood were prevented, emissions were reduced by an average of 1 ton of GHG per year and per family, and the consumption of gas bottles decreased, improving household economy.

In 2020 we launched a project installing solar water heaters in Derqui (Pilar, Buenos Aires), where neighbors do not have access to gas, so they have to use electricity for heating water, cooking and conditioning homes. The program, targeted at 90 low-income families, will reduce electricity consumption by at least 30%, contribute to the neighbors’ economy and savings, and promote environmental care. The project includes a workshop to maximize the heater output and household energy efficiency.

Moreover, to increase the new generations’ commitment to the environment and reduce energy- associated costs, we have developed energy efficiency initiatives. 180 people were enrolled in Buenos Aires and Neuquén, where we delivered 147 kits, and about 80% of the enrollees completed the first workshop.

Regarding environmental education, we have been implementing the ‘La Basura Sirve’ (Waste Is Useful) program since 2009, in association with the AcercaRSE group companies and the Interindustrial Committee for Environmental Conservation of Campana-Zárate (Comité Interindustrial de Conservación del Ambiente Campana-Zárate). In 2020, the program was developed in a virtual format in 65 schools of Campana, Zárate and Lima, reaching 20,412 students, adapting the content to raise awareness on how we can contribute to environmental and educational improvement from our homes.

Skills training and support to productive undertakings

Despite the pandemic, in 2020 we continued fostering productive activities and creating employment through courses on skills for job profiles associated with our business or demanded in the community. We provided support to effective undertakings generating social and/or environmental benefits.

In 2020, we accompanied the Good Job program in Buenos Aires and the Ingeniero White community panel, primarily targeted at graduates from previous years who are currently unemployed. The proposal included the coordination of e-commerce and soft skills training for 48 enrollees, with the certification of 41 students, as some of them were employed and could not complete the program. We also provided support to three students to graduate as sports assistants with the Baccigalupo Foundation, fostering the full inclusion of people with disabilities and effective equality of opportunities. Since 2016, we have granted scholarships to more than 20 students, 6 of whom have been inserted into the labor market.

In our Neuquina Basin asset, we continued supporting the Los Chihuidos Rural Development Association through donations to develop forage programs benefiting more than 70 farmers. Moreover, in 2020 we moved forward in designing the Responsible Inclusive Purchases program, which will be included in the Company’s procurement procedure. In turn, we called 14 social entrepreneurs to offer their products to the Pampa Building’s employees in December.

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Enhancement of local organizations

We assist in improving the organizations' institutional management by making contributions and supporting projects developed by them.

In partnership with the Food Bank Foundation (Banco de Alimentos), we continued assisting in the Carlos Menem Jr. soup kitchen in General Güemes, Province of Salta, which provides daily assistance to 120 children. Moreover, we granted six post-graduate scholarships to social organization leaders and volunteers in coordination with the Argentine Catholic University. Besides, in association with the Federal Council of Social Policies, we have drilled the first well to guarantee the permanent supply of drinking water for the wichi community of Santa Victoria Este, Salta.

Regarding COVID-19, we have made contributions of more than AR$50 million to health and social relief institutions in the communities where we operate. We joined national initiatives such as Let Us Be One and Argentina Needs Us, and also delivered a total of 14,690 medical supplies kits in Mendoza, Neuquén, Buenos Aires and Salta, consisting of more than 1,300 overalls, more than 8,800 N95 and 3M Moldex face masks and more than 4,500 latex gloves.

10.3 Pampa’s volunteering program

At Pampa, we are convinced that our employees are our main asset and responsible for creating shared value and the communities where we operate our assets. Through the Volunteering Committees, we seek that our employees may draw up proposals contributing to solving social difficulties identified at the local level and allowing, in turn, to reinforce each asset’s links with the community. Hence, Pampa can contribute to its socio-economic and community development and strengthen the organizational culture and the employees’ sense of belonging.

Through periodical meetings, the committee members in each asset define action plans for volunteering activities and their coordination with strategic partners at a local level. In response to the pandemic, we held four meetings this year to provide training on virtual volunteering, with 70 members of the Volunteering Committees and the participation of 43 employees. Out of the 8 hours of training, ten concrete initiatives came up, and we could contact 47 organizations of our communities to continue working together. In 2020 we fostered 38 actions, with 1,159 volunteers, dedicating more than 5,000 hours to humanitarian activities. We currently have ten active Volunteering Committees.

Professional volunteering

We encourage employees’ involvement and participation in activities to put their specific skills and expertise into action to support causes, projects and organizations needing them through counseling, technical talks and technical-professional knowledge.

To contribute to students' training of all educational levels by getting them to know our productive processes, facilities and working methodology, we organized visits to our plants as part of the Open Doors program. However, these activities were suspended on account of the lockdown.

We organized for the second time a Pescar Educational Center in association with the Pescar Foundation, where 42 volunteers at the Pampa Building dedicated more than 245 training and mentoring hours. Twenty young people aged 18-24 in a vulnerable situation were subject to personal and labor training to favor their social and work integration in the IT area. We also participated in the ImpulsaRSE program and the Industrial Union of Bahía Blanca (Unión Industrial de Bahía Blanca), and the Salesian University to offer communication tools to 5 local social organizations to develop an enhanced communication plan and electronic sales techniques. The 20 mentoring projects had an impact on 2,000 families. Four Pampa volunteers accompanied two organizations: Bahía against Human Trafficking and the Parents, Family and Hope Association.

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Annual campaigns

In 2020 more than 50 volunteers participated in the Blood Donation Drive in our assets in the provinces of Buenos Aires, Salta and Neuquén, in partnership with local organizations encouraging voluntary blood donation.

Moreover, we conducted the Together Against Cold Weather campaign again during the winter in Buenos Aires, Mendoza, Santa Fe and Neuquén, accompanying more than 500 people in a vulnerable situation. In alliance with 13 civil organizations, the activities included collecting furniture, cleaning products, non-perishable food, winter clothes, bed linen, and kits' assembly based on size and gender.

Additionally, we celebrated Childhood Day in August with the organizations we support, where the delivery of sweets, food, paints, a bicycle and educational games reached 750 children of the communities of Bahía Blanca, General Güemes, Piquirenda, Greater Buenos Aires and San Lorenzo.

Finally, every December 5 —the International Volunteer Day established by the United Nations (UN)— Pampa’s assets join the A Christmas Eve for Everyone campaign. Volunteers get organized so that families in a vulnerable situation may receive boxes with food and gifts to share during the holiday season’s celebrations. 5,000 people received full food bags thanks to this solidarity-based action.

Sessions and projects with a social and community impact

Thanks to the participation of 50 Pampa volunteers and Foundation scholarship grantees, and a more than AR$1 million investment, we carried out two actions that will benefit Neuquén’s Nayahue Educational Center students and 27 families fighting childhood cancer in San Rafael at ‘La casita de Malen.’ Additionally, in 2020 we developed virtual and on-site proposals, including ‘Silver hair, gold heart,’ which consisted of accompanying elderly people at San José Nursing Home and Flores Day Club in Buenos Aires through calls and letters.

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11. Information technology

In response to the lockdown on account of COVID-19, we implemented several measures in 2020 to guarantee the continuity of operations and communication, minimizing the limitations of remote working and making processes more efficient. In this sense, the Microsoft Teams communication tool was implemented, which enabled remote meetings and team management and virtual corporate events, such as shareholders’ meetings and the inauguration of the new CC at CTGEBA together with the President of the Argentine Nation. Moreover, the digital transformation and technological updates in our assets continued. A tool allowing for the generation of digital forms for mobile devices was placed into service, streamlining data collection, and the replacement of notebooks and the backup infrastructure continued.

In the E&P and generation businesses, the OSIsoft PI software, a real-time production data storage platform to optimize decision making and consolidate data flows, was implemented.

In the generation business, a management model was developed to minimize risk and operational losses, optimize the assigned resources and manage improvement opportunities. Moreover, the operating expenses management solution went live, which offers specific budget management and aligns with the Company’s operating costs process. We implemented tools to maximize efficiency for the standardization and recording of the heat efficiency calculation in the CT and simulations' performance to optimize water use and control in case of possible floods at the CH. Additionally, a loop control solution with ABB technology was implemented in CTGEBA that improves operational efficiency and decreases downtime, reducing costs and improving the equipment's availability.

In E&P, a supply management solution was implemented to facilitate access to information to control inventories, materials management, and follow-up reserves. Additionally, in the El Mangrullo field, a new telecommunications technology was put into production to enhance the quality, reliability and service availability levels in the area following the needs of the 2021 – 2024 business plan associated with Plan Gas.Ar.

In corporate areas, QHSE was assisted in the automation of COVID-19 forms for employees and contractors and a dashboard set-up, allowing for a daily follow-up of cases in each asset. Besides, the occupational health system was updated to provide support and follow-up during the pandemic. In the Human Resources area, the SuccessFactors system was expanded by incorporating technical skills, the income tax form, and possible documents signed by the employee. For the procurement area, SAP Ariba functionalities were extended to streamline suppliers and procurement transactions. For the accounts payable area, the receipt of invoices was automated, and supplier payment processes and the crediting to scholarship beneficiaries were digitalized. The integration between SAP and the insurance management application was automated, and a new institutional website was implemented.

Finally, regarding information security, the development of the 2019 plan continued, and given the increase of cyberattacks during the lockdown, the cybersecurity strategy was reinforced and redesigned. In this sense, corporate networks’ access management was strengthened, remote monitoring mechanisms were implemented, and possible impacts and recovery plans for cyberattacks were assessed. Additionally, works continued to raise all employees’ awareness of cybersecurity risks, focusing on the new remote working modality for the positions allowing it.

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12. Quality, health, safety and environment

At Pampa, we are committed to developing our businesses to observe the highest quality, safety, environmental, and labor health standards, favoring personal welfare, environmental care, and energy efficiency. We want to meet current needs without compromising future generations.

Considering the context of our industry, Pampa’s experience, the best practices, and international norms and standards, a QHSE Policy was established in 2017 with ten guidelines that constitute a simple and agile roadmap towards the sustainable development of our businesses and their implementation.

In 2020, despite the pandemic context that demanded special attention by all the Company, Pampa continued moving forward with management programs in all its operations, allocating resources to staff training under an integrated and aligned strategy, strengthening Pampa’s culture on QHSE issues.

12.1 Management quality

We further our management quality using international ISO standards and the Argentine National Quality Prize model as references, seeking the continuous improvement of all our activities. The primary Management Quality methodologies applied are the integrated assessments —adjustment to QHSE guidelines, operational Risk Management Matrix (RMM) and QHSE performance—, the administration of certified management systems and daily management quality.

We apply the RMM to reduce risks inherent in our operations. After its redesign in 2019, the first assessment cycle was conducted in all our assets in 2020, promoting improvement plans to handle deviations and opportunities.

At Pampa, we evaluate QHSE performance based on the systematic monitoring and measurement in our QHSE asset indicator dashboard, developed on the QlikView platform, making real-time decisions and know their evolution. Furthermore, we continued improving the QHSE dashboard with the incorporation of new legal compliance indicators.

In 2020 we maintained the zero significant anomalies goal and met most strategic goals set for the year, which were even stricter than in 2019. Moreover, we completed the maintenance and recertification program under ISO international standards, showing efficiency in our stakeholders' achievement and commitment. We also continued with the certification process under the new ISO 45001:2018 standard — which replaces the OHSAS 18001 standard in most of our assets—, expected to be completed in 2021.

Besides, the management of anomalies, audits, and actions was unified in the new integrated practice, ‘findings and improvements management,’ with the development of a new procedure and the IT support tool's redesign on the SharePoint platform. Moreover, the TERV application was implemented; this is an IT tool that effectively manages and views legal compliance of environmental, hygiene, health, and safety aspects in all our businesses and the Pampa Building.

Additionally, since 2013 outstanding improvement practices have been selected at Pampa to take part in the annual national meeting of the Argentine Society for Continuous Improvement (Sociedad Argentina Pro Mejoramiento Continuo) and be able to share our experiences and knowledge. In the 25th 2020 annual meeting, with 28,000 visitors from 31 countries, we submitted the work ‘Coronavirus: health in times of lockdown’ prepared by CPB.

12.2 COVID-19 pandemic

Following the declaration of the COVID-19 pandemic in March 2020, we adopted the World Health Organization recommendations, the Argentine Federal Government and our QHSE Policy to reduce the risk

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of transmission of the disease and its impact and maintain the operational continuity of our essential activities. To this effect, health and safety measures were promoted to raise our employees’ awareness of compatible symptoms and compliance with prevention protocols and plans for handling possible infections. In accordance with this, we performed the following strategic planning:

• On February 27, 2020, a centralized Preventive Committee was set up, which established several internal practices with the participation of different areas of the Company to have a multidisciplinary vision in accordance with the rules and recommendations of government and health authorities. In turn, a Local Preventive Committee was appointed in each asset to implement Pampa’s Directives, establish specific actions, and communicate them to all the workforce; • Communication, training and support to our employees by email, Kaizala, billboards, social media, among others. Workshops with specialists were organized to address the main issues in this context, and EAP, a legal and psychological support service, was hired; • Remote working, minimizing our employees’ exposure and guaranteeing operational continuity for all work positions allowing it; • Our businesses' operational continuity: for activities deemed essential, work routines and shifts were modified to reduce the staff’s exposure, following a ‘bubble’ approach. Prevention and asset access protocols were updated, reinforcing hygiene measures, reorganizing the staff's transportation, and promoting the self-monitoring of symptoms. A rapid testing program was implemented at CTGEBA and CTEB and for HPPL and CTLL’s scheduled overhauls. An action worksheet and a contingency plan for a suspect and confirmed COVID-19 cases were developed, establishing health corridors in each asset to offer a swift response and minimize the staff's affectation and activities. We organized training courses and action drills to verify the efficiency of protocols; • Hygiene measures: conditioning of ventilation systems, air disinfection by UV radiation, distancing in working positions, installation of alcohol dispensers, increased cleaning and disinfection frequency, delivery of personal protection and hygiene kits, among others; and • Flu immunization plan: we advanced our annual flu vaccination campaign in all assets, incorporating home vaccination to prevent personnel's movement at risk. Based on a thorough sensitization, communication and awareness effort, the immunization campaign showed a 69% increase compared to 2019.

It is worth highlighting that, despite the restrictions resulting from the ASPO, we continued with the overhaul works, and our second CC at CTGEBA was commissioned within the committed terms.

12.3 Health and safety

Pampa has advanced with the definition and periodic monitoring of its safety goals through the QHSE indicator board and the development of initiatives to improve each asset's safety management and performance. Additionally, we have reviewed the change management process and implemented it in the generation business.

Regarding industrial hygiene, we continued working on the improvement of chemical, physical and ergonomic risk maps. We also implemented the Carcinogenic Compounds and Substances Monitoring System set by the Superintendence of Labor Risks.

12.4 Environment

Pampa’s operations are conducted within a context of sustainable development. Pampa is committed to protecting the environment and endeavors to rationalize natural resources in its projects by applying proper and economically viable technologies.

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In 2020, we worked to develop the Environmental Principles, consolidating Pampa’s culture and ensuring compliance with the commitments undertaken through our QHSE Policy, which are aligned with the SDG.

In line with the country’s energy needs and within our Environmental Principles framework, we seek to reduce air emissions and foster responsible energy use in our activities. In 2020, despite the pandemic, we completed the closing to CC at CTGEBA, thus becoming the largest and one of the most efficient CTs in the country. At CTEB, we continued with the expansion to CC project, which is expected to be completed in 2022.

12.5 Response to emergency

Pampa endeavors to prevent undesirable events and is prepared to provide a prompt and effective response to emergencies. We have continued making periodic emergency response simulations, promoting established practices and specific improvements incorporated into the integrated management system.

In 2020 we conducted training and practice programs per the Emergency Response Plans to develop skills and competencies and coordinate the necessary activities if an undesired event occurs. In 2020, we moved forward with assessing and updating critical emergency scenarios in all our businesses.

Moreover, we continued assessing the condition of fire detection and suppression systems, evaluating and ensuring their proper working condition and response capacity. We also implemented the Incidents Command System, an emergency response methodology.

12.6 Labor health

In 2020, Pampa continued implementing the policy on the use of alcohol, drugs and psychoactive substances. The Company also maintained the Preventive Labor Environment certification requirements at all assets operated by Pampa, recognizing the preventive actions committed to employees' welfare and operations safety. This certification is granted by the Secretariat of Planning for the Prevention of Drug Addiction and Fight against Drug Trafficking (Secretaría de Programación para la Prevención de la Drogadicción y la Lucha contra el Narcotráfico, SEDRONAR) and the Cooperation program between Latin America, the Caribbean and the European Union on Drugs Policies (COPOLAD).

Aiming to foster all Pampa members' health, we continued advancing Labor Health Management through epidemiological monitoring in 2020. The performance of occupational medical exams for the granting of Certificates of Physical Fitness was limited because of COVID-19, following the Superintendence of Labor Risks' recommendations.

As regards prevention, Pampa continued implementing the physical activity program and flu and tetanus immunization campaigns. We reinforced the healthy eating program in all our assets with nutritionists' assistance to improve the body mass index, one of the health risk factors for COVID-19.

Despite the pandemic, together with the Pampa Foundation, a blood donation campaign was conducted through voluntary blood donation drives. This practice continues to be organized systematically in all our assets, strengthening the bonds between Pampa, employees and the community.

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13. The fiscal year’s results

Pampa, the largest independent energy integrated company in Argentina, focuses its business on the country's electricity and gas value chains.

Through its activities, subsidiaries and stakes in joint businesses and associates, and based on the business nature, customer portfolio and risks involved, we have identified the following business segments:

• Power generation, mainly consisting of the Company’s direct and indirect interests in CTBSA, HINISA, HIDISA, Greenwind, TMB, TJSM, and its power generation activities through CTG, CPB, CTP, CTLL, CTGEBA, CTPP, CTIW and EcoEnergía power plants, PEPE II and III wind farms, and the HPPL dam; • Electricity distribution, consisting of Pampa’s direct interest in Edenor. The Company has classified the results corresponding to the divestment in this company as discontinued operations38 from January 1, 2019; • Oil and gas, mainly consisting of the Company’s interests in oil and gas blocks, as well as interests in PACOSA, OldelVal and OCP; • Petrochemicals, comprising styrene and the catalytic reformer unit’s own operations developed in plants in Argentina; and • Holding and others, mainly consisting of financial investment transactions, holding activities, interests in joint businesses CITELEC and CIESA and their respective subsidiaries holding the concession over the high voltage electricity transmission nationwide and gas transportation in the south of the country, respectively, as well as the Company’s interest in its associate Refinor, and its shareholding in Enecor.

It should be pointed out that the analysis of results for fiscal years 2020 and 2019 has been made for continuing operations.

38 For further information, see section 7.5 of this Annual Report.

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13.1 Consolidated income statement by segment, the fiscal year 2020 (US$ million)

Consolidated profit and loss information Electricity Petrochemica Holding and Generation Oil and gas Eliminations Consolidated (as of December 31, 2020) distribucion ls others Revenue 559 - 227 265 20 - 1,071 Intersegment sales - - 67 - - (67) - Cost of sales (254) - (243) (233) - 67 (663)

Gross profit 305 - 51 32 20 - 408

Selling expenses (2) - (28) (8) - - (38) Administrative expenses (30) - (42) (3) (18) - (93) Exploration expenses ------Other operating income 35 - 9 2 10 - 56 Other operating expenses (6) - (17) (6) (7) - (36) Impairment of PPE, intangible assets and inventories (128) - - (11) - - (139) Results for participation in joint businesses and associates 67 - (5) - 23 - 85

Operating income 241 - (32) 6 28 - 243

Financial income 3 - 7 - 1 (2) 9 Financial expenses (73) - (100) (3) (3) 2 (177) Other financial results 1 - 44 5 34 - 84 Financial results, net (69) - (49) 2 32 - (84)

Profit before income tax 172 - (81) 8 60 - 159 Income tax (33) - 23 (2) (23) - (35)

Profit (loss) of the year from continuing operations 139 - (58) 6 37 - 124

Loss of the year from discontinued operations - (592) - - - - (592)

Profit (loss) of the year 139 (592) (58) 6 37 - (468)

Attributable to: Owners of the Company 147 (499) (58) 6 37 - (367) Non-controlling interests (8) (93) - - - - (101)

Consolidated statement of financial position Electricity Petrochemica Holding and Generation Oil and gas Eliminations Consolidated (as of December 31, 2020) distribution ls others Assets 1,595 1,356 1,085 107 832 (85) 4,890 Liabilities 707 1,021 1,174 126 178 (85) 3,121

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13.2 Consolidated income statement by segment, the fiscal year 2019 (US$ million)

Consolidated profit and loss information Electricity Petrochemica Holding and Generation Oil and gas Eliminations Consolidated (as of December 31, 2019) distribution ls others Revenue 819 - 178 321 20 - 1,338 Intersegment sales - - 270 - - (270) - Cost of sales (470) - (313) (298) - 270 (811)

Gross profit 349 - 135 23 20 - 527

Selling expenses (3) - (12) (9) (2) - (26) Administrative expenses (32) - (47) (4) (22) - (105) Exploration expenses - - (9) - - - (9) Other operating income 58 - 5 5 11 - 79 Other operating expenses (11) - (11) (9) (12) - (43) Impairment of PPE, intangible assets and inventories (52) - (10) - - - (62) Results for participation in joint businesses and associates 13 - 21 - 67 - 101

Operating income 322 - 72 6 62 - 462

Financial income 2 - 17 - 5 (1) 23 Financial expenses (82) - (94) (8) (4) 1 (187) Other financial results 86 - 89 18 (18) - 175 Financial results, net 6 - 12 10 (17) - 11

Profit before income tax 328 - 84 16 45 - 473 Income tax (80) - (16) (5) 231 - 130 Profit (loss) of the year from continuing operations 248 - 68 11 276 - 603

Loss of the year from discontinued operations - 197 - - - - 197

Profit (loss) of the year 248 197 68 11 276 - 800

Attributable to: Owners of the Company 239 98 68 11 276 - 692 Non-controlling interests 9 99 0 - - - 108

Consolidated statement of financial position Electricity Petrochemica Holding and Generation Oil and gas Eliminations Consolidated (as of December 31, 2019) distribution ls others Assets 1,472 1,480 1,261 136 1,527 (192) 5,684 Liabilities 1,226 1,792 465 122 (160) (170) 3,275

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13.3 Income statement analysis for the fiscal year ended December 31, 2020, compared to the fiscal year ended December 31, 2019

Consolidated net sales revenues of US$1,071 million for the fiscal year ended December 31, 2020, 20% lower than US$1,338 million for the fiscal year 2019. The following decreases were recorded: 32% (US$260 million) in power generation; 34% (US$154 million) in oil and gas; 17% (US$56 million) in petrochemicals, and without variations in our holding and others segment, partially offset by lower intersegment eliminations for US$203 million.

Consolidated cost of sales of US$663 million for the fiscal year ended December 31, 2020, an 18% decrease compared to US$811 million for the fiscal year 2019. The following reductions were recorded: 46% (US$216 million) in power generation, 22% (US$70 million) in oil and gas, 22% (US$65 million) in petrochemicals, and without variations in our holding and others segment, partially offset by lower intersegment eliminations (US$203 million).

Consolidated gross income of US$408 million for the fiscal year ended December 31, 2020, a 23% decrease compared to US$527 million recorded in the fiscal year 2019. The following reductions were registered: US$44 million in power generation and US$84 million in oil and gas, and without variations both in our holding and others segment and intersegment eliminations, partially offset by a US$9 million increase in petrochemicals.

Consolidated operating profit of US$243 million for the fiscal year ended December 31, 2020, a 47% decrease compared to US$462 million in the fiscal year 2019. The following decreases were recorded: US$81 million in power generation, US$104 million in oil and gas, US$34 million in holding and others, and without variations both in petrochemicals and intersegment eliminations.

Net financial results represented a loss of US$84 million for the fiscal year ended December 31, 2020, compared to a profit of US$11 million for the fiscal year 2019, mainly due to higher net losses of US$75 million in power generation, US$61 million in oil and gas, and US$8 million in petrochemicals, and without variations in intersegment eliminations, partially offset by higher gross profits for US$49 million in our holding and others segment.

Consolidated loss of US$468 million for the fiscal year ended December 31, 2020, of which US$367 million39 are attributable to the owners of the Company, compared to US$692 million40 attributable to the owners of the Company for the fiscal year 2019, explained by the losses reported in the power generation (US$92 million), electricity distribution (US$597 million), oil and gas (US$126 million), petrochemicals (US$5 million) and holding and others (US$239 million) segments.

39 It includes losses reported for discontinued operations (US$570 million). 40 It includes profits reported for discontinued operations (US$197 million).

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Power generation segment

Power generation segment, consolidated Fiscal year Figures in US$ million 2020 2019 ∆% Sales revenue 559 819 -32% Cost of sales (254) (470) -46%

Gross profit 305 349 -13%

Selling expenses (2) (3) -33% Administrative expenses (30) (32) -6% Other operating income 35 58 -40% Other operating expenses (6) (11) -45% Results for participation in joint businesses 67 13 NA Impairment of PPE and intangible assets (128) (52) +146%

Operating income 241 322 -25%

Finance income 3 2 +50% Finance costs (73) (82) -11% Other financial results 1 86 -99%

Profit (loss) before tax 172 328 -48%

Income tax (33) (80) -59%

Net income (loss) for the period 139 248 -44% Attributable to owners of the Company 147 239 -38% Attributable to non-controlling interests (8) 9 NA

Sales from the power generation segment decreased by 32%, to US$559 million, in the fiscal year ended December 31, 2020, compared to US$819 million for the previous fiscal year. This variation is mainly explained by (i) lower sales on the termination of fuel self-procurement for power generation as from December 2019; and (ii) a decrease in average sales prices following the entry into effect of SE Res. No. 31/20 and the suspension of the automatic inflation adjustment mechanism. All of these were partially offset by higher revenues from the new PPA at CTGEBA from July 2020.

In turn, sold energy volumes during the fiscal year ended December 31, 2020, experienced a slight increase, mainly accounted for by the putting into service of new projects and acquisitions, partially offset by the decrease in the dispatch of older and consequently less-efficient thermal equipment, as well as a lower generation by hydroelectric plants on account of weather conditions. The following table shows net generation and the volume of electricity sold for power generation plants:

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Fiscal years ended December 31, 2020 2019 Net Net In GWh Total sales Total sales generation Generation Hydroelectric HINISA 481 482 499 500 HIDISA 323 323 334 334 HPPL 742 737 823 822 Wind PEMC1 409 409 383 383 PEPE II2 207 207 122 130 PEPE III2 243 246 148 159 Thermal CTLL 4,406 4,399 5,096 5,307 CTG 368 418 755 893 CTP 55 55 53 53 CPB 576 575 1,106 1,107 CTPP 193 193 168 168 CTIW 229 229 312 312 CTGEBA 7,912 7,946 5,550 5,891 EcoEnergía 72 89 105 83 CTEB3 255 255 128 125 Total 16,470 16,563 15,582 16,266

Note: 1 Operated by Pampa (50% of equity stake). 2 Commissioned on May 10, 2019. 3 Operated by Pampa (with a 50% stake) as of June 26, 2019.

Cost of sales decreased by 46% to US$254 million for the fiscal year ended December 31, 2020, compared to US$470 million for the fiscal year ended December 31, 2019, mainly due to lower purchases and gas transportation because of the end of fuel self-procurement for generation purposes (US$226 million) and lower energy purchases (US$11 million). These effects were partially offset by higher depreciations of property, plant and equipment due to the commissioning of PEPE II and III wind farms in the second quarter of 2019 and the expansion at CTGEBA in the third quarter of 2020 (US$23 million).

Gross income from the power generation segment decreased by US$44 million (13%), recording a profit of US$305 million for the fiscal year ended December 31, 2020, compared to a US$349 million profit for the fiscal year 2019. This variation is mainly explained by a decrease in spot market sales prices and a higher depreciation of property, plant and equipment, partially offset by higher revenues from the projects' commissioning mentioned above.

Moreover, in the fiscal year ended December 31, 2020, the gross margin on sales experienced a 55% increase, compared to 43% in 2019.

Selling expenses from the power generation segment experienced no significant variations, amounting to US$2 million for the fiscal year ended December 31, 2020, against US$3 million for the fiscal year ended December 31, 2019.

Administrative expenses from the power generation segment decreased by 6%, to US$30 million, for the fiscal year ended December 31, 2020, against US$32 million for the fiscal year ended December 31, 2019, on account of lower salaries and social charges.

Other net operating income and expenses from the power generation segment decreased to US$29 million profits for the fiscal year ended December 31, 2020, against US$47 million for the fiscal year 2019. The reduction is explained by lower earnings from commercial interests (US$26 million) on account of the 2019 Agreement for the Regularization and Settlement of Receivables with the WEM, net of the increase of CAMMESA’s days of sales outstanding. These effects were partially offset by US$7 million profits

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for contractual penalties recorded in 2020 as compensation for the damages sustained in certain wind power generation units.

Power generation operating income decreased by US$81 million (25%), recording profits for US$241 million for the fiscal year ended December 31, 2020, against profits of US$322 million in the fiscal year 2019. This variation is mainly explained by (i) a higher impairment of property, plant and equipment mainly supplying the spot market in the amount of US$76 million; (ii) lower revenues on account of the decrease in the spot energy price (SE Res. No. 31/20 and suspension of the automatic inflation adjustment mechanism); and (iii) lower profits from commercial interest as a result of the Agreement for the Regularization and Settlement of Receivables with the WEM executed in 2019, partially offset by (i) the increase in power capacity and energy as from the commissioning of the previously mentioned projects; and (ii) higher profits from the participation in joint businesses on account of the acquisition of CTEB in June 2019.

The operating margin on sales for the fiscal year 2020 increased to 43%, compared to 39% in 2019.

Power generation net financial results represented a loss of US$69 million for the fiscal year ended December 31, 2020, compared to a profit of US$6 million for the fiscal year ended December 31, 2019, mainly due to: (i) lower proceeds from current value measurement (US$50 million), mainly on account of the Agreement for the Regularization and Settlement of Receivables with the WEM executed in 2019; (ii) lower profits from the holding and trading of financial instruments measured at market value (US$28 million); and (iii) higher losses on account of net foreign exchange differences (US$16 million). These effects were partially offset by lower financial interests lost as a consequence of the Agreement for the Regularization and Settlement of Receivables executed in 2019 (US$10 million) and higher profits from the repurchase of financial debt (US$10 million).

The power generation segment recorded an income tax charge of US$33 million for the fiscal year ended December 31, 2020, against a US$80 million charge for the fiscal year ended December 31, 2019, mainly as a result of the decrease in earnings before taxes.

Power generation activities recorded a profit of US$139 million for the fiscal year ended December 31, 2020, of which US$147 million are attributable to the owners of the Company, compared to US$248 million profits for the previous fiscal year, of which US$239 million are attributable to the owners of the Company.

Electricity distribution segment

The results corresponding to the electricity distribution segment have been classified as discontinued operations due to the agreed divestment in Edenor41.

The electricity distribution segment recorded losses from discontinued operations for US$592 million for the fiscal year ended December 31, 2020, of which US$499 million are attributable to the owners of the Company, compared to a profit of US$197 million from discontinued operations recorded in the fiscal year 2019, of which US$98 are attributable to the owners of the Company. This variation is mainly due to the divestment of the stake in Edenor.

41 For further information, see section 7.5 of this Annual Report.

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Oil and gas segment

Oil & gas segment, consolidated Fiscal year Figures in US$ million 2020 2019 ∆% Sales revenue 294 448 -34% Cost of sales (243) (313) -22%

Gross profit 51 135 -62%

Selling expenses (28) (12) +133% Administrative expenses (42) (47) -11% Exploration expenses - (9) -100% Other operating income 9 5 +80% Other operating expenses (17) (11) +55% Results for participation in joint businesses (5) 21 NA Impairment of PPE - (10) -100%

Operating income (loss) (32) 72 NA

Finance income 7 17 -59% Finance costs (100) (94) +6% Other financial results 44 89 -51%

Profit (loss) before tax (81) 84 NA

Income tax 23 (16) NA

Net income (loss) for the period (58) 68 NA

Net sales from the oil and gas segment amounted to US$294 million for the fiscal year ended December 31, 2020, a figure 34% lower than the US$448 million disclosed for the fiscal year 2019. This variation is mainly explained by a drop in average sales prices for gas on account of the lower prices tendered under CAMMESA’s monthly calls, the lower industrial activity and the effect of the devaluation on the price of gas sold to gas distribution companies in addition to lower gas volumes sold to power plants as a result of the termination of the fuel self-procurement. The oil sector was mainly affected by the fall in international prices due to the COVID-19 pandemic. The following table shows the production and sold volume of our oil and gas segment:

Fiscal years ended December 31, 2020 2019 Production Oil (k bbl/day) 4.4 5.0 3 Gas (k m /day) 6,902 7,344 Total (k boe/day) 45.0 48.2

Sales Oil (k bbl/day) 4.6 5.1 Gas (k m3/day) 7,190 8,367 Total (k boe/day) 46.9 54.3

Note: Production in Argentina.

Cost of sales from the oil and gas segment decreased by 22%, to US$243 million, for the fiscal year ended December 31, 2020, against US$313 million for the fiscal year 2019, mainly due to: (i) a decrease in gas purchases for resale (US$41 million); (ii) lower royalties as a result of the decrease in sales prices (US$17 million); and (iii) a decrease in the procurement of services on account of the fall in the activity level (US$6 million).

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Gross income from the oil and gas segment decreased by 62%, recording a profit of US$51 million for the fiscal year ended December 31, 2020, compared to a US$135 million profit for the fiscal year 2019. This variation is mainly explained by a drop in average sales prices, partly offset by (i) lower gas purchases for resale; and (ii) lower royalty charges resulting from the fall in sales.

The gross margin on sales for the current fiscal year was 17%, against 30% in 2019.

The oil and gas segment selling expenses increased to US$28 million for the fiscal year ended December 31, 2020, against US$12 million for the fiscal year ended December 31, 2019, mainly due to the US$13 million impairment loss on receivables with gas distribution companies in 2018 by PEN Executive Order No. 1053/18 (and later overturned in 2020), whereby the Federal Government committed to bear the difference between the price of gas purchased by gas distributors and that recognized in the gas distributors’ final tariffs for the April 2018 – March 2019 period.

Administrative expenses from the oil and gas segment decreased by 11%, to US$42 million, for the fiscal year ended December 31, 2020, against US$47 million for the fiscal year ended December 31, 2019, mainly due to lower labor costs (US$2 million), and lower fees and compensation for services (US$2 million).

No exploration expenses were recorded in the oil and gas segment for the fiscal year ended December 31, 2020, compared to US$9 million losses for the fiscal year ended December 31, 2019, as a result of the retirement of exploratory wells (US$5 million) and geological and geophysical costs (US$4 million).

Other net operating income and expenses from the oil and gas segment recorded a net loss of US$8 million for the fiscal year ended December 31, 2020, compared to a US$6 million loss for the fiscal year ended December 31, 2019. The variation corresponds mainly to higher charges for the provision for contingencies (US$2 million).

The operating income from the oil and gas segment decreased to a US$32 million loss for the fiscal year ended December 31, 2020, a figure 144% lower than the US$72 million profit for the fiscal year ended December 31, 2019.

Net financial results from the oil and gas segment represented a loss of US$49 million for the fiscal year ended December 31, 2020, compared to a US$12 million profit in the fiscal year ended December 31, 2019, mainly due to: (i) lower profits from the holding and trading of financial instruments that are measured at market value (US$34 million); (ii) higher net losses on account of net exchange differences (US$17 million); and (iii) higher losses from net financial interest on new borrowings (US$13 million). These effects were partially offset by profits from the repurchase of financial debt (US$5 million) and higher profits from present value measurements (US$5 million).

The oil and gas segment recorded an income tax profit of US$23 million for the fiscal year ended December 31, 2020, against a US$16 million charge in the fiscal year 2019, mainly as a result of the decrease in earnings before taxes.

The oil and gas segment recorded a loss of US$58 million for the fiscal year ended December 31, 2020, against US$68 million profits for the fiscal year ended December 31, 2019, both of them entirely attributable to the owners of the Company.

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Petrochemicals segment

Petrochemicals segment, consolidated Fiscal year Figures in US$ million 2020 2019 ∆%

Sales revenue 265 321 -17% Cost of sales (233) (298) -22%

Gross profit 32 23 +39%

Selling expenses (8) (9) -11% Administrative expenses (3) (4) -25% Other operating income 2 5 -60% Other operating expenses (6) (9) -33% Impairment of inventories (11) - NA

Operating income (loss) 6 6 -

Finance costs (3) (8) -63% Other financial results 5 18 -72%

Profit (loss) before tax 8 16 -50%

Income tax (2) (5) -60%

Net income (loss) for the period 6 11 -45%

Sales from the petrochemicals segment amounted to US$265 million during the fiscal year ended December 31, 2020, 17% lower than US$321 million for the fiscal year ended December 31, 2019. This variation is mainly accounted for by lower sales prices, in line with the drop in international reference prices.

The following table shows sales volumes in the petrochemicals segment:

Fiscal years ended December 31, Selling volume in k ton 2020 2019 Styrene & polystyrene 94 99 SBR 37 27 Others 205 217 Total 337 343

Cost of sales from the petrochemicals segment decreased by 22%, to US$233 million, for the fiscal year ended December 31, 2020, against US$298 million for the fiscal year ended December 31, 2019, due to lower purchases of raw materials on account of the fall in international reference prices (US$60 million) and lower labor costs charges (US$5 million).

The petrochemicals segment gross profit increased by 39%, recording profits of US$32 million in the fiscal year ended December 31, 2020, against US$23 million earnings for the fiscal year 2019.

In 2020, the gross margin on sales increased to 12%, higher than 7% registered in the fiscal year 2019.

Selling expenses from the petrochemicals segment had no significant variations, amounting to US$8 million in the fiscal year ended December 31, 2020, compared to US$9 million in the fiscal year ended December 31, 2019.

Administrative expenses from the petrochemicals segment experienced no significant variations, amounting to US$3 million for the fiscal year ended December 31, 2020, against US$4 million for the fiscal year ended December 31, 2019.

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Other net operating income and expenses from the petrochemicals segment remained unchanged, recording US$4 million losses for both fiscal years.

Operating income from the petrochemicals segment maintained the US$6 million profit recorded in 2019, mainly due to: (i) a higher gross profit (US$9 million); and (ii) lower selling and administrative expenses (US$2 million). These effects were partially offset by losses from inventory impairment disclosed in 2020 (US$11 million).

The petrochemicals segment recorded a US$2 million profit from net financial results for the fiscal year ended December 31, 2020, against a net profit of US$10 million for the fiscal year ended December 31, 2019. This variation is mainly due to a lower reversal of financial results on account of the provision for contingencies (US$8 million).

The petrochemicals segment recorded an income tax charge of US$2 million for the fiscal year ended December 31, 2020, against a US$5 million charge for the fiscal year 2019, mainly as a result of the decrease in earnings before taxes.

The petrochemicals segment recorded a net profit of US$6 million for the fiscal year ended December 31, 2020, against US$11 million net profits for the fiscal year ended December 31, 2019, both of which are entirely attributable to the owners of the Company.

Holding and others segment

Holding and others segment, consolidated Fiscal year Figures in US$ million 2020 2019 ∆%

Sales revenue 20 20 -

Gross profit 20 20 -

Selling expenses - (2) -100% Administrative expenses (18) (22) -18% Other operating income 10 11 -9% Other operating expenses (7) (12) -42% Results for participation in joint businesses 23 67 -66%

Operating income (loss) 28 62 -55%

Finance income 1 5 -80% Finance costs (3) (4) -25% Other financial results 34 (18) NA

Profit (loss) before tax 60 45 +33%

Income tax (23) 231 NA

Net income for the period 37 276 -87%

Revenues from sales from the holding and others segment experienced no variations, maintaining a US$20 million profit for both fiscal years.

Gross profits from the holding and others segment remained unchanged, maintaining a US$20 million profit for both fiscal years.

Selling expenses from the holding and others segment recorded no charges for the fiscal year ended December 31, 2020, against US$2 million for the fiscal year ended December 31, 2019.

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Administrative expenses decreased by 18%, to US$18 million, during the fiscal year ended December 31, 2020, against US$22 million for the fiscal year 2019. This decrease was accounted for by lower fee charges (US$4 million).

Other net operating income and expenses from the holding and others segment registered a profit of US$3 million for the fiscal year ended December 31, 2020, against US$1 million losses for the fiscal year 2019. The variation corresponds mainly to the reversal of the provision for other receivables (US$3 million).

Operating results from the holding and others segment amounted to US$28 million for the fiscal year ended December 31, 2020, 55% lower than the profit of US$62 million for the fiscal year ended December 31, 2019. This variation is mainly explained by a decrease in the share of profit from associates and joint ventures (US$44 million), mainly in CIESA.

Net financial results from the holding and others activities represented a profit of US$32 million during the fiscal year ended December 31, 2020, against a US$17 million loss for the fiscal year ended December 31, 2019, mainly due to higher income from foreign exchange differences as a result of the change in the net financial position in AR$, which turned negative in 2020 (US$62 million). This effect was partially offset by higher losses on account of the current value measurement of certain tax credits (US$8 million) and lower net financial interest (US$6 million).

Our holding and others segment recorded an income tax charge of US$23 million for the fiscal year ended December 31, 2020, compared to a US$231 million benefit for the fiscal year ended December 31, 2019.

Our holding and others segment registered a total profit of US$37 million for the fiscal year ended December 31, 2020, against a total profit of US$276 million for the fiscal year ended December 31, 2019, in both cases wholly attributable to the Company’s owners.

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14. Dividend policy

To establish a clear, transparent and consistent practice allowing shareholders to make informed decisions, all of this in consonance with the Company Bylaws and the applicable legal and regulatory framework in force, as from 2018 the Company has a Dividend Policy in place outlining the guidelines to be followed to reach a proper balance between distributed amounts and Pampa’s investment plans.

In observance of this policy’s guidelines, every year, the Board assesses the possibility of paying dividends to Pampa’s shareholders on a prudential basis within each fiscal year and thoroughly examines the economic circumstances prevailing at the time.

In 2020, we were not planning to pay cash dividends on our ordinary shares or ADS, thus retaining all available funds and profits to apply them to our business's operation and expansion.

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15. The Board’s proposal

Results for the fiscal year recorded an AR$31,447 million loss and, as of December 31, 2020, retained losses amounted to AR$1,825 million. Consequently, the Board unanimously resolves to propose to the Shareholders’ Meeting that this loss should be absorbed by the Voluntary Reserve, which amounts to AR$60,899 million, with a resulting Voluntary Reserve of AR$59,074 million.

In this sense, the Company is not planning to pay dividends to retain all funds to apply them to and/or to have them available for:

i. The operation and expansion of our business, considering planned ordinary and extraordinary investments, including the expansion works for the closing to CC at CTEB, the investments committed for producing natural gas under Plan Gas.Ar, as well as the continuation of our exploratory campaign in our gas and crude oil blocks targeting Vaca Muerta formation;

ii. Making the most of any investment possibilities which may arise and offer significant opportunities for the growth, expansion and synergy of our businesses;

iii. Given the current financial situation, maintaining a proper liquidity level allowing us to meet, if necessary, our present and future obligations; and

iv. Taking the necessary measures to safeguard the interests and value of the Company shareholders’ investment given the current market volatility scenario.

All of this is in line with the Company’s Dividend Policy.

Finally, we would like to express our gratitude to all the people who shape Pampa Energía into the largest independent energy integrated company in Argentina. All of them, shareholders who rely on us, advisors, customers and suppliers, a warm vote of thanks.

City of Buenos Aires, March 10, 2021.

THE BOARD OF DIRECTORS

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Appendix I: Corporate governance report

The Board has drawn up the following report corresponding to the application of the principles set out in the Code of Corporate Governance for the fiscal year ended December 31, 2020, under the CNV Rules (Sect. 1, Title I, Chapter I of Part IV), by the text restated in 2013, as amended by CNV General Res. No. 797/19.

A. The Board of Directors’ functions: principles i through v - practices 1 through 5

Principles i. The Company must be led by a professional and qualified Board of Directors, which will be in charge of laying the necessary foundations to guarantee the Company’s sustainable success. The Board is the guardian of the Company and the interests of all its shareholders. ii. The Board will be responsible for establishing and promoting the corporate culture and values. In its actions, the Board should ensure compliance with the highest standards of ethics and integrity based on the Company’s best interests. iii. The Board will be responsible for pursuing a strategy inspired by the Company’s vision and mission and aligned with its values and culture. The Board will constructively engage with the management to ensure the proper development, execution, monitoring and modification of the Company’s strategy. iv. The Board will exercise permanent control and supervision over the Company’s management, ensuring that it takes measures towards implementing the strategy and the business plan approved by the Board. v. The Board will have the necessary mechanisms and policies to exercise its and each of its members’ duties efficiently and effectively.

1. The Board of Directors generates an ethical working culture and sets out the Company’s vision, mission and values.

In 2017, the Company’s Board approved its Code of Business Conduct, which sets out Pampa’s vision, mission and values42 and the conduct expected of the Company members, both in their daily activities and in decisions having long-term effects. The Company permanently monitors all its policies and procedures, including the Code of Business Conduct, to keep them updated following the Company's development, its businesses, and the best corporate governance practices.

In 2020, Pampa’s Board of Directors approved an update of the policy against fraud, corruption, and other anomalies, which reaffirms transparency and ethics as essential behaviors to lead the Company’s business and achieve sustainable growth. In this sense, this Policy prohibits fraud, corruption in any form or acts of misconduct within the Company. Moreover, it sets Pampa’s stance on preventing corruption and other acts of misconduct, complementing the principles and values defined in our Code of Conduct. Finally, this policy also includes clauses associated with the obligation to report any actual or suspected violation of laws and/or regulations, as well as the prohibition of retaliation against any employee or third party for filing a report legitimately and in good faith or for refusing to participate in acts of corruption. Based on what has been previously explained, the Company applies the recommended practice.

42 For further information, see Practices 22 and 23 in Appendix I to this Annual Report.

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2. The Board of Directors sets the Company’s general strategy and approves the management's strategic plan. In doing so, the Board takes into consideration environmental, social and corporate governance factors. The Board of Directors oversees its implementation using key performance indicators and considers the Company's best interests and all its shareholders.

Regarding the Board of Directors, the Company applies the practice considering several indexes, factors, risks and projections analyzed by the management. Also, different environmental, social, health and safety aspects are disclosed in the Annual Sustainability Report. In line with Pampa’s strategy, it approves an annual budget that will guide each sector’s actions in the following fiscal year. To such effect, the Executive Financial Department oversees devising and enforcing the strategy and its budget.

3. The Board oversees the management and ensures that it develops, implements and maintains a proper internal control system with clear reporting lines.

The Company uses the Integrated Internal Control Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (‘COSO Report’) to evaluate the effectiveness of internal controls that mitigate the risks threatening the reliability of accounting and financial information. In this sense, the Board approved the Company’s organizational chart establishing the following reporting lines:

• An internal control team responsible for developing controls to be implemented in the different areas of the organization; • An Internal Audit team to evaluate the design and execution of the defined controls; • The appointment of process owners and leaders to account for the effectiveness and update of defined controls; and • Periodic presentations to the Audit Committee, CEO and CFO about improvements and process assessments’ results.

Pampa also has an Audit Committee (consisting exclusively of independent directors), supervising internal control systems.

Additionally, the Company applies the recommended practice since, at least quarterly, a management report is submitted to the Board detailing relevant events and analyzing the main management indicators during the period, allowing the Board to learn about the obtained results and assess the Company’s performance.

Moreover, the Board is in daily contact with the Company’s management. During the Board’s meetings, members of the different departments are invited to raise queries regarding specific topics to be addressed, aiming to guarantee the Board’s monitoring and follow-up of the fiscal year's goals.

Pampa understands that the interaction between the Board of Directors and the management (including the Board’s members exercising executive functions) enriches control over the Company’s administration and the level of understanding of its performance. All the Board of Directors’ members' preparation and professional credentials allow for an open and sincere discussion on management.

Lastly, and as detailed in the different Practices set out in this Appendix I to the Annual Report, Pampa has various initiatives in place to guarantee a proper internal control environment, such as the implementation of an Integrity Program (Practice 23), a Code of Business Conduct (Practices 1, 22 and 23), a Policy against Fraud, Corruption and other Irregularities (Practices 1 and 23), a whistleblower channel for reporting suspected misconduct (Practice 23), several Corporate Governance policies described throughout the Annual Report and this Appendix, and the corporate risk management (Practice 17), among others.

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4. The Board of Directors designs the corporate governance structure and practices, appoints the responsible person for their implementation, monitors their efficiency, and suggests changes if necessary.

In line with best practices, the Board approves the various corporate governance policies applicable throughout the Company. As described in Practice 1 in Appendix I to this Annual Report, it monitors to adjust them to the Company's reality. In this sense, the Board has approved the following policies: Against Fraud, Corruption and other Irregularities, Best Security Trading Practices, Related-Party Transactions, Material Information Disclosure, Compensation, Nomination, Dividends and QHSE. On the other hand, it periodically monitors the Company’s Integrity Program.

Moreover, the Board analyzes whether specific committees are needed for the application of different policies. If it considers that a particular committee is not necessary, the Board delegates its application, monitoring and reviewing the area it feels competent to such effect. In the way detailed, the Company applies the recommended practice.

5. The Board’s members have enough time to exercise their duties professionally and efficiently. The Board and its Committees have clear and formalized rules for their operation and organization, which are disclosed on the Company’s website.

The Board’s members devote the time and efforts necessary to monitor issues submitted for their approval, tracking and monitoring. The Board and its Committees receive prior information on the topics submitted for their consideration to allow for an efficient decision-making process. Moreover, certain Directors serve executive functions in the Company, enabling them to have daily contact in its administration. Regarding the Board’s members professionalism as established in our Nomination Policy, the Company evaluates the nominees before the Shareholders’ Meeting considering, among other aspects, their independence, diversity, age, skills, experience, knowledge of the Company’s business and industry, and possible incompatibilities to guarantee the Board’s diversity.

Moreover, the Board and its Committees (the Audit, Compensation and Nomination Committees) have their respective internal rules governing their functioning, which are available on our website. These rules mainly describe matters concerning the directors’ powers and responsibilities and the holding of meetings. In the way described, the Company applies the recommended practice.

B. Board of Directors’ Chair and Corporate Secretary’s Office: principles vi through viii - practices 6 through 10

Principles vi. The Board’s Chair oversees ensuring actual compliance with the Board’s duties and leading its members. It should generate a positive working dynamic and promote constructive engagement by its members and ensure that the members have the elements and information necessary for decision-making. This also applies to the Chairs of each of the Committees regarding their functions. vii. The Board’s Chair will lead processes and establish structures seeking the Board’s members commitment, objectivity and competence, and the best possible performance of the body as a whole and its evolution according to the Company’s needs. viii. The Board’s Chair will ensure that the entire Board of Directors is engaged in and responsible for the General Manager’s succession.

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6. The Board of Directors’ Chair is responsible for the proper organization of Board meetings, prepares the agenda ensuring collaboration by the other members, and guarantees that they receive the necessary materials with enough time to participate in meetings in an efficient and well-informed manner. Each Committee’s Chair has the same responsibilities for their meetings.

The Company applies the recommended practice as it has a Board of Directors’ corporate secretary pursuant to the Board of Directors’ Rules and Regulations published on our website, schedules and coordinates meetings of the Board and its different Committees within its scope. These meetings are convened pursuant to the provisions of each of the applicable regulations, attaching the necessary documentation so that directors may analyze in advance the topics to be addressed, and always under the appropriate supervision of the Board’s Chair and the respective Committees43.

7. The Board of Directors’ Chair ensures the board's proper internal functioning by implementing formal annual assessment processes.

Since 2008, Pampa’s Board of Directors has implemented a self-assessment questionnaire to explore and assess its performance and management annually. From that date, every director completed this self-assessment on an annual basis and submitted it to the Legal Affairs Executive Department, responsible for analyzing results and, if necessary, suggesting actions aiming to improve this body's functioning. This allows for the evaluation of the Board’s proper internal functioning, thus applying the recommended practice.

8. The Chair generates a positive and constructive work environment for all the Board members and ensures they receive ongoing training to stay permanently updated and enabled to exercise their duties properly.

The Company applies this practice as described below. The Chair leads the Board of Directors’ meetings, ensuring its orderly progress, facilitating its proper development, and coordinating the body's correct functioning through the Board’s corporate secretary. In the Chair’s absence, meetings are presided by the Vice-chair or by any other Board member if both are absent. Meetings are convened within the terms established in such bodies' regulations to guarantee that the Board members have access to the information and enough time to analyze it.

Furthermore, directors serving executive functions in the Company are in permanent contact with its different areas and daily management, allowing them to get a comprehensive vision of the business and stay updated on issues affecting it. Moreover, the Board is in daily contact with the Company’s management; during the Board’s meetings, members of the different departments are invited so that they may raise queries regarding the specific topics to be addressed, aiming to guarantee the Board’s monitoring and follow-up of the goals set for the fiscal year. Regarding independent directors who are members of the Audit Committee, this update is also received within this body's scope.

9. The Corporate Secretary’s Office supports the Board’s Chair in its administration and assists in communications among shareholders, the Board and the management.

Pampa applies the recommended practice as it has a Board of Directors’ corporate secretary within the scope of the Legal Affairs Executive Department, which main duties are as follows: (i) coordinating the agendas for the Board’s meetings jointly with the Board’s Chair and other members, as well as with the management, so that the Board may address the necessary issues for proper corporate development; (ii) coordinating the advance preparation and submittal of the required information to the Board’s meetings;

43 For further information, see Practice 9 in Appendix I to this Annual Report.

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(iii) coordinating the drawing up, circulation and approval of the minutes of meetings; (iv) ensuring communication among the Board’s members, the management and their counselors; (v) filing the documentation of the Board’s meetings; (vi) conducting the above-mentioned functions for the rest of the Company Committees created within the scope of the Board; (vii) coordinating Shareholders’ Meetings, the shareholders’ registry and the participation of directors in the meeting; and (viii) performing all administrative procedures associated with the Board of Directors, the Committees and the Shareholders’ Meeting. Thus, the Board’s Chair may supervise these functions without losing focus on its primary role.

10. The Board’s Chair ensures participation by all its members in developing and approving a succession plan for the Company’s General Manager.

Even though there is no specific plan regulating its succession line, the Company applies this practice and the corresponding principles since the Board of Directors has considered the Company’s organizational structure and appointed both its CEO and CFO. To such effect, it takes into consideration the candidates’ personal and professional qualifications. Moreover, the role of the Board’s Chair is different from that of the CEO. In this sense, the Board’s Chair, jointly with the Human Resources Department, defines, based on the Company’s mission, vision and values, the characteristics required by the CEO's successor, without currently considering it necessary to establish a succession plan.

C. Composition, nomination and succession of the Board of Directors: principles ix through x - practices 11 through 14

Principles ix. The Board of Directors should have adequate independence and diversity levels allowing it to make decisions in the Company’s best interests, avoiding group thinking and the decision-making by dominant individuals or groups. x. The Board of Directors should guarantee that the Company has formal procedures in place for the proposal and nomination of candidates to hold positions within the Board under a succession plan.

11. The Board of Directors has at least two members with an independent status according to the current criteria established by the CNV.

The Company applies the recommended practice since, as of the issuance thereof, the Board of Directors has four independent directors and two independent alternate directors. Moreover, as mentioned in Practice 3 in Appendix I to this Annual Report, the Audit Committee consists exclusively of independent members, exceeding the local regulations’ requirements, which only provide for most members.

12. The Company has a Nomination Committee consisting of at least three members and presided over by an independent director. If chairing the Nomination Committee, the Board’s Chair will refrain from participating in the discussions for their own successor's appointment.

In 2018, Pampa’s Board of Directors approved its Nomination Policy, under which a Nomination Committee was created to assist Pampa’s Board and Shareholders’ Meeting in the process for the nomination and appointment of Board members.

The Nomination Committee reports to Pampa’s Board and comprises three regular members and an equal or smaller number of alternate members. The Chair is independent according to the CNV rules. Therefore, the Company applies the recommended practice.

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13. Through the Nomination Committee, the Board of Directors develops a succession plan for its members, guiding the candidates' pre-screening process for filling vacancies. It considers the non-binding recommendations made by its members, General Manager and shareholders.

The Board approved the Nomination Policy mentioned in the previous practice, which sets the general guidelines regarding independence, incompatibilities and diversity within the Board’s members. The policy created a Committee responsible for describing the identification and evaluation process of nominees and assisting the Board and shareholders so that they may have all the necessary elements to select nominees in the Shareholders’ Meeting, in compliance with the applicable legal provisions and, especially, section 12 of Pampa’s Bylaws. The latter sets out the selection method of directors, who are elected upon candidate lists, thus guaranteeing enhanced transparency in the process.

Moreover, this Committee performs a prior and non-binding assessment of the candidates the Board has deemed fit to cover vacant positions. The Committee considers factors such as independence, diversity, age, skills, experience, among others, to evaluate their suitability for the job based on objective criteria and within an equal opportunity framework. As of this date, the Company’s Board is composed of members having quite diverse professions: degree in economics and business administration, financial advisors, engineers, lawyers, among others. Moreover, there are three female directors on the Board. Finally, all directors receive the same compensation for the duties they perform in the Board. In this sense, diversity and a culture of inclusion are guaranteed, strengthening analysis, discussion and decision-making processes, and paying equality for its members. In the way described, the Company applies the recommended practice.

14. The Board of Directors implements an onboarding program for its newly elected members.

The Company applies the recommended practice since the Board of Directors, through its corporate secretary office, provides the Board’s new members with the Code of Business Conduct, the main policies they should know, and the documentation and information necessary to perform their duties. Moreover, they are included in the Board’s distribution list together with the other board members to have access to the essential documentation before their first participation in a Board meeting. Finally, upon the members’ request, meetings are coordinated with the different departments' leaders to dispel all their doubts and get acquainted with the Company’s business. On the other hand, Pampa’s managers are available to provide answers on and supplement all the information the directors may require, all of this within the framework of permanent interaction set out in Practice 8 in Appendix I to this Annual Report.

D. Compensation: principle xi - practices 15 through 16

Principle xi. The Board should generate incentives through compensation schemes to align the management — led by the General Manager— and the Board itself with the Company’s long-term interests so that all directors may comply with their obligations towards shareholders on an equitable basis.

15. The Company has a Compensation Committee consisting of at least three members, independent or non-executive.

Within the framework of its Compensation Policy, in 2018, the Company’s Board of Directors created a Compensation Committee assisting it and/or the Shareholders’ Meeting regarding remunerations of the Board of Directors and the preparation and monitoring of policies and/or compensation plans and/or benefits for the Board of Directors’ members. Moreover, this policy establishes that the remuneration of the Board’s members will be in line with those received by directors of domestic peers.

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The Compensation Committee reports to Pampa’s Board of Directors. It comprises three regular members and an equal or smaller number of alternate members, who may not serve executive functions at Pampa. Currently, all its members are independent. In the way described, the Company applies the recommended practice.

16. Through the Compensation Committee, the Board of Directors establishes a compensation policy for the General Manager and the Board of Directors’ members.

Pampa applies the practice since it has a Compensation Policy in place, approved in 2018. The Compensation Committee renders its prior opinion so that directors’ compensation is in line with those received by domestic peers' directors and under the limitations set forth by the applicable laws and the CNV rules. Within the approved policy framework, both the Board of Directors and the Shareholders’ Meeting should be informed of the opinion rendered by such committee.

Pampa’s policy on compensation and benefits seeks to ensure external competitiveness and maintain in-house equality. Different surveys are used to adjust our benefit packages and wage structure to those offered in the market.

Regarding the Company’s main officers —including the CEO and the Company’s key staff—, in 2017, the Board approved a variable compensation plan, seeking to align their performance with the Company’s strategic plans and establish a clear and direct link between the creation of value for shareholders and the covered employees’ compensation.

E. Control environment: principles xii through xvi - practices 17 through 21

Principles xii. The Board of Directors should ensure a controlled environment consisting of internal controls developed by the management; the internal audit, risk management and regulatory compliance areas, and external audit establishing the necessary defense lines to guarantee integrity in the Company’s operations and financial reports. xiii. The Board should ensure a comprehensive risk management system allowing the management and the Board to direct the Company towards its strategic goals efficiently. xiv. The Board should ensure a person or department (according to the business's size and complexity, the nature of its operations and the risks it faces) responsible for the Company’s internal audit. This audit, conducted for evaluating and auditing the Company’s internal controls, corporate governance processes, and risk management, should be independent, objective, and have clearly defined reporting lines. xv. The Board’s Audit Committee will be made up of qualified and highly-experienced members and should exercise its functions transparently and independently. xvi. The Board should establish appropriate procedures to ensure the external auditors’ independent and effective performance.

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17. The Board of Directors determines the Company’s appetite for risk and supervises and guarantees the existence of a comprehensive risk management system identifying, assessing and making decisions on the course of action, and monitoring the risks faced by the Company, including, but not limited to, environmental and social risks, as well as those inherent in the business in the short and long term.

Pampa implemented a risk management methodology as a useful working tool to identify the principal risks affecting Pampa. To such effects, Pampa’s Board of Directors approved the ‘Risk Management Handbook,’ which was later updated and restated as the ‘Risk Management Policy.’

The most relevant aspect of this policy is establishing responsibilities, functions, and methods for detecting and assessing risks arising from the Company's activities, which may affect its business or operations.

Based on this policy’s guidelines, the administration department updates Pampa’s risk map following the administered businesses.

This policy sets out responsibilities and methodologies for determining business risks, with the Audit Committee's assistance, which is responsible for supervising its application. The critical business risk factors taken into consideration by Pampa include, among others:

• Strategic risks, including economic, regulatory and political risks; • Corporate governance risks, including the fraud risk; • Process risks, including, but not limited to, those associated with natural disasters, social issues, human resources, IT and operational risks; and • Reporting risks.

The Policy also provides that the administration department will be responsible for: (i) including in its annual programs all the necessary tests for detecting risk indicators and signals; (ii) monitoring the effectiveness of the process as a whole, and safeguarding compliance with and oversight of this policy; (iii) informing the Senior Management and the Audit Committee of the risk management process; and (iv) following up on the implementation of action plans to ensure that corrective measures are taken once a risk is detected. Moreover, the administration department helps the Board keep the risk matrix updated, identify and evaluate risks, follow up with the derived action plans, if needed, and keep the management and the Audit Committee informed of this process.

The Company discloses its financial risk management in its Financial Statements, making a distinction by type of risks and describing the strategies or actions implemented to mitigate them for each of them. Moreover, in preparation for the 20-F Form to be submitted before the SEC, a description is made of the risk factors the Company is exposed to. In the way described, Pampa applies this practice.

18. The Board monitors and reviews the independent internal audit's effectiveness and guarantees the resources for implementing an annual risk-based audit plan and a direct reporting line to the Audit Committee.

Pampa applies the recommended practice since the Internal Audit Department reports functionally to the Audit Committee and administratively to the CEO.

At the beginning of each fiscal year, the Internal Audit area submits its proposed annual audit plan to the Audit Committee for its evaluation and approval, having the resources for its implementation. Quarterly and to monitor its advancement, the Internal Audit Department submits a progress report to the Committee, which contains a summary of the completed tasks and the main findings.

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On an annual basis, the Audit Committee evaluates the independence level and performance of the Internal Audit in issues within its authority and discloses its assessment in its annual report.

As a member of the Institute of Internal Auditors, the Company uses the standards it considers reasonable and/or applicable without expressly adhering to them.

19. The internal auditor or the members of the Internal Audit department are independent and highly qualified.

The Company applies the recommended practice since, as mentioned in Practice 18 in Appendix I to this Annual Report, the Internal Audit Department reports directly to the Audit Committee, which evaluates its independence annually.

The Internal Audit Department comprises highly-skilled staff, not only on account of their education and training but also their experience in the area.

Pampa’s Internal Audit Department has rules regulating its activities aligned with the best practices available and the most relevant standards issued by The Institute of Internal Auditors. This document was last updated in the fiscal year 2020 and approved by the Audit Committee.

20. The Board of Directors has an Audit Committee in place, which acts based on its rules. The Committee is mainly composed of and is chaired by independent directors and does not include the General Manager. Most of its members have professional experience in financial and accounting areas.

Pampa applies the recommended practice since it has an Audit Committee in place that acts based on its regulations, establishing its functions and main operating rules. As mentioned in Practice 3 in Appendix I to this Annual Report, the Audit Committee consists exclusively of independent members, thus exceeding the local regulations’ requirements, providing that only most members should have such status. Its duties include, among others: (i) expressing its opinion on any proposal by the Board to designate external auditors and ensuring their independence, reviewing the plans submitted by external and internal auditors, assessing their performance, and issuing an opinion on the presentation and disclosure of the annual FS; (ii) supervising the operation of the internal control and risk management system; (iii) rendering its opinion on related-party transactions for a relevant amount under the legal regulations in force, disclosing such opinion to the market; (iv) expressing its opinion on the compensation proposals submitted by the Board; (v) rendering its opinion on the conditions for the issuance of shares or convertible securities in the case of a capital increase; and (vi) checking compliance with the applicable standards of conduct.

The Board of Directors seeks to ensure that most Audit Committee members have professional expertise in financial and/or accounting areas. This is one of the issues to assess when nominating new members to the Board of Directors and should be considered by the Nomination Committee on issuing its prior opinion. Moreover, the Audit Committee should appoint one of its members as a financial expert as required by Title 407 of the Sarbanes-Oxley Law.

21. With the Audit Committee’s view, the Board of Directors approves a policy for selecting and monitoring external auditors establishing the indicators to consider when submitting to the Shareholders’ Meeting a recommendation on the re-election or substitution of the external auditor.

Upon the presentation and publication of Pampa’s annual FS, the Audit Committee conducts an annual assessment of the external auditors’ independence, planning and performance, considering different objective indicators, and issues an informed opinion according to Sect. 18, Title V, Chapter III of CNV Rules

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(restated in 2013) and the Audit Committee’s rules. Besides, throughout the fiscal year, it holds meetings with the external auditors, at least quarterly, to review the Company’s interim FS and when deemed necessary.

Moreover, Pampa has an external auditor services’ pre-approval policy, which standardizes an internal process allowing the Audit Committee to grant prior approval to hire an external auditor to render any authorized service to the Company or any of its subsidiaries.

In the way described, the Company applies this practice.

F. Ethics, integrity and compliance: principles xvii through xviii - practices 22 through 24

Principles xvii. The Board should design and establish appropriate structures and practices to promote a culture of ethics, integrity and regulatory compliance which prevents, spots and addresses serious personal or corporate misconduct. xviii. The Board will ensure the establishment of formal mechanisms to prevent or, failing that, deal with conflicts of interest that may arise in the Company’s administration and management. It should have standard procedures in place seeking to ensure that related-party transactions are conducted in pursuance of the best interests of the Company, as well as fair treatment to all its shareholders.

22. The Board of Directors approves a Code of Ethics and Conduct reflecting ethical and integrity values and principles and the Company’s culture. The Code of Ethics and Conduct is informed to and binding on all the Company’s directors, managers and employees.

Pampa has a Code of Business Conduct in place, which lays down the ethical principles for the relationships’ foundation between Pampa, its employees, and other stakeholders (customers, suppliers, government, shareholders, community, etc.). It provides guidelines and supplying instruments guaranteeing the transparency of affairs and proper Company management.

The Code of Business Conduct is publicly available at the Company’s website and should be expressly accepted by all the Company employees, as well as by the members of Pampa’s Board and Supervisory Committee.

Therefore, the Company applies this recommended practice.

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23. The Board establishes and periodically reviews an Ethics and Integrity Program based on risks, dimension and financial capacity. The plan is visibly and unequivocally supported by the management with the appointment of an in- house officer responsible for the development, coordination, supervision and periodical assessment of the program’s effectiveness. The program provides for (i) periodic training for directors, managers and employees on ethics, integrity and compliance issues; (ii) internal channels for reporting anomalies, which are open to third parties and adequately communicated; (iii) a policy against retaliation protecting individuals who report a complaint; and an internal investigation system which respects the rights of the individuals under investigation and imposes effective sanctions for violations to the Code of Ethics and Conduct; (iv) policies on integrity in bidding processes; (v) mechanisms for the Program’s periodic risk analysis, monitoring and assessment; and (vi) procedures ensuring the integrity and background of third parties and business associates (including the due diligence for the verification of irregularities, illegal acts or the existence of vulnerabilities in corporate transformation and acquisition processes), including suppliers, distributors, service providers, agents and brokers.

Pampa applies the practice as it has an Integrity Program bringing together and unifying a set of internal proceedings, mechanisms and actions for integrity, supervision and control aimed at preventing, detecting and correcting irregularities and illegal acts. The Program’s design comprises both the mandatory and optional requirements set out in Sect. 22 and 23 of Law No. 27,401 and other applicable regulations. Regarding the mandatory requirements, it is worth highlighting that they had already been implemented at Pampa before the law’s effective date. The Board has defined that Pampa’s Internal Audit Department will be the body internally responsible for the program, including its development, coordination and supervision. Pampa also offers the Ethics Hotline, an exclusive channel to report any suspected misconduct or breach of the Code of Business Conduct on a strictly confidential basis. This tool is available through different channels (toll-free telephone number, e-mail or website) and is managed by a third-party provider to ensure higher transparency and information integrity. Additionally, the Company has policies and procedures to prescribe how received complaints should be analyzed and dealt with.

This channel's responsibility rests with the Audit Committee, which delegates its administration to the Internal Audit Department. At least quarterly, the Internal Audit Department reports the received cases and the adopted decisions to the Audit Committee. The Committee supervises the channel’s operations and the resolution of complaints in issues within its authority.

As a result of the periodic review and update of the Integrity Program, in 2020, Pampa’s Board approved a new Policy against Fraud, Corruption and other Irregularities. Said policy reaffirms transparency and ethics as necessary behaviors to lead the Company’s business and to achieve its sustainable growth, complementing, as described above, the provisions of the Company’s Code of Conduct. Finally, this policy also includes clauses associated with the obligation to report any actual or suspected violation of laws and/or regulations, as well as the prohibition of retaliation against any employee or third party for filing a report legitimately and in good faith or for refusing to participate in acts of corruption.

24. The Board ensures the existence of formal mechanisms to prevent and address conflicts of interest. In related-party transactions, the Board approves a policy that establishes each corporate body's role and defines how to identify, manage, and disclose transactions that are detrimental to the company or only to certain investors.

The Code of Business Conduct’s guidelines provides that individuals within its scope should avoid any situation resulting in a conflict between their interests and the Company’s, thus preventing their personal or family interests from exerting any influence on their decisions and/or professional performance.

Pampa Energía ● 2020 Annual Report ● 129

Pampa has a Policy on Related-Party Transactions Approval in place whereby all transactions (i) deemed high-value transactions, that is, with a value equal to or higher than 1% of Pampa’s Shareholders Equity; (ii) made with individuals and/or legal entities which, under Sect. 72 of the CMA, are considered related parties, should be subject to a specific prior authorization and control procedure carried out under the coordination of Pampa’s Legal Affairs Executive Department, with the participation of both the Board and the Audit Committee (as applicable). This Policy strictly follows the guidelines set out in the laws and regulations in force in this matter (Sect. 72 of the CMA).

Additionally, Pampa presents itemized information on any contract executed with related parties in its annual and interim FS. In compliance with the regulations in force, all high-value transactions conducted by Pampa with related parties are submitted to the Audit Committee's review and promptly reported under the caption ‘relevant event’ to both the CNV and the markets where the Company is listed.

Finally, the Audit Committee is responsible for providing the market with complete information on transactions where there may be a conflict of interest with members of corporate bodies or controlling shareholders and rendering a well-founded opinion on related-party transactions in the cases provided by law. The Audit Committee is also responsible for disclosing them in compliance with law whenever there is or maybe an alleged conflict of interest within Pampa. Moreover, every time the Board has to address an issue where a director may have a personal interest, that director is prevented from voting. In the way described, the Company applies this practice.

G. Shareholder and stakeholder participation: principles xix through xxii - practices 25 through 29

Principles xix. The Company should give equal treatment to all its shareholders. It should guarantee equal access to non-confidential information relevant to decision-making at the Company’s Shareholders’ Meetings. xx. The Company should promote active involvement by all shareholders based on appropriate information, especially regarding the Board's composition. xxi. The Company should have a transparent Dividend Distribution Policy aligned with the strategy. xxii. The Company should take into consideration the interests of its stakeholders.

25. The Company’s website discloses financial and non-financial information, providing timely and equal access to all investors. The website has a specialized area to address investors’ inquiries.

Pampa applies the recommended practice as it has a website with a dedicated ‘Investors’ section for its shareholders and the general investment community, which includes all types of relevant information (FS, filings before regulatory authorities, relevant events, corporate governance policies, etc.). The Investor Relations and Sustainability office permanently update the site.

In turn, this particular section on the website operates as a channel for inquiries, which are received and managed by the specialized area in charge of shareholder and investor relations.

Additionally, the Company has a presence in social media (Facebook, Instagram, Twitter and LinkedIn) through which it not only publishes relevant information but also interacts with its followers.

Pampa Energía ● 2020 Annual Report ● 130

26. The Board should ensure a process to identify and classify its stakeholders and a communication channel for them.

At Pampa Energía, we believe that proximity, transparency and cooperation are fundamental pillars to build and strengthen long-term relationships with our internal or external stakeholders. Following the guidelines offered by AA1000SES - Accountability and the SASB materiality assessment for the industry where our Company operates, we have identified our main stakeholders based on accountability, influence, proximity, dependence and representation. In the Sustainability Report, the Company details its main stakeholders. The Report is issued on an annual basis and published on our website, as well as the communication channels where the dialog is maintained:

 Employees: information-sharing meetings with the founding shareholders, internal website (intranet, Nexo), Human Resources channel, ethics hotline, Sustainability Report, Kaizala internal messaging network and social media.  Government: accountability under regulations in force, Annual Report and Financial Statements, meetings with government officers, ethics hotline, Sustainability Report and social media.  Community: Social Responsibility Committee, ethics hotline, Sustainability Report, meetings on social investment programs and social media.  Investors: Annual Report and Financial Statements, 20-F Form, reports requested by the CNV and the SEC, quarterly earnings releases, earnings conference calls, ethics hotline, Sustainability Report, investor website - ri.pampaenergia.com, and social media.  Suppliers: meetings with suppliers, ethics hotline, Sustainability Report, SAP ARIBA platform and social media.  Customers: institutional website - www.pampaenergia.com, customer service channel, ethics hotline, Sustainability Report and social media.  Corporate Associations: ethics hotline, industry meetings and social media.  Media: institutional website - www.pampaenergia.com, Annual Report and Financial Statements, ethics hotline and social media.  Unions: meetings with union representatives, ethics hotline, Sustainability Report and social media.

However, as our operations have a broad geographical scope and a high complexity, decentralization is also a characteristic of our process to identify and dialog with key players. In this sense, to attain the maximum positive social impact in local communities, in 2019, the Production and Engineering Department started a local assessment process in each of the generation assets.

Following the Strategic Map and Balanced Scorecard methodology, a process was developed to define the priority stakeholders for operations; map the relevant topics; set objectives for relationship building and intervention priorities, and implement concrete action plans on stakeholders. The project covered all the generation business assets located in Buenos Aires, Bahía Blanca, Mendoza, Neuquén and Salta. Currently, 84 plant managers and leaders of the main areas of each asset participate in this initiative. In this way, we strengthen our sustainable management model by involving the assets’ employees making decisions at the local level, deriving higher efficiency in implementing actions to have a higher impact on the business and the community. In 2021, the Company plans to expand the project to other business segments and consult stakeholders about developing a materiality matrix.

In the way described, the Company applies the practice.

Pampa Energía ● 2020 Annual Report ● 131

27. Before a Shareholders’ Meeting, the Board submits —through a formal communication channel— a ‘provisional information package’ allowing shareholders to make non-binding comments and share dissenting opinions on the Board's recommendations. The latter will expressly give its opinion on the received comments as it deems necessary.

When calling for a meeting, the Board formulates proposals regarding each item in the agenda, except that there may be a possible conflict of interest, where it will refrain from submitting a proposal. Any information supporting the topics to be addressed in the Shareholders’ Meetings is placed at the disposal of all shareholders well in advance to perform their analysis and vote accordingly.

Both the shareholders and the general investment community may make the inquiries they deem necessary through the formal channel mentioned in Practice 25 in Appendix I to this Annual Report. This allows shareholders to attend the Meeting with information on the topics discussed, which is precise and received well in advance.

It is worth highlighting that Pampa provides the necessary means to keep a permanent and fluid dialog with its shareholders, and not only at the time of calling for a Shareholders’ Meeting. In this sense, shareholders have at their disposal: (i) the communication channel described in Practice 25 in Appendix I to this Annual Report; (ii) the investor relations office, which receives and manages shareholders’ concerns; (iii) throughout the fiscal year, conference calls are organized at the end of each quarter to discuss the quarterly results and allow for interaction with the management; and (iv) the attendance of management and Board members to the Shareholders’ Meeting, with the possibility to raise questions not only on each item of the agenda but also on the Company’s management once the treatment of all formal items has concluded. In the way described, the Company applies the practice.

28. The Company’s Bylaws contemplate that shareholders may receive the information packages for Shareholders’ Meetings through electronic means and participate in Shareholders’ Meetings virtually, allowing for the simultaneous transmission of sound, images and words, ensuring compliance with the principle of equal treatment to participants.

Although these principles are not contained in the Company’s Bylaws, this does not prevent their application by Pampa since the proposals mentioned in the previous item are placed at the disposal of shareholders and investors not only through the communication channels set by the regulatory bodies (ByMA, CNV, SEC) but also on the Company’s website, ri.pampaenergia.com. Moreover, as previously mentioned, shareholders have the means to keep a permanent and fluid dialog with the Company throughout the year.

Besides, on its Shareholders’ Meeting held on February 17, 2021, the Company approved an amendment to Section 30 of its Bylaws to allow for the holding of Shareholders’ Meetings virtually with the simultaneous transmission of sound, images and words. This amendment was introduced following the positive experience with remote Shareholders’ Meetings held in 2020 during CNV General Res No. 830/20.

29. The Dividend Distribution Policy is aligned with the strategy and establishes the criteria, frequency and conditions under which dividends will be distributed.

The Company applies the recommended practice. In 2018, Pampa’s Board approved its Dividend Policy, which sets out the guidelines for a proper balance between distributed amounts and Pampa’s investment plans. Said policy aimed to establish a clear, transparent and consistent practice, allowing shareholders to make informed decisions, in line with the Company’s Bylaws and the applicable legal and regulatory framework in force. Based on this policy, the Board of Directors assesses the possibility to pay dividends to Pampa’s shareholders on a prudential basis within each fiscal year, thoroughly evaluating the economic circumstances prevailing at the time.

Pampa Energía ● 2020 Annual Report ● 132

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7 B24note

CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2020 AND 2019 FOR THE YEARS ENDED DECEMBER 31, 2020, 2019 AND 2018

(In millions of Pesos (“$”)) Free translation from the original prepared in Spanish for publication in Argentina

GLOSSARY OF TERMS

The following are not technical definitions, but they are helpful for the reader’s understanding of some terms used in the notes to the Consolidated Financial Statements of the Company.

Terms Definitions

ADR American Depositary Receipt

AFIP Federal Administration of Public Revenue

BCBA Buenos Aires Stock Exchange

BNA Banco de la Nación Argentina

BO Official Gazette

ByMA Argentine stock exchange and markets

CABA Ciudad Autónoma de Buenos Aires

CAMMESA Compañía Administradora del Mercado Eléctrico Mayorista S.A.

CAU Charge of Access and Use

CC Combined Cycle

CGU Cash-Generating Unit

CIESA Compañía de Inversiones de Energía S.A.

Citelec Compañía Inversora en Transmisión Eléctrica Citelec S.A.

CNV Comisión Nacional de Valores

Corod Corod Producción S.A.

CPB Central Térmica Piedra Buena S.A.

CSJN Corte Suprema de Justicia de la Nación

CTB CT Barragán S.A.

CTEB Central Térmica Ensenada Barragán

CTG Central Térmica Güemes S.A. CTGEBA Central Térmica Genelba

CTLL Central Térmica Loma La Lata S.A.

CTP Central Térmica Piquirenda

EBISA Emprendimientos Energéticos Binacionales S.A.

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GLOSSARY OF TERMS: (Continuation)

Terms Definitions

EcuadorTLC EcuadorTLC S.A.

Edenor Empresa Distribuidora y Comercializadora Norte S.A.

EGSSA EMDERSA Generación Salta S.A.

ENARGAS National Regulator of Gas

ENARSA / IEASA Integración Energética Argentina S.A. (ex Energía Argentina S.A.)

ENRE National Regulatory Authority of Electricity FACPCE Federación Argentina de Consejos Profesionales de Ciencias Económicas

Greenwind Greenwind S.A.

GUMA, GUME, GUDI Gran Usuario Mayor, Gran Usuario Menor, Gran Usuario del Distribuidor

GyP Gas y Petróleo del Neuquén S.A.P.E.M.

HI Hydroelectric

HIDISA Hidroeléctrica Diamante S.A.

HINISA Hidroeléctrica Los Nihuiles S.A.

IAS International Accounting Standards

IASB International Accounting Standards Board

IFRIC International Financial Reporting Interpretations Committee

IFRS International Financial Reporting Standards

IGJ Inspección General de Justicia - General Inspection of Justice INDEC Instituto Nacional de Estadística y Censos

IPIM Índice de Precios Internos al por Mayor

LGS Commercial Companies General

LNG Liquefied Natural Gas

MAT WEM’s Forward Market MATER Mercado a Término de Energía Renovable

MEyM Ministry of Energy and Mining

MINEM Ministerio de Energía y Minas MLC Foreign Exchange Market

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GLOSSARY OF TERMS: (Continuation)

Terms Definitions

NYSE New York Stock Exchange

OCP Oleoducto de Crudos Pesados

Oldelval Oleoductos del Valle S.A.

PACOSA Pampa Comercializadora S.A.

Pampa FPK Pampa FPK S.A.U.

Pampa Holding Pampa Holding MMM S.A.U.

Pampa QRP Pampa QRP S.A.U.

Pampa Ventures Pampa DM Ventures S.A.U.

PBA Buenos Aires province

PEB Pampa Energía Bolivia S.A. (formerly “PBI” - Petrobras Bolivia Internacional S.A.)

PELSA Petrolera Entre Lomas S.A.

PEN Federal Executive Power

PEPASA Petrolera Pampa S.A.

PEPE II Parque Eólico Pampa Energía II

PEPE III Parque Eólico Pampa Energía III

Petrobras Petrobras Argentina S.A.

PHA Petrobras Hispano Argentina S.A.

PISA Pampa Inversiones S.A. PIST Transportation System Entry Point

PP Pampa Participaciones S.A.U.

Refinor Refinería del Norte S.A.

RT Technical Resolution

RTI Tariff Structure Review

SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A.

SADI Sistema Argentino de Interconexión

SE Secretary of Energy

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GLOSSARY OF TERMS: (Continuation)

Terms Definitions

SEC Security and Exchange Commission

SEE Secretary of Electrical Energy

SGE Secretary of Government of Energy

SRRyME Secretary of Renewable Resources and Electricity Market

SSERYEE Undersecretary of Renewable Energy and Energy Efficiency

SSHC Undersecretary of Hydrocarbons and Fuels

TG Gas Turbine

TGS Transportadora de Gas del Sur S.A.

The Company / Pampa Pampa Energía S.A.

The Group Pampa Energía S.A. and its subsidiaries

TJSM Termoeléctrica José de San Martín S.A.

TMB Termoeléctrica Manuel Belgrano S.A.

Transba Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Provincia de Buenos Aires Transba S.A.

Transelec Transelec Argentina S.A.

Transener Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A.

TV Vapor Turbine

US$ U.S. dollar

UTE Senillosa Petrolera Pampa S.A. – Rovella Carranza – Gas y Petróleo del Neuquén, Unión Transitoria de Empresas Senillosa

VAT Value Added tax

WACC Weighted Average Cost of Capital

WEM Wholesale Electricity Market

YPF YPF S.A.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the years ended December 31, 2020, 2019 and 2018 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Note 12.31.2020 12.31.2019 12.31.2018

Revenue 8 76,639 64,699 54,126 Cost of sales 9 (46,850) (39,169) (31,323) Gross profit 29,789 25,530 22,803

Selling expenses 10.1 (2,680) (1,294) (1,418) Administrative expenses 10.2 (6,588) (5,342) (4,879) Exploration expenses 10.3 (29) (463) (45) Other operating income 10.4 4,056 3,749 8,477 Other operating expenses 10.4 (2,550) (2,060) (5,878) Impairment of property, plant and equipment, intangible 1.2 y 11.1 (10,351) (3,713) (1,195) assets and inventories Share of profit from associates and joint ventures 5.4.2 6,551 5,854 4,463 Income from the sale of associates 5.2.1 - - 1,052 Operating income 18,198 22,261 23,380

Gain on monetary position, net 10.5 - - 15,193 Finance income 10.5 686 1,027 1,122 Finance costs 10.5 (12,528) (9,005) (6,967) Other financial results 10.5 6,131 8,680 (30,486) Financial results, net (5,711) 702 (21,138) Profit before income tax 12,487 22,963 2,242 Income tax 10.6 (3,122) 4,531 1,207 Profit of the year from continuing operations 9,365 27,494 3,449 (Loss) Profit of the year from discontinued operations 5.3 (49,333) 11,813 7,359 (Loss) Profit of the year (39,968) 39,307 10,808

Other comprehensive income (loss) Items that will not be reclassified to profit or loss Results related to defined benefit plans 117 110 (154) Income tax (29) (28) 39 Share of loss from joint ventures - - (19) Exchange differences on translation 33,461 27,672 - Items that may be reclassified to profit or loss Exchange differences on translation (719) (498) 19 Other comprehensive income (loss) of the year from 32,830 27,256 (115) continuing operations Other comprehensive income of the year from 5.3 20,866 18,046 308 discontinued operations Other comprehensive income (loss) of the year 53,696 45,302 193 Total comprehensive income (loss) of the year 13,728 84,609 11,001

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continuation) For the years ended December 31, 2020, 2019 and 2018 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Note 12.31.2020 12.31.2019 12.31.2018 Total (loss) income of the year attributable to: Owners of the company (31,447) 33,012 8,435 Non - controlling interest (8,521) 6,295 2,373 (39,968) 39,307 10,808

Total (loss) income of the year attributable to owners of the Company: Continuing operations 9,952 27,057 3,234 Discontinued operations (41,399) 5,955 5,201 (31,447) 33,012 8,435

Total comprehensive income of the year attributable to: Owners of the Company 11,937 69,616 8,474 Non - controlling interest 1,791 14,993 2,527 13,728 84,609 11,001

Total comprehensive income (loss) of the year attributable to owners of the Company: Continuing operations 42,118 53,515 3,027 Discontinued operations (30,181) 16,101 5,447 11,937 69,616 8,474

(Loss) Earnings per share attributable to the equity holders of the Company during the year Basic and diluted earnings per share from continuing 13.2 6.33 15.04 1.65 Basic and diluted earnings (loss) per share from 13.2 (26.34) 3.31 2.65 discontinued operations Total basic and diluted earnings (loss) per share 13.2 (20.00) 18.35 4.31

The accompanying notes are an integral part of these Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of December 31, 2020 and 2019 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Note 12.31.2020 12.31.2019 ASSETS NON-CURRENT ASSETS Property, plant and equipment 11.1 135,445 210,056 Intangible assets 11.2 3,455 9,068 Right-of-use assets 18.1.1 867 930 Deferred tax assets 11.3 9,082 1,702 Investments in joint ventures and associates 5.3.2 46,229 30,638 Financial assets at amortized cost 12.1 8,428 1,048 Financial assets at fair value through profit and loss 12.2 942 671 Other assets 57 45 Trade and other receivables 12.3 3,631 4,711 Total non-current assets 208,136 258,869

CURRENT ASSETS Inventories 11.4 9,766 9,175 Financial assets at amortized cost 12.1 2,062 3,224 Financial assets at fair value through profit and loss 12.2 27,382 21,867 Derivative financial instruments 1 214 Trade and other receivables 12.3 28,678 33,583 Cash and cash equivalents 12.4 11,900 13,496 Total current assets 79,789 81,559 Assets classified as held for sale 5.3 123,603 - Total assets 411,528 340,428

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continuation) As of December 31, 2020 and 2019 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Note 12.31.2020 12.31.2019 SHAREHOLDERS´ EQUITY Share capital 13 1,451 1,677 Share capital adjustment 7,605 9,826 Share premium 19,950 19,570 Treasury shares 4 71 Treasury shares adjustment 24 27 Treasury shares cost (235) (2,527) Legal reserve 3,703 1,753 Voluntary reserve 60,899 17,727 Other reserves (759) (771) Retained earnings (1,825) 51,844 Other comprehensive income 29,430 15,668 Equity attributable to owners of the company 120,247 114,865 Non-controlling interest 28,631 29,397 Total equity 148,878 144,262

LIABILITIES NON-CURRENT LIABILITIES Investments in joint ventures and associates 5.3.2 161 265 Provisions 11.5 9,326 8,703 Income tax 11.6 11,004 590 Deferred revenue - 270 Taxes payables 11.7 128 263 Deferred tax liabilities 11.3 93 22,068 Defined benefit plans 11.8 1,460 1,606 Salaries and social security payable 11.9 - 241 Borrowings 12.5 115,428 105,629 Trade and other payables 12.6 1,418 5,419 Total non-current liabilities 139,018 145,054

CURRENT LIABILITIES Provisions 11.5 1,379 1,206 Deferred revenue - 5 Income tax 11.6 897 3,154 Taxes payables 11.7 3,030 4,316 Defined benefit plans 11.8 298 230 Salaries and social security payable 11.9 1,935 3,834 Derivative financial instruments 40 204 Borrowings 12.5 20,377 10,974 Trade and other payables 12.6 9,778 27,189 Total current liabilities 37,734 51,112 Liabilities associated to assets classified as held for sale 5.3 85,898 - Total liabilities 262,650 196,166 Total liabilities and equity 411,528 340,428

The accompanying notes are an integral part of these Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the years ended December 31, 2020, 2019 and 2018 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Attributable to owners Equity holders of the company Retained earnings Retained Other Non- Share capital Treasury Treasury shares Treasury Voluntary Other reserves earnings Share capital Share premium Legal reserve comprehensive Subtotal controlling Total equity adjustment shares adjustment shares cost reserve (1) (Accumulated income / (loss) interest losses) Balance as of December 31, 2017 2,080 10,906 18,496 2 13 (126) 733 12,554 367 (353) 11,806 56,478 17,792 74,270 Change in accounting policies (1) ------(55) (55) (25) (80) Balance as of Juanary 1, 2018 2,080 10,906 18,496 2 13 (126) 733 12,554 367 (353) 11,751 56,423 17,767 74,190 Constitution of legal and voluntary reserve ------171 4,822 - - (4,993) - - - Capital reduction - - - (183) (958) 11,162 - (10,021) ------Stock compensation plans - - 3 - (1) 9 - - 14 - - 25 - 25 Acquisition of own shares (206) (1,080) - 206 1,080 (12,535) - - (864) - - (13,399) (534) (13,933) Dividends provided for pay ------(82) (82) Sale of interest in subsidiaries ------(3,518) (3,518) Profit for the year ------8,435 8,435 2,373 10,808 Other comprehensive income for the year ------39 - 39 154 193 Balance as of December 31, 2018 1,874 9,826 18,499 25 134 (1,490) 904 7,355 (483) (314) 15,193 51,523 16,160 67,683

Constitution of legal and voluntary reserve ------849 16,134 - - (16,983) - - - Capital reduction - - - (152) (105) 6,019 - (5,762) ------Stock compensation plans 1 - 2 - (2) 14 - - 23 - - 38 - 38 Acquisition of own shares (198) - 1,069 198 - (7,070) - - (311) - - (6,312) (1,699) (8,011) Dividends provided for pay ------(57) (57) Profit for the year ------33,012 33,012 6,295 39,307 Other comprehensive income for the year ------15,982 20,622 36,604 8,698 45,302 Balance as of December 31, 2019 1,677 9,826 19,570 71 27 (2,527) 1,753 17,727 (771) 15,668 51,844 114,865 29,397 144,262

(1) Adjustment to the opening balance in equity as a result of the application of IFRS 9, as amended, as of January 1, 2018. See Note 6.2.1.2

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Continuation) For the years ended December 31, 2020, 2019 and 2018 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Equity holders of the company Retained earnings

Retained Other Non- Share capital Treasury Treasury shares Treasury Voluntary Other reserves earnings Share capital Share premium Legal reserve comprehensive Subtotal controlling Total equity adjustment shares adjustment shares cost reserve (1) (Accumulated income / (loss) interest losses) Balance as of December 31, 2019 1,677 9,826 19,570 71 27 (2,527) 1,753 17,727 (771) 15,668 51,844 114,865 29,397 144,262 Constitution of legal and voluntary reserve ------1,950 49,894 - - (51,844) - - - Capital reduction - - - (293) (2,224) 9,239 - (6,722) - - - - (1,546) (1,546) Stock compensation plans 1 3 (12) (1) (3) 45 - - 12 - - 45 - 45 Acquisition of own shares (227) (2,224) 392 227 2,224 (6,992) - - - - - (6,600) (492) (7,092) Dividends provided for pay ------(519) (519) Loss for the year ------(31,447) (31,447) (8,521) (39,968) Other comprehensive income for the year ------13,762 29,622 43,384 10,312 53,696 Balance as of December 31, 2020 1,451 7,605 19,950 4 24 (235) 3,703 60,899 (759) 29,430 (1,825) 120,247 28,631 148,878

The accompanying notes are an integral part of these Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF CASH FLOWS For the years ended December 31, 2020, 2019 and 2018 (See Note 5.3) (In millions of Argentine Pesos (“$”))

Note 12.31.2020 12.31.2019 12.31.2018 Cash flows from operating activities: Profit of the year from continuing operations 9,365 27,494 3,449 Adjustments to reconcile net profit to cash flows 14.1 27,230 667 19,473 generated by operating activities: Changes in operating assets and liabilities 14.2 (2,679) (606) (8,454) Net cash generated by operating activities from 5.3 17,716 10,156 8,462 discontinued operations 51,632 37,711 22,930 Net cash generated by operating activities

Cash flows from investing activities: Payment for property, plant and equipment (8,402) (19,443) (17,139) Payment for acquisitions of intangible assets - - (6) (Payment) collection for public securities and shares, net (4,393) 9,691 1,168 Payments for capital integration in companies - (4,794) - Payments for capital integration in associates (190) - - Proceeds from sale of intangible assets - - 87 Collections for sales of shares in companies and 38 2,177 17,240 property, plant and equipment Dividends received 195 3,798 735 Colletion (pay) from loans, net 437 170 (141) Early collection for sale of subsidiary 424 - - Recovery (suscription) of investment funds, net 3,579 (3,635) 7,124 Net cash used in investing activities from discontinued (7,219) (5,156) (8,328) operations Net cash (used in) generated by investing activities (15,531) (17,192) 740

Cash flows from financing activities: Proceeds from borrowings 25,253 25,808 9,250 Payment of borrowings (20,514) (25,276) (9,057) Payment of borrowings interests (12,435) (5,516) (4,351) Payment for acquisition of own shares (7,092) (7,412) (12,864) Payments of dividends from subsidiaries to third parties (586) (57) (82) Repurchase and redemption of corporate bonds (6,747) (3,576) (73) Payments of leases (149) (72) - Payments for capital reduction (1,575) - - Net cash used in financing activities from discontinued 5.3 (6,152) (5,071) (532) operations Net cash used in financing activities (29,997) (21,172) (17,709)

6,104 (653) 5,961 Increase (Decrease) in cash and cash equivalents

Cash and cash equivalents at the begining of the year 12.4 13,496 9,097 1,179 Cash and cash equivalents at the begining of the year - - 238 reclasified to assets classified as held for sale Exchange difference generated by cash and cash (3,338) 5,067 2,011 equivalents Loss on net monetary position generated by cash and - (15) (292) cash equivalents Cash and cash equivalents at the end of the year (4,362) - - reclasified to assets classified as held for sale Increase (decrease) in cash and cash equivalents 6,104 (653) 5,961 Cash and cash equivalents at the end of the year 12.4 11,900 13,496 9,097

The accompanying notes are an integral part of these Consolidated Financial Statements.

11 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (In millions of Argentine Pesos (“$”))

NOTE 1: GENERAL INFORMATION AND GROUP STRUCTURE

1.1 General information of the Company

The Company is a fully integrated power company in Argentina, which directly and through its subsidiaries, participates in the electric energy and gas value chains.

In the generation segment, the Company, directly and through its subsidiaries and joint ventures, has a 4,955 MW installed capacity, which represents approximately 12% of Argentina’s installed capacity, and is the second largest independent generator in the country. Additionally, the Company is currently undergoing a process to expand its capacity by 295 MW.

In the distribution segment, the Company has a controlling interest in Edenor, the largest electricity distributor in Argentina, which has more than 3.2 million customers and a concession area covering the Northern part of the City of Buenos Aires and Northwestern Greater Buenos Aires. On account of the execution of the contract for the sale of the 51% interest in Edenor (see detail in Note 5.3.1), all Edenor’s assets and liabilities have been classified as held for sale as of December 31, 2020, and the associated results and cash flows, for each of the years ended December 31, 2020, 2019 and 2018, are disclosed under discontinued operations.

In the oil and gas segment, the Company develops an important activity in gas and oil exploration and production, with operations in 13 production areas and 5 exploratory areas reaching a production level of 6.9 million m3/day of natural gas and 4,400 barrels/day of oil equivalent for oil in Argentina, as of December 31, 2020. Its main natural gas production blocks are located in the Provinces of Neuquén and Río Negro. The results and cash flows for 2018 associated with the divestment mentioned in Note 5.3.2 are disclosed under discontinued operations.

In the petrochemicals segment, operations are located in the Republic of Argentina, where the Company operates three high-complexity plants producing styrene, synthetic rubber and polystyrene, with a domestic market share ranging between 85% and 98%.

Finally, through the holding and others segment, the Company participates in the transmission and gas transportation businesses. In the transmission business, the Company jointly controls Citelec, which has a controlling interest in Transener, a company engaged in the operation and maintenance of a 21,090 km high-voltage electricity transmission network in Argentina with an 85% share in the Argentine electricity transmission market. In the gas transportation business, the Company jointly controls CIESA, which has a controlling interest in TGS, a company holding a concession for the transportation of natural gas with 9,231 km of gas pipelines in the center, west and south of Argentina, and which is also engaged in the processing and sale of natural gas liquids through the Cerri Complex, located in Bahía Blanca, in the Province of Buenos Aires. Besides, the Company owns a 28.5% direct interest in Refinor, which has a refinery with an installed capacity of 25.8 kb of oil per day and 91 gas stations. Additionally, the segment includes advisory services provided to related companies.

The results and cash flows for 2018 associated with the divestment of the main assets of the refining and distribution segment mentioned in Note 5.3.3 are disclosed under discontinued operations in the Holding and others segment.

12 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 1: (Continuation)

1.2 Economic context in which the Company operates The Company operates in a complex economic context which main variables have recently suffered significant volatility both in the domestic and international spheres. The outbreak of the COVID-19 pandemic in March 2020 caused by the Coronavirus has brought about several consequences globally.

Most governments around the world, including the Argentine Government, implemented drastic measures to contain the spread of the virus, including, but not limited to, the closure of borders and the mandatory lockdown of the population, halting non-essential economic activities and generating a pronounced decrease in the economic activity and production levels. As a result, most governments implemented a series of tax aid measures to sustain the income of part of the affected population, mitigate the risk of disruptions in payment chains and avoid financial crises.

Globally, as from the month of May, a gradual lockdown easing process started; however, some countries experienced a new increase in infection levels, which led to the temporary reimplementation of some measures.

In Argentina, the social, preventive and mandatory lockdown measures decreed by the Federal Government as from March 20, 2020 have affected the power industry, mainly in the second and third quarters of 2020, as detailed below:

- As regards the electric power generation market, in the second and third quarters of 2020 the SADI’s net demand for electricity decreased by 5.7% and 2.0% compared to the same periods of 2019, mainly due to the lower industrial and commercial activity resulting from the social lockdown. Furthermore, the tariff freeze and the social lockdown have generated delays in the electricity distribution company’s payment chain, added to deferrals in the National Treasury contributions, as a result of which CAMMESA has recorded a growing delay in payment terms to generation and hydrocarbon producers, reaching a maximum of 45 days in July 2020. Additionally, the SE instructed CAMMESA to suspend the automatic adjustment mechanism for the spot remuneration set by SE Resolution No. 31/20.

- As regards the gas sector, in the second and third quarters of 2020 gas production recorded a 9.0% and 10.2% year- on-year decrease, respectively, due to the restraining effects of the social, preventive and mandatory lockdown, combined with a higher efficiency of power generation facilities as a result of the renewable and thermal energy installed over the last three years. The average price of gas at wellhead in the second and third quarters of 2020 amounted to US$2.2 and US$2.4 per MMBTU, respectively, experiencing an approximate 35% decrease compared with the same periods of 2019. This decrease is mainly due to the lower prices tendered at CAMMESA’s monthly calls, the lower industrial activity and the diluting effect of inflation on the price of gas sold to distributors.

- The economic recession caused by the spread of COVID-19, the significant decline in the demand for fuels and the disagreement between producers that are members of the Organization of Oil Exporting Countries (“OPEC”) and non-OPEC (“OPEC+”) producers resulted in a supply and storage crisis of such magnitude that the oil market was greatly impacted. The WTI showed a record drop, reaching -37.63 US$/bbl, whereas the Brent price fell below 20 US$/bbl. After the cutbacks on supply implemented by the OPEC and the OPEC+ and the gradual easing of lockdown measures attempted by several countries, a recovery trend was evidenced in the listings of crude oil and its derivatives, with the Brent crude oil showing a sustained quotation above 40 US$/bbl as from mid-June. Even though domestic oil prices use international values as benchmarks, they have experienced a strong decline as a result of the collapse in demand. In this sense, on May 18, 2020, the Federal Government set a support price of 45 US$/barrel for the domestic production. However, this support price was suspended as a result of the increase in the Brent reference price. (see Note 2.3.2).

13 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 1: (Continuation)

- As regards the petrochemicals segment, during the second quarter of 2020 there was a significant decrease in the demand for certain products sold by the Company, such as styrene and octane bases and, to a lesser extent, polystyrene. As a result of these declines, the styrene and reforming plants halted production for 40 and 60 days, respectively, between May and June, whereas the polystyrene plant stopped production for 30 days in June. Furthermore, the production of rubber had to be suspended in the months of April and May as it was not considered an essential activity and in line with the shutdown of its main domestic customers, which impacted on the recoverability of inventories of several raw materials and products for sale, generating the posting of an allowance for impairment of inventory for $ 706 million (US$ 11 million).. Sold volumes experienced a substantial improvement as from the third quarter of 2020 as a result of the recovery of the industrial activity and the international context.

The Argentine economy was undergoing a recession process, which was deepened by the described COVID-19 pandemic, with an accumulated 11.8% year-on-year fall in the GDP as of the third quarter of 2020, a 36.1% cumulative inflation (CPI) for 2020 and a 40.5% depreciation of the peso against the U.S. dollar according to the BNA’s exchange rate. Furthermore, stricter exchange restrictions were imposed (see Note 2.7), which affect the value of the foreign currency in existing alternative markets for certain exchange transactions that are restricted in the official market.

The context of volatility and uncertainty continues as of the date of issuance of these Consolidated Financial Statements.

The Company’s Management permanently monitors the evolution of the variables affecting its business to define its course of action and identify potential impacts on its assets and financial position. The Company’s Consolidated Financial Statements should be read in the light of these circumstances.

NOTE 2: REGULATORY FRAMEWORK

2.1 Generation

2.1.1 Generation units

The Company’s revenues from the electric power generation activity come from: i) sales contracts with large users within the MAT (Resolutions No. 1,281/06 and No. 281/17); ii) supply agreements with CAMMESA (Resolutions No. 220/07, No. 21/16, No. 287/17 and Renovar Programs) and iii) sales to the Spot market pursuant to the provisions applicable within the WEM administered by CAMMESA (SEE Resolution No. 19/17, from February 2017, SRRYME Resolution No. 1/19 as from March 2019 and SE Resolution No. 31/20 from February 2020). Furthermore, energy not committed under sales contracts with large users within the MAT and with CAMMESA are remunerated at the Spot market.

14 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

The Company’s generating units are detailed below, directly and through its subsidiaries and joint businesses:

In operation:

Generator Generating unit Tecnology Power Applicable regime (1)

CTG GUEMTG01 TG 100 MW Energy Plus Res. No. 1,281/06 CTG GUEMTV11 TV ≤100 MW SE Resolutions No. 31/20 CTG GUEMTV12 TV ≤100 MW SE Resolutions No. 31/20 CTG GUEMTV13 TV >100 MW SE Resolutions No. 31/20 Piquirenda PIQIDI 01-10 MG 30 MW SE Resolution No. 220/07 CPB BBLATV29 TV >100 MW SE Resolutions No. 31/20 CPB BBLATV30 TV >100 MW SE Resolutions No. 31/20 CT Ing. White BBLMD01-06 MG 100 MW SEE Resolution No. 21/16 CTLL LDLATG01 TG >50 MW SE Resolutions No. 31/20 CTLL LDLATG02 TG >50 MW SE Resolutions No. 31/20 CTLL LDLATG03 TG >50 MW SE Resolutions No. 31/20 CTLL LDLATV01 TV 180 MW SE Resolution No. 220/07 (1) CTLL LDLATG04 TG 105 MW SEE Res. 220/07 (75%) CTLL LDLATG05 TG 105 MW SEE Resolution No. 21/16 CTGEBA GEBATG01/TG02/TV01 CC >150 MW SE Resolutions No. 31/20 CTGEBA GEBATG03 TG 169 MW Energy Plus Res. No. 1281/06 CTGEBA GEBATG03/TG04/TV02 CC 400 MW SE Resolutions No. 287/17 Ecoenergía CERITV01 TV Renewable ≤ 50 Energy Plus Res. N° 1,281/06 (1) CT Parque Pilar PILBD01-06 MG 100 MW SEE Resolution No. 21/16 (1) CTB EBARTG01 - TG02 TG HI – Small 50

(1) Uncommitted power and energy under the sales contracts are remunerated according to Resolution No. 31/20.

In construction:

Generator Tecnology Capacity Applicable regime

CTLL MG 15 MW SE Resolutions No. 31/20 CTB CC 280 MW SE Resolution No. 220/07

15 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

2.1.2 Remuneration at the Spot market

Resolutions SEE No. 19/17 and SRRYME No. 1/19, applicable as from February 2017 and March 2019, respectively, established remunerative items based on technology and scale with US$-denominated prices payable in AR$ by applying BCRA’s exchange rate.

On February 27, 2020, SE Resolution No. 31/20 was published in the BO, which superseded the remuneration scheme established by SRRYME Resolution No. 1/19, and provided as follows: i) a reduction in U.S.-denominated values for power capacity availability, maintaining the values of the remuneration for generated and operated energy; ii) converted remuneration values to Argentine pesos at a 60 $/US$ exchange rate; and iii) an additional remuneration, in pesos, for the power capacity generated during the hours of maximum thermal demand of the month, taking into consideration the average power capacity generated by thermal generators and the average power capacity operated by hydroelectric generators.

Finally, it established that the new values set would be updated monthly from the second month of implementation, through a factor that envisages a 60% adjustment by IPC and a 40% adjustment by IPIM. However, on 8 April 2020, through Note No. 2020-24910606-APN-SE-MDP of 8 April 2020, the SE instructed CAMMESA to postpone until a new decision the implementation of the above-mentioned automatic adjustment mechanism, which has not been restored to the date of issuance of these Consolidated Financial Statements.

2.1.2.1 Remuneration for Available Power Capacity

2.1.2.1.1 Thermal Power Generators

Resolution SEE No. 19/17 set a minimum remuneration for power capacity based on technology and scale, and allowed generating, co-generating and self-generating agents owning conventional thermal power plants to offer guaranteed availability commitments for the energy and power capacity generated by their units and not committed under sales contracts with large users within the MAT and supply agreements with CAMMESA. This scheme remains in force until the current resolution.

In Resolution SEE No. 19/17, the availability commitments for each unit were declared for a term of three years, together with information for the summer seasonal programming, with the possibility to offer different availability values for the summer and winter six-month periods. The thermal generators’ remuneration for committed power capacity was proportional to their compliance. In SRRYME Resolution No. 1/19 and SE Resolution No. 31/20, an offer scheme for quarterly periods was established: a) summer (December through February); b) winter (June through August), and c) ‘Other’, which comprises two quarters (March through May, and September through November).

The power remuneration for thermal generators with commitments is proportional to their compliance.

16 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

The minimum remuneration for generators with no availability commitments includes the following scales and prices:

SEE No. 19/17 SRRYME No. 1/19 SE No. 31/20 Technology / Scale (US$ / MW-month) (US$ / MW-month) (AR$ / MW-month) Large CC Capacity > 150 MW 3,050 3,050 100,650

Large ST Capacity > 100 MW 4,350 4,350 143,550

Small ST Capacity > 100 MW 5,700 5,200 171,600

Large GT Capacity > 50 MW 3,550 3,550 117,150

The remuneration for guaranteed power capacity to generators with availability commitments is:

SEE No. 19/17 SRRYME No. 1/19 SE No. 31/20 Period (US$ / MW-month) (US$ / MW-month) (AR$ / MW-month) Summer – Winter 7,000 7,000 360,000

Fall - Spring 7,000 5,500 270,000

Under SRRYME Resolution No. 1/19 provided for the application on the power capacity remuneration of a coefficient derived from the average utilization factor over the unit’s last twelve months: with a minimum 70% of the utilization factor, 100% of the power capacity payment was collected; if the utilization was between 30% and 70%, the power capacity payment ranged from 70% to 100%; and if the utilization factor was lower than 30%, 70% of the power capacity payment was collected. SE Resolution No. 31/20 maintained the same formula than the previous regime, but in case the utilization factor is lower than 30%, 60% of the power capacity payment is collected.

Finally, SEE Resolution No. 19/17 established an additional remuneration of 2,000 US$/MW-month aiming to encourage availability commitments in the grid’s higher demand periods, that was abolished by SRRYME Resolution No. 1/19. However, the SE Resolution No. 31/20 established an additional remuneration for the hours of maximum thermal requirement of the month (hmrt), which corresponds to the 50 hours with the largest dispatch of thermal generation of each month divided into two blocks of 25 hours each, applying the following prices to the average generated power:

First 25 hours Second 25 hours Period ($ / MW-hmrt) ($ / MW-hmrt) Summer – Winter 45,000 22,500

Fall - Spring 7,500 -

17 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

2.1.2.1.2 Hydroelectric Generators

Resolutions SEE No. 19/17 and SRRYME No. 1/19 set a base remuneration and an additional remuneration for power capacity.

Power capacity availability was determined independently of the reservoir level, the contributions made, or the expenses incurred. Furthermore, in the case of pumping hydroelectric power plants, the operation as turbine and pump at all hours within the period was considered to calculate availability.

The base and the additional remunerations included the following scales and prices:

Base Additional Technology / Scale (US$ / MW- (US$ / MW-month) month) Medium HI Capacity > 120 ≤ 300 MW 3,000 1,000

Small HI Capacity > 50 ≤ 120 MW 4,500 1,000 Medium Pumped HI Capacity > 120 ≤ 2,000 500 300 MW Renewable HI Capacity ≤ 50 MW 8,000 1,000

Under SEE Res. No. 19/17, the payment for power capacity was determined by the actual power capacity plus that under programmed and/or agreed maintenance, whereas under SRRYME Res, No. 1/19, hours of unavailability due to programmed and/or agreed maintenance were not computed for the calculation of the power capacity remuneration. However, in order to contemplate the incidence of programmed maintenance works in power plants, from May 2019, pursuant to SME Note No. 46631495/19, the application of a 1.05 factor over the power capacity payment was established.

In case of hydroelectric power plants that were responsible for control structures on river courses and did not have an associated power plant, a 1.20 factor was applied to the plant at the headwaters.

The allocation and collection of 50% of the additional remuneration was conditional upon the generator taking out insurance, to CAMMESA’s satisfaction, to cover for major incidents on critical equipment, as well as upon the progressive updating of the plant’s control systems pursuant to an investment plan to be submitted in accordance with criteria defined by the SEE.

18 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

The following are the power by technology and scale values set under SE Resolution No. 31/20:

SE No. 31/20 Technology / Scale (AR$ / MW- month) Medium HI Capacity > 120 ≤ 300 MW 132,000

Small HI Capacity > 50 ≤ 120 MW 181,500 Medium Pumped HI Capacity > 120 ≤ 132,000 300 MW Renewable HI Capacity ≤ 50 MW 297,000

First 25 hours Second 25 hours Period ($ / MW-hmrt) ($ / MW-hmrt) Summer – Winter 39,000 19,500

Fall - Spring 6,500 -

Furthermore, SE Resolution 31/20 maintains the application of a 1.05 factor over the power capacity to compensate the incidence of programmed maintenance works and the 1.20 factor for units maintaining control structures on river courses and not having an associated power plant is maintained.

2.1.2.1.3 Wind generators

SEE Resolution No. 19/17 established a remuneration associated with the availability of the installed equipment at a base price of 7.5 US$/MW and an additional price of 17.5 US$/MW, which was abrogated by SRRYME Resolution No. 1/19.

2.1.2.2 Remuneration for Generated and Operated Energy

Resolutions SEE No. 19/17 and SRRYME No. 1/19 set a remuneration for generated energy with prices ranging from 5 to 10 US$/MWh and from 4 US$/MWh to 7 US$/MWh, respectively, depending on the technology and type of fuel used.

The remuneration for operated energy applicable to the integration of hourly power capacities for the period was valued at 2.0 US$/MWh and 1.4 US$/MWh for any type of fuel under Resolutions SEE No. 19/17 and SRRYME Resolution No. 1/19, respectively.

SE Resolution No. 31/20 establishes a remuneration for Generated Energy with prices ranging between 240 and 420 $/MWh, depending on the type of fuel and a remuneration for Operated Energy, with an 84 $/MWh price for any type of fuel.

19 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

It should be noted that, in the event that the generation unit is dispatched outside the optimal dispatch, remuneration for generated energy will be set at 60% of the net installed power capacity, regardless of the energy delivered by the generation unit.

In the case of hydroelectric power plants, prices for generated and operated energy under Resolutions SEE No. 19/17 and SRRYME No. 1/19 were 3.5 and 1.4 US$/MWh, respectively, regardless of the scale. Under SE Resolution No. 31/20, they are remunerated at 210 $/MWh and 84 $/MWh, respectively. The remuneration for operated energy must correspond to the optimal dispatch of the system, however, the resolution does not indicate what the consequence would be otherwise.

In the case of hydroelectric pumping plants, both the energy generated and the one consumed for pumping are considered. In addition, if it functions as a synchronous compensator, 60 $/MVAr will be recognized for the megavolt exchanged with the network when required and 84 $/MWh for the energy operated.

As regards energy generated from unconventional sources, SRRYME Resolution No. 1/19 established a single remuneration value of US$ 28/MWh, irrespective of the source used. SE Resolution No. 31/20 sets a value of 1,680 $/MWh. Energy generated prior to the commissioning by the Organismo Encargado del Despacho will be remunerated at 50% of the above-mentioned remuneration.

2.1.2.3 Additional Remuneration for Efficiency and for Low-Use Thermal Generators

SEE Resolution No. 19/17 provided for an efficiency incentive that consisted of the recognition of an additional remuneration equivalent to the remuneration for the generated energy by the percentage difference between the actual consumption and the reference consumption determined for each unit and fuel type, as well as an additional remuneration for low-use thermal generators and having frequent startups based on the monthly generated energy for a price of 2.6 US$/MWh multiplied by the usage/startup factor, which were abrogated under the scheme set under SRRYME Resolution No. 1/19.

2.1.2.4 Suspension of contracts within the MAT

The suspension of contracts within the MAT (excluding those derived from a differential remuneration scheme) provided for by SE Resolution No. 95/13 remains in effect.

2.1.3 Sales contracts with large users within the MAT

2.1.3.1 Energy Plus

With the purpose of encouraging new generation works, in 2006 the SE approved Resolution No. 1,281/06 established a specific regime which would remunerate newly installed generation sold to a certain category of Large Users at higher prices.

20 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

The Energy Plus service consists of the offer of additional generation availability by generators, co-generators and self- generators which, as of the date of publication of SE Resolution No. 1,281/06, were not WEM agents or did not have facilities or an interconnection with the WEM; Considering that:

- These plants should have fuel supply and transportation facilities; - The energy used by GU300 in excess of the Base Demand (energy consumption for 2005 year) qualifies for Energy Plus agreements within the MAT at a price negotiated between the parties; and - For new GU300 entering the system, their Base Demand will equal zero.

If a generator cannot meet the power demand by an Energy Plus customer, it should purchase that power in the market at the operated marginal cost, or, alternatively, support the committed demand in case of unavailability through agreements with other Energía Plus generators.

Currently, the Company has Power Availability agreements in force with other generators whereby, in case of unavailability, it may purchase or sell power to support the contracts mutually.

Furthermore, the SE, through Note No. 567/07, as amended, established that GU300 not purchasing their surplus demand in the MAT should pay the Average Incremental Charge of Surplus Demand. As from the month of June 2018, pursuant to SE Note No. 28663845/18, the CMIDE became the greater of $1,200/MWh or the temporary dispatch surcharge.

Due to the drop in surplus demand as a consequence of the decrease in the economic activity, some GU300 decide not to enter into Energy Plus contracts (with higher prices), and generators have to sell their energy at the spot market with lower profitability margins.

Additionally, the Energy Plus contracts market continues being affected by the migration of demand towards renewable energy contracts in the MAT ER.

Under this regime, the Company —through its power plants Güemes, EcoEnergía and Genelba— sells its energy and power capacity for a maximum amount of 283 MW. The values of Energy Plus contracts are mostly denominated in U.S. dollars.

2.1.3.2 Renewable Energy Term Market (“MAT ER” Regime)

Pursuant to Resolution No. 281/17, the MEyM regulated the MAT ER Regime with the purpose of setting the conditions for large users within the WEM and WEM distributing agents’ large users covered by Section 9 of Law No. 27,191 to meet their demand supply obligation from renewable sources through the individual purchase within the MAT ER from renewable sources or self-generation from renewable sources.

Furthermore, it regulates the conditions applicable to projects for the generation, self-generation and co-generation of electric power from renewable sources, and creates the el Registro Nacional de Proyectos de Generación de Energía Eléctrica de Fuente Renovable for the registration of these projects.

21 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

Projects destined to the supply of electric power from renewable sources under the MAT ER Regime may not be covered by other remuneration mechanisms, such as the agreements under the Renovar rounds. Surplus energy will be sold in the spot market.

Finally, contracts executed under the MAT ER Regime will be administered and managed in accordance with the WEM procedures. The contractual terms —life, allocation priorities, prices and other conditions, notwithstanding the maximum price set forth in Section 9 of Law No. 27,191— may be freely agreed between the parties, although the committed electricity volumes will be limited by the electric power from renewable sources produced by the generator or supplied by other generators or suppliers with which it has purchase agreements in place.

Within the framework of this provision, the Company, through its PEPE II and III wind farms, sells energy for a maximum amount of 106 MW and, additionally, has started selling third-party generators’ renewable energy for an approximate volume of 2 MW.

2.1.4 Supply Agreements with CAMMESA

2.1.4.1 SE Resolution No. 220/07 (“Agreement Res.220”)

Aiming to encourage new investments to increase the generation offer, the SE passed Resolution No. 220/07, which empowers CAMMESA to enter into Agreement with WEM Generating Agents for the energy produced with new equipment. These will be long-term agreements and the price payable by CAMMESA should compensate the investments made by the agent at a rate of return to be accepted by the SE.

Under this regulation, the Company, through its power plants Piquirenda, Loma de La Lata and Barragán, has executed Agreement Res.220 to sell energy and power capacity for a total amount of 856 MW.

It is worth mentioning that the 10-year term for Piquirenda and Loma de la Lata contracts (210 MW) expires in July and November 2021, respectively. Besides, Barragán has an expansion project underway to add 280 MW under this scheme, which commissioning is estimated for the first quarter of 2022.

For further information on the project to the CC at CTB, see Note 16.1.3.

2.1.4.2 SEE Resolution No. 21/16

As a result of the state of emergency in the national electricity sector, the SEE issued Resolution No. 21/16 calling for parties interested in offering new thermal power generation capacity with the commitment to making it available through the WEM for the 2016/2017 summer; 2017 winter, and 2017/2018 summer periods.

For the awarded projects, wholesale power purchase agreements were entered into with CAMMESA for a term of 10 years, with a remuneration made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if offered), less penalties and fuel surpluses. Surplus power capacity is sold in the spot market.

22 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

Pursuant to this resolution, the Company, through its Loma de la Lata, Ingeniero White and Pilar thermal power plants, has effective agreements with CAMMESA for the sale of energy and power capacity for a total 305 MW.

2.1.4.3 SEE Resolution No. 287/17

On May 10, 2017 the SEE issued Resolution No. 287/17 launching a call for tenders for co-generation projects and the closing to CC over existing equipment. The projects should have low specific consumption (lower than 1,680 kcal/kWh with natural gas and 1,820 kcal/kWh with alternative liquid fuels), and the new capacity should not exceed the existing electric power transmission capacity; otherwise, the cost of the necessary extensions will be borne by the bidder. For the awarded projects, wholesale power purchase agreements were entered into for a term of 15 years, with a remuneration made up of the available power capacity price plus the variable non-fuel cost for the delivered energy and the fuel cost (if offered), less penalties and fuel surpluses. Surplus power capacity is sold in the spot market.

Pursuant to this regulation, the Company, through its Genelba thermal power plant, has entered into an agreement with CAMMESA for the sale of energy and power capacity for a total 400 MW (see Note 16.1.2).

2.1.4.4 Renovar Programs

In order to meet the objectives, set by Law No. 26,190 and Law No. 27,191 promoting the use of renewable sources of energy, the MEyM called for open rounds for the hiring of electric power from renewable sources (RenovAr Programs, Rounds 1, 1.5 and 2) within the WEM. These calls aimed to assign power capacity contracts from different technologies (wind energy, solar energy, biomass, biogas and small hydraulic developments with a power capacity of up to 50 MW).

For the awarded projects, renewable electric power supply agreements were executed for the sale of an annual committed electric power block for a term of 20 years.

Additionally, several measures have been established to promote the construction of projects for the generation of energy from renewable sources, including tax benefits (advance VAT reimbursement, accelerated depreciation of the income tax, import duty exemptions, etc.) and the creation of a fund for the development of renewable energies destined, among other objectives, to the granting of loans and capital contributions for the financing of such projects.

Under this regulation, the Company, through Greenwind, has a supply agreement in place with CAMMESA for a total 100 MW.

2.1.5 Fuel supply for thermal power plants

On November 6, 2018, SGE Resolution No. 70/18 was published in the BO, which empowered generating, co- generating and self-generating agents within the WEM to acquire the fuels required for own generation; this resolution superseded SE Resolution No. 95/13, which provided that fuel supply for electric power generation would be centralized in CAMMESA (with the exception of generation under the Energy Plus regime). Under the scheme set forth by SGE Resolution No. 70/18, the cost of generation with own fuels was valued according to the mechanism for the recognition of the Variable Production Costs recognized by CAMMESA. During its term of validity, CAMMESA remained in charge of the commercial management and the dispatch of fuels for generators that do not or cannot make use of this option.

23 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

In the seasonal programming conducted on November 12, 2018, the Company opted to make use of the self-supply option, and allocated a significant part of its natural gas production as an input for the dispatch of its thermal units.

On December 27, 2019, the Ministry of Productive Development passed Resolution No. 12/19, abrogating, effective as from December 30, 2019, SGE Resolution No. 70/18, and re-establishing the validity of section 8 and section 4 of SE Resolutions No. 95/13 and 529/14, respectively, thus restoring the centralized scheme in CAMMESA for the supply of fuels for generation purposes (except for generators under the Energy Plus scheme and with Wholesale Power Purchase Agreements under Resolution No. 287/17).

In December 2020, on account of the implementation of the GasAr Plan (see Note 2.3.2.1.2), SE Resolution No. 354/20 was passed, which established a new dispatch order for generation units based on the fuel supplied for their operation under a centralized dispatch scheme.

SE Resolution No. 354/20 established the gas volumes CAMMESA should prioritize in the electricity dispatch. In this sense, firm volumes to be used by CAMMESA were defined, including: i) volumes corresponding to contracts entered into by CAMMESA with producers acceding to the GasAr Plan; ii) volumes corresponding to contracts executed by adherent producers with generators acceding to the centralized dispatch (these volumes will be discounted by the adherent producers from the applicable quota for which they should enter into contracts with CAMMESA under the GasAr Plan) and; iii) volumes to meet the Take or Pay (“TOP”) obligations under the supply agreement entered into between IEASA and Yacimientos Petrolíferos Fiscales Bolivianos (“YPFB”).

Besides, an electricity dispatch priority scheme was set based on the allocation of the natural gas quota taking into consideration the take or pay obligations. To this effect, the following priorities were set (within each priority level, the order of agents is set based on the generator’s production cost):

(i) Dispatch Priority 1: Generators, Self-generators and/or Co-generators supplied with a natural gas quota under a TOP Bolivia condition assigned by IEASA. If a generator with a fuel stocking obligation optionally acquires from IEASA natural gas from Bolivia, this volume will be included in this quota. (ii) Dispatch Priority 2: Generators, Self-generators and/or Co-generators supplied by CAMMESA with a natural gas quota from the centralized list of volumes up to the TOP of each contract. (iii) Dispatch Priority 3: Generators, Self-generators and/or Co-generators supplied by CAMMESA with a natural gas quota from the centralized list of volumes for the Daily Maximum Amount (DMA) less those corresponding to the TOP of each contract. (iv) Dispatch Priority 4: Generators, Self-generators and/or Co-generators supplied by CAMMESA with natural gas or LNG coming from other firm commitments undertaken by CAMMESA. (v) Dispatch Priority 5: Generators, Self-generators and/or Co-generators supplied with a gas quota from the unassigned, spot natural gas contracts from any source, acquired by CAMMESA and/or the Generator, according to the supply source. In the case of a generator with own fuel, the maximum amount to be acknowledged will be the corresponding reference prices.

As regards the costs associated with the supply of these fuels, it was established that the electricity demand will bear, among others, the regulated transportation costs, the cost of natural gas and the applicable take or pay obligations.

24 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

Generating agents that kept the possibility to purchase their fuel supply (agents under the Energy Plus Program or with Wholesale Purchase Agreements under Resolution No. 287/17) could opt in or out of CAMMESA’s unified dispatch. Acceding to the unified dispatch involves the operating assignment of the contracted firm gas and transportation volumes. Based on their option, the priority order was modified as described above.

In the specific case of generators with wholesale power purchase agreements under SEE Resolution No. 287/17, it was provided that they would have the option of canceling the self-supply obligation and the resulting recognition of its associated costs, having to maintain the respective transportation capacity for its management in the centralized dispatch.

The Company assigned the firm gas and transportation volumes committed to the supply of Genelba Plus’ CC and Energy Plus contracts. In the case of the supply to Genelba Plus’ CC, the assignment will remain effective during the life of the GasAr Plan, and it may be revoked by the generator with a minimum advance notice of 30 business days. Within this framework, the parties agreed to enter into an addendum to the Wholesale Power Purchase Agreement to establish the modifications regarding this new supply scheme, which execution is pending as of the issuance of these Consolidated Financial Statements.

2.1.6 Agreement for the Regularization and Settlement of Receivables with the WEM

On August 5, 2019 and under the call to Generators, the Company and certain subsidiaries executed with CAMMESA an Agreement for the Regularization and Settlement of Receivables with the WEM (the “Agreement”), as instructed through SGE Note NO-2019-66843995-APN-SGE#MHA.

Pursuant to the Agreement, CAMMESA undertook to pay the outstanding Sales Liquidations with Maturity Date to be Defined (“LVFVD”) after discounting the debts taken on with the WEM under the Financing Agreements, Loan Agreements and Receivables Assignment Agreements executed by generators, and applying a 18% write-off on the balance. In this sense, the parties have agreed a total net settlement amount for the outstanding LVFVDs taking into consideration the interest update as of July 31, 2019 and the effects of the mentioned write-off, which amounts to $ 2,122.7 million, before tax withholdings for a total amount of $ 392.9 million. Finally, on August 7, 2019, the total agreed amount was collected.

In furtherance of the undertaken commitments, the Company and certain subsidiaries have waived all submitted claims and have irrevocably dismissed their rights to file any kind of claim (whether administrative and/or judicial) against the Federal Government, the SGE and/or CAMMESA regarding the outstanding LVFVDs.

As a result of the Agreement, the Company has recognized revenues in the amount of $ 260 million and net financial profits for $ 3,119.3 million in the year ended December 31, 2019.

25 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

2.1.7 Loosening up of charges and interests in late payment of the economic transaction

Resolutions SRRYME No. 29/2019 and SE No. 148/20 provided for a relaxation in the application of penalty interest and charges in case of delays in the payment of economic transactions within the WEM.

(i) Reduction of surcharges: the 50% reduction in surcharges for agents with overdue and unpaid debts is postponed until December 31, 2020. This measure in no way affects the Extraordinary Payment Mechanism for Large Users detailed in the next note.

(ii) Compensatory and penalty interest: only compensatory interest will apply, with a rate equivalent to the rate fixed by the BNA for its 30-day discount transactions, for agents registering a delay in payment but having promptly paid the last three immediately preceding debt maturities, provided the payment is made within 15 days after the invoice maturity date; additionally, penalty interest of 1% will apply for each day of delay, with a cap equivalent to the surcharges provided for in the CAMMESA procedures when the payment is made after such term. It is worth highlighting that the previous scheme provided for increasing penalty interest based on the time elapsed.

(iii) Compensations: in the case of delays not exceeding 5 days in a certain month, compensations without the application of compensatory interest are allowed by advancing the payment of the following invoice by 2 days per each day of delay.

2.1.8 Generation projects

As a result of the COVID-19 pandemic (see Note 1.2), through Note NO-2020-37458730-APN-SE#MDP the SE instructed the temporary suspension of terms for the execution of the contracts under the RenovAr Programs (Rounds 1, 1.5, 2 and 3), former SE Resolution No. 712/09, former MEyM Resolution No. 202/16 and former SEE Resolution No. 287/17, as well as for projects within the framework of former MEyM Resolution No. 281/17. The instruction applies to projects which had not been previously commissioned as from March 12, 2020 and until September 12, 2020, both dates inclusive. Consequently, the temporary suspension of notices of non-compliance with the scheduled work progress dates was instructed, both regarding the increase in the contract performance bond and the imposition of the stipulated penalties, as applicable, under all agreements entered into pursuant to such resolutions.

Furthermore, it ordered the temporary suspension of notices of breach upon failure to comply with the date scheduled for the commercial commissioning of projects with a dispatch priority under the terms of former MEyM Resolution No. 281/17, and of the collection of the amounts stipulated in the event of breach, in all cases keeping the timely granted dispatch priorities.

2.2 Transmission

2.2.1 Tariff situation

The Solidarity Law, which entered into effect on December 23, 2019, provided that electricity tariffs under federal jurisdiction would remain unchanged, and contemplates the possibility to perform an extraordinary review of the current RTI for a maximum term of up to 180 days.

In 2020, the ENRE did not apply Transener’s semi-annual tariff update mechanism established in the RTI, the tariff scheme in force being that resulting from the August 2019 update.

26 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

In this sense, on December 16, 2020, pursuant to Executive Order No. 1020/20, the Federal Government established the beginning of the renegotiation of the current RTI for the electricity and natural gas transportation and distribution utility services, which proceeding may not exceed a term of 2 years. Until the conclusion of each renegotiation, all Agreements corresponding to the respective RTIs in effect will be suspended within the scopes determined in each case by the Regulatory Entities for reasons of public interest. The transitory and final agreements will be entered into with the ENRE or ENARGAS, and the Ministry of Economy ad referendum to the PEN. Furthermore, the electricity tariffs maintenance term established in section 5 of Act No. 27,541 on Social Solidarity and Productive Reactivation within the Public Emergency Framework was extended for 90 calendar days, or until the entry into effect of the new transitory tariff schemes resulting from the Transition Tariff Regime.

On January 19, 2021, through Resolution No. 17/21, the ENRE launched the proceeding for the transitory adjustment of tariffs of the transmission public utility aiming to establish a Transitional Tariff Regime until reaching a Final Renegotiation Agreement, and summoning Transportation Companies. In this sense, a request for information to begin this process was received.

As of the issuance of these Consolidated Financial Statements, Transener has complied with this requirement, prioritizing the operating costs and capital investments required to maintain service quality.

On March 3, 2021, pursuant to Resolutions No. 54/21 and 55/21, the ENRE called for a Public Hearing for March 29, 2021 to provide information and gather feedback on the Transitory Tariff Regime for Transener and Transba, respectively, within the RTI Process and prior to the definition of tariffs.

Besides, on July 3, 2018 the ENRE informed of the launching of the proceeding for the determination of the remuneration of Independent Transmission Companies in the exploitation stage: TIBA (Transba), the Fourth Line (Transener), YACYLEC and LITSA. In this respect, on October 8, 2018, information on costs, investments and tariff claims corresponding to the Fourth Line and TIBA were submitted to the ENRE. As of issuance of these Consolidated Financial Statements, the ENRE has not issued a resolution with the results of the analysis of the requested information.

2.2.2 SADI’s power service outage

On June 16, 2019 at 7:07 a.m., the SADI experienced a total outage.

The outage was a result of the concurrence of multiple shortcomings within the SADI, some of them unrelated to the Transmission System operated and maintained by Transener.

As regards the Transmission System under the responsibility of Transener, the fault was due to a specific technical issue, and not to the lack of investment and maintenance. As a result of the change in the Littoral Corridor configuration due to the bypass between the 500 kV Colonia Elía – Campana and Colonia Elía –Manuel Belgrano lines, the Auto-Disconnect Generation (“DAG”) mechanism was not properly adapted and did not recognize signals sent out by the protection system. This bypass was made on account of the relocation of Tower 412 to support the highest possible power transmission capacity in the Litoral corridor.

27 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation) Due to the great volume of electricity dispatched from this corridor and the DAG failure, there was an imbalance between supply and demand which could not be redressed by the system’s other restraint barriers external to the electric power transmission service, resulting in a total outage. The 500 kV Transmission System was available immediately after the disruption, and 100% of the transmission lines were available to come into operation and allow for the restoration of the system. Service restoration was overall fast (within just 8.5 hours, 75% of the country’s demand had been restored). Transener estimates that the above mentioned event will give rise to a penalty of approximately $ 6.6 million plus interest, for which a provision is held as of December 31, 2020. This estimate is based on the application of the High- Voltage Transmission System’s Service Quality and Penalties Regime attached to Transener’s Concession Agreement as Sub-annex IV.

As of the issuance of these Consolidated Financial Statements, the ENRE has not applied the penalty to Transener, which may differ from the company's estimates.

The occurrence of this event had an impact in 2020 on the amount of both penalties, which were increased, and awards, which were reduced, on account of the Additional Service Quality and Penalties Regime established by Resolutions No. 552/16 and No. 580/16.

2.3. Oil and gas

2.3.1 Argentine Hydrocarbons Law

On October 29, 2014, the National Congress enacted Law No. 27,007 amending Hydrocarbons Law No. 17,319 (enacted in 1967), which empowers the Government to grant exploration permits and concessions to the private sector. Additionally:

(i) Sets the terms for exploration permits:

- Conventional exploration: the basic term is divided into two periods of up to three years each, plus an optional extension of up to five years;

- Unconventional exploration: the basic term is divided into two periods of four years each, plus an optional extension of up to five years; and

- Exploration in the continental shelf and the territorial sea: the basic term is divided into two periods of three years each, plus an optional extension of one year each.

(ii) Sets the terms for exploitation concessions, extensible for 10-year terms:

- Conventional exploitation concession: 25 years;

- Unconventional exploitation concession: 35 years; and - Continental shelf and off-shore exploitation concession: 30 years.

(iii) Sets transportation concessions will be granted for the same term than that granted for the originating exploitation concession.

28 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

(iv) Sets prices for payments of exploration and exploitation levy and empowers the enforcement authority to establish the payment of extension and exploitation bonds.

(v) Establishes a 12% royalty payable by the exploitation concessionaire to the grantor on the proceeds derived from liquid hydrocarbons extracted at wellhead and the production of natural gas. In the case of extension, additional royalties for up to 3% over the applicable royalties at the time of the first extension, up to a total of 18%, will be paid for the following extensions.

(vi) Provides for two types of non-binding commitments between the National Government and the Provinces aiming to establish a uniform environmental legislation and to adopt a uniform tax treatment to encourage hydrocarbon activities.

(vii) Restricts the National Government and the Provinces from reserving new areas in the future in favor of public or mixed companies or entities, irrespective of their legal form.

2.3.2 Gas Market

2.3.2.1 Natural Gas Production Promotion Programs

2.3.2.1.1 Gas Plan II

In November 2013, pursuant to Resolution No. 60/13, the Committee created the Gas Plan II covering companies with no previous production or with a 3.5 MMm3/day production cap, establishing price incentives for production increases and penalties for the importation of LNG in case of breach of the committed volumes. Resolution No. 60/13, as amended (Resolutions No. 22/14 and No. 139/14), established a price ranging from US$4/MBTU to US$7.5/MBTU, based on the highest production curve attained.

On March 6, 2014 and January 30, 2015, former subsidiaries PELSA and Petrobras were registered with this program pursuant to esolutions No. 20/14 and No. 13/15, respectively, of the Secretariat of Economic Policies and Development Planning of the Ministry of Economy and Public Finances.

However, the receivables recorded by the Company in 2017 under the above-mentioned plan were not timely collected.

To this effect, on April 3, 2018, MINEM Resolution No. 97/18 established a procedure for the cancellation of compensations pending settlement and/or the payment of year 2017, payable in thirty monthly consecutive installments as from January 1, 2019. Beneficiary companies opting for the application of the procedure should state their decision to accede, waiving all present or future administrative and/or judicial actions, remedies, rights or claims regarding the payment of such obligations.

On May 2, 2018, the Group filed with the Ministry of Energy the application form to join the payment procedure set forth by MINEM Resolution No. 97/18, expressing its consent to and acceptance of its terms and scope, the amount of the compensation to the Group established by this resolution being estimated at US$ 148 million.

On February 21, 2019, SGE Resolution No. 54/19 was published, which modifies the described cancellation mechanism and provided for cancellations to be instrumented through the delivery of public debt bonds.

29 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

On April 17, 2019 and July 16, 2019, bonds were credited in favor of the Company for a face value of US$ 89 million and US$ 54 million, respectively. These bonds do not accrue interest and are repayable in 29 monthly and consecutive installments, the first one for 6.66%, the following eighteen installments for 3.33%, and the remaining ten installments for 3.34% of the original face value.

As of December 31, 2020, the Company collected US$ 71 million and US$ 43 million, respectively, as repayments, 6 installments still pending collection, which are disclosed in “Public debt securities” under “Investments at amortized cost”.

2.3.2.1.2 Argentine Natural Gas Production Promotion Plan (“GasAr Plan”)

On November 16, 2020, Executive Order No. 892/20 was published in the BO, which approved the GasAr Plan to foster the development of the Argentine gas industry based on a bidding mechanism, and instructed the SE to instrument such plan and to set the applicable complementary and clarifying rules. The most relevant aspects of this executive order include as follows:

(i) The call for tenders for 70 million m3/d of gas in the 4-year base block, which may not represent more than 70% of the companies’ production.

(ii) During its term of validity, as from May 2021, each signatory producer commits to supply an injection equal to or higher than the average injection for the May-July 2020 quarter per basin.

(iii) For off shore production, an additional term of 4 years is established (8 years in total), and the differential between the base production and the actual production will be offset with imported gas or injections exceeding those committed during the months of June, July and August of the first 4 years of the GasAr Plan.

(iv) Beneficiaries of other plans wishing to take part in the bid should file the waiver provided for in the regulation to be timely approved by the enforcement authority.

(v) A maximum award price of 3.21 US$/MMBTU (price at current value) is established.

(vi) The SE will determine, with the assistance of ENARGAS and through a process including actual civic participation, the price for which the natural gas service providers may request the implementation of a tariff update on account of variations in the price of the natural gas purchased, which may be equal to or lower than the market price. The differential between the price determined by the enforcement authority and that offered will be borne by the Federal Government in the form of a compensation.

(vii) The Federal Government undertakes to create a guarantee fund.

(viii) The recognition of tax credits subject to regulation.

30 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

(ix) The BCRA will establish appropriate mechanisms to facilitate access to the MLC, provided: funds have been entered through the MLC; and they are “genuine transactions” conducted after the entry into effect of the executive order and destined to the financing of projects under the GasAr Plan.

On November 23, 2020, the SE, through Resolution No. 317/20, launched the “National Public Call for Tenders for the Argentine Natural Gas Production Promotion Plan – 2020-2024 supply and demand scheme” for the award of a volume of 70 million m3 of natural gas per calendar year (CAMMESA plus distributors), which may be modified by the SE to guarantee an optimal domestic supply.

The bidding terms and conditions included samples of the contracts the producers should enter into with CAMMESA and gas distributors. These sample contracts stipulated a Deliver or Pay (“DOP”) obligation for 100% per day and a TOP obligation of 75% per month for CAMMESA and per quarter for distributors.

As regards the payment of contracts with distributors, the Federal Government will bear the monthly payment of the difference between the price offered and that resulting from the tariff schemes through a subsidy payable directly to producers. Pursuant to Act No. 27,591, the payment of this subsidy will be guaranteed by a procedure, pending regulation by the AFIP and the SE.

Additionally, to access the GasAr Plan producers submitted a plan of investments necessary to maintain the committed production and a national added-value commitment providing for the development of direct local, regional and national suppliers.

On December 15, 2020, Resolution No. 391/20 was published in the BO, whereby the natural gas volumes offered under the GasAr Plan were awarded.

In this sense, out of a total base volume of 67.42 million m3/day of natural gas to be purchased, in terms of the offered volume, the Company was ranked third in the Neuquina Basin, with a base volume awarded of 4.9 million m3/day at an annual average price of US$ 3.60 per million BTU for a term of four years effective as from January 1, 2021.

Additionally, the Company has been one of the three producers that offered an additional volume during the winter period, with the award of 1 million m3/day at a price of US$ 4.68 per million BTU. This volume is indispensable to accompany the high seasonality of the Argentine demand, reducing gas imports, the consumption of alternative fuels, and the use of foreign-currency reserves.

Besides, the Company was the firm with the highest increase in offered production (20% between base injection and the winter period) under the call for tenders.

The award granted to the Company represents a 7 million m3/day commitment and, based on the gas curve projected by the SE, the Company has entered into contracts with CAMMESA, IEASA and the other distributors that operating as from January 2021.

31 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

It is worth highlighting that this positioning minimizes contractual demand risks and makes it feasible for the Company to make a strong investment commitment, which will amount to approximately US$ 250 million during the four years of validity of the GasAr Plan.

2.3.2.2 Natural Gas for the Residential segment and CNG

Natural Gas Price within the PIST

On account of the significant devaluation of the Argentine peso and the impossibility to transfer this impact to final users’ tariff schemes, in early October, 2018 prices began to be agreed with distributors in the spot market on a daily basis.

On November 15, 2018 PEN Executive Order No. 1,053/18 was issued, which established, on an exceptional basis, that the Federal Government would bear the exchange difference between the price of gas purchased by gas distributors and that recognized in the gas distributors’ final tariffs for the April 2018 – March 2019 period. ENARGAS will determine the net amount to be transferred to each distributor in 30 monthly and consecutive installments as from October 1, 2019, updated with BNA’s 30-day interest rate; upon the collection of each installment, distributors will immediately make the corresponding payments to the involved natural gas suppliers, and will have to inform and provide proof of such payments before the ENARGAS on a monthly basis.

ENARGAS Resolution No. 466/19 and its amending provisions (Resolutions No. 554/19, No. 624/19 and No. 636/19), established the methodology to determine the amount payable by the Federal Government pursuant to the provisions of PEN Executive Order No. 1,053/18.

On October 25, 2019, the Company acceded to the collection procedure established by PEN Executive Order No. 1,053/18 and regulated by ENARGAS Resolution No. 466/19, the net amount of the receivable pending collection by the Company ascertained pursuant to ENARGAS Resolution No. 735/19 dated November 14, 2019 reaching $ 1,219 million. In December 2019, the Company collected the first installment of $ 41 million, but none of the overdue additional installments have been collected during 2020.

On December 14, 2020, National Budget Act No. 27,591 abrogated PEN Executive Order No. 1,053/18 without affecting rights acquired by the Company to collect the owed amount undertaken by the Federal Government during its term of validity. However, as of the date hereof no transfers corresponding to the overdue installments have been made, significantly affecting the recoverability of this receivable; consequently, in fiscal year 2020, the Company has recorded impairment losses in the amount of $ 888 million (US$ 13 million).

As of the issuance of these Consolidated Financial Statements, the Company is evaluating the possibility to initiate the pertinent proceedings for the collection of the overdue installments.

2.3.2.3 Acquisition of Natural Gas for Generation

Since November 2018, the Company has opted to make use of its self-supply capacity, during the term of SGE Resolution No. 70/18, and has destined a significant part of its natural gas production to its thermal units’ dispatch (see Note 2.1.5).

32 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

On the other hand, on December 27, 2018, under a CAMMESA auction conducted for the year 2019, offers for a total 222 million m3 interruptible gas-day were received, at seasonal PIST prices with a maximum price of US$5.2/MBTU and a minimum price of US$3.2/MBTU for the June-August 2019 period, and with a maximum price of US$3.7/MBTU and a minimum price of US$2.2/MBTU for the rest of the year. For implementation of this auction, reference PIST maximum seasonal prices, based on the source basin, were considered according to SGE Note No. 66680075/18, effective as of January 2019. Pampa took part in this auction.

Following the abrogation of SGE Resolution No. 70/18, which restored CAMMESA’s centralization scheme for the supply of fuels for generation purposes, as from December 2019 several successive calls for tenders without a purchase commitment were made (the purchased volume depends on the dispatch by thermal units on a daily basis).

On January 29, 2020, CAMMESA launched a tender for the purchase of the gas volumes required to meet the generation demand for the month of February 2020, with a 30% delivery commitment over the daily order, at an average price of US$ 2.67 for the Neuquina Basin. Since then, CAMMESA has replicated this methodology in all 2020 tenders, of which Pampa took part. Prices obtained in the tenders launched by CAMMESA have shown a sustained downward trend compared to year 2019 prices.

As a result of the implementation of the GasAr Plan, and taking into consideration that the awarded volume has not met the total demand, in the last days of the month of December 2020, a new tender was launched for January 2021, with a price of US$ 2.30 that, for awardees of the GasAr Plan that —as is the case of the Company— does not have either conditions or DOP.

2.3.2.4 Natural Gas Exports

Through resolutions MEyM No. 104/18 and SGE No. 9/18, subsequently replaced in July 2019 by the SGE Resolution No. 417/19, a Procedure for the Authorization of Natural Gas Exports was established. Authorizations, considering in all cases the security of supply to the Argentine domestic market, may consist of short-term (up to 1 year) or long-term (1 to 10 years) exports, whether on an interruptible basis or on a firm basis for summer periods (October - April for a term of up to 5 years), or operational exchanges in emergency situations. Likewise, in August 2019, through the SHC Provision No. 168/19, the terms and conditions for firm gas exports to Chile until May 15, 2020, were approved.

In December 2018 and January 2019, the Company was authorized pursuant to resolution SGE No. 252/18 and No. 12/19 to export natural gas to Chile and Uruguay, on an interruptible basis, respectively. Furthermore, in September 2019, Pampa obtained permission to export natural gas, on a firm basis, to ENAP Refineries in Chile.

On October 31, 2019, SSHC Resolution No. 284/19 was published in the BO, which approves the operating procedure for natural gas exports effective until September 30, 2021 seeking to:

- ensure the security of the supply to the domestic market; - ascertain the scope of any need to restrict gas exports which are operationally useful in case of lack of supply to the domestic market (the “Useful Interruption”); - organize, document, and provide predictability to natural gas restriction or interruption procedures; and - coordinate the actions to be implemented to ensure supply to the domestic market.

33 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

Under this proceeding, the SSHC, ENARGAS, Transport Licensees and Exporters should hold weekly/bi-weekly meetings to analyze the supply domestic status and its implications in gas exports, taking into consideration the projection of the operational status of the gas transportation system and subsystems, the domestic demand, and any event involving potential drawbacks.

The procedure establishes that should the security of the supply to the domestic market be at stake, producers should adjust their exports pursuant to what is resolved under such procedure, and the mere notice of Useful Interruption served by a reliable means will entail the abide by producers.

In case of incurring higher costs for the use of alternative fuels to generate electricity by the WEM (imported LNG, coal, FO or GO), whose cost was borne by the National Government, exporters must pay compensation to CAMMESA. Through SGE Resolution No. 506/19 issued on August 29, 2019, a minimum of US$ 0.1/MBTU and a maximum of US$ 0.2/MBTU for the exported volume were set, that could be offset with receivables for gas sale in in the domestic market with CAMMESA. Such compensation would be included in WEM’s cost of energy.

It should be pointed out that from September 4, 2018 to December 31, 2020, Executive Order No. 793/18 regulated the application of a 12% export tax rate with a cap of $ 4 over each exported US$ for natural gas exports. On December 14, 2019, Executive Order No. 37/19 voided the ceiling of $ 4 for each US$ exported, established in Article 2 of Decree No. 793/18 as amended.

Law No. 27,541 authorized the PEN to modify the Export Duties corresponding to hydrocarbons sold in the external market and ratified the validity of Executive Order No. 793/18 and No. 37/19.

As from the entry into effect of the GasAr Plan, awardees will have preferential firm export conditions for a total volume of up to 11 million m3 per day, exclusively during the non-winter period, which may be used both for exporting natural gas through pipelines and for its domestic liquefaction for its later export as LNG. Firm permits may be obtained for 4 million m3/d in the Neuquina Basin and 2 million m3/d in the Austral Basin (with priority being determined by the price-competition positioning under the GasAr Plan).

34 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

2.4 Oil market

On May 18, 2020 Executive Order No. 488/20 was issued, which provides for a series of measures aiming to preserve crude oil’ exploration and production activities; its main provisions are outlined below:

- It sets a billing price of 45 US$/bbl for the commercialization of Medanito-type crude oil in the domestic market, adjusted by quality for other types of crude oil and loading ports, effective from the executive order’s publication date to December 31, 2020.

- It sets a price for the so-called “Criollo Barrel”, which will be quarterly reviewed and rendered ineffective if the Brent oil price exceeds 45 US$/bbl for 10 calendar days.

- It forces producing and refining companies to keep activity levels similar to those recorded in 2019, although taking into consideration the current contraction in demand resulting from the COVID-19 pandemic, and also requires refining companies to acquire their whole crude oil demand from domestic producers.

- It limits, while the support price remains in effect, access to the foreign exchange market by producing companies to purchase foreign assets and/or securities denominated in pesos for their further sale in foreign currency or custody transfer abroad.

- It sets a 0% rate for crude oil export duties considering a base value lower than 45 US$/bbl. The rate will increase gradually as the international price increases until reaching 8%, the cap to be recognized when this price equals or exceeds 60 US$/bbl.

As regards the oil market, after the cutbacks on supply implemented by the OPEC and OPEC+ and the gradual easing of lockdown measures attempted by several countries, a recovery trend was evidenced in the listings of crude oil and its derivatives, with the Brent crude oil showing a sustained price above 40 US$/bbl as from mid-June, after reaching a minimum value below 20 US$/bbl in the month of April 2020.

The validity of the support price for the sale of crude oil in the domestic market, established by Executive Order No. 488/20, terminated on August 31, 2020 as the international Brent crude oil price exceeded US$45/bbl for 10 consecutive days.

2.4.1 Hydrocarbon exploration and exploitation levy

On September 26, 2019, the Province of Neuquén published Executive Order No. 2.032/19, which established values for the exploration and exploitation levy effective as from 2020. An exploration levy of $ 1,245, $ 4,980, $ 7,470 and $ 87,150 per km2 or fraction is set for the first, second, third period and extension, respectively, as well as an exploitation levy of $ 22,410 per km2 or fraction.

35 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

Likewise, at the national level the Executive Order No. 771/20 updates the value of the hydrocarbon exploration and exploitation levy payable on a yearly basis to the Federal Government or the Provincial Jurisdiction, as applicable, effective as from fiscal year 2021. It establishes an exploration levy for an amount in pesos equivalent to 0.46, 1.84 and 32.22 oil barrels per square kilometer for the first period, the second period and the term extension, respectively, as well as an exploitation levy for a maximum amount in pesos equivalent to 8.28 oil barrels per square kilometer or fraction.

2.5 Gas Transportation

2.5.1. General aspect

TGS’ license has been granted for an original term of 35 years starting December 28, 1992. However, upon termination TGS may request to the ENARGAS a License extension for an additional ten-year period. Upon termination of the License’s life, whether it be 35 or 45 years, the Natural Gas Law and Executive Order No. 2,458/92 require the call for a new bid for the granting of a new license, where TGS —provided it has substantially met its obligations resulting from the License— will have the option to match the best offer received by the National Government during the bidding process.

2.5.2. TGS’s Tariff situation

2.5.2.1. Integral Agreement

On March 30, 2017, within the framework of the tariff renegotiation process, TGS executed the 2017 Integral Agreement which, after being approved by the different intervening government agencies and the National Congress, was ratified on March 27, 2018, through PEN Decree No. 250/18. This decree represents the conclusion of the RTI process and terminates all transitional agreements celebrated by TGS, and thus, the final renegotiation of the license after seventeen years of negotiations.

The 2017 Integral Agreement sets the guidelines for the provision of the natural gas transportation service until the end of the License. Among these guidelines:

- The RTI Process, which will culminate in the signing of the integral agreement, was approved. As a result of this RTI, a new tariff schedule was also approved. This new tariff schedule applicable to the Company determined a total tariff increase of 214.2% and 37%, in the event that it had been granted in a single installment as of April 1, 2017, on the tariff of the natural gas transportation service and the CAU, respectively.

- A Five-Year Investment Plan to be executed by TGS is approved, the plan requires a high level of essential investments for the operation and maintenance of the pipeline system, to provide quality, safe and reliable service. The Five-Year Plan was for the period from April 1, 2017 to March 31, 2022 and amount to $ 6,786 million (valued at December 31, 2016).

- A non-automatic six-month adjustment mechanism for the natural gas transportation tariff and the investment commitments were approved. This adjustment must be approved by ENARGAS and for its calculation, the evolution of the WPI published by INDEC will be considered.

36 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

- TGS and its shareholders must withdraw any claim against the Government related to the natural gas transportation business, including the arbitration proceedings before the ICSID. The Company desisted from it on June 26, 2018.

As it is mentioned above the tariff increase was granted in 3 installments according to the following resolutions:

- Effective as of April 1, 2017, 64.2% of the tariff for the natural gas transport service, the CAU not being adjusted, in accordance with the provisions of Resolution No. 4,362/17.

- Effective as of December 1, 2017, after the issuance of Resolution No. 120/17, 81.1% on the tariff for the natural gas transport service and 29.7% on the CAU, which includes the first adjustment by WPI.

- Effective as of April 1, 2018, an increase of 50% over the tariff for the natural gas transport service and the CAU within the framework of the provisions of Resolution No. 310/18 issued by the ENARGAS.

2.5.2.2 Semi-annual tariff increase

This increase is granted within the framework of the semi-annual tariff adjustment of the natural gas transportation service in accordance with the provisions of the RTI process.

In the public hearing held on September 4, 2018, in which the Company requested, based on the variation of the WPI recorded for the period February - August 2018, a tariff increase of approximately 30%. Considering the hearing, on September 27, 2018, ENARGAS issued Resolution No. 265/18 which determined a 19.7% tariff increase effective as of October 1, 2018.

This increase was determined by ENARGAS based on the simple average of the WPI, the Construction Cost Index for the period February and August 2018 and the Salary Variation Index between December 2017 and June 2018.

37 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

It is noteworthy that ENARGAS supported the determination of the aforementioned tariff increase in the provisions of Resolution No. 4,362/17, which, among other issues, provided that under certain circumstances and macroeconomic conditions, such as the significant devaluation occurred after April 2018, ENARGAS may use other indexes than the WPI to determine the tariff increase. TGS notified ENARGAS its disagreement with respect to the methodology for calculating the semi-annual adjustment.

On March 29, 2019, ENARGAS issued Resolution No. 192/19 approved, effective as from April 1, 2019, a 26% increase in tariff schemes applicable to the natural gas transportation utility by TGS current as of March 31, 2019.

In accordance with current regulations, ENARGAS has considered the evolution of the IPIM update index between the months of August 2018 and February 2019 to define six-monthly adjustments to TGS’ tariffs.

As regards the semi-annual tariff update which should have become effective as from October 1, 2019, on September 3, 2019, the ex SGE issued Resolution No. 521/19, later amended by Resolution No. 751/19, postponed its application until February 1, 2020. This deferral will result in TGS having to review and adjust, in the same proportion as the foregone income, the execution of the Five-Year Investment Plan.

However, the Solidarity Law provided that natural gas transportation and distribution tariffs would remain unchanged for a term of 180 days as from December 23, 2019. In this sense, the PEN is vested with the power to renegotiate them, whether under the current RTI or through an extraordinary review pursuant to the provisions of the Natural Gas Law.

On June 9, 2020, pursuant to Resolution No. 80/2020, the ENARGAS created the Coordination and Centralization Committee —Act No. 27,541 and Executive Order No. 278/20— with the mission of coordinating the Integral Tariff Structure Review provided for in section 5 of the Solidarity Law.

On June 19, 2020, the PEN issued Executive Order No. 543/2020 extended the life of that natural gas transport and distribution tariffs would remain undestop for an additional term of 180 calendar days, that is, until December 16, 2020.

Pursuant to Emergency Executive Order No. 1,020/2020, the PEN launched the renegotiation of the RTI finished in 2018, which may not exceed a term of 2 years. Until then, renegotiation agreements in force are suspended. The renegotiation will be conducted by ENARGAS ad referendum to the PEN.

Furthermore, Executive Order No. 1,020/2020 extends the tariff freeze for an additional term of 90 calendar days or until the approval of the transitory tariffs. It is worth highlighting that all the agreements, whether transitory or general, entered into with the Federal Government will have to contemplate the public hearing proceedings established by the current regulations and be authorized by the different governmental bodies.

Additionally, the Solidarity Law provides for the administrative intervention of the ENARGAS, recently extended through Decree No. 1,020.

On February 22, 2021, ENARGAS issued Resolution No. 47/21 convening a public hearing by 16 March 2021 to consider the transitional tariff increase in accordance with Decree No. 1,020.

38 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

2.5.2.3 Collection deferrals

On June 21, 2019, the SGE issued Resolution No. 336/19 establishing a 22% payment deferral on bills issued to natural gas distributors from July 1, 2019 to October 31, 2019 for the utility services provided to natural gas residential users.

The described deferrals will be recoverable in bills issued as from December 1, 2019 in five monthly, equal and consecutive installments.

As of December 31, 2019, TGS’s sales receivables from natural gas distributors amount to $ 1,206 million under these items.

2.5.2.4 Non-regulated segments

2.5.2.4.1 Domestic market

The Production and Commercialization of Liquids segment is not subject to regulation by ENARGAS. However, over recent years, the Argentine Government enacted regulations which significantly impacted it.

GLP domestic sales prices are impacted by the provisions of Law No. 26,020 "Regime of the industry and commercialization of liquefied petroleum gas" and the SRH (former Secretary of Hydrocarbon Resources), that sets forth LPG minimum volumes to be sold in the local market in order to guarantee domestic supply.

In this context, TGS sells the production of propane and butane to fractionators at prices determined semiannually by the SRH. On March 30, 2015, the PEN issued Decree No. 470/15, regulated by SE Resolution No. 49/15, which created the “Household Plan” and sets a maximum reference price for the members of the marketing chain in order to guarantee the supply to low-income residential user, by committing the GLP producers to supply at a fixed price with a quota assigned to each producer. Additionally, payment of compensation to the Household Plan participating producers was established.

In 2020, pursuant to Executive Order No. 311, maximum reference prices for the sale of LPG, which TGS sells in the domestic market, remained unchanged for a term of 180 calendar days as from its issuance date. On October 19, 2020, the SE passed Resolution No. 30/2020 increasing the price of these products to $ 10,885.

In this context, TGS has filed various administrative and judicial claims challenging the general regulations of the program, as well as the administrative acts that determine the volumes of butane that must be sold in the domestic market, in order to safeguard its economic-financial situation and thus, preventing that this situation does not extend over time.

In addition, TGS is a party of the Propane Gas Supply Agreement for Induced Propane Gas Distribution Networks ("Propane for Networks Agreement") entered into with the Argentine Government by which it undertakes to supply propane to the domestic market at a price lower than the market price. In compensation, TGS receives an economic compensation calculated as the difference between the sale price and the export parity determined by the SE

39 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

Within the gradual subsidies reduction path granted by MINEM, on March 31, 2017, the MINEM issued Resolutions No. 74 and No. 474/17 that stipulate increases in the price of undiluted propane gas destined to the Propane for Networks Agreement as of April 1 and December 1, 2017, respectively. From those dates onwards, the price of undiluted propane gas had been set at $ 1,267/tn and $ 2,832/tn and $ 1,941.20/tn and $ 3,964/tn, respectively, depending on the client to whom the undiluted propane gas is delivered.

Finally, in May 2018, TGS initiated the sixteenth extension by which the methodology for determining the price and volumes for the period April 1, 2018 - December 31, 2019 is established. Additionally, this last extension established the propane sale price to customers under this program. Notwithstanding the foregoing, on January 14, 2020 TGS received an instruction issued by the SE to proceed with propane deliveries in accordance with set conditions by the sixteenth extension. Later, TGS executed the seventeenth extension to the Propane for Grids Agreement, effective until December 31, 2020. As of the date of issue of these Consolidated Financial Statements, this agreement has not been extended.

During 2020 and 2019, TGS received the amount of $ 150 million and $ 638 million, for subsidies for the programs mentioned above, respectively.

As it has been previously mentioned, participation in the Household Plan results in economic and financial damage to TGS, since under certain circumstances products would be sold at prices below their production costs.

As of December 31, 2020, the Argentine Government owes TGS $ 303 million under these items.

2.5.2.4.2 Foreign market

On September 3, 2018, the Executive Branch issued Decree No. 793/18, which, between September 4, 2018 and December 31, 2020, sets an export duty of 12% on the exported amount of propane, butane and natural gasoline. This withholding is capped at $4 for each dollar of the tax base or the official FOB price. Later, as a result of the enactment Law No. 27,541, an 8% cap was set for the rate applicable to hydrocarbons effective as from December 23, 2019.

Executive Order No. 488/2020 regulated the rate applicable to the export duties for certain gas and oil derivatives, including the products produced and exported by TGS, which will range between 0% and 8% depending on the price of the “ICE Brent first line” barrel. If this price is below US$ 45, the rate will be 0%. Instead, if the price equals or exceeds US$ 60, an 8% rate will be paid, and the rate will be variable if the price is between US$ 45 and US$ 60.

40 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

2.6 Tax regulations - Main tax reforms

Pursuant to Act No. 27,430 and Act No. 27,541, several modifications were introduced in the tax treatment, the key components of which are described below:

2.6.1 Income tax

2.6.1.1 Income tax rate

According to Law No. 27,430, the income tax rate for Argentine companies will be gradually reduced from 35% to 30% for fiscal years beginning as from January 1, 2018 until December 31, 2019, and to 25% for fiscal years beginning as from January 1, 2020.

However, Law No. 27,541 suspended the reduction in the rate projected for fiscal years beginning on or after January 1, 2021, providing that during the suspension period the tax rate will remain at 30%.

The effect of the application of the income tax rate changes on deferred tax assets and liabilities pursuant to the above- mentioned tax reform was recognized, based on their expected realization year, in “Effect of tax rate change in the deferred tax” under Income tax of the Consolidated Statement of Comprehensive Income (Note 10.6).

2.6.1.2 Tax on dividends

According to Law No. 27,430, the tax on dividends or earnings distributed by, among others, Argentine companies or permanent establishments to individuals, undivided estates or beneficiaries residing abroad is introduced based on the following considerations: (i) dividends resulting from earnings accrued during fiscal years beginning as from January 1, 2018 until December 31, 2019, will be subject to a 7% withholding; and (ii) dividends resulting from earnings accrued during fiscal years beginning as from January 1, 2020 will be subject to a 13% withholding.

Pursuant to the suspension of the Income Tax rate provided for by Law No. 27,541, the 7% withholding will remain in effect for fiscal years beginning on or before January 1, 2021.

Dividends resulting from benefits gained until the fiscal year prior to that beginning on January 1, 2018 will remain subject to the 35% withholding on the amount exceeding the untaxed distributable retained earnings (equalization tax’ transition period) for all beneficiaries.

2.6.1.3 Optional Tax revaluation

Law No. 27,430 provides that Companies may opt to make a tax revaluation of assets located in the country and subject to the generation of taxable earnings existing as of December 31, 2017. The special tax on the revaluation amount depends on the asset, and will amount to 8% for real estate not accounted for as inventories, 15% for real estate accounted for as inventories, and 10 % for personal property and the remaining assets. Once the option is exercised for a certain asset, all assets within the same category should be revalued.

41 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation) The tax result from the revaluation will not be subject to income tax, and the special tax on the amount of the revaluation will not be deductible from such tax.

Several regulations (Decrees No. 353/18, No. 613/18 and No. 143/19 and AFIP General Resolution No. 4,287), have repeatedly postponed the date for exercising this option based on the international context and the greater volatility in financial variables affecting decision-making regarding the exercise of the option.

On March 27, 2019, Pampa and CPB, based on their evaluation of the domestic context and the evolution of financial variables (including the inflation rate), exercised their option to adhere to the tax revaluation regime on their property, plant and equipment existing as of December 31, 2017 pursuant to Title X of Law No. 27,430, the tax cost of such property thus increasing to $ 15,311 million.

On exercising this option, Pampa and CPB have paid the special tax for a principal amount of $ 1,495 million plus interest for $ 45 million.

Additionally, Pampa and CPB had to waive all lawsuits and rights invoked in any previously brought judicial or administrative proceedings seeking the application of updating mechanisms on the income tax (see Notes 11.6.1 and 15.2). Furthermore, Pampa and CPB had to waive their rights to initiate any judicial or administrative proceeding seeking the application of such updating mechanisms regarding fiscal years ended before December 31, 2017.

2.6.1.4 Tax inflation adjustment

Law No. 27,430 sets out the following rules for the application of the income tax inflation adjustment mechanism:

(i) a cost adjustment for goods acquired or investments made during fiscal years beginning after January 1, 2018 taking into consideration the percentage variations in the IPC published by the INDEC; and

(ii) the application of the adjustment provided for by Title VI of the Income Tax Law when variations in the above-mentioned index exceed one hundred percent (100%) over the thirty-six (36) months preceding the closing of the fiscal period to be settled; alternatively, for the first, second and third fiscal year as from its effective date, this proceeding will apply in case the accumulated variation in such price index, calculated from the beginning of the first fiscal year to the closing of each fiscal year, are higher than fifty-five percent (55%), thirty percent (30%) and fifteen percent (15%) for the years 2018, 2019 and 2020, respectively.

Law No. 27,541 provides that, as regards the positive or negative fiscal inflation adjustment determined as a result of the application of the adjustment provided for by Title VI of the Income Tax Law corresponding to the first and second fiscal year starting as from January 1, 2019, one-sixth (1/6) should be charged in that fiscal period and the remaining five sixths (5/6), in equal parts, in the five immediately following fiscal periods.

As of the end of fiscal year 2018, an accumulated variation in the price index exceeding the foreseen 55% condition for the application of the comprehensive adjustment in such first fiscal year was not evidenced. However, the costs of goods acquired during fiscal year 2018 have been adjusted in accordance with the procedure stated in subsection (i).

42 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation) As of December 31, 2019 and 2020, the cumulative variation in the IPC had exceeded the 15% and 30% condition set for the third and second transition years, , pursuant to Law No. 27,430, and, therefore, the effect of the tax inflation adjustment has been accrued in the calculation of the current and deferred income tax provision, except in cases where, as irregular fiscal years, the legal parameter mentioned for each of the annual financial years has not been exceeded.

The Company and its subsidiaries determine and disclose the impact of the tax inflation adjustment for each of the fiscal periods in which it is applicable taking into consideration the annual guideline established by Act No. 27,430.

2.6.2 Value-added tax

A procedure is established for the reimbursement of tax credits originated in investments in property, plant and equipment which, after 6 months as from their assessment, have not been absorbed by tax debits generated by the activity.

2.7 Regulations on access to the exchange free market (“MLC”)

The following is a summary of the main measures taken by the BCRA with the purpose of regulating inflows and outflows in the MLC to maintain the exchange rate stability and protect international reserves in view of the high degree of uncertainty and volatility in the exchange rate by tightening exchange controls and restrictions on the inflow and outflow of foreign exchange. In this regard, in 2020, the BCRA issued a series of communications (including, but not limited to, Communications “A” 7001, 7030, 7042, 7052, 7068, 7106, 7142 and 7152), which introduced restrictions associated, among other factors, with transactions with stock market assets by companies and the disposal of liquid foreign assets, thus imposing further restrictions on access to the MLC.

In main, it provided for the obligation to file an affidavit to access the MLC without BCRA’s prior authorization, certifying that all foreign-currency holdings in the country are deposited in accounts with local financial institutions and that it have liquid foreign assets available was requested for an amount equivalent to or higher than US$ 100,000. In case such liquid foreign assets exceed the amount of US$ 100,000, but include reserve or guarantee funds created under debt contracts or transactions with derivatives entered into abroad and that may not be used, an additional affidavit should be submitted.

To such effects, the term “liquid foreign assets” will comprise, among others: holdings of foreign currency notes and coins, availability of gold in the form of good delivery bars or coins, sight deposits in foreign financial entities and other investments allowing for the immediate availability of foreign currency (for example, investments in foreign public securities, funds in investment accounts deposited with investment managers located abroad, crypto assets, funds deposited in payment service providers’ accounts, etc.). On the other hand, the following will not be considered available liquid foreign assets: funds deposited abroad which may not be used by the customer as they are reserve or guarantee funds created under foreign debt contracts, or funds kept as collateral for foreign transactions with derivatives entered into abroad.

Furthermore, it established the obligation to enter and settle in the MLC, in case access has been requested and within a term of five business days after they become available, foreign funds originating from the collection of loans granted to third parties, the collection of time deposits or the sale of any kind of asset, in case the asset has been acquired, the deposit has been made or the loan has been granted after May 28, 2020;

43 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 2: (Continuation)

As regards transactions with stock market assets, it established: (i) the restriction, as from the moment access to the MLC is requested, to perform security sales transactions to be settled in foreign currency or their transfer to depository institutions abroad for a term of 90 days before and after the request, and the filing of an affidavit in this respect; and (ii) that transactions with securities concerted abroad and securities acquired abroad may not be settled in pesos in the country.

Regarding imports, BCRA’s prior authorization to access the MLC is required to make payments for the import of certain goods abroad or to cancel the principal of debts originating from the import of goods by companies. Additionally, and before executing payments for the import of goods, entities should verify that the affidavit requested to the customer is compatible with BCRA’s existing data. Moreover, the need for BCRA’s prior authorization to access the MLC for the cancellation of principal of foreign financial debts with foreign affiliates remains in effect until March 31, 2021 inclusive.

Furthermore, the BCRA established the obligation to submit a refinancing plan for certain debts and principal maturities scheduled between October 15, 2020 and March 31, 2021, based on the following criteria: (i) access to the MLC for up to 40% of the principal amount, within the original term; and (ii) the refinancing of the principal balance, through new foreign indebtedness with an average life of 2 years. Within the framework of this refinancing process, access to the MLC is allowed for the early cancellation of principal, interest or debt swaps up to 45 calendar days before the maturity date, provided all requirements set forth by the regulation have been verified.

Regarding transactions that have been entered and settled through the MLC as from November 16, 2020 and are destined to the financing of projects under the Gas.Ar Plan (see Note 2.2.2.1.2), the BCRA issued Communication “A” 7168 providing for access to the MLC: (i) to transfer foreign currency abroad as earnings and dividends to non-resident shareholders, as from the second anniversary of the investment; (ii) for the repayment of principal and interest of foreign debts with an average life of no less than two years; (iii) for the repatriation of direct investments by non-residents as from the second year and up to the amount of the direct-investment contributions settled in the MLC in the case of a share capital reduction and/or a reimbursement of irrevocable capital contributions by the domestic company, among other requirements provided in the regulation.

After December 31, 2020, BCRA Communication “A” 7196 provided, among other modifications, for a series of measures aiming to make regulations more flexible so as to facilitate the exchange or financing of foreign private-sector liabilities that have been entered and settled through the MLC and concerted as from January 7, 2021, such as: (i) the extension of the term before the maturity date to access the MLC for the cancellation of principal and interest of foreign financial debts or debt securities publicly registered in the country and denominated in foreign currency; and (ii) the possibility to accumulate funds originating from the collection of goods and services exports in foreign and/or domestic accounts destined to guarantee the payment of maturities of debts concerted as from January 2021, among others.

More information on Argentina’s foreign exchange regulations can be found at the Central Bank’s website: www.bcra.gov.ar.

44 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 3: BASIS OF PREPARATION

These Consolidated Financial Statements have been prepared in accordance with IFRS issued by IASB and have been approved for issue by the Board of Directors dated March 10, 2021. Significant accounting policies adopted in the preparation of these Consolidated Financial Statements are described in Note 4, which have been consistently applied.

These accounting policies have been applied consistently by all Group companies.

On account of the execution of the contract for the sale of the 51% interest in Edenor (see detail in Note 5.3.1), comparative results corresponding to the electricity distribution segment have been disclosed under “Discontinued operations” in the statement of comprehensive income.

Figures corresponding to commercial interest presented in comparative form have been reclassified from Financial income to Other operating income to maintain consistency with this period’s figures in accordance with the change of policy detailed in Note 4.

The Company adopted the U.S. dollar as its functional currency commencing on January 1, 2019; therefore, previous comparative figures have been restated in terms of the measuring unit current as of December 31, 2018 in accordance with IAS 29 — “Financial reporting in hyperinflationary economies”, since the Peso was the Company’s functional currency up to that date.

Additionally, other not significant reclassifications have been made to those financial statements to keep the consistency in the presentation with the amounts of the current year.

45 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: ACCOUNTING POLICIES

The main accounting policies used in the preparation of these consolidated Consolidated Financial Statements are explained below.

The Company has modified its policy for the classification of commercial interest in the statement of comprehensive income as it understands that the items corresponding to late payment surcharges in the cancellation of sales receivables provide relevant information on the business operations and operating flows rather than represent the Company’s financial performance and, therefore, as from this fiscal year, they are disclosed under Other operating income. Management considers that this presentation better reflects the impacts of the operating cycle, allowing for a unified presentation together with other expenses already disclosed under operating expenses (including the impairment of receivables), mainly considering the context detailed in Note 1.2, which furthered the delay in payment terms to generators and hydrocarbon producers.

4.1 New accounting standards, amendments and interpretations issued by the IASB effective as of December 31, 2020 and adopted by the Company

The Company has applied the following standards and / or amendments for the first time as of January 1, 2020:

- Conceptual Framework (issued in March 2018).

- IFRS 3 “Business Combinations” (amended in October 2018).

- IAS 1 “Presentation of Financial Statements” and NIC 8 “Accounting Policies, Changes in Accounting Estimates and errors” (amended in October 2018).

- IFRS 9 “Financial Instruments”, NIC 39 “Financial Instruments: Presentation” and IFRS 7 “Financial Instruments: Disclosures” (amended in September 2019).

- IFRS 16 “Leases” (amended in May 2020)

The application of the detailed standards and amendments did not have any impact on the results of the operations or the financial position of the Company.

4.2 New standards, amendments and interpretations issued by the IASB not yet effective and which have not been early adopted by the Company

- IFRS 17 -“Insurance Contracts”: issued in May 2017 and modified in June 2020. It supersedes IFRS 4, introduced in 2004 as an interim standard, which gave companies dispensation to carry on accounting for insurance contracts using national accounting standards, thus resulting in several application approaches. IFRS 17 sets the principles for the recognition, measurement, presentation and disclosure of information associated with insurance contracts and is applicable as from January 1, 2023, allowing for its early adoption for entities already applying IFRS 9 and IFRS 15. The Company estimates that its application will not have a significant impact on the Company’s operating results or financial position.

46 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

- IAS 1 - “Presentation of financial statements”: amended in January and July 2020. It incorporates amendments to the classification of liabilities as current or non-current. Amendments are applicable to fiscal years starting on or after January 1, 2023, allowing for early adoption. Its application will not have a significant impact on the Company’s operating results or financial position.

- IFRS 3 – “Business Combinations”: amended in October 2020. It incorporates references to the definitions of assets and liabilities of the new Conceptual Framework and clarifications associated with contingent assets and liabilities incurred separately from those taken on in a business combination. It applies to business combinations as from January 1, 2022, and allows for its early adoption.

- Annual Improvements to IFRS Standards – 2018-2020 Cycle: amendments were issued in May 2020 and are applicable to annual periods starting as from January 1, 2022. The Company estimates that their application will not have a significant impact on the Company’s operating results or financial position.

- IAS 16 – “Property, Plant and Equipment”: amended in May 2020. It incorporates modifications on the recognition of inventories, sales and costs of items produced while bringing an item of property, plant and equipment to the location and the conditions necessary for it to be capable of operating in the manner intended. Amendments are applicable to fiscal years starting on or after January 1, 2022, allowing for early adoption. The Company is currently analyzing the impact of the application of these modifications in its operating results or financial position.

- IAS 37 – “Provisions, Contingent Liabilities and Contingent Assets”: amended in May 2020. It clarifies the scope of the concept of fulfillment cost of an onerous contract. Amendments are applicable to fiscal years starting on or after January 1, 2022, allowing for early adoption. The Company estimates that its application will not have a significant impact on the Company’s operating results or financial position.

- Amendments to IFRS 9 – “Financial Instruments”, IAS 39 – “Financial instruments: Presentation” and IFRS 7 – “Financial Instruments: Disclosures”, IFRS 4 – “Insurance Contracts” and IFRS 16 – “Leases”: amended in August 2020. It incorporates guidelines for the measurement of financial assets and liabilities at amortized cost affected by the reform in the reference interest rate. Amendments are applicable to fiscal years starting on or after January 1, 2021. The Company is currently analyzing the impact of the application of these modifications in its operating results or financial position.

4.3 Effects of changes in foreign exchange rates

4.3.1 Functional and presentation currency

The information included in these Consolidated Financial Statements is recorded in U.S. Dollars, which is the Company’s functional currency, that is, the currency of the primary economic environment where the entity operates and, pursuant to the CNV’s requirements, is presented in pesos, the legal currency in Argentina.

47 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.3.2 Foreign-currency transactions and balances

Foreign currency transactions are translated into the functional currency at the exchange rates prevailing on each transaction date or valuation date, when items are remeasured. Foreign exchange gains and losses arising on the settlement of monetary items and on translating monetary items at the closing of the fiscal year using year-end exchange rate are recognized within the financial results in the statement of comprehensive income, with the exception of capitalized amounts.

4.3.3 Group companies’ translation into presentation currency

The Company applies the step-by-step method of consolidation; consequently, the financial statements of entities with a functional currency different from the U.S. dollar are first translated into the Company’s functional currency and later into the presentation currency.

The results and financial position of the Company, its subsidiaries, joint ventures and associates with the U.S. dollar as their functional currency are translated into the presentation currency at the end of each period using the following method:

- assets and liabilities are translated at the year-end exchange rates;

- income and expenses are translated at the exchange rate in effect on the date of each transaction;

- results from the translation of functional into presentation currency are recognized under “Other comprehensive income”.

The results and financial position of subsidiaries, joint ventures and associates whose functional currency is the Argentine Peso, a currency of a hyperinflationary economy, are translated into the presentation currency using the year- end exchange rate. The results generated by the application of IAS 29 adjustment mechanism for hyperinflationary economies, on the opening equity measured in functional currency are recognized under “Other comprehensive income”.

4.3.4 Classification of Other comprehensive income within the Company’s equity

The Company classifies and directly accumulates within equity, in the retained earnings line, the translation differences generated by results (at opening balance and for the year) of the Company and its subsidiaries, joint ventures and associates which functional currency is the U.S. dollar.

The Company classifies and directly accumulates within equity, in the retained earnings line, the results generated by the application of the IAS 29 adjustment mechanism on the opening retained earnings, measured in functional currency, while the remaining results are presented in a separate component of equity and accumulated until the disposal of the foreign operation in “Other comprehensive income”, in accordance with IAS 21.

As a result of the application of the described policy, the translation of the functional currency into a different presentation currency does not change the way in which the underlying items are measured, preserving the amounts, both retained earnings and equity holders, measured in the functional currency in which they are generated.

48 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.4 Principles of consolidation and equity accounting

4.4.1 Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The Group cease consolidation of entities from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group (see Note 4.4.5 below).

Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed when necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Statement of Financial Position respectively.

4.4.2 Associates

Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see Note 4.4.4 below), after initially being recognized at cost.

4.4.3 Joint arrangements

Investments in joint arrangements are classified as either joint operations or joint ventures, according IFRS 11 “Joint Arrangements”. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Company has both joint operations and joint ventures.

4.4.3.1 Joint operations

The Company recognizes its direct right to the assets, liabilities, incomes and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, incomes and expenses. These have been incorporated in the Consolidated Financial Statements under the appropriate headings.

4.4.3.2 Joint ventures

Interests in joint ventures are accounted for using the equity method (see Note 4.4.4 below), after initially being recognized at cost.

49 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.4.4 Equity Method

Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment.

When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, together with any long-term interests that, in substance, form part of the net investment, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group.

The carrying amount of equity accounted investments is tested for impairment in accordance with the policy described below in Note 4.9.

4.4.5 Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisitions comprises:

(i) the fair value of the transferred assets, (ii) the liabilities incurred to the former owners of the acquired business, (iii) the equity interests issued by the group, (iv) the fair value of any asset or liability resulting from a contingent consideration arrangement, and (v) the fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The group recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.

Acquisition-related costs are expensed as incurred. The value of the goodwill represents the excess of: i) the consideration transferred, ii) the amount of any non-controlling interest in the acquired entity, and iii) the acquisition- date fair value of any previous equity interest in the acquired entity, over the fair value of the net identifiable assets acquired is recorded as goodwill. If the fair value of the net identifiable assets of the business acquired exceeds those amounts, the gain on bargain purchase is recognised directly in profit or loss.

50 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in profit or loss.

The Group has up to 12 months to finalize the accounting for a business combination. Where the accounting for a business combination is not complete by the end of the year in which the business combination occurred, the Group reports provisional amounts.

4.4.6 Changes in ownership interests

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in “Other reserves” within equity attributable to owners of the Company.

When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate.

51 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.5 Segment reporting

Operating segments are reported in U.S. dollars in a manner consistent with the internal reporting provided to the Executive committee.

The Executive Committee, is the highest decision-making authority, is the person responsible for allocating resources and setting the performance of the entity’s operating segments, and has been identified as the person/ body executing the Company’s strategic decisions.

In segmentation the Company considers transactions with third parties and intercompany operations, which are done on internal transfer pricing based on market prices for each product.

4.6 Property, plant and equipment

Property, Plant and Equipment is measured following the cost model. It is recognized at acquisition cost less depreciation a less any accumulated impairment.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

The cost of work in progress whose construction will extend over time includes, if applicable, the computation of financial costs accrued on loans granted by third parties and other pre-production costs, net of any income obtained from the sale of commercially valuable production during the launching period.

Works in progress are valued according to their degree of progress. Works in progress are recorded at cost less any loss due to impairment, if applicable.

Assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each year. An asset’s carrying amount is written down immediately to its recoverable amount if the asset´s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the sale price with the carrying amount, stated in terms of the measuring unit current at the disposal date.

52 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.6.1 Depreciation methods and useful lives

The group depreciates productive wells, machinery and camps in the oil and gas production areas according to the units of production method, by applying the ratio of oil and gas produced to estimated proved developed oil and gas reserves. The acquisition cost of property with proved reserves is depreciated by applying the ratio of oil and gas produced to estimated proved oil and gas reserves. Acquisition costs related to properties with unproved reserves is valued at cost with recoverability periodically assessed on the basis of geological and engineering estimates of possible and probable reserves that are expected to be proved over the life of each concession.

Machinery and generation equipment (including any significant identifiable component) are depreciated under the unit of production method.

The group´s remaining items of property, plant and equipment (including any significant identifiable component) are depreciated by the straight-line method based on estimated useful lives, as detailed below:

Buildings: 50 years Vehicles: 5 years Furniture, fittings and communication equipment: 5- 20 years Computer equipment and software: 3 years Tools: 10 years Gas Plant and Pipeline: 20 years

If appropriate, the depreciation method is reviewed and adjusted at the end of each year.

4.6.2 Asset retirement obligations

Estimated future costs of asset retirement obligations on well abandonment in oil and gas areas and wind turbines decommissioning in wind farms, discounted at a risk adjusted rate, are capitalized in the cost of the assets and depreciated using the units of production method. Additionally, a liability at the estimated value of the discounted amounts payable is recognized. Changes in the measurement of asset retirement obligations that result from changes in the estimated timing, amount of the outflow of resources required to settle the obligation, or the discount rate, are added to, or deducted from, the cost of the related asset. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognized immediately in profit or loss.

53 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.7 Intangible assets

4.7.1 Goodwill

Goodwill is the result of the acquisition of subsidiaries. Goodwill represents the excess of the acquisition cost over the fair value of the equity interest in the acquired entity held by the company on the net identifiable assets acquired at the date of acquisition.

For impairment testing, goodwill acquired in a business combination is allocated from the acquisition date to each of the acquirer’s CGU or group of CGUs that are expected to benefit from the synergies of the combination. Each unit or group of units that goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.

4.7.2 Concession arrangements

Concession arrangements corresponding to Edenor and hydroelectric generation plants Diamante and Nihuiles are not under the scope of the guidelines of IFRIC 12 “Service Concession Arrangements”.

These concession agreements meet the criteria set forth by the IFRSs for capitalization less depreciation a less any accumulated impairment. They are amortized following the straight-line method based on each asset’s useful life, which corresponds to the life of each concession agreement.

4.7.3 Identified intangible assets in acquired investments

Corresponds to intangible assets identified at the moment of the acquisition of companies. Identified assets meet the criteria established in IFRS for capitalization less depreciation a less any accumulated impairment. They are amortized by the straight-line method according to the useful life of each asset, considering the estimated way in which the benefits produced by the asset will be consumed.

4.8 Assets for oil and gas exploration

The Company uses the successful efforts method of accounting for its oil and gas exploration and production activities. This method involves the capitalization of: (i) the cost of acquiring properties in oil and gas exploration and production areas; (ii) the cost of drilling and equipping exploratory wells that result in the discovery of commercially recoverable reserves; (iii) the cost of drilling and equipping development wells, and (iv) the estimated asset retirement obligations (see Note 4.6.2).

According to the successful efforts method of accounting, exploration costs (including geological and geophysical costs), excluding exploratory well costs, are expensed during the period in which they are incurred. Drilling costs of exploratory wells are capitalized until it is determined that proved reserves exists and they justify the commercial development. If reserves are not found, such drilling costs are expensed. Occasionally, an exploratory well may determine the existence of oil and gas reserves but they cannot be classified as proved when drilling is complete. In those cases, such costs continue to be capitalized insofar as the well has allowed determining the existence of sufficient reserves to warrant its completion as a production well and the Company is making sufficient progress in evaluating the economic and operating feasibility of the project.

54 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.9 Impairment of non-financial long-lived assets

Intangible assets that have an indefinite useful life and goodwill are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.

The remaining non-financial long-lived assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of assets (CGU).

Non-financial long-lived assets, other than goodwill, that have been impaired are reviewed for possible reversal of the impairment at the end of each reporting period.

4.10 . Financial assets

4.10.1 Classification

The Group classifies its financial assets in the following categories:

(i) those that are subsequently measured at fair value (either through other comprehensive income or through profit or loss), and

(ii) those that are subsequently measured at amortised cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual cash flow characteristics.

Gains and losses from financial assets measured at fair value, will be recorded in the Statement of Comprehensive Income or in Statement of Other Comprehensive Income.

Investments in equity instruments are measured at fair value. For those investments that are not held for trading, the Company may make an irrevocable election at initial recognition to present subsequent changes in other comprehensive income. The Company's election was to recognize changes in fair value through profit and loss.

The company reclassifies financial assets when and only when it changes its business model for managing those financial assets.

55 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.10.2 Recognition

The conventional purchases and sales of financial assets are accounted for at trade date, that is, the date on which the Company undertakes to purchase or sell the asset, or at settlement date. Financial assets are derecognized when contractual rights to the cash flows from the financial assets have expired or been transferred, and the Company has substantially transferred all risks and rewards of ownership of the asset.

4.10.3 Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

A gain or loss on a debt investment that is subsequently measured at fair value and is not part of a hedging relationship is recognised in profit or loss and disclosed in “Changes in the fair value of financial instruments” within “Other financial Results. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognized in profit or loss when the financial asset is derecognised or impaired and through the amortization process using the effective interest rate method.

The Group subsequently measures equity investments at fair value. Dividends from such investments continue to be recognized in profit or loss as long as they represent a return on investment.

4.10.4 Impairment of financial assets

The Company assesses the expected credit losses related to its financial instruments at amortized cost and financial instruments at fair value through other comprehensive income, if applicable.

The Company applies the simplified approach allowed by IFRS 9 to measure expected credit losses for trade receivables and other receivables with similar risk characteristics. For this purpose, receivables are grouped by business segment and based on shared credit risk characteristics and expected credit losses are determined based on rates calculated for different ranges of default days from the due date.

The expected loss rates are based on the sales collection profiles over a period of 24 months before the end of each year, considering historical credit losses experienced within this period that are adjusted, if applicable, to reflect forward-looking information that could affect the ability of customers to settle the receivables.

4.10.5 Offsetting of financial instruments

Financial assets and liabilities are offset, and the net amount reported in the consolidated statements of financial position, when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

56 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.11 Trade and other receivables

Trade receivables and other receivables are recognized at fair value and subsequently measured at amortized cost, using the effective interest method, less provision for impairment, if applicable.

The Company recognises provisions for impairment on trade and other receivables based on expected credit loss model described in Note 4.10.4. Trade receivables are written off when there is no reasonable expectation of recovery. The Company considers the following default indicators: i) voluntary reorganization proceedings, bankruptcy or initiation of judicial demands; ii) insolvency implying a high impossibility of collection and iii) past due balances greater than 90 days.

Where applicable, allowances for doubtful tax credits have been recognized based on estimates on their uncollectibility within their statutory limitation period, taking into consideration the Company’s current business plans.

4.12 Derivative financial instruments and hedging account

Derivative financial instruments are measured at fair value, determined as the amount of cash to be collected or paid to settle the instrument as of the measurement date, net of any prepayment collected or paid. Fair value of derivative financial instruments traded in active markets is disclosed based on their quoted market prices and fair value of instruments that are not traded in active markets is determined using different valuation techniques. Subsequent accounting of changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The Company may designate derivative financial instruments in the following categories:

(i) fair value hedge of recognized assets or liabilities or over firm commitment (fair value hedge);

(ii) cash flow hedges of a particular risk associated with recognized assets and liabilities and highly probable future transactions (cash flow hedges), or

(iii) net investment hedge in foreign operation (net investment hedges).

At the beginning of the hedge relationship, the Group documents the economic relationship between the hedging instruments and the hedged items, even if it is expected that changes in the cash flows of the hedging instruments offset changes in the cash flows of the hedged items. The Group documents its objective and risk management strategy to carry out its hedging operations.

Changes in the measurement of derivative financial instruments designated as cash flow hedge, which have been determined as effective, are recognized in equity. The gain or loss related to the ineffective portion is recognized immediately in profit or loss. Changes in the measurement of derivative instruments that do not qualify for hedge accounting are recognized in profit or loss.

The Company has not formally designated financial instruments as hedging instruments.

57 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.13 Inventories

This line item includes crude oil stock, raw materials, work in progress and finished products relating to Petrochemicals and Oil and Gas business segments as well as materials and spare parts relating to the Generation business segment.

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average price method. The cost of inventories includes expenditure incurred in purchases and production and other necessary costs to bring them to their existing location and condition. In case of manufactured products and production in process, the cost includes a portion of indirect production costs, excluding any idle capacity (slack).

The net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs to make the sale.

The assessment of the recoverable value of these assets is made at each reporting date, and the resulting loss is recognized in the statement of income when the inventories are overstated.

The Company has classified materials and spare parts into current and non-current, depending on the timing in which they are expected to be used for replacement or improvement on existing assets. The portion of materials and spare parts for maintenance or improvements on existing assets, is exposed under the heading “Property, plant and equipment”.

4.14 Non-current assets (or disposal group) held for sale and discontinued operations

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights from insurance contracts, which are specifically exempt from this requirement.

An impairment loss is recognised for any initial or subsequent write-down of the asset until fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. The gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they be classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified group of assets classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. These assets and liabilities are not offset.

58 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

If it is a discontinued operation, that is, an item which has been disposed of or classified as held for sale; and (i) it represents a significant business line or geographic area which may be considered separate from the rest; (ii) it is part of a single coordinated plan to dispose of a significant business line or operating geographic area which may be deemed separate from the rest; or (iii) it is a subsidiary entity acquired solely for the purpose of reselling it; a single amount is disclosed in the statement of comprehensive income, which shows results of discontinued operations, net of tax, including the result for the valuation at fair value less cost of sales or asset disposal costs, if applicable.

4.15 Cash and cash equivalents

For the purpose of presentation in the Consolidated Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. If any, bank overdrafts are shown within borrowings in current liabilities in the Consolidated Statement of Financial Position and there are not disclosed under Cash and cash equivalents in the Consolidated Statement of Cash Flows since they are not part of the Company’s cash management.

4.16 Shareholder´s equity

Equity’s movements have been accounted for in accordance with the pertinent decisions of shareholders' meetings and legal or regulatory standards.

All equity accounts have been restated in terms of the measuring unit current as of December 31, 2018, with the exception of Share capital and Treasury shares, which represent the subscribed and paid in, and the outstanding treasury capital, respectively. The adjustment resulting from its restatement as of December 31, 2018 is disclosed in the Comprehensive share capital adjustment and Comprehensive treasury shares adjustment lines, respectively.

As from the change in functional currency, on January 1, 2019 the Company discontinued the preparation and presentation of financial statements under IAS 29, and has considered equity figures expressed in terms of the measuring unit current as of December 31, 2018 as the basis for subsequent financial statements’ amounts.

4.16.1 Share capital

Share capital represents the capital issued, composed of the contributions that were committed and/or made by the shareholders and represented by shares that comprise outstanding shares at nominal value.

59 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.16.2 Share premium

It includes:

(i) The portion of the collected price exceeding the face value of the shares issued by the Company, net of absorbed accumulated losses.

(ii) The difference between the fair value of the consideration paid/collected and the accounting value of the equity interest in the subsidiary acquired/sold/diluted which does not represent a loss of control or significant influence.

(iii) The difference between the proportional equity value registered before the merger of subsidiary and the value resulting from applying to the subsidiary’s merged equity interest, the new ownership share resulting from the exchange relationship.

4.16.3 Legal reserve

In accordance with the Argentine Commercial Companies General Law, 5% of the profit arising from the statement of income for the year, prior years' adjustments, the translation differences which are directly accumulated in Retained earnings (see Note 4.3.4), the amounts transferred from other comprehensive income and prior years' accumulated losses, must be appropriated to a legal reserve until such reserve equals 20% of the Company’s share capital, the related adjustment of share capital and the translation differences attributable to equity. When for any reason, the amount of this reserve will be shorter, dividends may not be distributed, until such amount is reached.

4.16.4 Voluntary reserve

This reserve results from an allocation made by the Shareholders’ Meeting, whereby a specific amount is set aside to cover for the funding needs of projects and situations associated with Company policies.

4.16.5 Other reserves

It includes the result of operations with non-controlling interest that do not result in a loss of control and reserves for stock compensation plans.

60 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.16.6 Retained earnings (Accumulated losses) Retained earnings comprise accumulated profits or losses without a specific appropriation; positive earnings can be distributable by the decision of the Shareholders' meeting, as long as they are not subject to legal restrictions. These earnings comprise prior years' earnings that were not distributed, translation differences which are directly accumulated in retained earnings pursuant to the policy described in Note 4.3.4, the amounts transferred from other comprehensive income and prior years' adjustments, according to IFRS.

General Resolution No. 593/11 issued by the CNV provided that Shareholders in the Meetings at which they should decide upon the approval of financial statements in which the Retained earnings account has a positive balance, should adopt an express resolution as to the allocation of such balance, whether to dividend distribution, capitalization, setting up of reserves or a combination of these. The Company’s Shareholders have complied with these requirements.

4.16.7 Other comprehensive income It includes gains and losses from the remeasurement process of foreign operations and the translation differences which are not classified and directly accumulated in retained earnings pursuant to the policy described in Note 4.3.4 and actuarial gains and losses for defined benefit plans and the related tax effect.

4.16.8 Dividends distribution

Dividend distribution to Company shareholders is recognized as a liability in the Consolidated Financial Statements in the year in which the dividends are approved by the Shareholders' Meeting. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements.

4.17 Compensation plans

The following guidelines under IFRS 2 have been taken into consideration for the registration of stock-based compensations:

4.17.1 Compensations payable in cash:

(i) Compensation Agreements – Senior Management: fixed compensation and annual, variable and contingent long- term compensation established based on the Company’s annual market value appreciation, with a payment cap over the Company’s adjusted operating income, approved by the Company’s Board of Directors on June 2, 2017 with the purpose of efficiently aligning the senior management’s interests with those of the Company and its shareholders. With the purpose of avoiding duplication, any analogous compensation paid to senior managers by any of the Company’s subsidiaries will be deducted from the compensation amount in proportion to the Company’s interests in such subsidiaries.

The reasonable value of the received services is measured through a share appreciation estimate using the Black- Scholes-Merton financial valuation model. The fair value of the amount payable is accrued and acknowledged as an expense, with the corresponding increase in liabilities. Liabilities are revalued on each balance sheet date. Any change in the fair value of liabilities is disclosed under profit or loss.

61 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

(ii) Annual Variable Compensation granted to certain officers for the performance of technical and administrative duties amounting to 7% and 4% of the EBDA accrued until November 2020 and from December 2020, respectively (EBITDA less paid income tax, less total net financial costs, less interest on its own capital, considering an annual 10% dollar-denominated rate) of PEPASA´s continuing business in Pampa. The Company recognizes a provision (liability) and an expense for this EBDA Compensation based on the previously mentioned formula.

4.17.2 Compensations payable in shares

Stock Compensation Plan – Officers and other key staff: a certain number of Company shares receivable within the term stipulated in the program to encourage the alignment of the employees’ performance with the Company’s strategy and to generate a clear and direct link between the creation of value for shareholders and the employees’ compensation; it was approved by the Board of Directors and the Shareholders’ Meeting on February 8 and April 7, 2017, respectively. Furthermore, the Company’s Board of Directors approved the market acquisition of own shares as a means of implementing the Plan (see Note 13.1.1).

The number of shares is calculated as from a percentage over the total annual remuneration, plus the bonus assigned to each covered employee, divided by the weighted average price, in pesos, of the Company’s share and ADR for the same period; with one-third vesting each year, which will be awarded together with the payroll for April of the year following the vesting date, with the requirement that the employment relationship continues at least until each vesting date. The fair value of the received services is measured at the fair value of the shares at the time of granting and is disclosed during the vesting period, together with the corresponding increase in equity.

4.18 Trade payables and other payables

Trade payables and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

4.19 Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings, using the effective interest method.

Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

62 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.19.1 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other borrowing costs are expensed in the period in which they are incurred.

4.20 Employee benefits

4.20.1 Short-term obligations

Payroll liabilities, including non-monetary benefits and accumulated sick leave expected to be settled in full within 12 months after the end of the reporting period in which the employees provide the associated service are recognized for the amount expected to be paid when the liabilities are settled. The liabilities are disclosed as Salaries and social security payable in the consolidated statement of financial position.

4.20.2 Defined benefit plans

Labor costs liabilities are accrued in the periods in which the employees provide the services that trigger the consideration.

Additionally, the Company operates several defined benefit plans. Defined benefit plans define an amount of pension benefit that an employee will receive on retirement, depending on one or more factors, such as age, years of service and compensation. In accordance with conditions established in each plan, the benefit may consist in a single payment, or in making complementary payments to those made by the pension system.

The defined benefit liability recognized in the financial statement balance sheet, at the end of the reporting period, is the present value of the defined benefit obligation net of the fair value of the plan assets, when applicable. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using future actuarial assumptions about demographic and financial variables that affect the determination of the amount of such benefits.

Actuarial gains and losses from experience adjustments and changes in actuarial assumptions, are recognized in other comprehensive income (loss) in the period in which they arise and past service costs are recognized immediately in the statement of income (loss).

63 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.21 Provisions, contingent liabilities and contingent assets

Provisions are recognized when the group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle that obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the present obligation, taking into account the best available information as of the date of the Consolidated Financial Statements based on assumptions and methods considered appropriate and taking into account the opinion of Company’s legal advisors. As additional information becomes available to the Company, estimates are revised and adjusted periodically. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as other financial results.

Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the entity; or present obligations that arise from past events but it is not probable that an outflow of resources will be required to its settlement; or whose amount cannot be measured with sufficient reliability.

Contingent liabilities are not recognised. The Company discloses in notes to the Consolidated Financial Statements a brief description of the nature of material contingent liabilities.

Contingent liabilities, whose possibility of any outflow in settlement is remote, are not disclosed unless they involve guarantees, in which case the nature of the guarantee is disclosed.

Contingent assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the control of the entity.

Contingent assets are no recognised. The Company discloses in notes to the Consolidated Financial Statements a brief description of the nature of material contingent assets, where the related inflows of economic benefits are estimated to be probable.

4.22 Revenue from contracts with customers

4.22.1 Generation segment:

4.22.1.1 Revenues from sales to the spot market (SE Resolution N°31/20)

The Company recognizes revenues from i) power availability on a monthly basis as the different power plants are available to generate; ii) power generated in those hours of maximum technical requirement of the month; and iii) energy generated and operated when the delivery of energy is effective, based on the price applicable depending on the technology of each plant and, in the case of thermal power plants, the application of the coefficient derived from the average usage factor over the last 12 months on the power capacity remuneration specified in the Resolution. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 45 days, which is consistent with market practice.

64 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.22.1.2 Revenues from supply agreements with CAMMESA (SE Resolution No. 220/07, SEE Resolution No. 21/16, SEE Resolution No. 287/17 and Renovar Programs)

The Company recognizes revenues from supply contracts with CAMMESA for i) power availability, when applicable, on a monthly basis, as the different power plants are available to generate and ii) energy generated when the delivery of energy is effective, based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 45 days, which is consistent with market practice.

4.22.1.3 Revenues from sales contracts with large users within the MAT

The Company recognizes revenues from energy plus sales and renewable energy when the delivery of energy is effective based on the price established in each contract. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term of 30 days, which is consistent with market practice.

4.22.2 Oil and gas segment

The Company recognizes revenues from the sale of oil and gas, to third parties and intersegment, when control of the product is transferred, that is, at the output of each area, when the oil and gas is delivered to the carrier and to the extent there is no unfulfilled obligation that could affect the acceptance of the product by the client. In all cases the transport of the gas is in charge of the client. Revenues from these sales are recognized based on the price by product specified in each contract or agreement to the extent that it is highly probable that a significant reversal will not occur.

Revenues are not adjusted for the effect of financing components as sales are made with an average credit term not exceeding 45 days, which is consistent with market practice.

4.22.3 Petrochemical segment

The Company recognizes revenues from the sale of petrochemical products, whether in local or foreign market, when the control of the product is transferred, that is, when the products are delivered to the client and there is no unfulfilled obligation that could affect the acceptance of the product by the client. The delivery, as established in each contract, is occurs:

(a) when the products are dispatched and transported by and in charge of the client, or,

(b) when the products have been dispatched by the Company to a specific location, the obsolescence risks and loss have been transferred to the client, and the client has accepted the products according to the sale contract, the acceptance provisions have expired, or when the Company has objective evidence that all acceptance criteria have been met.

Revenues from these sales are recognized based on the price specified in each contract, to the extent that it is highly probable that a significant reversal will not occur. Revenues are not adjusted for the effect of financing components as sales are made with an average credit term not exceeding 24 days, which is consistent with market practice.

65 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.22.4 Holding and others segment

The Company recognizes revenues from contracts with customers in relation to advisory services to related companies as services are rendered based on the price established in each agreement. Revenues are not adjusted for the effect of financing components, as sales are made with an average credit term of 30 days, which is consistent with market practice.

4.23 Other Income

4.23.1 Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. The group did not benefit directly from any other forms of government assistance.

The Company recognizes revenues from natural gas production promotion or stimulus programs upon the actual delivery of gas and in accordance with the price established in the applicable regulation, only inasmuch as it is highly probable that there will be no significant reversal and the consideration is likely to be received, that is, to the extent that the procedure defined by the Government is formally complied with.

The recognition of revenues associated with the Argentine Natural Gas Production Promotion Plan (see Note 2.4.3.1.2) falls within the scope of IAS 20 as it involves a compensation as a result of the maintenance or increase in the committed production volume.

Revenues from natural gas production or stimulus programs are disclosed under Other operating income in the consolidated statement of comprehensive income. Furthermore, the fiscal costs of the above-mentioned programs are disclosed under Other operating expenses in the consolidated statement of comprehensive income.

4.23.2 Interest income

Interest income from financial assets at fair value through profit or loss is included into the result of changes in the fair value of those assets. Interest income from financial assets at amortized cost and financial assets at fair value through other comprehensive income are recognised in the statement of income.

Interest income is calculated by using the effective interest rate to the gross carrying amount of a financial asset (without considering impairment provision), except for impaired financial assets, that is calculated by applying the effective interest rate to carrying amount net of impairment provision.

Commercial interest corresponding to late payment surcharges in the cancellation of sales receivables is disclosed under Other operating income as it provides relevant information on the business’ operations and operating flows.

66 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

4.23.3 Dividends

Dividends are received from financial assets measured at fair value through profit or loss or through other comprehensive income. Dividends are recognized as revenue when the right to receive payment has been established. This applies even if they are paid out of pre-acquisition profits.

4.24 Income tax

The tax expenses for the year include current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity, in which case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognized, using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if they come from the initial recognition of goodwill; or if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at time of the transaction affects neither accounting nor taxable profit or loss.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available and can be used against temporary differences.

Deferred income tax is provided on temporary differences from investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred assets or liabilities are recognized on account of gains or losses from fiscal tax inflation which, pursuant to Law No. 27,541, are deferred and accounted for in subsequent fiscal periods (see Note 2.6.1.5).

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset the recognized amounts and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Current and deferred tax assets and liabilities have not been discounted, and are stated at their nominal value. Income tax rates prevailing at year-end in Argentina (see Note 2.6.1), Venezuela, Ecuador, Bolivia and Uruguay are 30%, 50%, 25%, 25% and 25%, respectively. Additionally, a 3% surcharge is added to Ecuador’s income tax when the company’s shareholder residing in Ecuador is an entity established in a jurisdiction considered a tax haven under Ecuadorian laws.

In Bolivia, payment of Bolivian-source income to beneficiaries outside Bolivia is levied with a 12.5% withholding income tax. Furthermore, and pursuant to the last tax reform passed in Ecuador and effective as from January 1, 2020, dividends distributed to foreign shareholders will be subject to a 10% withholding.

67 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation) Deferred tax assets and liabilities are measured using the tax rates expected to apply in the period when the asset is realized or the liability is settled.

Finally, receivables have been disclosed on account of the application of the minimum presumed income tax prior to its abrogation as from January 1, 2019, which are computable as an advance payment of income tax in any of the following ten years.

The Company’s management evaluates the recoverability of the recorded receivables at the closing of each fiscal year, and allowances are created in as long as it is estimated that the computable amounts will not be recoverable within the statutory limitation period taking into consideration the Company’s current business plans.

4.25 Leases

In leases where the Company is a lessee (Note 18.1), a right-of-use asset and a lease liability are recognized on the date on which the underlying asset is available for use by the Company.

At the commencement date the lease liability is measured at the present value of the payments that are not paid at that date, including: - fixed payments, less any lease incentive receivable - variable lease payments depending on an index or rate - amounts that the Company expects to pay under residual value guarantee - exercise price of a purchase option (if the Company is reasonably certain to exercise that option), and - penalty payments for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments are discounted using the Company’s incremental borrowing rate, which is the rate the Company would have to pay to borrow over a similar term, security and conditions, the funds necessary to acquire an asset of a similar value to the right-of-use asset in a similar economic environment, or by using the interest rate implicit in the lease, if that rate can be readily determined.

The lease liability is disclosed in “Lease liability” under “Trade and other payables”. Each lease payment is apportioned between the principal and the financial cost. The financial cost is charged to income over the term of the lease to produce a constant periodic interest rate on the remaining liability balance for each period.

Right-of-use assets are measured at cost, which comprises: - the amount of the initial measurement of the lease liability - any lease payment made at or before the commencement date, less any lease incentive received - any initial direct cost, and - an estimate of costs to be incurred for decommissioning or restoring the underlying asset pursuant to the terms and conditions of the lease

Right-of-use assets are depreciated using the straight-line method over the asset’s useful life or, if shorter, during the lease term.

The Company recognizes lease payments associated with short-term leases (up to 12 months) and leases for which the underlying asset is of low value (IT equipment and office supplies) as an expense using the straight-line method over the lease term.

68 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 4: (Continuation)

Leases in which the Company, as a lessor, has transferred all risks and rewards incidental to ownership of the underlying asset are classified as financial leases (Note 18.2). Financial leases are recognized at the commencement date at the fair value of the leased property or, if lower, the present value of the minimum lease payments to be received. The corresponding lease rights, net of financial charges, are included in “Trade and other receivables”. Each lease payment received is allocated between income receivable and financial income. Financial income is recognized as a profit or a loss over the term of the lease to produce a constant periodic interest rate on the remaining liability balance for each period. Property under financial leases is derecognized if there is reasonable certainty that the Company will transfer its ownership at the end of the lease term.

NOTE 5: GROUP STRUCTURE

5.1 Corporate reorganizations

The following corporate reorganizations are part of the strategy the Company has been developing since 2017 to attain a simpler and more agile, innovative and flexible organization, allowing it to derive important benefits, a higher operating efficiency, an optimized use of available resources, the streamlining of technical, administrative and financial structures, and the implementation of converging policies, strategies and goals. They also allow the Company to leverage the complementarity among the participating companies, thus reducing costs resulting from the duplication and overlapping of operating and administrative structures.

The following reorganizations were perfected by means of a merger through absorption process, under the terms of tax neutrality pursuant to articles 80 and following of the Income Tax Law, whereby the absorbed companies will be dissolved without liquidation subject to the stipulations of the PMC and the provisions of sections 82 to 87 of Argentine Commercial Companies General Law, the CNV provisions, the BCBA Listing Rules and other provisions, the IGJ provisions and all other applicable legal and regulatory provisions.

In 2019, the Company’s Board of Directors approved the process for the merger through absorption between the Company, as absorbing company, and PEFM, as absorbed company, establishing July 1, 2019 as the actual merger date, as from which all PEFM’s rights and obligations, assets and liabilities were incorporated into the Company’s equity. There was no exchange ratio as the Company directly and indirectly held 100% of PEFM’s capital stock. On October 15, 2019 and February 19, 2020, the respective Shareholders’ Meetings approved the merger process, and the CNV granted its administrative consent, respectively.

69 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

In 2020, the Company’s Board of Directors approved the following mergers through absorption between the Company, as absorbing company, and the following companies, as absorbed companies:

(i) CPB; actual merger date: January 1, 2020. (ii) PACOGEN and PHA, establishing April 1, 2020 as the actual merger date, as from which the Company became simultaneously the beneficiary, remainder beneficiary and trustee under the CIESA Trust. On March 24, 2020, the Trustee transferred to PHA all common shares in book-entry form with a face value of $ 1 each and each granting the right to one vote issued by CIESA and held by the CIESA Trust, which represented 40% of CIESA’s capital stock and voting rights. Until all expenses and taxes associated with the transfer of the Trust Estate have been canceled, the CIESA Trust will remain in effect, with the Trustee maintaining such capacity, and the Company will assume all payment obligations for the applicable taxes and expenses resulting from the transfer of the Trust Estate. (iii) PP, Transelec, Pampa FPK, Pampa Holding, Pampa Ventures and Pampa QRP; actual merger date: October 1, 2020. As from the actual merger date, all the rights and obligations, assets and liabilities of the absorbed companies were incorporated into the Company’s equity, without any exchange ratios, as the Company directly and indirectly held 100% of the absorbed companies’ capital stock, with the exception of Pampa Holding, Pampa QRP, Pampa FPK and Pampa Ventures, where the valuation of the underlying asset was taken into consideration to establish the exchange ratio for each company.

70 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

These mergers were approved by the respective Extraordinary Shareholders’ Meetings, and their registration with the Public Registry is still pending as this proceeding was affected by the impediments inherent in functioning of enforcement agencies during the COVID-19 pandemic.

5.2 Sale of participations and property, plant and equipment

5.2.1 Sale of interest in Oldelval

On November 2, 2018, the Company entered into an agreement with ExxonMobil Exploration Argentina S.R.L. for the sale of 21% of Oldelval’s capital stock and rights, maintaining the remaining 2.1% interest.

Subsequently, on November 27, 2018, the transaction was closed upon the meeting of the applicable precedent conditions, the purchase price paid by the purchaser amounted to US$ 36.4 million. As a result of the transaction, the Company has recognized a $ 1,052 million gain, before taxes.

5.2.2 Sale of the Dock Sud storage terminal

On March 6, 2019, the Company agreed with Raízen Argentina, a licensee of the Shell brand, on the sale, subject to the meeting of certain conditions precedent which are customary for this kind of transactions, of the Dock Sud storage terminal, which tank yard has a total installed capacity of 228 thousand m3.

On March 30, 2019, after the meeting of all precedent conditions, the transfer of the Dock Sud Terminal to the purchaser was completed at a price of US$ 19.5 million, plus US$ 2 million on account of products. The transaction resulted in profits before income tax in the amount of $ 45 million, which are disclosed in item “Gains/losses on the sale of Property, plant and equipment” under “Other operating income”.

5.3 Assets held for sale, associated liabilities and discontinued operations

As of December 31, 2020, 2019 and 2018, the results for operations associated with the below-detailed sales transactions have been disclosed under “Discontinued operations” in the consolidated statement of comprehensive income.

5.3.1 Divestment of stake in Edenor

On December 28, 2020, the Company entered into with Empresa de Energía del Cono Sur S.A. and Integra Capital S.A., Daniel Eduardo Vila, Mauricio Filiberti and José Luis Manzano (the “Purchaser”) a share purchase agreement whereby it agreed to sell its controlling interest in Edenor through the transfer of all Class A shares representing 51% of the capital stock and voting rights of said company (the “Transaction”). The closing of the Transaction (the “Closing”) is subject to the fulfillment of certain precedent conditions. On February 17, 2021, Pampa’s shareholders meeting was held and the Transaction was approved, remaining outstanding, as of the date of issue of these Consolidated Financial Statements, the approval by the ENRE still being pending.

71 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

The sale of the stake in Edenor is part of the Company’s strategic plan aiming to focus investments on its core businesses: continuing expanding the installed capacity for the generation of electricity and the development of unconventional natural gas reserves, specifically, the investments necessary to reach the committed production under the Gas.Ar Plan (see Note 2.3.2.1.2) and the closing to Combined Cycle at CTB (see Note 16.1.3).

The agreed sales price consists of: (i) 21,876,856 Class B shares of Edenor representing 2.41% of the capital stock and voting rights of Edenor (the “Price in Kind”); (ii) US$ 95 million (the “Price in Cash”); and (iii) a contingent payment of 50% of the earnings resulting from a change in control of the Purchaser or Edenor (the “Contingent Payment”), in case this situation takes place within the first year after the Closing, or the term during which the Price Balance (as defined in the following paragraph) is pending settlement, whichever is later.

The Price in Kind was paid upon the execution of the share purchase agreement and the Price in Cash will be paid in 3 installments as follows: (i) the first installment, in the amount of US$ 5 million, upon the execution of the share purchase agreement; (ii) the second installment, in the amount of US$ 50 million, on the Closing date, subject to the fulfillment of certain precedent conditions; and (iii) the third installment, in the amount of US$ 40 million, one year after the Closing date, except in cases of offsetting or prepayment (the “Price Balance”). The Price Balance will accrue interest at a 10% annual nominal fixed rate as from the Closing date, payable on a quarterly basis.

Within the previously described framework and pursuant to IFRS 5, and considering that the Transaction would involve loss of control over the subsidiary, all Edenor’s assets and liabilities have been classified as held for sale as of December 31, 2020 and have been measured at the lower between its fair value, net of costs associated with the sale, if applicable, and its book value, which involved the recognition of an impairment loss for $ 49,115 million (US$ 589 million), which was disclosed together with the results corresponding the Electricity distribution segment under “Discontinued operations” of the statement of comprehensive income.

The Transaction does not include the transfer of Class B shares; therefore, after the Closing, the Company will keep a 4.1% stake in Edenor’s capital stock and voting rights (this stake includes the Price in Kind).

5.3.2 Sale of PELSA shares and certain oil areas

On January 16, 2018, the Company agreed to sell to Vista Oil & Gas S.A.B. de C.V. (“Vista”) its direct 58.88% interest in PELSA and its direct interests in the Entre Lomas, Bajada del Palo, Agua Amarga and Medanito-Jagüel de los Machos blocks, in line with the Company's strategy to focus its investments and human resources both on the expansion of its power generation installed capacity and on the exploration and production of natural gas, placing a special focus on the development and exploitation of unconventional gas reserves.

72 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

On April 4, 2018, upon the meeting of all applicable conditions precedent, the transaction was closed. The price paid by Vista, considering the agreed adjustments regarding interests in PELSA, amounted to US$ 389 million. This transaction generated a profit comprehensive income net of taxes in the amount of $ 1,115 million, as follows:

12.31.2018 Sale price 10,197

(8,553) Book value of assets sold and costs associated with the transaction Result for sale 1,644 Interests (1) 133 Income tax (818) Imputed in results 959

Other comprehensive income (loss) Reclasification exchange differences on translation 223 Income tax (67) Imputed in Other comprehensive income 156 Total comprehensive income 1,115

(1) Are exposed in "Financial income" in the consolidated statement of comprehensive income related to discontinued operations. (2) Sale price recorded as of December 31, 2018 arises from the Consolidated Financial Statements denominated in pesos in accordance with IAS 29, and was translated into U.S. Dollars using the exchange rate as of that date.

5.3.3 Sale of assets in the Refining and Distribution segment

On December 7, 2017, the Company executed with Trafigura Ventures B.V and Trafigura Argentina S.A. an agreement for the sale of certain assets in the Company’s refining and distribution segment based on the conviction that the oil refining and distribution business calls for a larger scale to attain sustainability.

The assets subject-matter of the transaction were: (i) the Ricardo Eliçabe refinery; (ii) the Avellaneda lubricants plant; (iii) the Caleta Paula reception and dispatch plant; and (iv) the network of gas stations currently operated under Petrobras branding. The Dock Sud storage facility was excluded from the sale, as well as the Company's investment in Refinería del Norte S.A.

Pursuant to the foregoing, and in relation with the measurement of the assets and liabilities subject to this transaction at the lower of fair value less cost to sell and the carrying value, as of December 31, 2017, the Company recognized an impairment of Intangible assets and Property, plant and equipment in the amount of $ 1,040 million.

On May 9, 2018, upon the meeting of all applicable precedent conditions the transaction was subject to, the closing of the sale to Trafigura was carried out. After applying the adjustments stipulated in the purchase and sale agreement, the transaction price amounted to US$ 124.5 million. Furthermore, after the closing of the transaction, Trafigura paid to Pampa US$ 56 million for the purchase of crude oil.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

As of December 31, 2018, the closing of the transaction did not generate additional profits or losses, according to the following detail:

12.31.2018 Sale price 1,044

(1,044) Book value of assets sold and costs associated with the transaction Result for sale -

(1) Sale price recorded as of December 31, 2018 arises from the Consolidated Financial Statements denominated in pesos in accordance with IAS 29, and was translated into U.S. Dollars using the exchange rate as of that date.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.3.4 Relevant information on discontinued operations

As of December 31, 2020, 2019 and 2018

12.31.2020 12.31.2019 12.31.2018

Distribution Distribution Distribution Refining and Oil and gas Eliminations Total of energy of energy of energy distribution Revenue 91,316 89,943 55,954 2,481 15,900 (3,388) 70,947 Cost of sales (77,877) (73,264) (42,838) (1,233) (13,606) 3,419 (54,258) Gross profit 13,439 16,679 13,116 1,248 2,294 31 16,689

Selling expenses (10,843) (7,351) (5,033) (72) (1,243) - (6,348) Administrative expenses (5,353) (3,837) (2,872) (46) (152) - (3,070) Exploration expenses - - - (4) - - (4) Other operating income 2,409 1,101 595 54 211 - 860 Other operating expenses (2,252) (2,557) (1,648) (231) (378) - (2,257) Share of profit from associates and joint ventures - 1 1 - - - 1 Impairment of property, plant and equipment and (49,115) ------intangible assets Result from the sale of share of profit and property, - - - 1,644 - - 1,644 plant and equipment Agreement on the regularization of obligations - 17,095 - - - - - Operating income (51,715) 21,131 4,159 2,593 732 31 7,515 Gain on monetary position, net 9,767 11,192 8,503 255 80 (47) 8,791 Finance income 55 694 399 148 27 - 574 Finance costs (9,276) (6,754) (4,977) (20) (10) - (5,007) Other financial results (1,715) (3,795) (1,879) (135) 824 - (1,190) Financial results, net (1,169) 1,337 2,046 248 921 (47) 3,168 Income (loss) before income tax (52,884) 22,468 6,205 2,841 1,653 (16) 10,683 Income tax 3,551 (10,655) (1,865) (973) (486) - (3,324) Profit (loss) of the year from discontinued (49,333) 11,813 4,340 1,868 1,167 (16) 7,359 operations

12.31.2020 12.31.2019 12.31.2018

Distribution Distribution Distribution Refining and Oil and gas Eliminations Total of energy of energy of energy distribution

Other comprehensive income (loss) Items that will not be reclassified to profit or loss

Results related to defined benefit plans 108 (7) (6) - - - (6) Income tax (33) 2 2 (67) - - (65) Exchange differences on translation 22,409 18,898 - 156 - - 156 Items that may be reclassified to profit or loss Exchange differences on translation (1,618) (847) - 223 223 Other comprehensive loss of the year from 20,866 18,046 (4) 312 - - 308 discontinued operations

Total comprehensive income (loss) of the year from (28,467) 29,859 4,336 2,180 1,167 (16) 7,667 discontinued operations

Total income (loss) of the tear from discontinued operations attributable to: Owners of the company (41,399) 5,955 2,272 1,778 1,167 (16) 5,201 Non - controlling interest (7,934) 5,858 2,068 90 - - 2,158 (49,333) 11,813 4,340 1,868 1,167 (16) 7,359

Total comprehensive income (loss) of the year from discontinued operations attributable to: Owners of the company (30,181) 16,101 2,270 2,026 1,167 (16) 5,447 Non - controlling interest 1,714 13,758 2,066 154 - - 2,220 (28,467) 29,859 4,336 2,180 1,167 (16) 7,667

75 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

As of December 31, 2020, the assets and liabilities that comprise the assets held for sale and associated liabilities are:

12.31.2020 ASSETS NON-CURRENT ASSETS Property, plant and equipment 99,721 Right-of-use assets 280 Investments in joint ventures and associates 11 Financial assets at amortized cost 239 Trade and other receivables 42 Total non-current assets 100,293

Inventories 1,873 Financial assets at amortized cost 78 Financial assets at fair value through profit and loss 2,222 Trade and other receivables 14,775 Cash and cash equivalents 4,362 Total current assets 23,310 123,603 Assets classified as held for sale

LIABILITIES NON-CURRENT LIABILITIES Provisions 2,431 Deferred revenue 1,471 Deferred tax liabilities 23,709 Defined benefit plans 749 Salaries and social security payable 303 Borrowings 8,261 Trade and other payables 6,806 Total non-current liabilities 43,730

CURRENT LIABILITIES Provisions 358 Deferred revenue 37 Taxes payables 1,793 Defined benefit plans 84 Salaries and social security payable 3,734 Derivative financial instruments 1 Borrowings 143 Trade and other payables 36,018 Total current liabilities 42,168 Liabilities associated to assets classified as held for 85,898 sale

76 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

The consolidated statement of cash flows related to discontinued operations is presented below:

12.31.2020 12.31.2019 12.31.2018

Net cash generated by operating activities 17,716 10,156 8,462

Net cash used in investing activities (7,219) (5,156) (8,328)

Net cash used in financing activities (6,152) (5,071) (532) Increase (decrease) in cash and cash equivalents from discontinued operations 4,345 (71) (398)

Cash and cash equivalents at the begining of the year 558 27 360 Effect of devaluation and inflation on cash and cash equivalents (541) 602 65

Increase (decrease) in cash and cash equivalents 4,345 (71) (398) Cash and cash equivalents at the end of the year 4,362 558 27

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.4 Interest in subsidiaries, associates and joint ventures

5.4.1 Subsidiaries information

Unless otherwise indicated, the capital stock of the subsidiaries consists of common shares, each granting the right to one vote. The country of the registered office is also the principal place where the subsidiary develops its activities.

12.31.2020 12.31.2019 Direct and Direct and indirect indirect Company Country Main activity participation participation % % Corod Venezuela Oil 100.00% 100.00% CPB (1) Argentina Generation - 100.00% CPB Energía S.A. Argentina Generation 100.00% 100.00% EcuadorTLC Ecuador Oil 100.00% 100.00% Edenor (2) Argentina Distribution of energy 57.12% 56.32% EISA Uruguay Investment 100.00% - Enecor S.A. Argentina Transportation of electricity 69.99% 69.99% HIDISA Argentina Generation 61.00% 61.00% HINISA Argentina Generation 52.04% 52.04% PACOSA Argentina Trader 100.00% 100.00% PEB Bolivia Investment 100.00% 100.00% PACOGEN (1) Argentina Investment - 100.00% PE Energía Ecuador LTD Gran Cayman Investment 100.00% 100.00% Energía Operaciones ENOPSA S.A. Ecuador Oil 100.00% 100.00% Petrolera San Carlos S.A. Venezuela Oil 100.00% 100.00% PHA (1) Argentina Investment - 100.00% PISA Uruguay Investment 100.00% 100.00% PP (1) Argentina Investment - 100.00% TGU Uruguay Gas transportation 100.00% 100.00% Transelec (1) Argentina Investment - 100.00% Trenerec Energía Bolivia S.A. (3) Bolivia Investment - 100.00% Trenerec S.A. Ecuador Investment 100.00% 100.00%

(1) Merged companies. See Note 5.1. (2) Corresponds to effective ownership interest in Edenor after consider treasury shares (55.14% nominal interest). See Note 5.3.1. (3) Company liquidated in October 2020.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.4.2 Investments in associates and joint ventures

The following table presents the main activity and financial information used for valuation and percentages of participation in associates and joint ventures:

Information about the issuer Direct and Profit (loss) indirect Main activity Date Share capital of the period / Equity participation year % Associates Refinor Refinery 09.30.2020 92 (652) 4,432 28.50% OCP Investment 12.31.2020 8,453 (593) 16,419 15.91% TGS (1) Transport of gas 12.31.2020 756 3,286 66,027 2.093%

Joint ventures CIESA (1) Investment 12.31.2020 639 2,133 33,738 50% Citelec (2) Investment 12.31.2020 556 2,180 14,390 50% Greenwind Generation 12.31.2020 8,558 9,528 29,998 50% CTB Generation 12.31.2020 556 2,180 14,390 50%

(1) The Company holds a direct and indirect interest of 2.093% in TGS and 50% in CIESA, a company that holds a 51% interest in the share capital of TGS. therefore, additionally the Company has an indirect participation of 25.50% in TGS. As of December 31, 2020, the quotation of TGS's ordinary shares and ADR published on the BCBA and the NYSE was $ 153,15 and US$ 5.20, respectively, granting to Pampa (direct and indirect) ownership an approximate stake market value of $ 33,574 million.

(2) Through a 50% interest, the company joint controls Citelec, company that controlled Transener with 52.65% of the shares and votes. As a result, the Company has an indirect participation of 26.33% in Transener.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

The details of the balances of investments in associates and joint ventures are as follows:

12.31.2020 12.31.2019 Disclosed in non-current assets Associates Refinor 1,626 1,188 OCP 195 1,974 TGS 2,076 1,293 Other - 12 3,897 4,467 Joint ventures CIESA 20,138 14,088 Citelec 7,195 5,274 CTB 14,999 6,809 42,332 26,171 46,229 30,638 Disclosed in non-current liabilities Joint ventures Greenwind (1) (161) (265) (161) (265)

(1) The company receives financial assistance from partners.

The following tables show the breakdown of the result from investments in associates and joint ventures:

12.31.2020 12.31.2019 12.31.2018 Associates Oldelval - - 116 Refinor (171) (135) (138) OCP (296) 901 1,305 TGS 62 54 - (405) 820 1,283

Joint ventures CIESA 942 2,970 2,793 CTB 4,764 945 - Citelec 1,055 1,129 801 Greenwind 195 (10) (414) 6,956 5,034 3,180 6,551 5,854 4,463

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

The evolution of investments in associates and joint ventures is as follows:

12.31.2020 12.31.2019 12.31.2018 At the beginning of the year 30,373 15,180 11,875 Compensation (298) (691) - Dividends (2,219) (4,371) (707) Decreases - - (434) Increases (1) 190 4,770 - Share of profit 6,551 5,854 4,463 Other comprehensive income (loss) - - (17) Reclasification to assets clasified as held for sales (11) - - Exchange differences on translation 11,482 9,631 - At the end of the year 46,068 30,373 15,180

(1) In 2020, corresponds to the acquisition of TGS’ shares and in 2019, corresponding mainly to the financial receivable with OCP acquired under the transaction with AGIP (see Note 5.3.6.2) and capital contributions to CTB.

5.4.3 Investment in CIESA-TGS

5.4.3.1 Impairment of non-financial assets in TGS

As regards COVID-19 and the Government measures to contain its spread, TGS has mainly identified the following impacts: (i) delays in collections associated with the natural gas transportation business, where, although a recent improvement has been experienced, it cannot be guaranteed that this situation will be maintained over time, due to the suspension of public utility disconnections for non-payment and the implementation of several measures aiming to sustain the income of the most impacted economic sectors; and (ii) a scenario of high volatility in benchmark international prices for the liquid fuels produced and sold by TGS.

In this sense, TGS has assessed the impairment indicators under IAS 36 and has performed recoverable amount tests on the assets included in Property, plant and equipment. As of December 31, 2020, the assessment of recoverability of the CGU of the Natural Gas Transportation business resulted in the recognition of impairment losses for $ 3,114 million (before taxes).

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.4.3.2 Issuance of Corporate Bonds

TGS General Shareholders' Meeting held on August 15, 2019 approved the extension of TGS´s Corporate Bonds Program from US$ 700 million to US$ 1.2 billion. This extension was authorized on October 9, 2019, by the CNV.

Funds obtained by TGS are applied to: (i) the repurchase of its Class 1 corporate bonds for US$ 87 million; (ii) the cancellation and total redemption of Class 1 CBs for US$ 121 million; and (iii) use the balance of net funds to make investments in capital expenditures in process of execution.

5.4.3.3 Acquisition of own shares in TGS

During fiscal year 2019, TGS’s Board of Directors approved three share buyback programs on March 27, August 26 and November 19, which were executed in accordance with the conditions stipulated in each of them. On defining these programs, the Board of Directors took into consideration TGS’s strong cash position and approved them in view of the distortion existing between TGS’s economic value, measured by its current businesses and derived from ongoing projects, and its stock market listing price.

Own shares acquired by TGS as of October 31, 2019 were destined to the payment of a stock dividend.

On March 6, 2020, TGS’s Board of Directors approved the sixth Share Buyback Program for a maximum investment amount of $ 2,500 million (values effective as of its creation date).

Later on, on August 21, 2020, TGS’s Board of Directors approved a new Share Buyback Program for a maximum investment amount of $ 3,000 million (values effective as of its creation date), which will be effective until March 22, 2021.

5.4.3.4 Acquisition of TGS’s ADRs by the Company

During the fiscal years ended December 31, 2020 and 2019, the Company acquired a total number of 635.380 ADRs and 1,130,365 TGS’s ADRs, at an acquisition cost of US$ 3 million and US$ 8 million, respectively.

5.4.4 Investment in CITELEC

5.4.4.1 Employee Shareholding Program – Transba S.A.

In the year 1997, the Executive Branch of the Province of Buenos Aires awarded 100% of Transba’s Series “A”, “B” and “C” shares to Transener. Series “C” shares were awarded subject to the obligation to transfer them to the Employee Shareholding Program benefiting certain Transba employees, Transener holding 89.99% of Transba’s capital stock.

On June 28, 2019, Transener acquired all the shares under such program. Consequently, Transener holds 99.99% of Transba’s capital stock.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.4.4.2 Repurchase of own Corporate Bonds - Transener

As of December 31, 2020 Transener’s Corporate Bonds Class 2 amounted to US$ 98.5 million, of which US$ 7 million have been acquired and by Transba. During the month of January 2021, Transba acquired an additional US$ 5.5 million

5.4.4.3 Acquisition of Transener’s CBs by the Company

During the fiscal year ended December 31, 2020, the Company acquired a total of US$ 1.3 million FV of Transener’s 2021 Class 2 CBs.

5.4.5 Investment in CTB

5.4.5.1 Acquisition of CTEB On May 29, 2019, the Company, through subsidiaries, after filing a joint offer with YPF, received a notification from IEASA whereby were awarded National and International Public Tender No. 02/2019, launched pursuant to SGE Resolution No. 160/19, regarding the sale and transfer by IEASA of CTEB. The acquisition of CTEB also involves the assignment in favor of the awardee of the contractual capacity as trustor under the Enarsa-Barragán Financial Trust, the VRDs of which (excluding the VRDs to be acquired by the awardee) amount to US$ 229 million.

CTEB, which is located at the petrochemical complex of the town of Ensenada, Province of Buenos Aires, consists of two open-cycle gas turbines, and has a 567 MW installed capacity.

The awardee will have to obtain the commissioning of the closing of the combined cycle within a term of 30 months as from the Seventh Amendment to the Trust Agreement’s effective date, thus increasing the installed power capacity to 847 MW, with an estimated investment of US$ 200 million.

Both the open and the closed cycle have effective power purchase agreements with CAMMESA under Resolution No. 220/07 issued by the former SE: the first one, entered into on March 26, 2009 and terminating on April 27, 2022, as amended and modified from time to time, and the second one dated March 26, 2013 for a term of 10 years as from the commercial operation of the combined cycle.

On June 26, 2019, the acquisition by CTB, a company co-controlled by YPF and Pampa, through subsidiaries, of CTEB transferred by IEASA was completed. The acquisition’s relative price was US$ 282 million, an amount which includes the final (cash) amount offered in the Tender and the acquired VRDs’ purchase price, paid with a contribution of US$ 200 million received by CTB, settled in equal parts by its co-controlling companies, and with a loan received by CTB from a bank syndicate of US$ 170 million.

The Power Plant will be managed and operated by Pampa and YPF on a rotational basis over 4-year periods. Pampa will be responsible for managing CTEB’s operations until 2023. And YPF, through its subsidiary YPF Energía Eléctrica S.A., will supervise the necessary works for the closing of the combined cycle.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

The following table details the consideration transferred and the fair value of the assets acquired and the liabilities a ssumed by CTB as of June 26, 2019: in million of $ Total consideration transferred (1) (11,530) Financial assets at fair value 704 Property, plant and equipment 20,333 Inventories 329 VRDs (9,836) Fair value of net assets 11,530

(1) Includes $ 9,835 million for the purchase of the acquired VRDs, net of $ 580 million of a price adjustment in favor of CTB and $2.275 million per purchase of purchased VRDs.

The fair value of property, plant and equipment items and inventories was calculated considering mainly the depreciated replacement cost of the acquired goods. For this purpose, CTB was assisted by an independent specialist engaged by management.

The replacement cost approach was applied to measure buildings, equipment, installations and works in progress. The methodology applied to determine their fair value entailed: (i) the calculation of replacement costs (mainly based on consultations with suppliers and the analysis of specialized publications and information), (ii) an estimate of residual values at the end of their useful life (based on the interest generated by the asset at the end of its useful life and the owner’s disposal policy), and (iii) the application of deductions for physical, functional and/or economic impairment, if applicable.

The methodology for the determination of the remaining useful life was focused on the analysis of aging, wear and loss of service capacity of the assets resulting from normal use in the activities where they operate.

Regarding the work in progress for the closing of the combined cycle, which will allow a 280 MW rated power capacity increase, an estimate of the work progress’ percentage and the depreciation of the installed equipment was made based on physical inspections and the information supplied by the contracts to complete civil and electromechanical works for the closing of the combined cycle.

Lastly, a comparative sales approach was used to measure lands and vehicles. For this purpose relevant market data was gathered, mainly sales prices of lands in surrounding areas and published sales prices for vehicles.

Additionally, CTB has calculated the weighted present value of future cash flows it expects to receive from the assets to confirm that its fair value does not exceed their recoverable value.

As a result of the described process, CTB has not recorded intangible assets associated with the business acquisition.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.4.5.2 Financial Trust Agreement

As a result of the award of CTEB’s goodwill, certain amendments were made to the Enarsa-Barragán Financial Trust Agreement entered into between BICE Fideicomisos S.A. (Nación Fideicomisos S.A.’ continuing company), acting as Trustee, and CTB, in its capacity as Trustor substituting IEASA (former ENARSA) (the “Trust Agreement” or the “Trust”).

Under the Trust, on April 25, 2011 publicly traded Series B VRDs for a face value of US$ 582,920,167 were issued. The Trust’s underlying flow is made up of the collection rights resulting from the Power Supply Agreements originally entered into between ENARSA (currently IEASA) and CAMMESA.

On June 26, 2019, date on which the sale of CTEB’s goodwill was perfected, the following operations and contractual amendments were executed:

- IEASA and BICE Fideicomisos S.A. entered into the fifth amendment to the Trust Agreement, which mainly included the following modifications:

(i) the flow assignment to the Trust is reduced up to an amount equivalent to debt services plus the Trust expenses monthly disclosed by the Trustee to CAMMESA (previously, 90% of the monthly fixed charge for hired power capacity, for 23,255 US$/MW-month plus VAT, was assigned); (ii) a total or partial early redemption option in favor of the Trustor, at the debt’s residual value; (iii) the surety timely issued by the National Treasury is canceled; and (iv) the endorsement of the insurance against all operating risks in CTEB regarding the loss of benefits in favor of the Trust is required, among others.

- IEASA assigned its contractual position to CTB through the execution of a Contractual Position Assignment Agreement and, as a result, BICE Fideicomisos S.A. and CTB executed the sixth amendment to the Trust Agreement whereby CTB was incorporated as a Trustor under the Trust Agreement.

- CTB and IEASA entered into a VRD transfer agreement whereby CTB acquired the outstanding Series B VRDs for a price of US$ 53.5 million (equivalent to 109,628,836 VRDs with a face value of US$ 1 each), thus becoming the holder of such VRDs (the “Trustor’s VRDs”).

On August 22, 2019, CTB and BICE Fideicomisos S.A., entered into the seventh amendment to the Trust Agreement, which incorporated, among others, the following amendments:

(i) as regards the VRDs: i) the granting of a 24-month grace period (during which only interest will be payable); ii) the modification of the interest rate by the Libor rate plus 6.5%; iii) the determination of principal amortization installments over a 60-month repayment period (to provide constant debt services); (ii) the assignment to the Trust of the Steam Turbine Supply Agreement, integrating Collection Rights and the Trust Estate;

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

(iii) the obligation to complete CTEB’s closing to combined cycle to be commissioned within a term of 30 months as from the entry into effect of the seventh amendment, establishing that the breach of this obligation will be a ground for the acceleration of the VRDs;

(iv) the incorporation of additional collection rights for both the open and the closed-cycle Supply Agreements; (v) the assignment to the Financial Trust of the collection rights net of VAT for a certain percentage to cover debt services and other items provided for in Section 8.3.1. of the Trust Agreement, stipulating that any remaining balance on each Service Payment Date (pursuant to the definition of this term in the Trust Agreement) will be transferred to the Trustor; (vi) establishing the simultaneous collection for collection rights assigned to the Trust and for amounts unassigned under the Supply Agreements (pursuant to the definition of this term in the Trust Agreement); (vii) establishing that payments to the Trust should be transferred pari passu, with the same payment priority and in the same kind as under the Syndicated Loan (and any other debt allowed under the Trust);

(viii) providing that in case CAMMESA pays an amount lower than that which should be settled, the collection rights and the amounts payable to the Trustor will be both reduced proportionately; (ix) including provisions stipulating that upon the occurrence of a CAMMESA Event (pursuant to the definition of this term in the Trust Agreement): (i) the Trustor may request funds to meet the Power Plant’s Operating Expenses, and (ii) in case funds received as Collection Rights are insufficient, the payments under the VRDs will be rescheduled; (x) including a Limited Recourse against the Trustor (pursuant to the definition of this term in the Trust Agreement) upon the occurrence of certain events; (xi) incorporating certain commitments typical of this kind of contracts, such as limitations on the payment of dividends, etc.; and (xii) modifying the amount of the Reserve Fund (pursuant to the definition of this term in the Trust Agreement) so that it is equivalent to the amount estimated for the next two services under the VRDs.

In accordance with the commitment undertaken under the Trust Agreement, pursuant to a resolution dated October 24, 2019, the CNV authorized the cancellation of the Trustor’s VRDs, which was effected on October 29, 2019. Consequently, on October 31, 2019, the eighth amendment to the Trust Agreement was entered into in order to include the new payment schedule effective as from such cancellation.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

On October 16, 2020, as approved by its Board of Directors on October 2, 2020, CTB, acting in its capacity as trustor under the Enarsa-Barragán Financial Trust Agreement entered into between CTB, BICE Fideicomisos S.A., in its capacity as trustee (the “Trustee”), and CAMMESA, in its capacity as assigned debtor, made a partial early redemption of the VRDs issued under the Enarsa-Barragán Financial Trust for a total amount of US$ 130 million, to be applied to the payment of the amortization installments and deferred interest, also paying the interest accrued as of the redemption date plus accessory expenses. Besides, as a result of the VRDs redemption, CTB and the holders of 100% of the outstanding VRDs agreed on a modification to the VRDs payment schedule. In this respect, CTB has requested the Trustee to cancel the redeemed VRDs, which was effected on December 4, 2020, and to perform all necessary acts and enter into all relevant agreements to make the necessary modifications to the applicable documents.

As of the issuance hereof, total outstanding VRDs (amortization installments plus deferred interest, pursuant to the definition of these terms in the Trust Agreement) amount to US$ 93.7 million.

5.4.5.3 Syndicated loan

On June 25, 2019, in order to partially finance the obligations undertaken as a result of the award and execution of the works for the closing of the combined cycle at CTEB, Citibank, N.A., Banco de Galicia y Buenos Aires S.A.U., Banco Santander Río S.A., HSBC Bank Argentina S.A. and Industrial and Commercial Bank of China (Argentina) S.A., in their capacity as lenders (the “Lenders”), granted a syndicated loan to CTB in the amount of US$ 170 million maturing on June 26, 2022, with US$ 136 million accruing a fixed 10.25% interest rate and US$ 34 million accruing a variable LIBOR rate+6.25.

On June 25, 2019, the Company executed a share pledge agreement in favor of the Lenders. Additionally, on August 22, 2019, YPF and PACOGEN entered into an amendment to the pledge agreement to include VRD holders as beneficiaries.

CTB endorsed the insurance policy, which covers CTEB’s open cycle’s operating risk, so that secured creditors should be the recipients of any payment, compensation and/or damages under such policy.

Additionally, CTB and Citibank, N.A.’s Branch (incorporated in the Republic of Argentina), in its capacity as trustee and sole beneficiary of the lenders, executed a trust assignment security agreement, which includes the assignment of the collection rights assigned to the Trustor for up to 42% of the amount to be settled, which CTB is entitled to collect pursuant to the power purchase agreements, net of added-value tax.

Finally, in order to coordinate the execution of the rights shared by the VRD holders and the Lenders under the Share Pledge Agreement and the endorsement of the policy, on August 22, 2019 BICE Fideicomisos S.A., in its capacity as Trustee under the Enarsa-Barragán Trust, executed with the Lenders an inter-creditor agreement that includes certain commitments regarding the exercise of its rights associated with the distribution of funds collected as a result of the possible execution of the guarantees shared by the VRD holders and the Lenders, and their interests in the payments to be made under such guarantees.

87 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

In order to implement the above-mentioned redemption, CTB and the Lenders entered into certain amendments to the terms of the Syndicated Loan Agreement so that the Lenders may allow for the application of CTB’s funds to the early partial redemption of the VRDs without observing the pari passu principle stipulated in such agreement and in the Inter-Creditor Agreement. Additionally, Pampa provided a contingent guarantee in favor of the Lenders under the Syndicated Loan Agreement in consideration of the granting of the above-mentioned modifications.

5.4.5.4 Granted guarantees

As regards the conclusion of the Enarsa-Barragán project and as stipulated in the contract, additionally to what has been described above the following guarantees have been granted:

(i) Financial Trust: YPF and Pampa jointly guarantee, at 50% each, the timely and proper performance of all payment obligations under the ENARSA-Barragán Financial Trust Agreement in case the closing to combined cycle’s commissioning is not achieved within 30 months as from the effective date of the seventh amendment to the agreement (plus, if applicable, the 3-month extension that may be granted by VRD holders). (ii) Syndicated loan: YPF and Pampa jointly guarantee, at 50% each, the timely and proper performance of all payment obligations under the Syndicated Loan Agreement in case the combined cycle’s commissioning is not achieved by December 26, 2021 (extendable for a term of 3 months).

5.4.5.5 Application to enter the public offering system

On July 23, 2020, CTB’s Extraordinary General Shareholders’ Meeting resolved to approve CTB’s application to the CNV to enter the public offering system for the offering of corporate bonds, the creation of a global program of simple corporate bonds non-convertible into shares for up to US$200 million or its equivalent in other currencies or units of value, and the issuance of corporate bonds under such program up to its maximum amount, at any time, to be issued in one or more classes and/or series, which authorization was granted by the CNV on September 24, 2020.

5.4.6 Investment in OCP

The Company, through PEB, has an equity interest in OCP, an oil pipeline in Ecuador that has a transportation capacity of 450,000 barrels/day.

On December 6, 2018, OCP entered into a settlement agreement with the Republic of Ecuador to terminate all claims and legal actions brought by the parties regarding discrepancies with the Ecuadorian Treasury. As a result of the agreement, OCP has recorded profits for US$ 387 million.

For its part, as of December 31, 2018, the Company recognized a profit of US$ 35 million on its 11.42% equity interest in OCP’s results, after recognizing previously unrecognized losses regarding OCP’s negative equity until the execution of the transactional agreement. On the other hand, on December 5, 2018, and before the execution of the settlement agreement, the Company, through its subsidiary PEB, executed an agreement with Agip Oleoducto de Crudos Pesados BV (“AGIP”) for the purchase of shares representing 4.49% OCP’s capital stock and of the financial credit that AGIP held with respect to the subordinated debt issued by OCP, in consideration of a base price equivalent to US$ 1 (one U.S. dollar).

88 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation) On June 20, 2019, after meeting of all precedent conditions the transaction was subject to, including the authorization by the Ecuadorian Government, the transaction was closed and registered with the Shareholders’ Registry Book.

Taking into consideration the timeliness of the agreement with AGIP, the closing of the transaction involved the recognition of a profit of US$ 25 million under IAS 28.

The following table details the consideration transferred and the fair value of the assets acquired and the profit recorded by PEB as of June 20, 2019:

in million US$ Acquisition cost (1) (0.4) Contingent consideration (2) (0.1) Total consideration (0.5) Share value of the interest in the fair value of associates’s identifiable assets and liabilities (3) 9.0 Financial credit with OCP 14.2 Dividends to be received 2.5 Assets fair value 25.7 Profit (4) 25.2

(1) Including expenses paid by PEB to the Ecuadorian Government (Ministry of the Environment) of US$ 0.1 million for the granting of the authorization to transfer the shares held by AGIP and other advisory expenses related to the transaction. (2) Contingent consideration for the reimbursement to AGIP calculated by estimating the probability of collection of the financial receivable with OCP Ltd. prior to its maturity in 2021. (3) Calculated based on the present value of expected dividend flows. (4) Disclosed under “Share of profit (loss) from associates and joint ventures”

Furthermore, as of December 31, 2019, the Company recorded an impairment loss regarding the 11.42% stake in OCP (before the acquisition of the additional 4.49%) in the amount of US$ 6.7 million in connection with the present value of future cash flows expected to be obtained through the collection of dividends considering the concession term that extends until 2023 and a discount rate of 15.3%.

On April 8, 2020, a Force Majeure event occurred, consisting of the sinking and landslide in the San Rafael sector, on the border of the provinces of Sucumbíos and Napo, Ecuador, which caused the rupture of the “Oleoducto de Crudos Pesados” pipeline, at KP 93 + 469. This event also affected the “SOTE” Trans-Ecuadorian Pipeline System and the Shushufindi-Quito Pipeline. On May 7, 2020, OCP S.A. restarted operations and resumed the provision of the crude oil transportation service after completing the construction of a variant that allowed the restoration of the crude oil pipeline system.

As of December 31, 2020, OCP recorded a total of US$ 33 million as environmental cleanup and remediation costs, of which it expects to recover US$ 13 million from insurance companies. As of the issuance of these Consolidated Financial Statements, OCP has filed the claims with the applicable insurance companies and has received the first disbursement for US$ 2 million.

89 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

Additionally, on June 4, 2020, a contract for the implementation of the specific mutual support agreement was entered into between Petroecuador and OCP, which stipulated that the costs incurred in mitigating and remediating the social and environmental effects resulting from the Force Majeure event would be reimbursed by the other party proportionately to the spilled hydrocarbon volumes. To such effect, the Agency for the Regulation and Control of Energy and Non-Renewable Natural Resources established a 43% percentage for OCP.

The Company has performed recoverable amount tests for its investment in OCP as of December 31, 2020, considering the present value of the future cash flows it expects to obtain through the collection of dividends during the concession term, which extends until 2023, and a 15.01% discount rate, generating recognition of a US$ 0.1 million reversal in the recognized impairment loss.

Contingent liabilities in OCP

On January 16, 2020, OCP was served notice of an arbitration claim filed by Oxy Oleoducto SOP LLC (Oxy) requesting a compensation. On March 9, 2020, OCP S.A. answered the notice by rejecting the claims and filing a counterclaim. On November 24, 2020, Oxy and OCP entered into an agreement terminating, effective December 1, 2020 and by means of a joint waiver, the arbitration proceeding heard before the International Centre for Settlement of Investment Disputes regarding the Transportation Agreement known as ISTA.

Furthermore, upon the occurrence of the described Force Majeure event, several organizations and natural persons filed a constitutional protection complaint against OCP, as well as the Ministry of Energy, the Ministry of the Environment and Water, Petroecuador and the Ministry of Health, alleging the infringement of several constitutional rights. The safeguard action has been disallowed in the first instance by Orellana’s Provincial Court of Justice. As of the issuance of these Consolidated Financial Statements, this proceeding is pending resolution. Even though there is a low probability that this claim will be upheld, a second-instance judgment may only make a declaration of constitutional rights, which would not involve the recognition of any economic value.

5.5 OPERATIONS IN OIL AND GAS CONSORTIUMS

5.5.1 General considerations

The Company is jointly and severally liable with the other participants for meeting the contractual obligations under these arrangements.

The production areas in Argentina are operated pursuant to concession production agreements with free hydrocarbons availability.

According to Law No.17,319, royalties equivalent to 12% of the wellhead price of crude oil and natural gas are paid in Argentina. The wellhead price is calculated by deducting freight and other sales related expenses from the sale prices obtained from transactions with third parties. This rate may increase from 3% to 4% depending on the producing jurisdiction and market value of the product.

90 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.5.2 Oil and gas participation details

As of December 31, 2019, the Company and associates are part of the joint operations and consortia for the exploration and production of oil and gas as indicated below:

Participation Duration Up Name Location Direct Indirect Operator To

Argentine production Río Neuquén Río Negro and Neuquén 31.43% and 33.07% - YPF 2027/2051 Sierra Chata Neuquén 45.55% - PAMPA 2053 El Mangrullo Neuquén 100.00% - PAMPA 2053 La Tapera - Puesto Quiroga Chubut 35.67% - Tecpetrol 2027 El Tordillo Chubut 35.67% - Tecpetrol 2027 Aguaragüe Salta 15.00% - Tecpetrol 2023/2027 Gobernador Ayala Mendoza 22.51% - Pluspetrol 2036 Anticlinal Campamento Neuquén 15.00% - Oilstone 2026 Estación Fernández Oro Río Negro 15.00% - YPF 2026 Río Limay este (Ex Senillosa) (1) Neuquén 85.00% - PAMPA 2040 Veta Escondida y Rincón de Aranda Neuquén 55.00% - PAMPA 2027 Rincón del Mangrullo Neuquén 50.00% - YPF 2052 Chirete Salta 50.00% - High Luck Group Limited 2020/2045

Foreign (2) Oritupano - Leona Venezuela - 22.00% PDVSA 2025 Acema Venezuela - 34.49% PDVSA 2025 La Concepción Venezuela - 36.00% PDVSA 2025 Mata Venezuela - 34.49% PDVSA 2025

Argentine exploration Parva Negra Este (3) Neuquén 42.50% - PAMPA 2019 Río Atuel Mendoza 33.33% - Petrolera El Trebol 2020 Borde del Limay (1) Neuquén 85.00% - PAMPA 2015 Los Vértices (1) Neuquén 85.00% - PAMPA 2015 Las Tacanas Norte Neuquén 90.00% - PAMPA 2023

(1) In the process of being transferred to GyP (2) Corresponding to the following stakes: 22% in Petroritupano S.A., 36% in Petrowayú S.A., 34.49% in Petroven-Bras S.A. and 34.49% in Petrokariña S.A (Venezuelan mixed companies) regulating the exploitation of the Oritupano Leona, La Concepción, Acema and Mata blocks, respectively, and incorporated as a result of the purchase of Petrobras Participaciones S.L.’s capital stock in July 2016, without obtaining the Venezuelan Government’s authorizations regarding the change of indirect control. The Company has expressed to the Venezuelan Government authorities its willingness to negotiate the transfer of its shares to Corporación Venezolana de Petróleo S.A. (3) In the process of requesting appraisal.

5.5.3 New concessions and changes in oil and gas participations

5.5.3.1 Parva Negra Area

The exploration license for Parva Negra Este, an area located in the Province of Neuquén granted under concession to GyP and operated by Pampa since April 2014 for a term of 4 years, expired in the month of April 2018. As the original agreement had stipulated the possibility to extend it for a year, GyP requested such extension in due time and manner.

91 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

Upon the expiration of the exploration license’s extension in the month of April 2019, on March 29, 2019 GyP requested that the block should be classified as an evaluation block for a 3-year period.

5.5.3.2 Las Tacanas Norte area

On January 4, 2019, with the publication in the BO of Executive Order No. 2315/18 passed by the Executive Branch of the Province of Neuquén, this exploratory agreement, effective for a term of 4 years, entered into force. Pampa is the operator of Las Tacanas Norte area with a 90% interest, and GyP is the permit holder with a 10% interest.

The block has a 120 km2 surface and is adjacent to El Mangrullo block, which is currently operated by the Company. The accepted offer consists of a perforation of up to 8 wells with the objective toward Vaca Muerta formation, and other exploratory studies.

5.5.3.3 Río Atuel

As a result of the delay in the approval of the drilling project filed on December 19, 2018, Petrolera el Trebol, the area operator, on June 19, 2019 requested, to the applicable authorities, for the suspension of the term of the second exploratory period in progress. On June 7, 2019, the approval of the drilling project was obtained. On June 19, 2019, the suspension of the second exploration period requested was established by the relevant authorities, determining December 7, 2019 as the new expiration date.

Subsequently, upon operator´s request, on November 11, 2019, the Hydrocarbons Department granted a 12-months term extension, effective as from December 18, 2019, for the third exploratory period. In this same administrative decision, the applicable authority accepted the 50% reversal of the area.

5.5.3.4 Chirete

After the discovery of oil in late 2018, on February 22, 2019 the applicable authorities granted a 12-months term extension, effective as from November 18, 2018, for the third exploratory period. Since the field discovered in this block turned out to be commercially exploitable, on April 26, 2019 an application was filed for the granting of a hydrocarbon exploitation concession over the “Los Blancos” block, with a 95-km2 surface, and on April 30, 2019 a three-year extension of the third exploratory period for the permit’s remaining area was requested. which had been extended for 12 months from November 18, 2018.

On October 13, 2020, the Province of Salta issued Executive Order No. 662/20 granting an exploitation concession over Los Blancos block to the companies “Pampa Energía” and “High Luck Group Limited” for a term of 25 years as from its publication date.

In turn, the Executive Order establishes an Investment Plan in this lot for a total amount of US$57 million for the 2020- 2024 period. Additionally, this Executive Order provides for the relinquishment of the remaining area of the Chirete block, which totals 801 square kilometers.

92 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.5.3.5 Anticlinal Campamento

On December 1, 2010, YPF, owner of the exploitation concession over the block, organized on December 1, 2010, a Joint Venture for the drilling of 9 wells, in which the company has a 15% interest. On August 1, 2019, the concession over the “Anticlinal Campamento” block was transferred from YPF to Oilstone Energía S.A, including the transfer of operations and agreements thus remaining unchanged Pampa´s participation in the Anticlinal Campamento.

5.5.3.6 Sierra Chata

On December 27, 2019, through Decree 129/19, the province of Neuquén has approved the assignment of Total Austral´s participation to Mobil Argentina SA, resulting in a Mobil participation of 54.4477% in the area.

5.5.3.7 El Tordillo – La Tapera / Puesto Quiroga

On May 21, 2020, the Partners and the Province of Chubut signed a Memorandum of Understanding extending compliance commitments until June 30, 2021. The block is operated by Tecpetrol and the Company has a 35.6706% stake.

5.6 Exploratory well costs

The following table provides the year end balances and activity for exploratory well costs, during the years ended December 31, 2020, 2019 and 2018:

12.31.2020 12.31.2019 12.31.2018

At the beginning of the year 1,961 727 452 Increases 1,948 1,527 308 Transferred to development (567) (682) (5) Loss of the year - (296) (28) Traslation differences 825 685 - At the end of the year 4,167 1,961 727

Number of wells at the end of the year 12 9 7

93 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 5: (Continuation)

5.7 Termination of the Participation Agreements in Ecuador

Pursuant to a resolution dated November 25, 2010, the Secretariat of Hydrocarbons notified EcuadorTLC of the termination of the Participation Agreements in Block 18 and in Campo Unificado Palo Azul, the Ecuadorian Government being under a duty to compensate contractors for an amount equivalent to unamortized investments, adjusted at an annual interest rate appropriate for this type of projects in Ecuador, and establishing a term for the Company and the Ecuadorian Government to reach a settlement regarding the agreement.

After bringing several administrative and judicial proceedings, not having reached an agreement with the Ecuadorian government, EcuadorTLC, Cayman International Exploration Company and Teikoku Oil Ecuador, members of the joint operation, presented, on February 26, 2014 the request for arbitration against Ecuador and EP Petroecuador under the arbitration Rules of the United Nations Commission on International Trade Law.

On January 16, 2018 the Arbitration Court issued the Award, which determined a Settlement Value of US$ 176 million for EcuadorTLC based on its interest in the Block.

As regards the Arbitration proceeding, on March 19, 2018, the Republic of Ecuador and the Plaintiff Partners entered into an agreement whereby the Plaintiff Partners agreed not to request the collection of the Award in consideration of the award of consequential damages, which for EcuadorTLC consisted of: (i) the release from tax and labor claims in dispute in the amount of US$132 million, and (ii) the collection of US$54 million. Additionally, the parties agreed that EcuadorTLC would be the sole beneficiary of the collection of the amount of US$ 9 million corresponding to a commitment undertaken by Petromanabí (a partner of the Block 18 Consortium but not a petitioner). The associated receivable has not been recognized in view of its contingent nature (see Note 15.6).

As a result of the agreement, the Company recognized net income in the amount of US$ 40 million as of December 31, 2018, which was made up as follows: i) US$ 133 million income as compensation for consequential damages after the write-off of the receivable on account of unamortized investments in the amount of US$ 53 million recoverable from the Ecuadorian Government, and ii) a US$ 93 million loss associated with the agreement to the terms of the tax claims assigned to EcuadorTLC pursuant to the agreement.

During 2018, EcuadorTLC collected the agreed amount and waived (without this implying an admission of facts or rights) the proceedings brought in the Ecuadorian Internal Revenue System Claims, and the Ecuadorian Government has made the withholding to cancel all tax debts. On September 20, 2019, through an official letter issued by the Ministry of Labor, EcuadorTLC was notified of the payment on employee participation profits from 2002 to 2010, to the former consortium workers.

94 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: RISKS

6.1 Critical accounting estimates and judgments

The preparation of financial statements requires the Company’s Management to make future estimates and assessments, to apply critical judgment and to establish assumptions affecting the application of accounting policies and the amounts of disclosed assets and liabilities, income and expenses.

The applied estimates and accounting judgments are evaluated on a continuous basis and are based on past experiences and other reasonable factors under the existing circumstances. Actual future results might differ from the estimates and evaluations made at the date of preparation of these Consolidated Financial Statements. The estimates which have a significant risk of producing adjustments on the amounts of the assets and liabilities during the following year are detailed below:

6.1.1 Impairment of non-financial long-lived assets

Non-financial long-lived assets, including identifiable intangible assets and right-of-use assets, are reviewed for impairment at the lowest level for which there are separately identifiable cash flows (CGU). For this purpose, each assets group with independent cash flows, each subsidiary, associate and each jointly controlled company has been considered a single CGU, as all of their assets jointly contribute to the generation of cash inflows, which are derived from a single service or product; thus cash inflows cannot be attributed to individual assets.

In order to evaluate if there is evidence that a CGU could be affected, both external and internal sources of information are analyzed. Specific facts and circumstances are considered, which generally include the discount rate used in the estimates of the future cash flows of each CGU and the business condition as regards economic and market factors, such as the cost of raw materials, oil and gas, international petrochemical product’s price, the regulatory framework for the energy industry, the projected capital investments and the evolution of the energy demand.

The value in use of each CGU is estimated on the basis of the present value of future net cash flows expected to be derived on the UGE. Management uses approved budgets up to one year as the base for cash flow projections that are later extrapolated into a term consistent with the assets’ remaining useful life, taking into consideration the appropriate discount rates. The discount rates used to discount future net cash flows is the WACC, for each asset or CGU a specific WACC was determined which considered the business segment and the country conditions where the operations are performed. In order to calculate the fair value less the costs of disposal, the Company Management uses the estimated value of the future cash flows that a market participant could generate from the appropriate CGU, less the necessary costs to carry out the sale of the corresponding CGU.

The Company Management is required to make judgments at the moment of the future cash flow estimation. The actual cash flows and the values may differ significantly from the expected future cash flows and the related values obtained through discount techniques.

6.1.2 Current and deferred Income tax

The Company’s Management periodically evaluates tax treatments affecting the determination of taxable profit regarding uncertain tax treatment under tax law considering the acceptability of a particular tax treatment by the relevant taxation authority, and, if applicable, recognizes tax provisions to reflect the effect of the uncertainty for each tax treatment based on the amount estimated to be paid to the tax authorities.

95 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

If the final tax resolution regarding uncertain tax treatments differs from recognized figures, such differences will have an effect on income tax and deferred income tax at the year of such determination.

Deferred tax assets are reviewed at each reporting date and reduced in accordance with the probability that the sufficient taxable base will be available to allow for the total or partial recovery of these assets. In assessing the recoverability of deferred tax assets, Management considers if it is likely that a portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income in the periods in which these temporary differences become deductible. To make this assessment, Management takes into consideration the scheduled reversal of deferred tax liabilities, the projections of future taxable income and tax planning strategies.

The generation of future taxable profits may differ from those estimated affecting the deductibility of deferred tax assets.

6.1.3 Provision for contingencies

The Company is subject to various claims, lawsuits and other legal proceedings that arise during the ordinary course of its business. The Company’s liabilities with respect to such claims, lawsuits and other legal proceedings cannot be estimated with certainty. Periodically, the Company reviews the status of each contingency and assesses potential financial liability, applying the criteria indicated in Note 4.22, for which elaborates the estimates mainly with the assistance of legal advisors, based on information available to the Management at Consolidated Financial Statements date, and taking into account our litigation and resolution/settlement strategies.

Contingencies include outstanding lawsuits or claims for possible damages to third parties in the ordinary course of the Company’s business, as well as third party claims arising from disputes concerning the interpretation of legislation.

The Company evaluates whether there would be additional expenses directly associated with the ultimate resolution of each contingency, which will be included in the provision if they may be reasonably estimated.

The final resolutions of the litigation could differ from Management's estimates, generating current provisions to be inadequate, which could have a material adverse effect on the statement of financial position, comprehensive income, changes in equity and cash flows.

6.1.4 Asset retirement obligations

Asset retirement obligations in oil and gas areas after completion of operations require the Company’s Management to estimate the number of wells, long-term well abandonment costs and the time remaining until abandonment.

In the same way, the obligations related to the decommissioning of wind turbines in wind farms require the Company’s Management to estimate long-term dismantling costs and the time remaining until the dismantling.

Technology, costs and political, environmental and safety considerations constantly change and may result in differences between actual future costs and estimates.

Asset retirement obligations’ estimates are adjusted at least once a year or more frequently if there are changes in the assumptions considered in the assessment.

96 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

6.1.5 Impairment of financial assets

The Group is exposed to losses for uncollectible receivables. The Company Management estimates the final collectability of the accounts receivable.

The accounting of expected credit losses for trade receivables and other receivables with similar risk characteristics is based on the Company's best estimate of the default risk and the calculation of the expected credit losses rates, based on historical information of the behavior of the Company's clients, current market conditions and forward-looking estimates at the end of each reporting period.

In order to estimate collections related to the sale of gas and energy (in the spot market), the Company mainly considers CAMMESA’s capacity to meet its payment obligations to generators and the resolutions issued by the SE, which allow the Company to collect its receivables from CAMMESA through different mechanisms.

Future adjustments to the allowance may be necessary if future economic conditions differ substantially from the assumptions used in the assessment for each year.

6.1.6 Actuarial assumptions in defined benefit plans

Commitments with defined benefit plans to employees are recognized as liabilities in the statement of financial position based on actuarial estimates revised annually by an independent actuary, using the projected unit credit method.

The present value of defined benefit pension plan depends on multiple factors that are determined according to actuarial estimates, net of the fair value of the plan assets, when applicable. For this purpose, certain assumptions are used including the discount rate and wage growth rate assumptions. It may be necessary to make adjustments in the future if future economic conditions materially differ from the assumptions used in the valuation of each year.

6.1.7 Oil and gas reserves

Reserves include oil and gas volumes (in m3 of oil equivalent) that are economically producible, in the areas where the Company operates or has a (direct or indirect) interest and over which the Company has exploitation rights, including oil and gas volumes related to those service agreements under which the Company has no ownership rights on the reserves or the hydrocarbons obtained and those estimated to be produced for the contracting company under service contracts.

There are numerous uncertainties in estimating proved reserves and future production profiles, development costs and prices, including several factors beyond the producer’s control. Reserve engineering is a subjective process of estimating underground accumulations involving a certain degree of uncertainty. Reserves estimates depend on the quality of the available engineering and geological data as of the estimation date and on the interpretation and judgment thereof.

Periodic revisions and adjustments to the estimated oil and gas reserves and related future net cash flows may be necessary as a result of changes in a number of factors, including reservoir performance, new drilling, oil and gas prices, cost, technological advances, new geological or geophysical data, and other economic factors or at least once a year.

97 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

The Company’s estimates of oil and gas reserves have been developed by the Company’s internal specialists, specifically petroleum engineers, and audited by independent specialists engaged by Company.

The Company uses the information obtained from the calculation of reserves in the determination of depreciation of properties, plant and equipment used in oil and gas areas, as well as assessing the recoverability of these assets and including, when applicable, goodwill allocated to oil and gas segment (see Notes 4.6 to 4.9).

6.1.8 Environmental remediation

The costs incurred to limit, neutralize or prevent environmental pollution are only capitalized if at least one of the following conditions is met: (a) such costs relate to improvements in safety; (b) the risk of environmental pollution is prevented or limited; or (c) the costs are incurred to prepare the assets for sale and the book value (which considers those costs) of such assets does not exceed their respective recoverable value.

Liabilities related to future remediation costs are recorded when, on the basis of environmental assessments, such liabilities are probable to materialize, and costs can be reasonably estimated. The actual recognition and amount of these provisions are generally based on the Company’s commitment to an action plan, such as an approved remediation plan or the sale or disposal of an asset. The provision is recognized on the basis that a future remediation commitment will be required.

The Company measures liabilities based on its best estimation of present value of future costs, using currently available technology and applying current environmental laws and regulations as well as the Company’s own internal environmental policies.

6.1.9 Business Combinations

The acquisition method involves the measurement at fair value of the identifiable assets acquired and the liabilities assumed in the business combination at the acquisition date.

For the purpose to determine the fair value of identifiable assets, the Company uses the valuation approach considered the most representative for each asset. These include: i) the income approach, through indirect cash flows (net present value of expected future cash flows) or through the multi-period excess earnings method, ii) the cost approach (replacement value of the good adjusted for loss due to physical deterioration, functional and economic obsolescence) and iii) the market approach through comparable transactions method.

Likewise, in order to determine the fair value of liabilities assumed, the Company’s Management considers the probability of cash outflows that will be required for each contingency, and elaborates the estimates with assistance of legal advisors, based on the information available and taking into account the strategy of litigation and resolution / liquidation.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

Management critical judgment is required in selecting the approach to be used and estimating future cash flows. Actual cash flows and values may differ significantly from the expected future cash flows and related values obtained through the mentioned valuation techniques.

6.2 Financial risk management

6.2.1 Financial Risk Factors

The Company’s activities are subject to several financial risks: market risk (including the exchange rate risk, the interest rate risk and the price risk), credit risk and liquidity risk.

Financial risk management is encompassed within the Company’s global policies, there is an integrated risk management methodology, where the focus is not placed on the individual risks of the business units’ operations, but there is rather a wider perspective focused on monitoring risks affecting the whole portfolio. The Company’s risk management strategy seeks to achieve a balance between profitability targets and risk exposure levels. Financial risks are those derived from financial instruments the Company is exposed to during or at the closing of each fiscal year. The Company uses derivative instruments to hedge certain risks when it deems it necessary according to its risk management internal policies.

Financial risk management is controlled by the Financial Department, which identifies, evaluates and covers financial risks. Risk management systems and policies are reviewed on a regular basis to reflect changes in market conditions and the Company’s activities, and have been applied consistently during the periods comprised in these Consolidated Financial Statements. This section includes a description of the main risks and uncertainties which may adversely affect the Company’s strategy, performance, operational results and financial position.

6.2.1.1 Market risks

6.2.1.1.1 Foreign exchange risk

The Company’s results of operations and financial position are exposed to changes in the exchange rate between the Company’s functional currency, which is the U.S. dollar and other currencies, primarily with respect to the Argentine peso (which is the legal currency in Argentina). In some cases, the Company may use derivative financial instruments to mitigate the associated exchange rate risk.

In fiscal year 2020, the U.S. dollar recorded an approximate 40.5% increase against the Argentine peso, from $59.89 in December 2019 to $84.15 in December 2020, and taking into consideration that during the year the Company mostly had a net passive position in Argentine pesos, as of December 31, 2020 the Company recorded net foreign exchange gain in the amount of $ 952 million. Taking into account the net active financial position in Argentine pesos as of December 31, 2020, excluding the assets and liabilities available for sale, the Company estimates that provided all other variables remain constant, a 10% revaluation/(devaluation) of U.S. dollar as compared to the Argentine peso would generate in absolute values a (decrease)/increase of $ 588 million in the 2020 fiscal year’s income/(loss), before income tax.

99 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

The Group´s exposure to other foreign currency movements is not material.

6.2.1.1.2 Price risk

The Company’s financial instruments are not significantly exposed to hydrocarbon international price risks on account of the current regulatory, economic, governmental and other policies in force, oil and gas domestic prices are not directly affected in the short-term due to variations in the international market.

Additionally, the Company’s investments in financial assets classified as “at fair value through profit or loss” are sensitive to the risk of changes in the market prices resulting from uncertainties as to the future value of such financial assets.

The Company estimates that provided all other variables remain constant, a 10% revaluation/(devaluation) of each market price would generate the following increase/(decrease) in the 2019 fiscal year’s income/(loss), before income tax in relation to financial assets at fair value through profit and loss detailed in Note 12.2 to these Consolidated Financial Statements:

Increase of the result for the year

Financial assets 12.31.2020 12.31.2019 Shares 338 115 Government securities 1,722 678 Investment funds 772 1,461 Variation of the result of the year 2,832 2,254

6.2.1.1.3 Cash flow and fair value interest rate risk

The management of the interest rate risk seeks to reduce financial costs and limit the Company’s exposure to interest rate increases.

Indebtedness at variable rates exposes the Company to the interest rate risk on its cash flows due to the possible volatility they may experience. Indebtedness at fixed rates exposes the Company to the interest rate risk on the fair value of its liabilities, since they may be considerably higher than variable rates. | As of December 31, 2020, only approximately 10% of the indebtedness was subject to variable interest rates. Likewise, most of the Company’s indebtedness subject to variable interest rates is denominated in U.S. dollar, based on Libor rate plus an applicable margin and a small portion is denominated in pesos accruing interest based on the private Badlar rate.

As of December 31, 2020, just 13.6% of the indebtedness was subject to variable interest rates. Furthermore, regarding the Company’s debt accruing variable interest rates, 61.8% is denominated in pesos, mainly at Private Badlar rate, and the remaining 38.2% is denominated in U.S. dollars, mainly at Libor rate plus an applicable spread.

100 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation) The Company seeks to mitigate its interest-rate risk exposure through the analysis and evaluation of: (i) the different liquidity sources available in the financial and capital market, both domestic and (if available) international; (ii) interest rates alternatives (fixed or variable), currencies and terms available for companies in a similar sector, industry and risk than the Company; (iii) the availability, access and cost of interest-rate hedge agreements. On doing this, the Company evaluates the impact on profits or losses resulting from each strategy over the obligations representing the main interest-bearing positions.

In the case of fixed rates and in view of the market’s current conditions, the Company considers that the risk of a significant decrease in interest rates is low and, therefore, does not foresee a substantial risk in its indebtedness at fixed rates.

As of the date of issuance of these Consolidated Financial Statements, the Company is not exposed to a significant risk of variable interest rate increases since most of the financial debt is subject to fixed rate.

The following chart shows the breakdown of the Company’s borrowings classified by interest rate and the currency in which they are denominated:

12.31.2020 12.31.2019 Fixed interest rate: Argentinian pesos 4,500 8,589 U.S dollar 110,871 101,036 Subtotal loans granted at a fixed interest rate 115,371 109,625

Floating interest rates: Argentinian pesos 11,192 575 U.S dollar 6,933 3,827 Subtotal loans granted at a floating interest rate 18,125 4,402 Non interest accrued Argentinian pesos 657 995 U.S dollar 1,652 1,581 Subtotal no interest accrued 2,309 2,576 Total borrowings 135,805 116,603

Based on the conducted simulations, and provided all other variables remain constant, a 10% increase/decrease in variable interest rates would generate the following (decrease)/increase in the 2020 fiscal year's year’s income/(loss), before income tax, of $ 408 million.

6.2.1.2 Credit risk

The Company establishes individual credit limits according to the limits defined by the Board of Directors and approved by the Financial Department based on internal or external ratings. The Company makes constant credit assessments on its customers’ financial capacity, which minimizes the potential risk for bad debt losses.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

The credit risk represents the exposure to possible losses resulting from the breach by commercial or financial counterparties of their obligations taken on with the Company. This risk stems mainly from economic and financial factors or a possible counterparty default.

The credit risk is associated with the Company’s commercial activity through customer trade receivables, as well as available funds and deposits in banking and financial institutions.

The Company, in its ordinary course of business and in accordance with its credit policies, grants credits to a large customer base, mainly large sectors of the industry, including petrochemical companies, natural gas distributors and electricity large users.

As of December 31, 2020, the Company’s trade receivables totaled $ 20,739 million, of which 99.98% are short-term and the remaining 0.02% is classified as non-current. With the exception of CAMMESA, which represents approximately 72% of such trade receivables, the Company does not have a significant credit risk concentration, as this exposure is distributed among a large number of customers and other counterparties.

The impossibility by CAMMESA to pay these receivables may have a substantially adverse effect on cash income and, consequently, on the result of operations and financial situation which, in turn, may adversely affect the Company’s repayment capacity.

The credit risk of liquid funds and other financial investments is limited since the counterparties are high credit quality banking institutions. If there are no independent risk ratings, the risk control area evaluates the customer’s creditworthiness, based on past experiences and other factors.

The Company applies the simplified approach of IFRS 9 to measure the expected credit losses trade receivables and other receivables in accordance with the policy described in Note 4.10.4.

The expected credit loss on trade receivables and financial assets as of December 31, 2020, 2019 and 2018 amounts to $ 993 million, $ 78 million and $ 455 million, respectively and was determined based on credit loss rates calculated for days past due detailed below:

12.31.2020 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.35% 1.11% 5.74% 9.78% 11.23% 19.77% 20.87% 22.71% Oil and Gas 0.49% 0.72% 5.96% 16.21% 16.23% 17.74% 17.76% 17.79% Petrochemicals 0.02% 0.06% 0.72% 2.26% 9.95% 23.84% 19.14% 36.92% Holding 12.58% 0.94% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

12.31.2019 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.10% 0.35% 1.99% 2.95% 4.03% 5.59% 9.79% 16.13% Oil and Gas 0.53% 1.49% 9.45% 18.03% 18.50% 18.81% 18.90% 18.92% Distribution of energy 3.00% 3.00% 8.00% 18.00% 20.00% 45.00% 72.00% 72.00% Petrochemicals 0.39% 0.73% 6.88% 16.66% 25.32% 29.59% 30.97% 43.05% Holding 1.85% 2.81% 6.84% 17.15% 26.77% 43.21% 49.89% 65.29%

12.31.2018 Undue 30 days 60 days 90 days 120 days 150 days 180 days + 180 days Generation 0.04% 0.09% 2.62% 3.39% 9.37% 13.56% 19.82% 28.88% Oil and Gas 2.20% 4.42% 11.11% 20.42% 42.85% 47.32% 49.20% 56.32% Distribution of energy 8.00% 8.00% 12.00% 19.00% 26.00% 59.00% 69.00% 69.00% Petrochemicals 0.03% 0.08% 1.41% 4.98% 11.52% 20.36% 24.91% 25.24% Holding 0.96% 1.25% 2.03% 2.85% 19.86% 26.41% 32.95% 32.97%

102 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

The loss allowance for financial assets and other receivables adjustment as of January 1, 2018 for the application of the expected credit losses methodology to the loss allowance as of December 31, 2017, based on the incurred loss model, is detailed as follows:

Financial Other assets receivables Loss allowance under IAS 39 as of 12.31.2017 822 256 Adjustment to the opening balance of retained earnings 153 (39)

Loss allowance calculated under IFRS 9 as of 01.01.2018 975 217

The detailed adjustments to the opening balance in equity as a result of the application of IFRS 9, are disclosed net of tax effect for a total amount of $ 80 million, with counterpart in retained earnings of $ 55 million and in non- controlling interest of $ 25 million.

Finally, although cash, cash equivalents and financial assets are also subject to the impairment requirements of IFRS 9, the identified impairment loss is immaterial.

Loss allowance evolution as of December 31, 2020, 2019 and 2018, is detailed in Note 12.3.

The Company’s maximum exposure to credit risk is based on the book value of each financial asset in the Consolidated Financial Statements. On the basis of the change in an assumption, while holding all other assumptions constant, a 5% increase/(decrease) in the estimated trade receivables’ uncollectibility rate would result in $ 68 million (decrease)/increase in 2019 fiscal year’s results, before income tax.

6.2.1.3 Liquidity risk

The liquidity risk is associated with the Company’s capacity to finance its commitments and conduct its business plans with stable financial sources, as well as with the indebtedness level and the financial debt maturities profile. The cash flow projection is made by the Financial Department.

The Company Management supervises updated projections on liquidity requirements to guarantee the sufficiency of cash and liquid financial instruments to meet operating and financing needs of the Company while keeping at all times a sufficient margin for unused credit facilities. In this way, the aim is that the Company does not breach indebtedness levels or the Covenants, if applicable, of any credit facility. Those projections take into consideration the Company’s debt financing plans, the meeting of the covenants and, if applicable, the external regulatory or legal requirements such as, for example, restrictions on the use of foreign currency. Additionally, the Financial Department regularly monitors the available credit for the Company, both in local and international, capital market as well as banking sector.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

Excess cash and balances above working capital management requirements are managed by the Company’s Treasury Department, which invests them in marketable securities, term deposits and mutual funds, selecting instruments having proper currencies and maturities, and an adequate credit quality and liquidity to provide a sufficient margin as determined in the previously mentioned projections.

The Company keeps its sources of financing diversified between banks and the capital market, and it is exposed to the refinancing risk at maturity.

It should be noted that the Company operates in an economic context which main variables have recently suffered significant volatility as a result of political and economic events both domestically and internationally, as described in Note 1.2.

The impact of COVID-19, added to the special circumstances of the sovereign debt renegotiation being conducted since the end of 2019, affected the international financial markets, which in turn also adversely affected the cost of access to financing, hedging activities, liquidity and access to capital for emerging markets in general, and particularly for Argentina. As regards to access to domestic financing, an increase in liquidity in pesos has been experienced throughout the market, which has significantly reduced the cost of financing, especially in the very short term.

All these impacts may potentially affect the Company’s capacity to obtain financing for its operations in a timely manner and under acceptable and efficient terms, costs and conditions in line with the Company’s business needs.

Furthermore, the restrictions imposed by the BCRA (see Note 2.7) with the purpose of regulating inflows and outflows in the MLC to maintain the exchange rate stability and protect international reserves in view of the high degree of uncertainty and volatility in the exchange rate and other new restrictions which may be imposed in the future may affect the Company’s capacity to access the MLC to acquire the foreign currency necessary to meet its financial obligations, such as debt principal and interest payments (including the CBs debt), and other additional payments abroad, or otherwise affect the Company’s business and the results of its operations.

The Company’s Management permanently monitors the evolution of situations affecting its business to determine possible steps to take and identify potential impacts on its assets and financial position. The Company’s Consolidated Financial Statements should be read in the light of these circumstances.

It is worth highlighting that the Company currently has a strong level of liquidity that allows it to properly face such volatility.

The determination of the Company’s liquidity index for fiscal years ended December 31, 2020 and 2019 is detailed below:

12.31.2020 12.31.2019

Current assets 79,789 81,559 Current liabilities 37,734 51,112

Index 2.11 1.60

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

The following table includes an analysis of the Company financial liabilities, grouped according to their maturity dates and considering the period remaining until their contractual maturity date from the date of the Consolidated Financial Statements. Derivative financial liabilities are included in the analysis if their contractual maturities are essential for the understanding of the cash flow calendar. The amounts shown in the table are the contractual undiscounted cash flows.

Trade Trade and other As of December 31, 2020 Borrowings receivables payables (1) Less than three months 20,523 9,574 6,937 Three months to one year 212 204 19,177 One to two years 4 712 9,331 Two to five years - 225 54,317 More than five years - 481 96,373 Total 20,739 11,196 186,135

Trade Trade and other As of December 31, 2019 Borrowings receivables payables (1) Less than three months 29,536 23,334 5,664 Three months to one year 319 3,849 12,900 One to two years 444 658 17,232 Two to five years 15 4,222 58,144 More than five years - 539 73,823 Total 30,322 32,608 167,763

(1) Includes Lease Liabilities (see Note 18.1.2)

105 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 6: (Continuation)

6.3 Capital risk management

The aims of managing capital are safeguard its capacity to continue operating as an on-going business with the purpose of generating return for its shareholders and benefits to other stakeholders, and keeping an optimal capital structure to reduce the cost of capital.

To keep or adjust its capital structure, the Company may adjust the amount of the dividends paid to its shareholders, reimburse capital to its shareholders, issue new shares, conduct stock repurchase programs or sell assets to reduce its debt.

In line with industry practices, the Company monitors its capital based on the leverage ratio. This ratio is calculated by dividing the net debt by the total capital. The net debt equals the total indebtedness (including current and non-current indebtedness) minus cash and cash equivalents and current financial assets at fair value through profit and loss. The total capital corresponds to the shareholders’ equity as shown in the statement of financial position, plus the net debt.

Financial leverage ratios as at December 31, 2020 and 2019 were as follows:

12.31.2020 12.31.2019 Total borrowings 135,805 116,603

Less: cash and cash equivalents, and financial assets at (39,282) (35,363) fair value through profit and loss Net debt 96,523 81,240 Total capital attributable to owners 216,770 196,105 Leverage ratio 44.53% 41.43%

106 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: SEGMENT INFORMATION

The Company is a fully integrated power company in Argentina, which participates in the electricity and oil and gas value chains.

Through its own activities, subsidiaries and share holdings in joint ventures, and based on the business nature, customer portfolio and risks involved, we were able to identify the following business segments:

Electricity Generation, principally consisting of the Company’s direct and indirect interests in HINISA, HIDISA, Greenwind, CTB, TMB, TJSM and through its own electricity generation activities through thermal plants Güemes, Piedra Buena, Piquirenda, Loma de la Lata, Genelba and Ecoenergía, Pilar, I. White, the Pichi Picún Leufú hydroelectric complex and Pampa Energía I and II wind farms.

Electricity Distribution, consisting of the Company’s direct interest in Edenor. As of December 31, 2020, 2019 and 2018, the Company has classified the results corresponding to the divestment mentioned in Note 5.3.1 as discontinued operations, for each of the years ended December 31, 2020, 2019 and 2018.

Oil and Gas, consisting of the Company’s own interests in oil and gas areas and through its direct interest in PACOSA and indirectly interest in OCP. As of December 31, 2018 the Company has classified the results corresponding to the divestment mentioned in Note 5.3.2 as discontinued operations.

Petrochemicals, comprising of the Company’s own styrenics operations and the catalytic reformer plant operations conducted in Argentine plants.

Holding and Other Business, principally consisting of financial investment transactions, holding activities, interests in the associate Refinor and interests in joint businesses CITELEC and CIESA and their respective subsidiaries, which hold the concession over the high voltage electricity transmission nationwide and over gas transportation in the South of the country, respectively. As of December 31, 2018 includes the results corresponding to the divestment mentioned in Note 5.3.3 as discontinued operations.

The Company manages its operating segment based on its individual net results in U.S. dollars.

The information as of December 31, 2018 disclosed below for comparative purposes arises from the Consolidated Financial Statements denominated in pesos expressed in terms of the measuring unit current as of December 31, 2018 in accordance with IAS 29 - “Financial Reporting in Hyperinflationary Economies”, and was translated into U.S. dollars using the exchange rate as of that date. .

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: (Continuation)

in million of US$ in million of $ Consolidated profit and loss information for the year ended Distribution Holding and Generation Oil and gas Petrochemicals Eliminations Consolidated Consolidated December 31, 2020 of energy others Revenue 559 - 227 265 20 - 1,071 76,639 Intersegment revenue - - 67 - - (67) - - Cost of sales (254) - (243) (233) - 67 (663) (46,850) Gross profit 305 - 51 32 20 - 408 29,789

Selling expenses (2) - (28) (8) - - (38) (2,680) Administrative expenses (30) - (42) (3) (18) - (93) (6,588) Exploration expenses ------(29) Other operating income 35 - 9 2 10 - 56 4,056 Other operating expenses (6) - (17) (6) (7) - (36) (2,550) Impairment of property, plant and equipment, intangible assets and (128) - - (11) - - (139) (10,351) inventories Share of profit from associates and joint ventures 67 - (5) - 23 - 85 6,551 Operating income 241 - (32) 6 28 - 243 18,198

Finance income 3 - 7 - 1 (2) 9 686 Finance costs (73) - (100) (3) (3) 2 (177) (12,528) Other financial results 1 - 44 5 34 - 84 6,131 Financial results, net (69) - (49) 2 32 - (84) (5,711) Profit before income tax 172 - (81) 8 60 - 159 12,487 Income tax (33) - 23 (2) (23) - (35) (3,122) Profit (loss) for the year from continuing operations 139 - (58) 6 37 - 124 9,365 Loss for the year from discontinued operations - (592) - - - - (592) (49,333) (Loss) profit for the year 139 (592) (58) 6 37 - (468) (39,968)

Depreciation and amortization 95 81 108 2 - - 286 21,071

108 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: (Continuation)

in million of US$ in million of $ Consolidated profit and loss information for the year ended Distribution Holding and Generation Oil and gas Petrochemicals Eliminations Consolidated Consolidated December 31, 2020 of energy others Total profit (loss) attributable to: Owners of the company 147 (499) (58) 6 37 - (367) (31,447) Non - controlling interest (8) (93) - - - - (101) (8,521)

Consolidated statement of financial position as of December 31, 2020 Assets 1,595 1,356 1,085 107 832 (85) 4,890 411,528 Liabilities 707 1,021 1,174 126 178 (85) 3,121 262,650 Net book values of property, plant and equipment 1,015 - 543 19 33 - 1,610 135,445

Additional consolidated information as of December 31, 2020 Increases in property, plant and equipment, intangibles assets and right- 61 135 41 3 2 - 242 18,562 of-use assets

109 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: (Continuation)

in million of US$ in million of $ Distribution Holding and Consolidated profit and loss information for the year ended Generation Oil and gas Petrochemicals Eliminations Consolidated Consolidated of energy others December 31, 2019 Revenue 819 - 178 321 20 - 1,338 64,699 Intersegment revenue - - 270 - - (270) - - Cost of sales (470) - (313) (298) - 270 (811) (39,169) Gross profit (loss) 349 - 135 23 20 - 527 25,530

Selling expenses (3) - (12) (9) (2) - (26) (1,294) Administrative expenses (32) - (47) (4) (22) - (105) (5,342) Exploration expenses - - (9) - - - (9) (463) Other operating income 58 - 5 5 11 - 79 3,749 ImpairmentOther operating of property, expenses plant and equipment, intangible assets and (11) - (11) (9) (12) - (43) (2,060) inventories (52) - (10) - - - (62) (3,713) Share of profit (loss) from joint ventures and associates 13 - 21 - 67 - 101 5,854 Operating income 322 - 72 6 62 - 462 22,261

Finance income 2 - 17 - 5 (1) 23 1,027 Finance costs (82) - (94) (8) (4) 1 (187) (9,005) Other financial results 86 - 89 18 (18) - 175 8,680 Financial results, net 6 - 12 10 (17) - 11 702 Profit before income tax 328 - 84 16 45 - 473 22,963

Income tax (80) - (16) (5) 231 - 130 4,531 Profit for the year from discontinuing operations 248 - 68 11 276 - 603 27,494 Profit for the year from discontinued operations - 197 - - - - 197 11,813 Profit for the year 248 197 68 11 276 - 800 39,307

Depreciation and amortization 71 79 112 1 - - 263 13,758

110 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: (Continuation)

in million of US$ in million of $ Consolidated profit and loss information for the year ended Distribution Holding and Generation Oil and gas Petrochemicals Eliminations Consolidated December 31, 2019 of energy others Consolidated Total profit attributable to: Owners of the company 239 98 68 11 276 - 692 33,012 Non - controlling interest 9 99 - - - - 108 6,295

Consolidated statement of financial position as of December 31,2019 Assets 1,472 1,480 1,261 136 1,527 (192) 5,684 340,428 Liabilities 1,226 1,792 465 122 (160) (170) 3,275 196,166

Net book values of property, plant and equipment 1,152 1,691 612 18 34 - 3,507 210,056 Additional consolidated information as of December 31, 2019 Increases in property, plant and equipment 240 173 191 4 3 - 611 30,426

111 Free translation from the original prepared in Spanish for publication in Argentina

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: (Continuation)

in million of US$ in million of $ Distribution Holding and Consolidated profit and loss information for the year ended Generation Oil and gas Petrochemicals Eliminations Consolidated Consolidated of energy others December 31, 2018 Revenue 604 - 458 338 36 - 1,436 54,126 Intersegment revenue 2 - 63 - - (65) - - Cost of sales (273) - (287) (334) - 63 (831) (31,323) Gross profit (loss) 333 - 234 4 36 (2) 605 22,803 Selling expenses (1) - (19) (13) (4) - (37) (1,418) Administrative expenses (41) - (56) (6) (27) - (130) (4,879) Exploration expenses - - (1) - - - (1) (45) Other operating income 61 - 141 6 15 - 223 8,477 Other operating expenses (17) - (114) (20) (6) 1 (156) (5,878) Impairment of property, plant and equipment - - - (32) - - (32) (1,195) Share of profit (loss) from joint ventures and associates (11) - 37 - 92 - 118 4,463 Income from the sale of associates - - 28 - - - 28 1,052 Operating income (loss) 324 - 250 (61) 106 (1) 618 23,380 Gain on net monetary position 233 - 107 49 12 2 403 15,193 Finance income 2 - 15 - 14 (1) 30 1,122 Finance costs (85) - (79) (15) (6) 1 (184) (6,967) Other financial results (365) - (512) (39) 108 - (808) (30,486) Financial results, net (215) - (469) (5) 128 2 (559) (21,138) Profit (loss) before income tax 109 - (219) (66) 234 1 59 2,242

Income tax (3) - 57 12 (34) - 32 1,207 Profit (loss) for the year from continuing operations 106 - (162) (54) 200 1 91 3,449 Profit for the year from discontinued operations - 116 49 - 31 - 196 7,359 Profit (loss) for the year 106 116 (113) (54) 231 1 287 10,808

Depreciation and amortization 66 69 92 6 1 - 234 6,205

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 7: (Continuation)

in million of US$ in million of $ Consolidated profit and loss information for the year ended Distribution Holding and Generation Oil and gas Petrochemicals Eliminations Consolidated December 31, 2018 of energy others Consolidated Total profit (loss) attributable to: Owners of the company 100 61 (115) (54) 231 1 224 8,435 Non - controlling interest 6 55 2 - - - 63 2,373

Consolidated statement of financial position as of December 31,2018 Assets 1,414 2,133 1,237 153 872 (137) 5,672 213,835 Liabilities 1,054 1,241 1,273 198 247 (136) 3,877 146,152

Additional consolidated information as of December 31, 2018 Increases in property, plant and equipment 235 227 192 4 7 - 665 25,071 Net book values of property, plant and equipment 1,036 1,657 554 15 54 - 3,316 125,005

Accounting criteria used by the subsidiaries to measure results, assets and liabilities of the segments is consistent with that used in the Consolidated Financial Statements. Transactions between different segments are conducted under market conditions. Assets and liabilities are allocated based on the segment’s activity.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 8: REVENUE

12.31.2020 12.31.2019 12.31.2018

Energy sales to the Spot Market 12,581 12,161 10,311 Energy sales by supply contracts 23,542 14,022 10,483 Fuel self-supply 3,971 13,366 1,918 Other sales 199 104 51 Generation sales subtotal 40,293 39,653 22,763

Oil, gas and liquid sales 15,327 8,349 17,123 Other sales 681 137 138 Oil and gas sales subtotal 16,008 8,486 17,261

Technical assistance services and administartion sales 1,351 1,017 1,347 Other 23 20 7 Holding and others subtotal 1,374 1,037 1,354

Petrochemicals products 18,964 15,523 12,748 Petrochemicals sales subtotal 18,964 15,523 12,748 Total revenue 76,639 64,699 54,126

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 9: COST OF SALES

12.31.2020 12.31.2019 12.31.2018 Inventories at the beginning of the year 9,175 5,169 4,266

Plus: Charges for the year Purchases of inventories, energy and gas 11,611 17,947 14,299 Salaries and social security charges 3,633 2,716 2,476 Benefits to employees 748 444 218 Accrual of defined benefit plans 266 191 69 3,887 3,018 2,274 Works contracts, fees and compensation for services Depreciation of property, plant and equipment 13,690 8,378 5,751 Intangible assets amortization 339 281 223 Right-of-use assets amortization 80 89 - Transport of energy 337 188 155 Transportation and freights 1,448 907 543 Consumption of materials 1,127 931 1,616 Penalties 34 70 29 Maintenance 1,834 1,272 908 Canons and royalties 2,986 2,898 2,782 Environmental control 286 176 193 Rental and insurance 1,581 847 502 Surveillance and security 173 348 209 Taxes, rates and contributions 174 180 183 Other 155 (107) (204) Subtotal 44,389 40,774 32,226 Exchange differences on translation 3,052 2,401 -

Less: Inventories at the end of the year (9,766) (9,175) (5,169) Total cost of sales 46,850 39,169 31,323

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 10: OTHER ITEMS OF THE STATEMENT OF COMPREHENSIVE INCOME

10.1 Selling expenses

12.31.2020 12.31.2019 12.31.2018 Salaries and social security charges 231 204 195 Benefits to employees 23 31 - Accrual of defined benefit plans - 1 2 Fees and compensation for services 188 106 86 Compensation agreements 24 (55) 81 Depreciation of property, plant and equipment 3 8 22 Taxes, rates and contributions 584 496 645 Net impairment losses on financial assets 852 (47) 89 Transport 640 471 211 Other 135 79 87 Total selling expenses 2,680 1,294 1,418

10.2 Administrative expenses

12.31.2020 12.31.2019 12.31.2018 Salaries and social security charges 2,410 1,854 2,129 Benefits to employees 317 368 206 Accrual of defined benefit plans 470 363 13 Fees and compensation for services 1,867 1,523 1,541 Compensation agreements 67 (17) 115 Directors' and Syndicates' fees 488 376 151 Depreciation of property, plant and equipment 373 300 209 Consumption of materials 24 33 26 Maintenance 97 100 88 Transport and per diem 34 116 82 Rental and insurance 44 43 32 Surveillance and security 37 32 42 Taxes, rates and contributions 149 79 154 Communications 83 56 58 Other 128 116 33 Total administrative expenses 6,588 5,342 4,879

10.3 Exploration expenses

12.31.2020 12.31.2019 12.31.2018 Geological and geophysical expenses 29 167 17 Decrease in unproductive wells - 296 28 Total exploration expenses 29 463 45

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 10: (Continuation)

10.4 Other operating income and expenses

12.31.2020 12.31.2019 12.31.2018 Other operating income Recovery of doubtful accounts 292 5 7 Insurrance recovery 275 226 - Services to third parties 437 486 428 Profit for property, plant and equipment sale 45 26 118 Dividends received 76 61 29 Reversal of contingencies 108 67 140 Contractual penalty 481 - - Commercial interests 2,089 2,247 1,957 Natural Gas Surplus Injection Promotion Program - - 866 Compensation for transaction agreement in Ecuador - - 3,721 Other 253 631 1,211 Total other operating income 4,056 3,749 8,477

Other operating expenses Provision for contingencies (491) (255) (596) Decrease in property, plant and equipment (58) (9) (83) Allowance for tax credits (4) (225) (1) Tax on bank transactions (788) (746) (541) Cost for services provided to third parties - - (5) Donations and contributions (172) (92) (82) Institutional promotion (157) (125) (114) Extraordinary canon - - (117) Onerous contract (Ship or Pay) - - (265) Tax contingencies in Ecuador - - (2,605) Other (880) (608) (1,469) Total other operating expenses (2,550) (2,060) (5,878)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 10: (Continuation)

10.5. Financial results

Note 12.31.2020 12.31.2019 12.31.2018 Gain on monetary position, net - - 15,193 Finance income Financial interest 97 408 872 Other interest 589 619 250 Total finance income 686 1,027 1,122 Finance cost Commercial interest (31) (107) - Fiscal interest (225) (301) (295) Financial interest (1) (11,648) (7,966) (5,935) Other interest (192) (449) (549) Other financial expenses (432) (182) (188) Total financial expenses (12,528) (9,005) (6,967)

Other financial results Foreign currency exchange difference, net 952 (262) (29,419)

Changes in the fair value of financial instruments 2,489 4,571 1,668 Gains (losses) from present value measurement 144 2,501 (2,792) Results for the repurchase of corporate bonds 2,532 1,431 54 Other financial results 14 439 3 Total other financial results 6,131 8,680 (30,486) Total financial results, net (5,711) 702 (21,138)

(1) Net of $ 633 million, $ 818 million and $ 282 million capitalized in property, plant and equipment for the years ended December 31, 2020, 2019 and 2018, respectively.

10.6 Income tax

The breakdown of income tax charge is:

12.31.2020 12.31.2019 12.31.2018 Current tax 1,032 1,295 351 Deferred tax 2,148 (7,255) (1,473) Other comprehensive income - - 19 Difference in the estimate of previous fiscal year (58) (66) (104) income tax and the income tax statement Optional tax revaluation - 1,495 - Total loss income tax 3,122 (4,531) (1,207)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 10: (Continuation)

Below is a reconciliation between income tax expense and the amount resulting from application of the tax rate on the income before taxes:

12.31.2020 12.31.2019 12.21.2018 Profit before income tax 12,487 22,963 2,242 Current tax rate 30% 30% 30% Result at the tax rate 3,746 6,889 673 Share of profit of associates and joint ventures (1,968) (1,448) (124) Non-taxable results (396) (2,048) (521) Effects of exchange differences and traslation effect of 6,341 4,881 - property, plant and equipment and intangible assets, net Adjustment of valuation of property, plant and (11,279) (9,477) - equipment and intangible assets (Loss) gain on monetary position, net - - (1,441) Effect of tax rate change in deferred tax 1,320 1,395 (219) Adjustment effect for tax inflation 5,642 4,569 - Payment of optional tax revaluation - 1,495 - Special tax, revaluation of property, plant and - (7,070) - equipment Difference in the estimate of previous fiscal year (407) (3,700) 159 income tax and the income tax statement Deferred tax not previously recognized - - 143 Non-deductible cost 111 - 26 Other 12 (17) 97 Total loss income tax 3,122 (4,531) (1,207)

As of December 31, 2020 and 2019 consolidated accumulated tax losses amount to $ 42,392 million and $ 26,618 million, respectively, which may be offset, pursuant to the applicable tax laws, with tax profits corresponding to future fiscal years, at the tax rate that is estimated to apply, based on the following breakdown:

Fiscal year Fiscal year generation 12.31.2020 12.31.2019 prescription

2016 2021 229 213 2017 2022 145 108 2018 2023 2,202 2,278 2019 2024 4,933 4,060 2020 2025 3,100 - 10,609 6,659

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 10: (Continuation)

Income tax assessment

As of December 31, 2020 and 2019, the cumulative variation in the IPC has exceeded the 15% and 30% condition set for the third and second transition year pursuant to Act No. 27,430 and, therefore, the effect of the tax inflation adjustment has been accrued in the calculation of the current and deferred income tax provision, except in the case of the Company and its subsidiaries PEFM, PHA and PACOGEN regarding the interim fiscal periods resulting from the corporate reorganizations where, taking into consideration the merger effective dates, the mentioned legal parameters have not been exceeded.

Investment companies

A literal application of the tax inflation adjustment mechanism set forth by Title VI of the Income Tax Act is inconsistent in certain aspects that have not been applied by some investing subsidiaries in the assessment of the income tax for fiscal years 2020 and 2019.

HIDISA and HINISA

HIDISA and HINISA have assessed the income tax for fiscal years 2012 - 2019 taking into consideration the application of the inflation adjustment mechanisms set forth in Title VI of the Income Tax Act, charging all its income in fiscal year 2019, thus failing to apply Section 194 of the Law, the update of Property, plant and equipment amortizations (Sections 87, 88 and 85.e), and a cost restatement on account of the disposal of shares and mutual funds quotas (Section 65), to such effect using the relevant indexes published by the INDEC and relying on the similarity with the parameters stated in re “Candy S.A.”, resolved by the CSJN on July 3, 2009, which ruling ordered the application of the inflation adjustment mechanism.

As of December 31, 2020, the companies hold a provision for the additional income tax liabilities which should have been assessed for the reasons mentioned above. The provision for the period, including compensatory interest, and is disclosed under “Non-current income tax liabilities”.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: NON-FINANCIAL ASSETS AND LIABILITIES

11.1. Property, plant and equipment

Original values

Reclasification to Type of good At the beginning Increases Impairment Transfers Decreases Traslation effect assets clasified At the end as held

Land 809 - (29) - - 328 1,108 Buildings 12,088 43 (2,308) 685 - 4,683 (3,645) 11,546 Equipment and machinery 75,055 154 (11,767) 18,997 (193) 32,351 - 114,597 High, medium and low voltage lines 62,736 144 (9,355) 4,148 (161) 22,664 (80,176) - Substations 22,036 1,271 (3,983) 4,187 (3) 7,961 (31,469) - Transforming chamber and platforms 13,155 220 (2,153) 1,220 (134) 4,751 (17,059) - Meters 13,574 73 (1,905) 1,330 - 4,905 (17,977) - Wells 40,273 249 - 6,433 (371) 17,717 - 64,301 Mining property 15,136 - - - - 6,131 - 21,267 Vehicles 1,282 216 (50) 353 (6) 606 (1,951) 450 Furniture and fixtures and software equipment 4,461 474 (55) 191 (24) 1,781 (2,428) 4,400 Communication equipments 873 3 (12) 295 - 319 (1,374) 104 Materials and spare parts 2,200 957 (135) (675) - 829 (604) 2,572 Petrochemical industrial complex 817 - - 257 - 359 - 1,433 Work in progress 47,395 13,697 (47) (36,593) (15) 14,701 (28,043) 11,095 Advances to suppliers 1,084 1,061 (25) (828) - 287 (236) 1,343 Other goods 363 - (299) - - 146 - 210 Total at 12.31.2020 313,337 18,562 (32,123) - (907) 120,519 (184,962) 234,426 Total at 12.31.2019 183,517 30,426 (6,763) - (1,998) 108,155 - 313,337

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NOTE 11: (Continuation)

Depreciation Net book values Type of good Reclasification For the year At 12.31.2020 At the beginning Decreases Impairment (1) (2) Traslation effect to assets At the end (3) At 12.31.2019 clasified as held

Land ------1,108 809 Buildings (4,534) - 1,045 (473) (1,856) 715 (5,103) 6,443 7,554 Equipment and machinery (24,561) 152 5,080 (6,855) (10,488) - (36,672) 77,925 50,494 High, medium and low voltage lines (20,632) 109 - (3,020) (7,455) 30,998 - - 42,104 Substations (6,862) 2 - (1,192) (2,479) 10,531 - - 15,174 Transforming chamber and platforms (3,753) 36 - (663) (1,355) 5,735 - - 9,402 Meters (5,204) - - (879) (1,880) 7,963 - - 8,370 Wells (23,100) - - (5,226) (10,379) - (38,705) 25,596 17,173 Mining property (8,619) - - (1,180) (3,723) - (13,522) 7,745 6,517 Vehicles (1,184) 6 35 (269) (447) 1,513 (346) 104 98 Furniture and fixtures and software equipment (3,419) 23 48 (638) (1,389) 1,657 (3,718) 682 1,042 Communication equipments (611) - 11 (53) (226) 818 (61) 43 262 Materials and spare parts (134) - 27 (44) (54) 118 (87) 2,485 2,066 Petrochemical industrial complex (441) - - (62) (187) - (690) 743 376 Work in progress ------11,095 47,395 Advances to suppliers ------1,343 1,084 Other goods (227) - 262 (17) (95) - (77) 133 136 Total at 12.31.2020 (103,281) 328 6,508 (20,571) (42,013) 60,048 (98,981) 135,445 Total at 12.31.2019 (58,512) 676 3,050 (13,311) (35,184) - (103,281) 210,056

(1) Includes $ 6,505 million and $ 4,625 million corresponding to discontinued operations for 2020 and 2019, respectively. (2) As of December 31, 2020, the breakdown by segments was: Generation $ 6,383 million, Distribution of energy $ 6,505 million, Oil and gas $ 7,566 million, Petrochemicals $ 111 million and Holding and other $ 6 million (3) . As of December 31, 2020, the breakdown by segments was: Generation $ 85,352 million, Oil and gas $ 45,689 million, Petrochemicals $ 1,633 million and Holding and other $ 2,771 million.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (in millions of US$ – unless otherwise stated)

NOTE 11: (Continuation)

Borrowing costs capitalized in the book value of property, plant and equipment during the year ended December 31, 2020 and 2019 amounted to $ 633 million and $ 818 million, respectively (see Note 12.5).

11.1.1 Impairment of Property, plant and equipment

The Company regularly monitors the existence of events or changes in circumstances which may indicate that the book value of property, plant and equipment may not be recoverable in accordance with the policy described in Notes 4.9 and 6.1.1.

In the Power Generation segment, spot market prices that suffered reductions in 2019 were again affected by the change in currency of the whole remuneration scheme as from February 1, 2020 and the temporary suspension of the automatic price adjustment mechanism replicating inflation, which has not been restored as of the issuance of these Consolidated Financial Statements.

In the Oil and Gas segment, the market for gas, a product which represents approximately 90% of our hydrocarbon production, experienced a reduction in the domestic sale price on account of oversupply in 2019, and in 2020 the lockdown measures to prevent the spread of COVID-19 (see Note 1.2) caused a decrease in the SADI’s electricity generation, which resulted in a lower thermal dispatch and, consequently, lower gas consumptions by CAMMESA which, added to the decrease in the non-essential industrial demand, exacerbated oversupply in the summer months and led to lower tendered gas prices and decreases in domestic gas production. The above-mentioned lockdown measures also greatly affected the demand for oil, which experienced a collapse in sold volumes as a result of the sharp drop in the demand for refined products and the exhaustion of the storage capacity.

Therefore, in view of the above-mentioned indications of impairment, the Company has determined the recoverable amount of the CGUs making up the Generation and Oil & Gas segments as of December 31, 2020 and 2019.

The methodology used in the estimation of the recoverable amount consisted on calculating the present value of future net cash flows expected to be generated by the CGU, discounted with a rate reflecting the weighted average costs of the capital employed.

Cash flows were prepared based on estimates on the future behavior of certain variables that are sensitive in the determination of the value in use, including the following: (i) reference prices for products; (ii) demand projections per type of product; (iii) costs evolution; and; (iv) macroeconomic variables such as inflation and exchange rates, etc.

11.1.1.1 Generation segment

As of December 31, 2020 and 2019, the assessment of recoverability, determined through the value in use of the Güemes and Piedra Buena thermal power plants and the Pichi Picun Leufú, Diamante and Nihuiles hydroelectric power plants, with revenues fully generated in the spot market, and the Loma de la lata and Piquirenda thermal power plants, with revenues fully generated in the spot market as from the termination of the contracts in 2021, which make up the Power Generation segment, resulted in the recognition of impairment losses for $ 8,219 million (US$ 110 million) and $ 3,114 million (US$ 52 million), respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

The projections used in the calculation of the recoverable amount as of December 31, 2020 take into consideration 5 alternative scenarios with a probability of occurrence ranging between 10% and 40%, assigned based on historical experience on regulations set by the SE, which weigh: i) price restructuring increases ranging between 9% and 30% in 2021 and up to an additional 30% in 2022; ii) the total or partial implementation of the automatic inflation adjustment mechanism to the spot remuneration set by SE Resolution No. 31/20 as from 2022; iii) the gradual regularization towards 2023 of the financing term granted to CAMMESA to the levels observed in 2019; and iv) a 10.34% WACC rate after taxes.

Actual values may substantially differ from projections, mainly on account of: i) the timeliness and magnitude of price restructuring updates for energy estimated for 2021 and 2022, ii) the modality for the reimplementation as from 2022 of the price inflation adjustment mechanism suspended by the SE, and/or iii) the date of regularization of the financing term granted to CAMMESA. Even though this variation has been taken into consideration when weighing the scenarios, the Company estimates that any sensitivity analysis that considers changes in any of them taken individually may lead to distorting conclusions, generating an adverse effect on the Company’s results.

The key assumptions used in the calculation of the recoverable amount as of December 31, 2019 considered: i) the remuneration for sales in the spot market set by SE Resolution No. 31/20 (including the automatic price adjustment mechanism), and ii) an 9.7% after tax WACC discount rate.

As regards these projections, it is worth highlighting that the Management has considered: i) that the Energía Plus contracted volume remains allocated to Genelba to maximize efficiency in cost structure, and ii) the entry into effect of co-generation and closing to combined cycle projects under SEE Resolution No. 287/17 and the resulting dispatch reduction for less efficient power plants such as Güemes and Piedra Buena.

11.1.1.2 Oil & Gas segment

As of December 31, 2020 and 2019, the recoverability of the assets in the Oil and Gas segment was assessed through the determination of their value in use. As of December 31, 2019, impairment losses for $ 599 million (US$ 10 million) were recognized in the Sierra Chata block.

The projections used in the calculation of the recoverable amount as of December 31, 2020 take into consideration the following assumptions for gas: i) Years 2021 through 2024: sale of gas volumes at an annual average price of 3.46 US$/MMBTU; ii) Year 2025 onwards: the break-even price is reached, consistent with a prudent development of unconventional reserves in Vaca Muerta. In the case of oil, an average price of US$ 65 was estimated for the Brent barrel (reference price for the Company) until 2026 inclusive, as well as a gradual increase until reaching an average price of US$ 73 in 2030. The after tax WACC discount rate is 13.1%.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

The key assumptions used in the calculation of the recoverable amount as of December 31, 2019 consider i) a 2020 price of natural gas similar to the 2019 price, and a 20-25% gas price increase for 2021, price that is maintained in subsequent years considering a moderate development of unconventional resources (Vaca Muerta) tending to achieve gas domestic demand supply and a decrease in gas imports, and ii) a 12.6% after tax WACC discount rate before tax. It is worth highlighting that the gas price is maintained in the projections, which in turn affects the estimated investment profile.

Finally, it is important to highlight that as of December 31, 2020 and 2019, the book value of the Oil and gas segment assets, including the goodwill assigned to the segment, does not exceed its recoverable value.

11.2 Intangible assets

Original values Reclasification to assets Type of good At the beginning Impairment (1) Traslate Effect At the end clasified as held for sales Concession agreements 16,128 (11,545) 4,824 (7,799) 1,608 Goodwill 2,073 - 839 - 2,912 Intangibles identified in acquisitions of companies 418 - 169 - 587 Total at 12.31.2020 18,619 (11,545) 5,832 (7,799) 5,107 Total at 12.31.2019 11,839 - 6,780 - 18,619

Depreciation Reclasification to assets Type of good At the beginning (1) For the year (2) Traslate Effect At the end Impairment clasified as held for sales Concession agreements (9,400) 10,119 (392) (3,009) 1,275 (1,407) Intangibles identified in acquisitions of companies (151) - (28) (66) - (245) Total at 12.31.2020 (9,551) 10,119 (420) (3,075) 1,275 (1,652) Total at 12.31.2019 (5,759) - (358) (3,434) - (9,551)

Net book values Type of good At 12.31.2020 At 12.31.2019

Concession agreements 201 6,728 Goodwill 2,912 2,073 Intangibles identified in acquisitions of companies 342 267 Total at 12.31.2020 3,455 Total at 12.31.2019 9,068

(1) As of December 31, 2020, and considering the assumptions detailed in Note 11.1, the assessment of recoverability for the Diamante and Nihuiles hydroelectric power plants from the Power Generation segment, with income generated in the spot market, resulted in the recognition of impairment losses for $ 1,426 million (US$ 18 million). (2) It includes $ 81 million and $ 77 million corresponding to Discontinued operations for fiscal year 2020 and 2019, respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

11.3 Deferred tax assets and liabilities, income tax and minimum notional income tax

The composition of the deferred tax assets and liabilities is as follows:

Gain on Other Reclasification Other 12.31.2019 Profit (loss) monetary comprehensive to assets 12.31.2020 reclasifications position, net loss clasified as held Tax loss carryforwards 6,659 1,258 - 2,940 (248) - 10,609 Intangible assets - 260 - - - - 260 Trade and other receivables 753 774 200 141 (1,349) - 519 Financial assets at fair value through profit and loss - (11) - 11 - - - Cash and cash equivalents 2 1 - (1) - - 2 Trade and other payables 790 (186) 217 74 (678) - 217 Salaries and social security payable 146 306 41 32 (255) - 270 Defined benefit plans 400 8 39 71 (76) - 442 Provisions 2,363 (108) 243 693 (818) - 2,373 Taxes payable 18 (5) 6 - (19) - - Adjustment for tax inflation 452 (223) - 59 - - 288 Other 15 85 - 9 - - 109 Deferred tax asset 11,598 2,159 746 4,029 (3,443) - 15,089 (23,072) 6,614 (6,986) (776) 22,929 - (1,291) Property, plant and equipment Adjustment for tax inflation (5,908) (6,368) (819) (455) 3,470 9,949 (131) Investments in companies (492) (1,413) - (250) - - (2,155) Intangible assets (750) 448 - (615) - - (917) Inventory (617) (85) (111) (120) 455 - (478) Trade and other receivables (245) (133) - (181) - - (559) Financial assets at fair value through profit and loss (644) 157 (75) (76) 298 - (340) Borrowings (3) 2 (1) - 2 - - Taxes payable (231) 79 - (77) - - (229) Other (2) 4 - (2) - - - Deferred tax liabilities (31,964) (695) (7,992) (2,552) 27,154 9,949 (6,100)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

Gain on Other 12.31.2018 Profit (loss) monetary comprehensive 12.31.2019 position, net loss

Tax loss carryforwards 1,975 2,797 - 1,887 6,659 Trade and other receivables 543 (75) 239 46 753 Financial assets at fair value through profit and 2 (3) - 1 - loss Cash and cash equivalents - 2 - - 2 Trade and other payables 1,955 (2,246) 1,051 30 790 Salaries and social security payable 56 56 27 7 146 Defined benefit plans 327 (70) 57 86 400 Provisions 1,201 392 186 584 2,363 Taxes payable 213 (260) 8 57 18 Adjustment for tax inflation - 448 - 4 452 Other 75 (63) - 3 15 Deferred tax asset 6,347 978 1,568 2,705 11,598 Property, plant and equipment (12,598) (7,009) (2,381) (1,084) (23,072) Adjustment for tax inflation - (5,392) - (516) (5,908) Investments in companies (701) 468 - (259) (492) Intangible assets (7,286) 10,520 (3,293) (691) (750) Inventory - (454) (105) (58) (617) Trade and other receivables (353) 413 - (305) (245) Financial assets at fair value through profit and (322) (173) (114) (35) (644) loss Borrowings (122) 139 (2) (18) (3) Taxes payable - (160) - (71) (231) Other (239) 244 - (7) (2) Deferred tax liabilities (21,621) (1,404) (5,895) (3,044) (31,964)

Deferred tax assets and liabilities are offset in the following cases: a) when there is a legally enforceable right to offset tax assets and liabilities; and b) when deferred income tax charges are associated with the same fiscal authority. The following amounts, determined after their adequate offset, are disclosed in the statement of financial position:

12.31.2020 12.31.2019 Deferred tax asset 9,082 1,702 Deferred tax liabilities (93) (22,068) Deferred tax liabilities, net 8,989 (20,366)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

11.4 Inventories

12.31.2020 12.31.2019

Materials and spare parts 6,656 5,673 Advances to suppliers 261 1,277 In process and finished products 2,849 2,225 Total 9,766 9,175

11.5 Provisions

12.31.2020 12.31.2019 Non-Current Provisions for contingencies 7,608 7,411 Asset retirement obligation and dismantling of wind 1,621 1,195 turbines Environmental remediation 67 34 Other provisions 30 63 9,326 8,703

Current Provisions for contingencies 1,052 968 Asset retirement obligation and dismantling of wind 177 132 turbines Environmental remediation 149 105 Other provisions 1 1 1,379 1,206

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

12.31.2020 Asset retirement For obligation and For contingencies environmental dismantling of remediation wind turbines

At the beginning of the year 8,379 1,327 139 Increases 1,650 150 37 Decreases (126) - (11) Exchange differences on translation 2,232 564 53 Reversal of unused amounts (686) (243) (2) Reclasification liabilities associated to assets (2,789) - - classified as held for sale At the end of the year 8,660 1,798 216

12.31.2019 Asset retirement For obligation and For contingencies environmental dismantling of remediation wind turbines

At the beginning of the year 5,332 835 160 Increases 2,332 134 12 Exchange differences on translation 2,032 519 58 Gain on monetary position, net (250) - - Decreases (551) (8) (87) Reversal of unused amounts (516) (153) (4) At the end of the year 8,379 1,327 139

12.31.2018 For Asset retirement For contingencies environmental obligation remediation

At the beginning of the year 5,311 1,579 210 Increases 4,013 1,391 208 Reclasification - (677) - Gain on monetary position, net (1,965) (677) (74) Decreases (904) (190) (184) Reversal of unused amounts (1,123) (591) - At the end of the year 5,332 835 160

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

11.5.1 Provision for Environmental remediation

The Company is subject to extensive environmental regulations in Argentina. The Company’s management believes that its current operations are in compliance with applicable environmental requirements, as currently interpreted and enforced, including regulatory remediation commitments assumed. The Company undertakes environmental impact studies for new projects and investments and, to date, environmental requirements and restrictions imposed on these new projects have not had any material adverse impact on Pampa’s business.

The Company has performed a sensitivity analysis relating to the discount rate. The 1% increase or decrease in the discount rate would not have a significant impact on the Company’s results of operations.

11.5.2 Asset retirement obligations

Pursuant to the regulations in force in Argentina, where it develops its oil and gas exploration and production operations, the Company is under an obligation to incur costs associated with the plugging and abandonment of wells. Furthermore, pursuant to the associated usufruct agreements, the Company is under an obligation to decommission wind turbines in wind farms. The Company does not have legally restricted assets for the cancellation of these obligations.

The Company has performed a sensitivity analysis relating to the discount rate. The 1% increase or decrease in the discount rate would not have a significant impact on the Company’s results of operations.

11.5.3 Provision for legal proceedings

The Company (directly or indirectly through subsidiaries) is a party to several civil, commercial, contentious administrative, tax, custom and labor proceedings and claims that arise in the ordinary course of its business. In determining a proper level of provision, the Company has considered its best estimate mainly with the assistance of legal and tax advisors.

The determination of estimates may change in the future due to new developments or unknown facts at the time of evaluation of the provision. As a consequence, the adverse resolution of the evaluated proceedings and claims could exceed the established provision.

The Company has recorded provisions for civil, commercial, administrative, labor, tax and customs complaints brought against the Company corresponding to atomized claims with individual unsubstantial amounts, as well as charges for judicial costs and expenses which, as of December 31, 2020, amount to $ 1,399 million.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

We hereinafter detail the nature of significant proceedings for which provisions have been recorded as of December 31, 2019:

- Relevant Customs Summary Proceedings - Gasoline Exports: there is an important number of customs summary proceedings and proceedings in process before the National Tax Court in which the tax authority challenges the tariff heading used by Petrobras during 2008-2014. The Fiscal authority’s position involves a higher export duty rate. As December 31, 2020, the associated provision amounts to $ 7,261 million.

11.6 Income tax and minimum notional income tax liability

Note 12.31.2020 12.31.2019 Non-current Income tax, net of witholdings and advances 10.6 11,004 590 Total non-current 11,004 590

Current Income tax, net of witholdings and advances 897 3,154 Total current 897 3,154

11.7 Tax liabilities

12.31.2020 12.31.2019 Non-current Sales tax 118 78 Payment plans 10 29 Extraordinary Canon - 156 Total non-current 128 263

Current Value added tax 993 2,306 Municipal, provincial and national contributions - 179 Personal assets tax provision 67 179 Payment plans 55 47 Municipal taxes - 138 Tax withholdings to be deposited 189 338 Royalties 321 252 Extraordinary Canon 1,347 743 Other 58 134 Total current 3,030 4,316

131

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

11.8 Defined benefits plans

The main characteristics of benefit plans granted to Company employees are detailed below.

(i) Pension and retirement benefits: Benefit plan whereby Company employees, in some cases covered by certain collective bargaining agreements, meeting certain conditions are eligible to receive upon retirement, and in some cases, disability or death, a certain number of salaries according to the provisions of the plan or collective bargain agreement, if applicable.

(ii) Compensatory plan: Benefit plan whereby some of the Company employees meeting certain conditions are eligible to receive upon retirement a certain amount according to the provisions of the plan (based on the last computable salary and the number of years working for the Company) after deducting the benefits from the pension system. The plan, until 2003, called for a contribution to a fund exclusively by the Company and without any contribution by the employees. These contributions were derived to a trust fund and were invested in US dollar-denominated money market instruments in order to preserve the accumulated capital and obtain a return in line with a moderate risk profile. Funds were mainly invested in US government bonds, commercial papers rated A1 or P1, AAAm-rated mutual funds and time deposits in banks rated A+ or higher in the United States of America, in accordance with the Trust Agreement dated on March 27, 2002 entered with The Bank of New York Mellon, duly amended by the Permitted Investment Letter dated on September 14, 2006. The Bank of New York Mellon is the trustee and Willis Towers Watson is the managing agent. In case there is an excess (duly certified by an independent actuary) of the funds to be used to settle the benefits granted by the plan, the Company will be entitled to choice to use it, in which case it may have to notify the trustee thereof.

132

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

As of December 31, 2020, 2019 and 2018, the most relevant actuarial information corresponding to the described benefit plans is the following:

12.31.2020

Net liability at Present value of Fair value of plan the end of the the obligation assets year Liabilities at the beginning 2,100 (264) 1,836 Items classified in profit or loss Current services cost 221 - 221 Cost for interest 1,144 (152) 992 Items classified in other comprehensive income Actuarial (gains) losses (267) 42 (225) Benefit payments (134) - (134) Reclasification liabilities associated to assets classified as held for sale (833) - (833) Gain on monetary position, net (99) - (99) At the end 2,132 (374) 1,758

12.31.2019 Net liability at Present value of Present value of the end of the the obligation assets year Liabilities at the beginning 1,500 (163) 1,337 Items classified in profit or loss Current services cost 148 - 148 Cost for interest 771 (102) 669 Past services cost 1 - 1 Separation and reduction costs (16) - (16) Items classified in other comprehensive income Actuarial (gains) losses (104) 1 (103) Benefit payments (132) - (132) Gain on monetary position, net (68) - (68) At the end 2,100 (264) 1,836

133

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

12.31.2018 Net liability at Present value of Present value of the end of the the obligation assets year Liabilities at the beginning 1,760 (117) 1,643 Items classified in profit or loss Current services cost 75 - 75 Cost for interest 339 (31) 308 Past services cost (187) - (187) Items classified in other comprehensive Actuarial (gains) losses 225 (65) 160 Exchange differences on translation 4 - 4 Benefit payments (130) - (130) Gain on monetary position, net (586) 50 (536) At the end 1,500 (163) 1,337

As of December 31, 2020, 2019 and 2018, the breakdown of net liabilities per type of plan is as follows: a) $ 973 million, $ 1,234 million and $ 933 million correspond to the Pension and Retirement Benefits Plan and b) $ 785 million, $ 602 million and $ 404 million correspond to the Compensatory Plan, respectively.

Estimated expected benefits payments for the next ten years are shown below. The amounts in the table represent the undiscounted cash flows and therefore do not reconcile to the obligations recorded at the end of the year.

12.31.2020 Less than one year 298 One to two years 176 Two to three years 172 Three to four years 172 Four to five years 186 Six to ten years 845

134

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

Significant actuarial assumptions used were as follows:

12.31.2020 12.31.2019 12.31.2018 Discount rate 5% 5% 5% Salaries increase 1% 1% 1% Average inflation 57% 50% 27%

The following sensitivity analysis shows the effect of a variation in the discount rate and salaries increase on the obligation amount:

12.31.2020 Discount rate: 4% Obligation 2,313 Variation 181 10%

Discount rate: 6% Obligation 1,977 Variation (155) (9%)

Salaries increase: 0% Obligation 2,062 Variation (70) (4%)

Salaries increase: 2% Obligation 2,212 Variation 80 5%

The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. Therefore, the presented analysis may not be representative of the actual change in the defined benefit obligation. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 11: (Continuation)

11.9 Salaries and social security payable

12.31.2020 12.31.2019 Non-current Seniority - based bonus - 201 Early retirements payable - 40 Total non-current - 241

Current Salaries and social security contributions 271 1,292 Provision for vacations 557 991 Provision for gratifications and annual bonus for 1,107 1,523 efficiency Early retirements payable - 28 Total current 1,935 3,834

NOTE 12: FINANCIAL ASSETS AND LIABILITIES

12.1 Financial assets at amortized cost

12.31.2020 12.31.2019 Non-current Public securities (1) - 1,048 Term deposit 8,428 - Total non-current 8,428 1,048

Current Public securities (1) 2,062 3,224 Total current 2,062 3,224

(1) The public securities were received in accordance with the mechanism set forth by SGE Resolution No. 54/19 for the settlement of receivables under Natural Gas Surplus Injection Promotion Programs. See Note 2.4.3.1.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

12.2 Financial assets at fair value through profit and loss

12.31.2020 12.31.2019 Non-current Shares 942 671 Total non-current 942 671

Current Government securities 17,223 6,775 Shares 2,442 478 Investment funds 7,717 14,614 Total current 27,382 21,867

12.3 Trade and other receivables

Note 12.31.2020 12.31.2019 Non-Current Receivables from oil and gas sales - 456 Other 4 3 Trade receivables, net 4 459

Non-Current Tax credits 453 208 Related parties 17 2,413 3,169 Prepaid expenses 38 52 Financial credit - 22 Guarantee deposits 1 1 Credit with RDSA - 2,126 Allowance for doubtful accounts - (2,126) Allowance for tax credits (5) (5) Other 727 805 Other receivables, net 3,627 4,252 Total non-current 3,631 4,711

137

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

Note 12.31.2020 12.31.2019 Current Receivables from energy distribution sales - 13,540 Receivables from MAT 1,242 1,023 CAMMESA 14,941 10,059 Receivables from oil and gas sales 1,974 2,856 Receivables from petrochemistry sales 3,303 3,234 Related parties 17 298 392 Government of the PBA and CABA by Social Rate - 251 Other 329 508 Allowance for doubtful accounts (1,352) (2,000) Trade receivables, net 20,735 29,863

Current Tax credits 405 624 Advances to suppliers 28 10 Advances to employees 11 8 Related parties 17 3,474 497 Prepaid expenses 304 123 Receivables for non-electrical activities 449 639 Financial credit 295 296 Guarantee deposits 221 300 Contractual penalty to collect 284 - Insurance to recover 520 - Expenses to be recovered 720 727 Credits for the sale of property, plant and equipment - 35 Credit with RDSA - 60 Other 1,241 706 Allowance for other receivables (9) (305) Other receivables, net 7,943 3,720 Total current 28,678 33,583

138

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

Due to the short-term nature of trade and other receivables, its book value is not considered to differ from its fair value. For non-current trade and other receivables, fair values do not significantly differ from book values.

The movements in the allowance for the impairment of trade receivables are as follows:

Note 12.31.2020 12.31.2019 12.31.2018 At the beginning 4.1 4,126 1,266 975 Allowance for impairment 5,115 3,544 1,266 Utilizations (615) (771) (389) Reversal of unused amounts (169) (90) (31) Exchange differences on translation 126 126 - Gain on monetary position, net (900) 51 (555) Reclasification to assets clasified as held for sales (6,331) - - At the end of the year 1,352 4,126 1,266

The movements in the allowance for the impairment of other receivables are as follows:

Note 12.31.2020 12.31.2019 12.31.2018 At the beginning 4.1 310 296 217 Allowance for impairment 144 56 248 Exchange differences on translation 104 89 - Gain on monetary position, net 2 (1) (115) Reversal of unused amounts (469) (130) (54) Reclasification to assets clasified as held for sales (77) - - At the end of the year 14 310 296

139

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

12.4 Cash and cash equivalents

12.31.2020 12.31.2019 Cash 13 29 Banks 5,869 3,407 Investment funds 6,018 250 Time deposits - 9,810 Total 11,900 13,496

12.5 Borrowings

Note 12.31.2020 12.31.2019 Non-Current Financial borrowings 6,285 9,623 Corporate bonds (1) 109,143 96,006 115,428 105,629 Current Bank overdrafts 3,059 - Financial borrowings 7,436 8,227 Corporate bonds (1) 9,882 1,932 Related parties 17 - 815 20,377 10,974 Total 135,805 116,603

(1) Net of repurchase of own ONs

As of December 31, 2020 and 2019, the fair values of the Company’s Corporate Bonds amount approximately to $ 110,193 million and $ 86,005 million, respectively. Such values were calculated on the basis of the determined market price of the Company’s corporate notes at the end of each year (fair value level 1).

The carrying amounts of short-term borrowings approximate their fair value due to their short-term maturity.

The other long-term borrowings were measured at amortized cost, which does not differ significantly from its fair value.

As of the date of issuance of these Consolidated Financial Statements, the Company is in compliance with the covenants established in its indebtedness

140

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

The movements in the borrowings are as follows:

Note 12.31.2020 12.31.2019 12.31.2018 At the beginning 116,603 82,090 63,439 Proceeds from borrowings 25,253 25,808 9,250 Payment of borrowings (25,062) (26,869) (9,057) Accrued interest 12,761 9,185 6,766 Payment of borrowings' interests (13,353) (6,651) (5,004) Net foreign currency exchange difference (776) 4,283 46,895 Results for the repurchase of corporate bonds 12.5.2 (2,947) (1,590) (59) Costs capitalized in property, plant and equipment 11.1 633 818 282 Decrease through offsetting with trade receivables - (5,981) - Cancellation through dividend compensation (840) - - Gain on monetary position, net 376 (385) (29,974) Repurchase and redemption of corporate bonds (6,747) (5,107) (448) Other comprehensive loss 38,308 41,002 - Reclasification liabilities associated to assets (8,404) - - classified as held for sale At the end of the year 135,805 116,603 82,090

141

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (in millions of US$ – unless otherwise stated)

NOTE 12: (Continuation)

12.5.1 Details of borrowings:

Residual Book value as Type of instrument Company Currency Interest Rate Expiration value of 12.31.2020

Corporate bonds(1)

Serie 6 CB (2) PAMPA $ 6,355 Variable Badlar + 2.5% Ago-21 6,515 T Series CB (3) PAMPA US$ 389 Fixed 7.38% Jul-23 33,573 Class 1 CB (3) PAMPA US$ 636 Fixed 7.50% Ene-27 54,436 Serie 3 CB PAMPA US$ 293 Fixed 9.13% Abr-29 24,501 119,025 Financial loans (4)

PAMPA $ 1,500 Fixed 32.50% Abr-21 1,607 PAMPA $ 4,837 Variable Badlar + 7% may-21 5,168 PAMPA US$ 31 Variable Libor + 4.21% May-24 2,609 9,384 Other financial loans (5)

PAMPA US$ 2 Variable Libor Jul-21 128 PAMPA US$ 50 Variable Libor Ago-23 4,209 4,337 Bank overdrafts

Between 30% and PAMPA $ 3,000 Fixed Ene-21 3,059 34% 135,805

(1) In the months of July, October and November 2020, the Company paid at maturity Class 4, Class 5 and Series E CBs, the first two issued on April 30, 2020, for a face value of $ 1,238 million, $ 565 million and $ 575 million at a Badlar rate +3%, Badlar rate + 5% and Badlar rate + 0%, respectively.

(2) Issued on July 29, 2020.

(3) During the fiscal year ended December 31, 2020, the Company and its subsidiaries acquired Series T and Class 1 corporate bonds at their respective market values for a face value of US$ 148 million; therefore, the Company recorded profits for $ 2,532 million, which are disclosed in the “Gain (Loss) on the repurchase of corporate bonds” line item under Other financial results. As of December 31, 2020, the Company, through its subsidiaries, held in its portfolio: Series T and Class I CBs for a face value of US$ 35 million and US$ 11 million, respectively.

(4) During the fiscal year ended December 31, 2020, the Company took on new financing with domestic financial entities, net of cancellations and early cancellations, for a total $ 1,600 million, and paid at maturity financing loans in the amount of US$ 92 million.

(5) On October 2, 2020, the Company was granted a credit facility for up to US$50 million at Libor rate plus 0.0%, which is secured by a Total Return Swap, the underlying asset of which is own CBs held in treasury by the Company for a total amount of US$185.9 million. Any disbursement requested by the Company under this agreement should be secured with term deposits held in BNP by the Company, and the owed principal may not exceed 95% of these funds. The cash flow generated by the assigned assets may be destined to: i) the extension of the above-mentioned credit facility; and/or ii) the cancellation of expenses, interest and/or disbursements. It is worth highlighting that BNP is not empowered to dispose of the Total Return Swap’s underlying asset, and may only use it to a limited extent to guarantee certain transactions, but may under no circumstances lose its condition as asset holder. The Company may cancel the agreement at any time, in whole or in part, without incurring any penalty, with no other requirement than the giving of notice by a reliable means or automatically in case any of the events of default stipulated in the agreement is verified. Finally, at the transaction’s maturity date, the counterparty should return to the Company the Total Return Swap’s underlying asset and any associated cash flow. The Company has received disbursements in the amount of US$ 51.5 million under certain credit facilities with BNP.

142

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

Residual Book value as Type of instrument Company Currency Interest Rate Expiration value of 12.31.2019

Corporate bonds(1)

2022 CB Edenor US$ 166 Fixed 9.75% 2022 8,341 Class E CB PAMPA $ 575 Fixed Badlar Nov-20 618 Class 1 CB (1) PAMPA US$ 687 Fixed 7.50% Jan-27 41,779 T Series CB (1) PAMPA US$ 487 Fixed 7.38% Jul-23 29,783 Serie 3 CB (1) PAMPA US$ 293 Fixed 9.13% Apr-29 17,417 97,938 Financial loans(2) Between 4.25% and Jan-2020 to PAMPA US$ 84 Fixed 5,283 7.65% May-2020 PAMPA US$ 39 Variable 4.21% + Libor May-2024 2,326 Between 40% and Apr-2021 to PAMPA $ 7,775 Fixed 8,726 44.14% Apr-2024 Related parties 16,335 PAMPA US$ 13 Fixed 6.0% 2020 815 Financial loans: Edenor US$ 1,885 Fixed Libor + 4.27% Oct-20 1,515 1,515 116,603

(1) During the fiscal year ended December 31, 2019, the Company acquired own corporate bonds at their respective market values for a face value of US$ 62 million; therefore, the Company recorded consolidated profits for $ 1,431 million, which are disclosed in the “Gain (Loss) on the repurchase of corporate bonds” line item under Other financial results.

As of the closing of fiscal year 2019, Pampa held in its portfolio: Series T Corporate Bonds for a face value of US$ 14 million, Series 1 Corporate Bonds for a face value of US$ 63 million and Series 3 Corporate Bonds for US$ 7 million, the latter issued on July 10, 2019

(2) During the fiscal year ended December 31, 2019, the Company canceled banking debt (including pre-export finance facilities) for US$ 420 million and $ 550 million, and took on new debt for US$ 25 million and $ 8,349 million.

143

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (in millions of US$ – unless otherwise stated)

NOTE 12: (Continuation)

12.6. Trade and other payables

Note 12.31.2020 12.31.2019 Non-Current Customer contributions - 156 Customer guarantees - 213 Trade payables - 369

ENRE Penalties and discounts - 3,932 Compensation agreements 561 399 Lease liability 852 716 Other 5 3 Other payables 1,418 5,050 Total non-current 1,418 5,419

Current Suppliers 7,775 12,739 CAMMESA - 9,305 Customer contributions - 31 Discounts to customers - 37 Customer advances 184 362 Related parties 17 420 468 Other 25 22 Trade payables 8,404 22,964

ENRE Penalties and discounts - 3,387 Related parties 17 - 316 Advances for works to be executed - 6 Compensation agreements 86 150 Payment agreements with ENRE - 48 Lease liability 150 254 Advances received for sales of subsidiary 1,044 - Other 94 64 Other payables 1,374 4,225 Total current 9,778 27,189

Due to the short-term nature of the trade payables and other payables, their carrying amount is considered to be the same as their fair value, except non-current customer contributions.

The fair values of non-current customer contributions as of December 31, 2019 amount to $ 45 million, respectively. The fair values are determined based on estimated discounted cash flows in accordance with a market rate for this type of transactions. This fair value is classified as level 3.

The book value of the compensation agreements approximates their fair value given its valuation characteristics (Note 4.17).

144

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

12.7 Financial instruments by category

The following chart presents financial instruments by category:

Financial Financial assets/liabilities Subtotal assets/liabilities Non financial at fair value financial Total at amortized assets/liabilities through profit assets/liabilities cost As of December 31, 2020 and losss Assets Trade receivables and other receivables 30,863 214 31,077 1,232 32,309 Financial assets at amortized cost Term deposit 8,428 - 8,428 - 8,428 Corporate securities 2,062 - 2,062 - 2,062 Financial assets at fair value through profit Government securities - 17,223 17,223 - 17,223 Shares - 3,384 3,384 - 3,384 Investment funds - 7,717 7,717 - 7,717 Derivative financial instruments - 1 1 - 1 Cash and cash equivalents 5,882 6,018 11,900 - 11,900 Total 47,235 34,557 81,792 1,232 83,024

Liabilities Trade and other liabilities 11,012 - 11,012 184 11,196 Borrowings 135,805 - 135,805 - 135,805 Derivative financial instruments - 40 40 - 40 Total 146,817 40 146,857 184 147,041

Financial Financial assets/liabilities Subtotal assets/liabilities Non financial at fair value financial Total at amortized assets/liabilities through profit assets/liabilities cost As of December 31, 2019 and losss Assets Trade receivables and other receivables 37,233 250 37,483 811 38,294 Financial assets at fair value through profit and loss Government securities - 6,775 6,775 - 6,775 Shares - 1,149 1,149 - 1,149 Investment funds - 14,614 14,614 - 14,614 Derivative financial instruments - 214 214 - 214 Cash and cash equivalents 13,246 250 13,496 - 13,496 Total 50,479 23,252 73,731 811 74,542

Liabilities Trade and other liabilities 24,484 399 24,883 7,725 32,608 Borrowings 116,603 - 116,603 - 116,603 Instrumentos financieros derivados - 204 204 - 204 Total 141,087 603 141,690 7,725 149,415

145

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

The categories of financial instruments have been determined according to IFRS 9.

The income, expenses, gains and losses derived from each of the financial instrument categories are indicated below:

Financial Financial Subtotal Non Financial assets/liabilities assets/liabilities financial assets/ Total at amortized at fair value assets/liabilities liabilities cost through profit As of December 31, 2020 and losss Interest income 686 - 686 - 686 Interest expense (11,689) - (11,689) (407) (12,096) Foreign exchange, net (184) (13) (197) 1,149 952 Results from financial instruments at fair - 2,489 2,489 - 2,489 value Gains (losses) from present value measurem 466 - 466 (322) 144 Other financial results 2,114 - 2,114 - 2,114 Total (8,607) 2,476 (6,131) 420 (5,711)

Financial Financial assets/liabilities Subtotal Non Financial assets/liabilities at fair value financial assets/ Total at amortized through profit assets/liabilities liabilities cost and losss As of December 31, 2019 Interest income 3,138 136 3,274 - 3,274 Interest expense (8,111) - (8,111) (712) (8,823) Foreign exchange, net 154 (617) (463) 201 (262) Results from financial instruments at fair - 4,571 4,571 - 4,571 value Gains (losses) from present value 2,559 - 2,559 (58) 2,501 measurement Other financial results 1,688 - 1,688 - 1,688 Total (572) 4,090 3,518 (569) 2,949

Financial Financial assets/liabilities Subtotal Non Financial assets/liabilities at fair value financial assets/ Total at amortized through profit assets/liabilities liabilities cost and losss As of December 31, 2018 Interest income 2,883 196 3,079 - 3,079 Interest expense (5,935) - (5,935) (844) (6,779) Foreign exchange, net (27,157) 894 (26,263) (3,156) (29,419) Results from financial instruments at fair - 1,668 1,668 - 1,668 value Gains (losses) from present value (2,713) - (2,713) - (2,713) measurement Other financial results (131) - (131) (79) (210) Total (33,053) 2,758 (30,295) (4,079) (34,374)

146

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

12.8 Fair value of financial Instruments

The Company classifies the fair value measurements of financial instruments using a fair value hierarchy, which reflects the relevance of the variables used to perform those measurements. The fair value hierarchy has the following levels: - Level 1: quoted prices (not adjusted) for identical assets or liabilities in active markets. - Level 2: data different from the quoted prices included in Level 1 observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). - Level 3: Asset or liability data based on information that cannot be observed in the market (i.e., unobservable data).

The following table shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2020 and 2019:

As of December 31, 2020 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and losss Government securities 17,223 - - 17,223 Shares 2,442 - 942 3,384 Investment funds 7,717 - - 7,717 Cash and cash equivalents Investment funds 6,018 - - 6,018 Derivative financial instruments - 1 - 1 Other receivables - 214 - 214 Total assets 33,400 215 942 34,557 Liabilities Derivative financial instruments - 40 - 40 Total liabilities - 40 - 40

As of December 31, 2019 Level 1 Level 2 Level 3 Total Assets Financial assets at fair value through profit and losss Government securities 6,775 - - 6,775 Shares 478 - 671 1,149 Investment funds 14,614 - - 14,614 Cash and cash equivalents Investment funds 250 - - 250 Derivative financial instruments - 214 - 214 Other receivables 250 - - 250 Total assets 22,367 214 671 23,252

Liabilities Derivative financial instruments - 204 - 204 Trade and other liabilities - 399 - 399 Total liabilities - 603 - 603

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 12: (Continuation)

The value of the financial instruments negotiated in active markets is based on the market quoted prices as of the date of these Consolidated Financial Statements. A market is considered active when the quoted prices are regularly available through a stock exchange, broker, sector-specific institution or regulatory body, and those prices reflect regular and current market transactions between parties that act in conditions of mutual independence. The market quotation price used for the financial assets held by the Company is the current offer price. These instruments are included in Level 1.

The fair value of financial instruments that are not negotiated in active markets is determined using valuation techniques. These valuation techniques maximize the use of market observable information, when available, and rely as little as possible on specific estimates of the Company. If all significant variables to establish the fair value of a financial instrument can be observed, the instrument is included in Level 2.

If one or more variables used to determine the fair value cannot be observed in the market, the financial instrument is included in Level 3.

The techniques used for the measurement of assets at fair value with changes in income, classified as Level 2 and 3, are detailed below:

- Derivative Financial Instruments: calculated from variations between market prices at the closing date of the year, and the amount at the time of the contract.

- Shares: they were determined based on Income approach through the Indirect Cash Flow method (net present value of expected future cash flows) and the discount rates used were estimated taking the WAAC rate as a parameter.

NOTE 13: EQUITY COMPONENTS

13.1 Share capital

As of December 31, 2020, the share capital amounts to $ 1,455 million, including $ 4 million treasury shares.

13.1.1. Share buyback programs

Taking into consideration the market volatility experienced as from 2018 and the persisting divergence between the Company’s share price and the economic reality its assets currently or potentially have, which is detrimental to the interests of its shareholders, and considering the Company’s history of strong cash position and fund availability, the Board of Directors has implemented several share buyback programs, considering in each case that treasury shares may not exceed the 10% capital stock capitalization.

During fiscal year 2020, the Board of Directors approved Programs 6 and 7 for US$ 27 million and $ 3,600 million, with a maximum price of US$ 13 per ADR, which have been completed and for which all repurchased shares have been canceled.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 13: (Continuation)

Program 8 approved on October 30, 2020 for a maximum amount of US$ 30 million and an initial term of 120 calendar days, with a maximum price of US$ 15 per ADR and $ 85.20 per common share, was in effect as of December 31, 2020, and has terminated as of the issuance of these Financial Statements.

As of December 31, 2020, there are no own shares held in treasury under the buyback programs.

Program 8 approved by the Company’s Board of Directors on March 1, 2021 for a maximum amount of US$ 30 million and an initial term of 120 calendar days, under which shares may be acquired up to a maximum price of US$ 16 per ADR and $ 92.16 per common share, is in effect as of the issuance of these Financial Statements. After the closing of the fiscal year, the Company directly and indirectly acquired 34.7 million own shares for a value of US$ 18.6 million.

13.1.2 Stock Compensation Plan

During fiscal year ended December 31, 2020, the Company delivered 0.7 million own shares as payments under the stock compensation plan for officers and other key staff. As of December 31, 2020, the Company acquired 6 million own shares, out of which 2 million were allocated to the compensation of senior managers and, as of the closing of the fiscal year, 4 million remained in treasury to be delivered to employees under such plan (see Note 4.17).

13.1.3 Capital reductions

On April 7, 2020 and December 10, 2020, the Company’s Extraordinary General Meeting of Shareholders resolved to reduce its capital stock through the cancellation of 152 million and 141 million own shares, respectively, held in treasury by the Company and its subsidiaries as of the last business day prior to such dates acquired under the share buyback programs. These reductions are pending with the Public Registry.

13.2 Earnings per share

13.2.1 Basic

Basic earnings per share are calculated by dividing the result attributable to the Company’s equity interest holders by the weighted average of outstanding common shares during the year.

13.2.2 Diluted

Diluted earnings per share are calculated by adjusting the weighted average of outstanding common shares to reflect the conversion of all dilutive potential common shares.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 13: (Continuation)

Potential common shares will be deemed dilutive only when their conversion into common shares may reduce the earnings per share or increase losses per share of the continuing business. Potential common shares will be deemed anti- dilutive when their conversion into common shares may result in an increase in the earnings per share or a decrease in the losses per share of the continuing operations.

The calculation of diluted earnings per share does not entail a conversion, the exercise or another issuance of shares which may have an anti-dilutive effect on the losses per share, or where the option exercise price is higher than the average price of ordinary shares during the period, no dilutive effect is recorded, being the diluted earnings per share equal to the basic. As of December 31, 2020, 2019 and 2018, the Company does not hold any significant potential dilutive shares, therefore there are no differences with the basic earning per share.

12.31.2020 12.31.2019 12.31.2018 Earning for continuing operations attributable to the 9,952 27,057 3,234 equity holders of the Company Weighted average amount of outstanding shares 1,572 1,799 1,959 6.33 15.04 1.65 Basic and diluted earnings per share

(Loss) Earning for discontinued operations attributable (41,399) 5,955 5,201 to the equity holders of the Company 1,572 1,799 1,959 Weighted average amount of outstanding shares Basic and diluted (loss) earnings per share from (26.34) 3.31 2.65 discontinued operations

(Loss) earning attributable to the equity holders of the (31,447) 33,012 8,435 Company 1,572 1,799 1,959 Weighted average amount of outstanding shares Basic and diluted (loss) earnings per share (20.00) 18.35 4.31

13.3 Profit distributions

Dividends

Pursuant to Law No. 27,430, enacted in December 2017, and the suspension provided for by Law No. 27,541 (Note 2.6.1.2), dividends distributed to individuals, undivided estates or beneficiaries residing abroad, derived from profits generated during fiscal years beginning on or after January 1, 2018 through December 31, 2021, are subject to a 7% withholding tax. The distribution of dividends is made based on the Company’s Stand-Alone Financial Statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 14: STATEMENT OF CASH FLOWS’ COMPLEMENTARY INFORMATION

14.1 Adjustments to reconcile net profit (loss) to cash flows generated by operating activities

Note 12.31.2020 12.31.2019 12.31.2018 Income tax 10.6 3,122 (4,531) (1,207) Accrued interest 9,396 5,741 3,958 Depreciations and amortizations 9, 10.1 and 10.2 14,485 9,056 6,205 Constitution of allowances, net 10.4 and 10.1 564 173 83 Provision of provisions and tax payables, net 10.4 383 188 456 Share of profit from joint ventures and associates 5.4.2 (6,551) (5,854) (4,463) Income from the sale of companies 5.2.1 - - (1,052) Accrual of defined benefit plans 9, 10.1 and 10.2 736 555 84 Net exchange differences 10.5 (952) 262 29,419 Result from measurement at present value 10.5 (144) (2,501) 2,792 Changes in the fair value of financial instruments 10.5 (1,667) (4,497) (1,669) Results from property, plant and equipment sale and decre 10.4 and 10.3 13 279 (7) Results for the repurchase of corporate bonds 10.5 (2,532) (1,431) (54) Impairment of property, plant and equipment, intangible 1.2 y 11.1 10,351 3,713 1,195 assets and inventories Dividends received 10.4 (76) (61) (29) Compensation agreements 10.1 and 10.2 91 (72) 196 Result from the sale of shareholdings in companies, 5.3.2 - - (1,644) property, plant and equipment Onerous contract (Ship or pay) 10.4 - - 265 Gain on monetary position, net 10.5 - - (15,193) Other 11 (353) 138 Total adjustments to reconcile net profit to cash flows 27,230 667 19,473 generated by operating activities

14.2 Changes in operating assets and liabilities

12.31.2020 12.31.2019 12.31.2018 Decrease (Increase) in trade receivables and other receivables 711 728 (2,278) (Increase) Decrease in inventories (873) (1,542) 102 (Decrease) Increase in trade payables and other payables (2,058) 2,200 (4,181) Increase (Decrease) in salaries and social security payable 506 444 (55) Decrease in defined benefit plans (121) (87) (75) Increase (Decrease) in tax payables 75 (516) 1,387 Decrease in provisions (147) (458) (1,949) Income tax and minimum notional income tax paid (1,096) (1,920) (508) Proceeds (Payments) from derivative financial instruments, net 324 545 (897)

Total changes in operating assets and liabilities (2,679) (606) (8,454)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 14: (Continuation)

14.3 Significant non-cash transactions

12.31.2020 12.31.2019 12.31.2018 Acquisition of property, plant and equipment through an (592) (2,227) (2,122) increase in trade payables Borrowing costs capitalized in property, plant and (633) (818) (282) equipment Compensation of loans through the assignment of 840 - - dividends Decrease in asset retirement obligation provision through (243) (142) (1,272) property, plant and equipment Dividends pending collection 1,242 - - Constitution of guarantee of derivative financial instruments, net through the delivery of financial assets at - 128 (759) fair value through profit or loss Cancellation of other credits for capital contributions in - 713 - associates Compensation of investments at a cost cost through the - 5,341 - transfer of other credits Loan compensation through the transfer of sales credits - 5,981 -

Increase of right-of-use assets through an increase in other debts 24 731 -

NOTE 15: CONTINGENT LIABILITIES AND ASSETS

We hereinafter detail the nature of significant proceedings as of December 31, 2019, not considered as probable by the Company based on the opinion of the Company’s internal and external counselors.

15.1 Labor Claim – Compensatory Plan

The Company faces several legal proceedings associated with the Defined Benefit Plan “Compensatory Plan” (see Note 11.8). We hereinafter describe the nature of currently-pending labor claims: - Claims by former employees not covered by the plan, seeking their inclusion. In one of the causes, the Company obtained a favorable judgment, which has been appealed by the plaintiff. - Claims by former employees seeking a compensation under the plan on account of terminations due to changes in shareholding control. - Claims on considering that the index (IPC) used to update the plan benefits are ineffective to keep their “constant value”. In one of the causes, the Company obtained a favorable judgment, which has been appealed by the plaintiff. - Claims on an alleged underfunding of the plan upon the elimination of the Company’s contributions based on earnings.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 15: (Continuation)

15.2 Tax claim

- Tax on Liquid Fuels and Natural Gas: The AFIP filed a claim in the amount of $ 54 million against the Company for an alleged omission in the payment of Taxes on Liquid Fuels and Natural Gas during fiscal periods January 2006 through August 2011, plus compensatory interest and a penalty of $ 38 million for such omission. The tax entity supports its claim on the allegation that the tax benefit granted to sales to areas declared exempt by the tax law has been misappropriated. The proceeding is currently being heard before the Federal Tax Court, and the evidentiary period has been completed.

15.3 Environmental claims

- The Association of Land Owners of Patagonia (ASSUPA) has brought a complaint for an indefinite amount against the Company and other companies seeking the restoration of the environment to the state prior to the exploration, exploitation, production, storage and transportation of hydrocarbon works conducted by the plaintiffs and the prevention of alleged future environmental impacts on certain areas in the Austral Basin. The National Government and the Provinces of Santa Cruz and Tierra del Fuego have been summoned as third parties. The proceeding is at the complaint answer stage.

- ASSUPA has instituted a complaint before the CSJN against 10 companies, including the Company. The National Government and the Provinces of Buenos Aires, La Pampa, Mendoza, Neuquén and Río Negro have been summoned as third parties. The main claim seeks that the plaintiffs should be ordered to redress the alleged environmental damage caused by the hydrocarbon activity developed in the Neuquina Basin and to set up the environmental restoration fund provided for by section 22 of the General Environmental Law. Subsidiarily, and in case restoration is not possible, it seeks the redress of the allegedly sustained collective damages for an amount estimated at US$ 547 million based on a United Nations Development Program report. The proceeding is in the complaint answer stage.

- Beatriz Mendoza and other 16 plaintiffs brought a complaint before the CSJN against the National Government, the Province of Buenos Aires, the Government of the Autonomous City of Buenos Aires and 44 companies, including the Company, conducting industrial activities along the Matanza-Riachuelo River Basin. The plaintiffs seek compensation for alleged damages sustained as a result of an alleged environmental impact, its cessation, the environmental recomposition and redress, for an estimated amount of US$ 500 million for the financing of the Matanza-Riachuelo River Basin Environmental Management Plan aiming at the restoration of the basin. The proceeding is in the third-party summoning stage.

- Inertis S.A. Has filed a complaint against the Company for alleged damage to the environment in a lot owned by this company as a result of the activities conducted by the Dock Sud Plant seeking the redress of alleged damages for a nominal amount estimated at $ 1 million and US$ 1 million, or the difference between the value of the allegedly affected lot and its valuation. The proceeding is in the evidentiary stage.

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NOTE 15: (Continuation)

- Fundación SurfRider Argentina has requested the performance of preliminary proceedings on account of alleged indications of environmental damage in the City of Mar del Plata. The plaintiff seeks the recomposition of the alleged environmental damage having collective impact, or the compensation for the alleged damages caused by all companies owning gas stations in the coastal area of the City of Mar del Plata for an alleged fuel leakage from gas stations’ underground storage tanks into the water, soil and marine system. The Foundation estimates damages in the amount of $ 200 million. The proceeding is pending the resolution of the admissibility of CSJN’s jurisdiction.

- -Some neighbors of the Dock Sud area brought a complaint against 14 oil companies, including the Company, petrochemical companies and waste incineration plants located in the Dock Sud Petrochemical Complex for an alleged damage to the environment and alleged individual damage to their goods, health and morale. The CSJN determined it had jurisdiction over the environmental issue, and maintained the civil and commercial jurisdiction regarding the compensation for the alleged damages.

- A neighbor of the Province of Salta owning a lot where a joint venture made up of the plaintiffs (the Company and other companies) conducted hydrocarbon activities seeks environmental protection and restoration for alleged damage caused by hydrocarbon prospecting, exploration and/or exploitation activities or, alternatively, a compensation in case such environmental restoration is not possible. The Province of Salta has been summoned as a third party. The proceeding is in the complaint answer stage and with a negative conflict of jurisdiction.

- Owners of a lot in the town of Garín, Province of Buenos Aires, seek the performance of preliminary proceedings for alleged indications of damage to the environment in their place of residence which would result from an alleged leakage from the adjacent gas station under the Company’s branding. Preliminary measures are being conducted in this proceeding.

- Neighbors of the Province of Neuquén brought a proceeding against the Company for alleged environmental damage resulting from the hydrocarbon exploration, exploitation, transportation and well abandonment activities in which that plaintiff has been taking part. Should this not be feasible, they claim a compensation for alleged damages to support the Environmental Restoration Fund. Additionally, they request the redress of alleged moral damages to be allocated to the Environmental Restoration Fund. The presence of all involved parties has been properly verified, and the lawsuit has been referred to the administrative litigation jurisdiction.

- The Company initiated a legal claim against the Province of La Pampa requesting the annulment and revocation of administrative acts through which said Province through its Undersecretary of Hydrocarbons and Mining and its Undersecretariat of Environment, intends that the Company carries out definitive abandonment of 13 hydrocarbon wells located within the Jagüel de los Machos Area that were inactive by the time the concession belonged to the company -September 2015-, as well as the presentation of a plan for the remediation of certain environmental liabilities. It is worth clarifying that an environmental audit was carried out at the time of the reversal of the hydrocarbon area, and the deviations observed therein are currently corrected. The presence of all involved parties under the lawsuit is currently being verified

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NOTE 15: (Continuation)

- -Plaintiff Martinez Lidia and other three plaintiffs claim financial compensation for alleged damage to their health and property caused by the alleged environmental affectation sustained as a result of living next to Puerto General San Martin petrochemical plant (Rosario-Santa Fe). The proceeding is currently in the evidentiary stage. The evidentiary stage is closed and the setting of the date for the hearing to choose by lot the Public Defender for the heirs of the deceased plaintiff is pending.

- A neighbor of the Province of Buenos Aires brought a complaint against the Company seeking the removal of three fuel storage tanks and pumps and the remediation and restoration of the soils where such tanks are located on account of an alleged environmental affectation. The proceeding is in the evidentiary stage.

- Neighbors of the Province of Santa Fe have brought a complaint against the Company for alleged environmental damage. The Company obtained a favorable judgment, which has been appealed by the plaintiff.

15.4 Civil and Commercial Claims

- The “Consumidores Financieros Asociación Civil Para Su Defensa” claim the nominal amount of US$ 3,650 million as compensation for damages, Pampa, Petrolera Pampa S.A. and certain Pampa directors in office during 2016 being co-plaintiffs together with Petroleo Brasileiro S.A. A complaint has been brought against Petrobras Brasil for the depreciation of the share quotation value as a result of the “lava jato operation” and the so-called “Petrolao”, and the plaintiffs claim Pampa, Petrolera Pampa S.A. and the directors’ joint and several liability alleging the acquisition of indirect control in Petrobras Argentina S.A. may have thwarted the enforcement of a possible judgment favorable to the plaintiff (for up to the amount of the price paid by Pampa for the acquisition of control over Petrobras Argentina S.A.). The plaintiff appealed the Arbitration Court’s decision declaring the dismissal of the main claim upon the failure to pay the arbitration fee. The Chamber of Appeals in Commercial Matters upheld the filed extraordinary appeal. On its part, Petróleo Brasileiro S.A. filed an appearance, requested that the lack of substance of the filed appeal should be declared, and subsidiarily answered it. The Company has still not been served notice of the appeal.

- The Company was notified of the institution of a collective action in the City of Rio de Janeiro, Brazil, by a lawyer of that nationality, Felipe Machado Caldeira, alleging that Petróleo Brasileiro S.A. has not conducted Petrobras Argentina’s sales process pursuant to a competitive bidding process in accordance with Brazilian laws applicable to mixed public-private firms in Brazil, for a nominal amount of R$ 1,000 million. In this proceeding, no specific accusation against Pampa has been filed. The proceeding is currently suspended in the integration and complaint answer stage. Upon the death of the plaintiff and the Public Prosecution Service’s statement that it is not interested in pursuing the complaint, a legal notice was published so that any citizen may express its interest in pursuing it and judgment was rendered, thus terminating the proceeding, which judgment is final and conclusive and deemed res judicata.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 15: (Continuation)

- -Messrs. Candoni, Giannasi, Pinasco and Torriani brought arbitration complaints against the Company before the Buenos Aires Stock Exchange’s Arbitration Court seeking to challenge the price and tender offer for the merger through absorption of Petrobras Argentina S.A. into Pampa Energía S.A. for a nominal amount of $ 148 million. The complaints have been joined. The Court issued a partial award upholding the challenge under the capital markets law used by the plaintiff to dispute the exchange ratio used in the merger and dismissed the Company’s position, which stated that the proper course of action would be to challenge the shareholders’ meeting pursuant to the Business Organizations Law. The Company filed an appeal against this partial award and filed a motion for appeal and nullity which will be resolved by the Chamber of Appeals in Commercial Matters. This Chamber upheld the motion for appeal and nullity filed by the Company, revoking the partial award and sustaining that the proper proceeding for raising objections is to contest the shareholders’ meetings under the Business Organizations Law, and not to challenge the fair price established in the Capital Markets Law for MTOs. This judgment is deemed final and conclusive as the plaintiffs have not filed an extraordinary appeal before the CSJN.

- Petrobras Operaciones S.A. (“POSA”) has filed an international arbitration claim against the Company before the International Chamber of Commerce (“ICC”) on account of alleged breaches to the Assignment Agreement entered into between Petrobras Argentina S.A. (currently Pampa Energía S.A.) and POSA in 2016 for the transfer of a 33.6% interest in the “Río Neuquén” Concession. The breaches alleged by POSA in its arbitration claim consist of the failure to transfer certain assets associated with the assigned interest, and differences in the calculation of adjustments in the assignment price. The arbitration will be conducted according to the ICC Rules of Arbitration, the applicable law will be that of the Republic of Argentina, and the seat of arbitration will be Buenos Aires, Argentina. The Company timely answered the arbitration claim, and also filed a counterclaim for differences in the calculation of adjustments in the assignment price which were not paid by POSA. The Arbitration Court that will hear the arbitration proceeding has been set up, and the Mission Statement and Procedural Order No. 1 have been executed.

We hereinafter detail the nature of significant legal proceedings brought by the Company as of December 31, 2020 where the related inflows of economic benefits are estimated to be probable by the Company.

15.5 Administrative claims

- CTLL (currently Pampa) filed an administrative litigation complaint against the Federal Government for contractual breach during the January 2016-July 2016 period. CTLL claims that CAMMESA’s decision regarding the renewal and recognition of costs associated with natural gas supply agreements should be reversed and that, subsidiarily, sustained damages should be redressed. The rendering of judgment was requested. Later on, CTLL filed a new contentious administrative litigation complaint against the Federal Government for contractual breach during the April 2016-October 2018 period. The Federal Government has answered the complaint.

- Upon the determination of the expiration of the Veta Escondida block concession granted by the Province of Neuquén, the Company filed a declaratory judgment action to achieve certainty under the original jurisdiction of the CSJN pursuant to section 322 of the Federal Code of Civil and Commercial Procedure. Both parties agreed to suspend the proceeding to pursue a private settlement and, therefore, the closing of the evidentiary stage will be requested.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 15: (Continuation)

- The Company brought an administrative litigation action against the Road Authority (DNV) of the Province of Buenos Aires seeking the nullity of DNV Resolution No. 1715/19 dated December 10, 2019, which modified the regulatory framework applicable to aerial and underground power lines in Urban and Rural Road Areas of the Province of Buenos Aires, compliance with which may generate economic losses to the Company. Based on the analysis of this Resolution, the Company withdrew the filed complaint, and keeps the right to individually challenge the administrative actions ordered pursuant to DNV Resolution No. 1715/2019.

15.6 Civil and Commercial Claims

- The Company has filed an international arbitration claim against Petrobras International Braspetro B.V. on account of fraudulent representations and omissions associated with certain export transactions under the share purchase agreement executed on May 13, 2016, whereby the Company acquired 67.2% of Petrobras Argentina S.A.’s capital stock.The arbitration will be held pursuant to the ICC’s Arbitration Rules, the applicable law will be that of the State of New York and the seat of arbitration will be New York. Petrobras International Braspetro B.V. timely answered the request for arbitration and also filed a counterclaim seeking the payment of a percentage over the difference between the amount estimated for certain contingencies detected in the purchase process and the amount actually paid for them. The Arbitration Court that will hear the arbitration proceeding has been set up, and the Mission Statement and Procedural Order No. 1 have been executed.

- EcuadorTLC, in its capacity as assignee of the Ecuadorian company Petromanabí S.A., has filed an international arbitration proceeding against the Republic of Ecuador seeking the payment of 12% of the Settlement Value, the latter pursuant to the terms of the Hydrocarbon Exploration and Crude Oil Exploitation Participation Agreement in Block 18 entered into on December 19, 1995 and/or the Hollín Common Field Unified Exploitation Operating Agreement executed on August 7, 2002 —in both cases, as amended—. The arbitration will be conducted according to the Arbitration Rules of the United Nations Commission on International Trade Law, the applicable law will be the Ecuadorian law, and the seat of arbitration will be the City of Santiago de Chile. The procedure for the appointment of the arbitrators who will make up the arbitration court is currently underway.

- EcuadorTLC is currently making claims to Petroecuador as a result of certain breaches to the transportation agreement entered into on December 31, 2008 whereby the Ecuadorian Government undertook the crude oil transportation commitment through the OCP, to be charged to the oil transportation capacity hired by EcuadorTLC. To such effect, a mediation proceeding was brought before the Center for Mediation of the Attorney General’s Office of the Government of Ecuador sitting in the City of Quito, which ended without agreement. EcuadorTLC retains its claim rights for the aforementioned breaches

- The Company reached a settlement agreement with Petrominera Chubut Sociedad del Estado on account of the latter’s breach of Inversora Ingentis S.A.’s share purchase agreement and the decision issued by the BCBA’s Arbitration Court in this respect. In accordance with the agreement, as of December 31, 2020 the Company received a payment of US$ 3.5 million and has recognized a US$ 2.8 million profit under “Other operating income” in the Statement of Comprehensive Income.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 15: (Continuación)

- After the commissioning of PEPE II and PEPE III wind farms, certain defects were evidenced in the blades of some wind turbines, which resulted in their withdrawal from service for their subsequent repair and/or replacement. As a result of the failure, the generation capacity of the wind farms has been partially reduced. The Company submitted the corresponding claims to the supplier and the insurance company in order to move forward with the repair of the wind turbines and cover the incurred damages. In this sense, the Company, together with the wind turbines supplier, performed the tasks for the progressive repair of the wind turbines in 2020, with the exception of a wind turbine in PEPE II wind farm, which remains unavailable, and has disclosed a receivable with an offsetting entry in the item “Other operating income” of the Statement of Comprehensive Income in the amount of US$ 6.6 million regarding the claims made to the supplier and the insurance company. As of December 31, 2020, the Company has received payments for US$ 3.2 million on account of compensation for the claimed damages, and as of the issuance hereof, US$ 1.2 million are pending collection.

NOTE 16: INVESTMENT COMMITMENTS

16.1 New generation projects

Under the National Government’s call for the expansion of the generation offer, the Company participates in the following thermal generation projects:

16.1.1 PEPE II and PEPE III wind farms

On May 10, 2019, CAMMESA declared the commercial commissioning of PEPE II (Pampa Energía wind farm) for a 50.4 MW power capacity and PEPE III (de la Bahía wind farm) for a 28.8 MW power capacity, the commercial commissioning for a 50.4 MW power capacity of the latter being completed on June 10, 2019. PEPE II is located in an area adjacent to Mario Cebreiro Wind Farm, in the area known as Corti, 20 kilometers from the City of Bahía Blanca. PEPE III is located in Coronel Rosales, near the City of Bahía Blanca. Both projects called for an investment of US$ 130 million.

The production of both wind farms is sold under agreements between private parties pursuant to the Term Market of Electric Power from Renewable Sources (MATER) Regime within the framework of SEE Resolution No. 281/17. Non- contracted energy will be remunerated according to the spot market remuneration (see Note 2).

16.1.2 Genelba Thermal Power Plant

The Genelba Plus’ closing to combined cycle project was selected under SEE Resolution No. 926-E/17 within the framework of the “Call for the Execution of New Co-generation and Closing to Combined Cycles Projects” provided for by SEE Resolution No. 287-E/17. Upon the commercial commissioning of the closing to combined cycle, the Wholesale Power Purchase Agreement executed with CAMMESA for a maximum committed capacity of 377 MW and a term of 15 years will enter into effect.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 16: (Continuation)

On June 12, 2019, CAMMESA declared the commercial commissioning of Genelba power plant’s fourth gas turbine for a power capacity of up to 187.7 MW. Furthermore, CAMMESA enabled the 13 MW repowering of the GEBATG03 unit’s power capacity, as of June 1, 2019.These units are part of Genelba Plus’ closing to combined cycle project.

CAMMESA commissioned CTGEBA’s GEBATV02 effective as from 00:00 on July 2, 2020 for a gross capacity of 199 MW, milestone that marked the beginning of operations of CTGEBA’s second combined cycle, a project where the Company invested approximately US$ 320 million to add 400 MW and employed an average of 1,500 people during the 30-month work period. With the completion of the new combined cycle, the total installed capacity of CTGEBA amounts to 1,243 MW, becoming the largest thermal power plant in the country, with an outstanding efficiency of 55% on average and the capacity to supply electricity to 2.5 million households in the Buenos Aires metropolitan area.

On October 7, 2020, CAMMESA informed that, after performing certain improvements in the CC consisting of units GEBATG01, GEBATG02 and GEBATV01, a total additional power capacity of 11 MW was achieved.

In this way, the Company has fulfilled its commitments with CAMMESA under the electricity wholesale supply agreement entered into pursuant to former SEE Resolution No. 287/17.

In line with the Company’s strategy to develop its core businesses, this milestone adds to the efforts put forth over the last 12 years to increase the power generation infrastructure, demanding investments for more than US$ 1,500 million, hence becoming Argentina’s largest independent power producer, operating a total 4,955 MW of installed capacity, which represents 12% of the national grid.

16.1.3 CTB

Regarding the commitment to CTB’s closing to combined cycle project, detailed in Note 5.3.5, for increasing the installed power capacity from 567 MW to 847 MW, with an estimated investment of US$ 200 million, on September 27, 2019, CTB and a joint venture made up of SACDE and Techint Compañía Técnica Internacional S.A.C.E.I, executed an engineering, procurement, construction, commissioning and turnkey agreement for the execution of the closing of the combined cycle at CTEB (the “EPC Agreement”).

The evolution of the measures resulting from the COVID-19 pandemic has affected the execution of the works for CTB’s closing to combined cycle from the beginning. The stiffening of social lockdown measures experience from July 1, 2020 excluded private infrastructure works from the exempted activities. Later on, pursuant to Resolutions No. 1197- MJGM-2020 and No. 1690-MJGM-2020 passed by the Buenos Aires Chief of the Cabinet of Ministers’s Office, as amended, the Company resumed the execution of construction works following their critical path as from July 20, 2020.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 16: (Continuation)

Within this framework, on July 28, 2020, the Company and the Joint Venture made up of SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A. and Techint Compañía Técnica Internacional S.A.C.E.I. entered into an addendum to the construction agreement within the framework of the restrictions currently imposed as a result of the COVID-19 pandemic, reaching an agreement on the impact on costs and works’ execution terms, and launching a new stage for the execution of the closing to combined cycle.

Even trough, the commercial commissioning of the steam turbine is estimated for the first quarter of 2022, it is impossible to foresee how measures will continue evolving or to which extent terms and costs may be affected in the future.

16.1.4 PEPE IV wind farm

The Company, as assignee of the rights under the PEPE IV project, requested to CAMMESA an extension of the term for the commercial commissioning of the wind farm, as well as its relocation. The request was authorized by the SGE and, to make it effective, CAMMESA asked the Company to meet certain requirements, including making several disbursements and increasing the originally granted guarantee pursuant to SGE Resolution No. 230/19.

However, as a result of events occurred during 2019, including the devaluation of the peso and the increase in interest rates, which have resulted in a growing macroeconomic instability, the Company requested an extension of the term to meet the above-mentioned requirements in order to evaluate the feasibility of the project under the new conditions, as well as to negotiate changes proposed by work contractors and equipment suppliers. In this context, and based on a thorough evaluation of the renewable projects in progress, on September 11, 2019 the SSERyEE instructed CAMMESA to temporarily suspend the claims for non-compliance, and demanded the Company to extend the validity of the US$ 12.5 million guarantee for a term of 180 days. On October 4, 2019, the Company complied with the requested extension. On October 9, 2019, the SSERyEE canceled the suspension. On October 30, 2019, CAMMESA served on the Company a formal demand requiring certain payments associated with the postponement of the commercial commissioning of the project and its relocation under penalty of enforcing the guarantee. The Company rejected the demand served by CAMMESA awaiting SGE’s consideration of the extension request, and on December 9, 2019 it entered into an agreement with CAMMESA establishing a negotiation process to be developed until January 31, 2020 inclusive, during which CAMMESA should suspend the enforcement of the guarantee. The agreement term was extended until January 31, 2021. Despite the expiration of the extension it is estimated that it will be re-extended once CAMMESA receives the corresponding instruction from the SE.

16.2 Investment commitment for the exploration and exploitation of hydrocarbons

As of the issuance of these Consolidated Financial Statements, the Company has committed investments for an estimated total amount of US$ 383 million, based on its participation, to be disbursed between 2020 and 2023, mainly regarding the Sierra Chata, Las Tacanas, El Mangrullo, Rincón del Mangrullo and Chirete areas.

In turn, as mentioned in Note 2.3.2.1.2, the Company has committed an investment of approximately US$ 250 million over the four years of the GasAr Plan.

160

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (in millions of US$ – unless otherwise stated)

NOTE 17: RELATED PARTIES´ TRANSACTIONS

17.1 Operations related parties

(1) Sales of goods and services Purchases of goods and services (2) Fees for services (3) Other operating expenses and income (4) Operations for the year

2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Associates and joint ventures CTB 114 57 ------Greenwind 50 33 12 ------(36) - OCP ------(265) Refinor 671 813 593 (314) (870) (1,275) - - - (5) - - TGS 1,372 1,386 1,937 (1,753) (1,097) (783) ------Transener - - 20 (13) (10) (3) ------

Other related parties Fundación ------(106) - (79) - (76) SACDE - - 35 - (69) (69) - - - 5 14 - - Salaverri, Dellatorre, ------(54) - (59) (49) - - - - Other - - 6 - (43) (60) ------2,207 2,289 2,603 (2,080) (2,089) (2,190) (54) (59) (49) (106) (101) (341)

(1) Corresponds mainly to advisory services provided in the field of technical assistance and sales of gas and refined products. (2) Imputed cost of sales. Correspond mainly to natural gas transportation services, purchases of refined products and other services. (3) Disclosed within administrative expenses. (4) Corresponds mainly to donations and ship or pay.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 17: (Continuation)

Finance income (1) Finance expenses (2) Dividends received Payment of dividends Operations for the year 2019 2019 2018 2019 2019 2018 2020 2019 2018 2020 2019 2018 Associates and joint ventures Ciesa ------3,153 657 - - - Citelec - - - (24) (25) - 856 943 - - - - Greenwind 10 33 26 ------OCP 85 - - - - - 1,363 275 - - - - TGS 206 157 122 - - - - - 14 - - - -

Other related parties

EMESA ------(519) (57) (82) Oldelval ------16 - 50 - - - SACDE 1 4 ------TSM ------32 24 13 - - - TMB ------28 23 15 - - - Orígenes Retiro - - - - (1) (17) ------Other 1 ------303 194 148 (24) (26) (17) 2,295 4,432 735 (519) (57) (82) (1) Corresponds mainly to financial leases and accrued interest on loans granted. (2) Corresponds to accrued interest on loans received.

17.2 Key management personnel remuneration

During the years ended December 31, 2020 2019 and 2018, the total remuneration to executive directors accrued amounts to $ 579 million ($ 488 million for Directors' and Sindycs' fees and $ 91 million in the accrual of EBDA Compensation and Stock-based Compensation Plans), $ 304 million ($ 376 million in Directors' and Sindycs' fees and $ 72 million in the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plans) and $ 347 million ($ 151 million in Directors' and Sindycs' fees and $ 196 million in the accrual of the Company-Value Compensation, EBDA Compensation and Stock-based Compensation Plan), respectively.

162

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (in millions of US$ – unless otherwise stated)

NOTE 17: (Continuation)

17.3 Balances with related parties

Trade Trade Other receivables As of December 31, 2020 receivables payables Current Non Current Current Current Associates and joint ventures CTB 15 - - - Greenwind 20 - - 383 OCP - - 2,993 - Refinor 147 - 1 15 SACME - - - 21 TGS 115 2,413 430 - Transener - - - 1 Other related parties SACDE 1 - 3 - Other - - 47 - 298 2,413 3,474 420

Trade Trade Other Other receivables Borrowings As of December 31, 2019 receivables payables payables Current Non Current Current Current Current Current Associates and joint ventures Citelec - - - - - 815 CTB 27 - - - - - Greenwind 16 260 5 274 - - OCP - 891 14 - 303 - Refinor 109 - - 40 - - SACME - 4 - 144 13 - TGS 221 2,014 274 5 - - Transener - - - 5 - - Other related parties Fidus - - 25 - - - SACDE 19 - 145 - - - Other - - 34 - - - 392 3,169 497 468 316 815

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 18: LEASES

18.1 Lessee

The Company leases a key part for thermal power plants operation for a 20-year term and has entered into certain oil services agreements (mainly gas compression services) which, considering their characteristics, contain the lease of the assets for the rendering of the services with terms ranging between 2 and 6 years.

The terms of the lease agreements are negotiated on an individual basis and comprise a broad range of terms and conditions.

The evolution of right-of-use assets and lease liabilities recognized as of December 31, 2020 and 2019 is disclosed below:

18.1.1 Right of use assets

Original values

Reclasification to Type of good At the beginning Increase Traslate Effect assets clasified At the end

(1) as held

Machinery and equipment 762 24 309 - 1,095 Buildings 425 246 138 (809) - Total at 12.31.2020 1,187 270 447 (809) 1,095 Total at 12.31.2019 - 1,156 31 - 1,187 Depreciation

Reclasification to Type of good At the beginning For the year At the end assets clasified At the end as held

Machinery and equipment (93) (80) (55) - (228) Buildings (164) (321) (44) 529 - Total at 12.31.2020 (257) (401) (99) 529 (228) Total at 12.31.2019 - (254) (3) - (257)

Net book values Type of good At the end At 12.31.2019

Machinery and equipment 867 669 Buildings - 261 Total at 12.31.2020 867 Total at 12.31.2019 930

(1) Includes $ 471 million incorporated as of January 1, 2019 on the adoption of IFRS 16 (see Note 4.1.1)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 18: (Continuation)

18.1.2 Lease liabilities

12.31.2020 12.31.2019 At the beginning of the year 970 - Incorporation by adoption of IFRS 16 - 471 Increases 349 734 Discounted value measurement (1) 1 158 Payments (835) (285) Reclasification to liabilities clasified as held for sales (357) - Exchange differences on translation 874 (108) At the end of the year 1,002 970

(1) Included in the “Gains (losses) from present value measurement” under Other financial results

As of December 31, 2020 and 2019, this liability is disclosed under Other current payables in the amount of $ 150 million and $ 254 million and Other non-current payables for $ 852 million and $ 716 million, respectively.

The following table includes an analysis of the Company lease liabilities, grouped according to their maturity dates. The amounts shown in the table are the contractual undiscounted cash flows:

12.31.2020 Less than three months 31 Three months to one year 94 One to two years 125 Two to three years 125 Three to four years 125 Four to five years 125 More than five years 1,207 Total 1,832

18.1.3 Short-term or low value leases

As of December 31, 2020 and 2019, the Company has recognized administrative costs and expenses in the amount of $ 314 and $ 491 million on account of lease payments associated with short-term leases and low-value underlying assets, respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 18: (Continuation)

18.2 Lessor

Financial leases

Corresponding to the financing granted to TGS for the sale of certain property, plant and equipment belonging to the Oil & Gas business segment. This agreement was entered into on August 11, 2016, and consists of the collection of 119 monthly consecutive installments of US$ 623 thousand, without considering taxes, and a purchase option for a like amount payable at the end of the 120 months of the contract life.

As of December 31, 2020 and 2019, this receivable is disclosed under Other current receivables in the amount of $ 430 million and $ 274 million, respectively and under Other non-current receivables for $ 2,413 million and $ 2,014 million, respectively.

The following table includes an analysis of the Company receivable, grouped according to its maturity dates. The amounts shown in the table are the contractual undiscounted cash flows:

12.31.2020 Less than three months 101 Three months to one year 316 One to two years 452 Two to three years 489 Three to four years 531 Four to five years 575 More than five years 366 Total 2,830

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 19 : ASSETS AND LIABILITIES IN CURRENCIES DIFERENT FROM THE ARGENTINE PESO (1)

Amount in Exchange Total Total Type currencies other rate (1) 12.31.2020 12.31.2019 than pesos

ASSETS NON-CURRENT ASSETS Financial assets at amortized cost US$ 100.2 84.15 8,428 1,048 Other receivables US$ 37.2 84.15 3,131 3,719 Total non-current assets 11,559 4,767

CURRENT ASSETS

Financial assets at fair value through profit US$ 201.2 84.15 16,928 10,000 and loss Financial assets at amortized cost US$ 24.5 84.15 2,062 3,224 Derivative financial instruments US$ - - - 211 Trade and other receivables US$ 177.9 84.15 14,966 10,719 EUR 4.4 103.53 456 200 Cash and cash equivalents US$ 67.9 84.15 5,714 12,914 U$ 4.3 1.99 9 - EUR - - - 135 Total current assets 40,135 37,403 Assets classified as held for sale US$ 23.4 84.15 1,968 -

EUR 0.1 103.53 5 - CHF 0.0 95.07 3 - JPY 54.6 0.82 45 - 2,021 - Total assets 53,715 42,170

LIABILITIES NON-CURRENT LIABILITIES Provisions US$ 103.3 84.15 8,694 6,048 Taxes payables US$ - - - 156 Borrowings US$ 1,371.7 84.15 115,428 97,854 Trade and other payables US$ 16.9 84.15 1,418 402 Total non-current liabilities 125,540 104,460

CURRENT LIABILITIES Provisions US$ 15.9 84.15 1,342 985 Taxes payables US$ 15.5 84.15 1,307 702 Salaries and social security payable US$ 0.1 84.15 7 4 U$ - - - 3 US$ 0.5 84.15 40 - Borrowings US$ 47.9 84.15 4,028 8,590 Trade and other payables US$ 56.7 84.15 4,775 6,288 EUR 6.1 103.53 635 251 CHF - - - 15 SEK - - - 9 Total current liabilities 12,134 16,847 Liabilities associated to assets classified as US$ 119.5 84.15 10,056 - held for sale EUR 0.3 103.53 28 - 10,084 - Total liabilities 147,758 121,307 Net Position Liability (94,043) (79,137)

(1) Information presented for the purpose of complying with the CNV Rules. (2) The exchange rates correspond to December 31, 2020 released by the National Bank of Argentine for U.S. dollars (U$S), euros (EUR), Swiss francs (CHF), Uruguayos pesos (U$) and Norwegian kroner (SEK).

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 20: DOCUMENTATION KEEPING

On August 14, 2014, the National Securities Commission issued General Resolution No. 629, which introduced modifications to the provisions applicable to the keeping and conservation of corporate and accounting books and commercial documentation. To such effect, the Company and its subsidiary Edenor, have sent non-sensitive work papers and information corresponding to the periods not covered by the statute of limitations for their keeping in the Administración de Archivos S.A (AdeA)’s data warehouse located at Ruta 36, km 34.5, Florencio Varela, Provincia de Buenos Aires and in the Iron Mountain Argentina S.A.’s data warehouses located at the following addresses:

- Azara 1245 –C.A.B.A. - Don Pedro de Mendoza 2163 –C.A.B.A. - Amancio Alcorta 2482 C.A.B.A. - San Miguel de Tucumán 601, Carlos Spegazzini, Municipality of Ezeiza, Province of Buenos Aires.

A list of the documentation delivered for storage, as well as the documentation provided for in Article 5.a.3) Section I, Chapter V, Title II of the PROVISIONS (2013 regulatory provisions and amending rules), is available at the Company headquarters.

NOTE 21: OIL AND GAS RESERVES (Information not covered by the auditors’ report)

The table below presents the estimated proved reserves of oil (including crude oil, condensate and LNG) and natural gas, by geographic area as of December 31, 2020.

Proved Developed Proved Undeveloped Total Proved

Oil and LNG (2) Oil and LNG (2) Oil and LNG (2) (1) Natural Gas (1) Natural Gas (1) Natural Gas

Argentina 7,761 10,534 5,765 11,256 13,526 21,790

Total at 12.31.2020 7,761 10,534 5,765 11,256 13,526 21,790

(1) In thousands of barrels. (2) In millions of cubic meters.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2020, 2019 and 2018 (Continuation) (In millions of Argentine Pesos (“$”))

NOTE 22: SUBSEQUENT EVENTS

GasAr Plan

On March 9, 2021, Resolution No. 169/21 was published in the BO, awarding the volumes of natural gas offered under the GasAr Plan - Round II call for tenders. In this case, the Company was awarded with a volume of 0.70 million m3/day, 0.90 million m3/day and 1 million m3/day for the months of June, July and August-September 2021, respectively, as well as 0.86 million m3/day to meet the winter peak for years 2022 through 2024, at a price of US$ 4.68 MMbtu.

With this offer, Pampa's injection commitment increases to 9 million m3/day for winter periods 2021-2024 which, compared to 2020, represents a 15% growth in annual production and 28% in the winter period, the months of greatest need for gas supply in the country.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Pampa Energía S.A. Legal address: Maipú, 1 Autonomous City of Buenos Aires Tax Code No.: 30-52655265-9

Opinions on the Consolidated financial statements

Opinion

We have audited the accompanying consolidated financial statements of Pampa Energía Sociedad Anónima (Pampa Energía S.A.) and its subsidiaries (the “Company”) as of December 31, 2020, the consolidated statements of comprehensive income, of changes in equity and of cash flows for the year ended December 31, 2020, and the notes to the consolidated financial statements, which include a summary of significant accounting policies and other explanatory information.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for the period ended December 31, 2020 in conformity with International Financial Reporting Standards (“IFRS”).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). These standards were adopted as auditing standards in Argentina through Technical Resolution No. 32 of the Argentine Federation of Professional Councils for Economic Sciences (FACPCE for its acronym in Spanish), as approved by the International Auditing and Assurance Standards Council (IAASB). Our responsibilities under these standards are further described in the section “Auditor’s responsibilities for the audit of the consolidated financial statements” of this report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated financial statements in Argentina. We have fulfilled our other ethical responsibilities in accordance with those requirements and the IESBA Code.

Price Waterhouse & Co. S.R.L., Bouchard 557, 8th floor, C1106ABG - Autonomous City of Buenos Aires T: +(54.11) 4850.0000, F: +(54.11) 4850.1800, www.pwc.com/ar

Price Waterhouse & Co. S.R.L. is a member firm of the global network of PricewaterhouseCoopers International Limited (PwCIL). Each of the firms is a separate legal entity that does not act as a proxy for PwCIL or any other member firm of the network.

Free translation from the original prepared in Spanish for publication in Argentina

Key Audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter How our audit addressed the key audit matter

The Impact of Estimates of Oil and Gas Reserves on Proved Oil and Gas Property, Plant and Equipment and Allocated Goodwill.

As of December 31, 2020, the consolidated financial The audit procedures performed in relation to this statements present the following accounts related to key audit matter included, among others: the oil and gas segment: • Obtain an understanding, evaluate and test the • Property, plant and equipment of the segment effectiveness of the controls related to (Note 11.1): $ 45,689 millions, management’s estimates of oil and gas • Goodwill (Note 11.2): $ 2,912 millions, reserves. • Depreciation expense of the segment (Note 11.1): $ 7.566 millions. • Evaluating the methods and significant assumptions used by management in As described in Note 6.1.7 to the consolidated developing these estimates, including future financial statements, the Company’s management production profiles, development costs and estimates oil and gas reserves which are used in the prices. determination of depreciation of property, plant and equipment used in the areas of oil and gas, as well • Evaluate the reasonableness of the provisions as assessing the recoverability of these assets and for proven oil and gas reserves through the use goodwill allocated to the oil and gas segment. There of the specialist's work against by the Company are numerous uncertainties in estimating proved to audit the reserves. As a basis for using this reserves and future production profiles, work, the specialists’ competence, capability development costs and prices, including several and objectivity were understood, as well as their factors beyond the producer’s control. Reserve methods and assumptions. engineering is a subjective process of estimating underground accumulations involving a certain • The work of management’s engaged specialist degree of uncertainty. Reserves estimates depend was used in performing the procedures to on the quality of the available engineering and evaluate the reasonableness of these estimates geological data as of the estimation date and on the of proved oil and gas reserves. As a basis for interpretation and judgment thereof. Periodic using this work, the specialists’ competence, capability and objectivity were understood, as revisions to the estimated oil and gas reserves and well as their methods and assumptions. related future net cash flows may be necessary as a

result of changes in a number of factors, including • Test the data used by the Company’s engaged reservoir performance, new drilling, oil and gas specialists and an evaluation of their findings. prices, cost, technological advances, new geological or geophysical data, and other economic factors. • Obtaining evidence to support the reasonableness of the assumptions, including whether the assumptions used were reasonable considering the past performance of the Company, and whether they were consistent with evidence obtained in other areas of the audit.

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Key audit matter How our audit addressed the key audit matter

The Company’s estimates of oil and gas reserves • Testing that the estimates of oil and gas have been developed by employed specialists, reserves were appropriately included in the specifically petroleum engineers, and audited by Company’s determination of depreciation independent specialists engaged by the Company. expense, as well as in the impairment of non- financial assets assessment of oil and natural It is a key audit matter because developing the gas. estimates of oil and gas reserves involves critical judgment by management, including the use of specialists, which in turn led to a high degree of auditor judgment and effort in performing procedures to evaluate the significant assumptions used in developing those estimates, including future production profiles, development costs and prices.

Impairment of Non-Financial Long-Lived Assets

As of December 31, 2020, the consolidated financial The audit procedures performed in relation to this statements present the following non-financial long- key audit matter included, among others: lived assets: • Obtain an understanding, evaluate and test the • Property, plant and equipment (Note 11.1): $ effectiveness of the controls related to the 135,445 millions, estimation process of the recoverable value of • Intangible assets (including goodwill) (Note non-financial long-lived assets. 11.2): $ 3,455 millions. • Investment in joint ventures and associates • Evaluating the determination of the Company’s (Notes 5.4.2): $ 46,068 millions. CGUs, as well as the allocation of the assets and liabilities thereto. As described in Notes 6.9 and 6.1.1 to the consolidated financial statements, the Management • Evaluating the reasonableness of analyzes the recoverability of its non-financial long- management’s assessment over the existence lived assets on a periodical basis or when events or changes in circumstances indicate their recoverable of impairment indicators. amount may be below its carrying amount. In order to evaluate if there is evidence that a cash • Testing management’s process for developing generating unit (CGU) could be affected, both the value in use estimate. external and internal sources of information are analyzed. Facts and circumstances are considered • Evaluating the appropriateness of the such as the discount rate used in the cash flow discounted cash flow model, as well as the projections of the CGUs and the condition of the mathematical precision of the calculations business in terms of market and economic factors, such as the cost of inventories, oil and gas, the international price of petrochemical products, the regulatory framework of the energy industry, projected capital investments and the evolution of energy demand.

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Key audit matter How our audit addressed the key audit matter

The recoverable amount is the higher of value in use • Test the completeness, accuracy, and and fair value less costs of disposal. Management relevance of the data and underlying used value in use to determine the recoverable assumptions used by Management in the amount. For the purpose of evaluating impairment model. This assessment involved evaluating losses, assets are grouped into CGUs. The value in whether the assumptions used were reasonable use of each CGU is determined based on projected considering (i) the current and past and discounted cash flows, using discount rates that performance of the segments, (ii) the reflect the time value of money and the specific risks consistency with external market and industry of the assets considered. As described in Note data, and (iii) whether these assumptions were 11.1.1, the cash flow projections included significant consistent with evidence obtained in other judgments and assumptions relating to reference areas of the audit. prices for products, future demand per type of product, costs evolution, macroeconomic variables • Evaluating the sufficiency of the information such as inflation and exchange rates, the discount disclosed in the consolidated financial rate, among others. statements regarding the evaluation of the recoverable value of long-lived non-financial As a result of the analysis carried out, the Company assets. has recorded in the year ended December 31, 2020 impairments of its non-financial long-lived assets for Additionally, the audit effort involved the use of $ 9,645 million ($ 8,219 million in Property, plant and professionals with specialized skills and knowledge equipment and $ 1,426 million in Intangible Assets ), to assist us in evaluating the discounted cash flow as described in Note 11.1 and 11.2. model and certain important assumptions, including the discount rate. It is a key audit matter because, both determining the existence of impairment indicators and estimating recoverable values involves the application of critical judgment and significant estimates by Management, which are subject to uncertainty and future events. This in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures to evaluate management’s assessment of impairment indicators and cash flow projections and significant assumptions, including, among others, reference prices for products, future demand per type of product, costs evolution, macroeconomic variables such as inflation and exchange rates and the discount rate.

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Information accompanying the consolidated financial statements (“other information”)

The other information includes the Annual report and the Summary. The Board of Directors is responsible for the other information.

Our opinion on the consolidated financial statements does not cover the other information and, therefore, we do not express any audit conclusions.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether it is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or if for some other reason it appears that there is a significant misstatement. If, based on the work we have done, we consider that, where it is our competence, there is a significant inaccuracy in the other information, we are obliged to report it. We have nothing to report on this.

Responsibilities of the Board of Directors and the Audit Committee in relation to the consolidated financial statements

Management of Pampa Energía S.A. is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with Audit Committee are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

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● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

● Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

● Obtain sufficient and appropriate elements of judgment in relation to the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the Company. We are solely responsible for our audit opinion. We communicate with those charged with Audit Committee of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with Audit Committee of the Company with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with Audit Committee of the Company, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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Report of compliance with regulations in force

In compliance with regulations in force, we report that:

a) the consolidated financial statements of Pampa Energía S.A. are recorded in the book "Inventories and Balances" and comply, in what is a matter of our competence, with the provisions of the General Law of Companies and the pertinent resolutions of the National Securities Commission;

b) the individual financial statements of Pampa Energía S.A. arise from accounting records carried in their formal aspects in accordance with legal provisions, which maintain the security and integrity conditions on the basis of which they were authorized by the National Securities Commission;

c) as of December 31, 2020, the debt accrued in favor of the Argentine Integrated Pension System of Pampa Energía S.A. that arises from its accounting records and from the Company's liquidations amounted to $ 164 million, not being due as of that date;

d) as required by article 21, subsection b), Chapter III, Section VI, Title II of the regulations of the National Securities Commission, we report that the total fees for auditing and related services billed to Pampa Energía S.A. during the year ended December 31, 2020 account for:

d1) 99.9% of the total fees for services billed to Pampa Energía S.A. for all items during that year;

d2) 72.5% of the total fees for auditing and related services billed to Pampa Energía S.A., its parent companies, subsidiaries and related companies duringthat year;

d3) 70.9% of the total fees for services billed to Pampa Energía S.A., its parent company, subsidiaries and related companies for all items during that year;

e) we have applied the procedures on the prevention of money laundering and financing of terrorism for Pampa Energía S.A. provided for in the corresponding professional standards issued by the Professional Council of Economic Sciences of the Autonomous City of Buenos Aires.

Autonomous City of Buenos Aires, March 10, 2021

PRICE WATERHOUSE & CO. S.R.L.

(Partner) Reinaldo Sergio Cravero

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