TGS

Morning. Good morning, everyone. I'm Carlos Balmaseda, Head of Investor Relations. I would like to welcome everyone to TGS second quarter 2026 earnings video conference. TGS issued its earnings release yesterday. If you didn't receive a copy of the release, please contact us at [email protected]. Before we begin the call, I would like to inform you that this event is being recorded and all participants are in listen only mode. Following the company remarks, we will host a Q&A session. All questions will need to be submitted in writing through the Q&A chat box. I would also like to remind you that forward-looking statements made during today's video conference do not account for future economic circumstances, industry conditions, or company performance and financial results. These statements are subject to a number of risks and uncertainties.

All figures included herein, we are prepared in accordance with International Accounting Reporting Standards, IFRS, and are stated in constant Argentine pesos as of June 30th, 2026, unless otherwise noted. Joining us today from TGS in Buenos Aires is Alejandro Basso, Chief Financial Officer. I will now turn the video conference over to Mr. Basso. Alejandro, please begin.

Thank you, Carlos. Good morning, everyone, and thank you for joining us today to discuss TGS's 2026 second quarter earnings and highlights. To begin the call today, I'd like to share some of the most recent corporate developments. First of all, the most relevant news is the FID for the NGL project, announced a few weeks ago, with key commercial agreements representing more than 90% of the project's total capacity already executed as of today. This is a $3 billion CapEx project, and the construction is expected to take about 45 months period, with the COD expected in March 2030. In addition, we have also requested that this project be approved under the Regime. The project consists of a new gathering pipeline in Vaca Muerta, a processing plant to be built in Chos Malal, and a 475 kilometers polyduct, a fractionation plant in Silver, and storage facilities in Puerto Madryn.

In terms of the Natural Gas Transportation expansion, which is currently under construction and following the open season launch last February, and after the allocation of 5 million units per day under a fully prepaid basis in the first round, last June, we received bids for over 100 million units per day capacity in order to allocate the remaining capacity of 9 million units per day. We submitted our capacity allocation to our regulators some weeks ago and are waiting for its approval. It is important to highlight that last May, the Perito Moreno pipeline expansion was approved by the Ministry of Economy to be included in the Regime, which will result in tax benefits for the project. Finally, in June, S&P upgraded the long-term local and foreign currency debt ratings from B-minus to B, following the revision for Argentina's transfer and convertibility risk assessment.

Similarly, in July, Moody's upgraded the rating of our notes from B2 to B1 as a consequence of the Argentina sovereign rating upgrade. Moving to slide four, I will briefly highlight the key financial results for the second quarter of 2026. Please keep in mind that all figures presented for this quarter and comparisons made with the previous quarter are expressed in constant Argentine pesos as of June 30th, 2026, following the provisions established by the IFRS for the financial reporting in hyperinflationary economies. As seen in the slide, we reported a total net income of ARS 133 billion during the second quarter of 2026, compared to ARS 53.8 billion reported in the same quarter of 2025.

This relevant net income increase is mainly explained by the ARS 60.2 billion positive variation in our financial results, as well as the important liquids EBITDA growth of ARS 48.4 billion, and to a lesser extent, the ARS 12.3 billion increase related to the natural gas transportation EBITDA. Moving on to slide five. EBITDA for natural gas and oil business in the second quarter of 2026 totaled ARS 132 billion, which is above the almost ARS 120 billion recorded in the second quarter of 2025. It is worth noting that tariff increases generating higher revenues by ARS 60.2 billion, which was more than the ARS 48.6 billion negative effect of inflation. In addition, two negative events in the second quarter of 2025 also explain partially the higher EBITDA in the second quarter of 2026 of ARS 19.2 billion.

The first event was related to a trade receivable write-off of ARS 11.2 billion, and the second one was the climate event occurred in March 2025, which damaged some natural gas transportation assets and generated a positive EBITDA variation of ARS 8 billion. Finally, the revenues generated by transportation contracts decreased by ARS 9.3 billion following the natural gas transportation system reconfiguration, which became effective starting as of May 2026. Whose initial negative effect will be partially offset by future small monthly tariff adjustments. On slide six, you can see how EBITDA for the liquids segment increased to ARS 82.3 billion during the second quarter of 2026, compared to a low ARS 33.9 billion reported in the same quarter of 2025.

The increase in EBITDA was mainly attributed to higher volume sales, which rose from 211,000 metric tons to 330,000 metric tons, and was mainly explained by the low volume sales in the 2025 quarter due to the processing plant shutdown caused by the flooding suffered on March 7th, 2025. The plant started to operate by mid-April with low level of production and increased its production to reach normal levels in the beginning of May. The higher volume sales generated a higher EBITDA of ARS 46.7 billion. Moreover, high international reference prices as a consequence of the geopolitical conflict in the Middle East raised EBITDA by ARS 23.2 billion. These positive effects were partially offset by the same take-or-pay annual compensation collected in the second quarter of 2025 of ARS 8.5 billion, together with the negative monetary effect of ARS 7.4 billion.

The lower retained price, which generated lower revenues of ARS 5.8 billion and a higher average natural gas price, which increased to ARS 3.4 per million BTU from ARS 3.3 and generated higher costs by ARS 2.5 billion. Turning to slide seven, EBITDA from midstream and other services decreased slightly to ARS 64.1 billion, compared to ARS 69.3 billion in the second quarter of 2025. Revenues generated by midstream services rendered in Vaca Muerta increased by ARS 13.2 billion. Transported natural gas billed volume rose from an average of 30 million cubic meters per day in the second quarter of 2025 to 35 million cubic meters per day during this quarter. The natural gas conditioning volume also increased from an average of 27 to 30 million cubic meters per day.

This higher revenue was more than offset by the negative monetary effect of ARS 10.5 billion as inflation was higher than the foreign exchange rate increase, along with higher operating expenses of ARS 5.6 billion. As seen on slide eight, we recorded a positive variation in the financial results amounting to ARS 60.2 billion. This was mainly due to ARS 130.1 billion increase in income from financial assets, given the higher yields recorded for the domestic financial investment and to a lesser extent, to a higher level of financial investments. This positive effect was partially offset by a ARS 46.7 billion higher foreign exchange loss, ARS 15.2 billion in higher interest expenses, most of which are mainly attributed to the $500 million bond issued in November of 2025, as well as the ARS 7.6 billion higher inflation exposure loss.

Turning to the cash flow on slide nine, our cash position increased by ARS 274 billion in real terms during the second quarter of 2026 to ARS 2,206 billion, equivalent to approximately $1.5 billion at the official exchange rates. EBITDA generation in the second quarter was ARS 278.4 billion, of which 53% was generated by non-regulated businesses, even after considering the full normalization of the Natural Gas Transportation segment. These results highlight the increased relevance of the non-regulated activities within the company's overall results. CapEx amounted to ARS 165 billion, largely driven by investments in the pipeline expansion project. Working capital decreased by ARS 186 billion, primarily due to the collection of the first prepayment installment of approximately ARS 140 billion from customers that contracted 5 million cubic meters per day of incremental firm transportation capacity.

We also paid ARS 31.3 billion in income taxes and ARS 30.8 billion in interest. We incurred new debts amounting to ARS 20.8 billion. This concludes our presentation. I will now turn it over to Carlos, who will open the floor for questions. Thank you.

Thank you, Ale. The floor is now open for questions. If you have questions, please send them through our Zoom chat. We will read and answer the questions in the order in which they are received. Please make sure to state your name and company so we can introduce you to the audience. Should any participant need assistance, please send us a message in the chat box. Please hold while we poll for questions. Thank you. Well, the first question's from Bruno Montanari from Morgan Stanley. Hello. How are you, Bruno? The first question is regarding the GPM expansion. How much CapEx is still left to execute in the coming quarters?

Hi, Bruno. Well, as of June 30th, 2016, we have already invested around $180 million. We have $600 million left for the remainder of quarters until May the 1st. Until May next year.

The second question is regarding the new equity project. How should we think about the CapEx distributions over the years?

Well, we have for this year around $500 million, $800 million for 2027, $1 billion in 2028, and $600 million in 2029, approximately.

Yes.

The remainder in the first quarter of 2030.

2030.

Yeah.

His third question is regarding the financing of the project, if he has already secured all the funding requirements?

We have signed agreements with banks for the import financing for around approximately $300 million for the first year. We are working with a group of banks for the financing of the remainder of the NGLs finance. NGLs is the second BPU with a total investment of $2 billion. We are working with this group of banks to finance 60% of the total investment of this $2 billion. The tenure of the imports facilities, finance facilities is three years. The scope is approximately 8.5% volume.

We have a question from Matthews Dos. Hi, Matthews. His question is regarding the transportation segment, the revenues, or gigas, how the gigas this second quarter, why it was weaker in dollar terms compared to the first Q, even as we have a real gain in tariffs.

Hi, Matthews. As you may know, we have a reconfiguration, a new regulation of the capacity in the whole transportation systems in Argentina, as the natural gas currently is coming from the west, from Vaca Muerta, from Neuquén, replacing the gas that used to come from the north, from the Bolivian basin and from the northern basin and also, from the south. Some contracts were transferred from one system to the other. TGS has an impact there because of the important position that we have in the southern contracts, the transportation contracts coming from Tierra del Fuego. You are going to see this loss of volumes or lower volumes in the future. Also, this reconfiguration has made more efficient the system, so lower IT services, interruptible services, are rendered by TGS up here.

At the same time, we have a compensation in tariffs, the compensation tariff is calculated in the future. You may see a small compensation for this weakness in the transportation revenues, but it's not significant. Okay.

The second question is regarding the liquids business, which are the drivers of higher costs versus the first Q that explain why margin and EBITDA were weaker despite good energy prices.

Well, that has to do with the cost of natural gas. In the winter season that starts on May every year, you may see higher natural gas prices than obviously in the summer season, the first Q. At the same time, the cost of gas is higher than the previous year, especially in the spot market. That compared with the same quarter of last year, 2025.

We have a question from Charles Rastow from Jefferies Securities, the question that it was answered in the first.

In the previous one.

In the previous one, regarding the transportation revenues compared with the first Q 2026. His second question is also one, it was explained regarding the financing of initial project that Alejandro explained specifically. Well, we have a question from Juan Ignacio Lopez. Hi, Juan. His first question is regarding the capacity deployment for the second half of 2026, regarding the GPM, the Perito Moreno pipeline, and the initial project.

Okay, regarding the Perito Moreno expansion, we are estimating for the remainder of this year $400 million and a similar amount, or a bit higher than that for the initial project for this year.

His second question is regarding the strong cash flow, pretty supported by a positive working capital. Well, his question is regarding what is the reason of this strong cash flow?

Okay. Juan Ignacio, as I said in the call, 5 million out of 14 cubic meters per day or out of 12 cubic meters per day from the Perito Moreno expansion and for the TGS Transportation System expansion, were collected as prepaid. They were prepaid by the clients. It's an option that we have, and the clients also have in the open season. 40% of the total capacity may be offered and sold by the TGS under a prepay scheme. They prepay the capacity for the 15-year contract. That's $100 million, almost that will be collected in the second quarter, which is the important impact, favorable impact in our working capital.

We have a question from Andrés Sanguinetti from Balanz. Well, the same question that was answered before regarding the deployment of the $3 billion in which years. Another question is from Charles Rastow, regarding the Pampa project, the urea project, which will require an additional 3.5 million cubic meters per day of transportation capacity out of Vaca Muerta. If we exercise the Perito Moreno 6 million cubic meter per day additional expansion option to meet this demand.

Yes, George, we are analyzing that business opportunity to further expand Perito Moreno up to 6 million of cubic storage. It may be less than that, but it could happen.

We have a question from Marina Eyna from PPI. The question is regarding the $3 billion CapEx. At what level do we expect the net debt to EBITDA ratio to peak during the investment phase, and in which moment we think this will occur?

Obviously, Marina, we expect to increase our net debt to EBITDA ratio maybe in the year 2029 or 2028.

Below three times.

We could be around three times.

Below three times.

Below three times. Obviously, much below the maximum ratio governed under our bond contracts.

That is 3.5.

3.5.

We have a question from Alvaro Garcia from BTG Pactual. Hi, Alvaro. Your question was answered regarding the financing of the NGLs project.

The leverage also.

Also the leverage. Yes. A question from Santiago Herrera from Allaria regarding NGLs project. What is the new maintenance CapEx once the project is finished? I think that is around, it's a project, $10 million per year.

In addition to what we currently have.

That is $90 million, plus another $10 that would be added.

In the project.

Yes. Now we have a question from Ramiro Guerrero. Hi, Ramiro, from Bull Market. His question regarding the NGL project. What portion of the $3 billion investment do we expect to finance through project finance at the SPV level? And what portion will require contribution from TGS?

Hi, Ramiro. I would say around half of the total investment because we are going to finance with a 60% of leverage the second PPU, which is a $2 billion investment, and at least $300 million of import finance in the first PPU, which is $1 billion. A total of $1.5 billion out of $3 billion. That's our expectation. We are working on that.

We have another question from Ignacio Valdez. Another one regarding the NGLs project. If we consider adding a partner to participate in the project.

Hi, Ignacio. Well, we may consider adding a partner. It will depend on new business opportunities and the context, obviously.

Now, we have a question from Agustin Pacheco, from Grupo Mariga. Hi, Agustin. Well, his first question was answered regarding in the first year of how much we expect to invest. His second question, is reapproval a prerequisite for starting construction and committing the main expenditure, or could some early-stage investment begin before approval?

Hi, Agustin. In fact, we have already started investing in the project. The RIGI approval is not a prerequisite. Nevertheless, we are quite confident that the RIGI is going to be approved soon. We already filed the RIGI in June the 5th, we are expecting to have the approval in a few months, I would say. That's all.

Another question from Federico Favelli that were answered previously. Another question from Alan Feldman from Criteria. Alan, your question was answered regarding the working capital big variation. As Alejandro explained, that we would expect for the following quarter to receive another $300 million, $200 remain in 2026, and $100 more in the first quarter of 2027, or before next week, which will be 2026. Another question from Alan Feldman regarding the working capital, what underlying free cash flow would use as a run rate, and how should the market think about the sustainable conversion of EBITDA into cash considering this payment?

Okay. Hi, Alan. As we are being paid 40% of the new volumes of the expansion volumes of the GPM expansion and the TGS transportation system expansion. We are not going to have those revenues after those 40% of the revenues collected after the project COD next May. Approximately, I would say $40 million of EBITDA of the revenues per year are not going to be collected because at that time, we will have already collected them.

We have another question regarding financing the project. It was answered. Another question from Jorge Mauro. Hi, Jorge. Your question was answered regarding the fixed leverage in the next three years. Jorge asked a question regarding the Pampa project. It was answered. Well, we think that's all. Well, this concludes the questions and answers sections. Now we will turn to Alejandro for final remarks.

Thank you all for participating in TGS second quarter 2026 conference call. We look forward to speaking with you again when we release our 2026 third quarter results. If you have any questions in the meantime, please do not hesitate to contact our investor relations department. Have a good day.

I'm Carlos Almagro, Head of Investor Relations. I would like to welcome everyone to TGS first quarter 2026 earning, the conference. TGS issue, it's already released yesterday. If you didn't receive a copy of the release, please contact us at [email protected]. Before we begin the call, I would like to inform you that this event is being recorded and all participants are in listen-only mode. Following the company remarks, we will host a Q&A session. All questions will need to be submitted in writing through the Q&A chat box. I would also like to remind you that forward-looking statements made during today's video conference do not account for future economic circumstances, industry conditions, or company performance and financial results. These statements are subject to a number of risks and uncertainties.

All figures included herein were prepared in accordance with International Accounting Reporting Standards, IFRS, and are stated in constant Argentine pesos as of March 31st, 2026 unless otherwise noted. Joining us today from TGS in Buenos Aires is Alejandro Basso, Chief Financial Officer. I will now turn the video conference over to Mr. Basso. Alejandro, please begin.

Thank you, Carlos Almagro. Good morning, everyone, and thank you for joining us today to discuss TGS's 2026 first quarter earnings and highlights. To begin today's call, I'd like to share some of the most recent corporate developments. In terms of the natural gas transportation expansion, which is currently under construction and following the open season launch last February, we have received bids for incremental firmed transportation capacity to be fully prepaid for a total capacity of more than 30 million of cubic meters per day. Of the total, almost 5 million of cubic meters per day were awarded, and we will collect prepayments amounting to $400 million prior to the commissioning of the expansion, which is scheduled for May 27.

Bids for the 9 million cubic meters per day remaining capacity, which will be paid on a monthly basis, will be received and allocated next month. It is relevant to mention that the Secretaría de Energía, through resolution number 66 of the year 2026, has established the reconfiguration of Argentina's natural gas transportation system with the purpose to adapt the contracted capacity system to the current natural gas production, which is mostly concentrated in the Vaca Muerta formation. This reconfiguration will imply that TGS will lose some transportation capacity contracted from the south most of the country, which will be offset by additional new transportation capacity contracted from Vaca Muerta. As a result, this reconfiguration that has been effective since this month will have a neutral impact on our revenues. Moving to slide four, I will briefly highlight the key financial results for the first quarter of 2026.

Please keep in mind that all figures presented for this quarter and comparisons made with the previous quarter are expressed in constant Argentine pesos as of March 31st, 2026, following the provisions established by the IFRS for financial reporting in hyperinflationary economies. As seen in the slide, we reported a total net income of ARS 160 billion during the first quarter of 2026 compared to ARS 142.3 billion reported in the same quarter of 2025. Overall, EBITDAs across all our business segments increased for a total of around ARS 66 billion, which was partially offset by a ARS 9.2 billion lower financial results. Moving on to slide five.

EBITDA for natural gas transportation business in the first quarter of 2026 totaled ARS 139.9 billion, which is higher than the almost ARS 129 billion recorded in the first quarter of 2025. It is worth noting that even with the revenues increasing by ARS 36.7 billion following the monthly tariff adjustment, they were not enough to offset the inflation loss effect of ARS 48.5 billion. More transportation services, mainly interruptible transportation amounting to ARS 3.2 billion, together with the ARS 10 billion extraordinary negative result registered in the first quarter of 2025 related to the climate event and ARS 10 billion less in property, plant and equipment maintenance expenses contributed to generate an increase in EBITDA in the first quarter.

On slide six, you can see how EBITDA for the liquids segment increased to ARS 96.7 billion during the first quarter of 2026 compared to a low ARS 63.8 billion reported in the same quarter of 2025. The increase in EBITDA was mainly attributed to higher volume sales, increasing from 210,000 metric tons to 323,000 metric tons. As was mainly explained by the processing plant shutdown for more than a month caused by the flooding suffered on March 7, 2025. Higher volumes sales generated a higher EBITDA of ARS 36.2 billion. In addition, we collected almost ARS 12 billion in a partial expense reimbursement from the insurance company and recorded ARS 4.9 billion extraordinary expense registered in the first quarter of 2025 related to the climate event, which also explained the EBITDA increase.

Furthermore, the 70% unexpected increase in the average natural gasoline price in March 26 due to the war in Iran also contributed with an additional ARS 4.3 billion in EBITDA. However, lower LPG reference international prices partially offset the above-mentioned positive effects in ARS 18.7 billion, along ARS 5.8 billion of higher operating expenses. It is worth noting that the average natural gas price, which is the main variable cost for the liquids business segment, remained stable below the $2 per million of BTU in both quarters. Turning to slide seven, EBITDA from midstream and other services rose by 46% to ARS 69.8 billion, compared to ARS 47.7 billion in the first quarter of 2025.

This increase was mainly driven by higher sales derived from the incremental billed volume natural gas transported and conditioned in Vaca Muerta, totaling almost ARS 17 billion. Transported natural gas billed volume rose from an average of 28.3 million cubic meters per day in the first quarter of 2025 to 30.1 million cubic meters per day during this quarter. The natural gas conditioning volume also increased from an average of 21 million cubic meters per day-27.7 million of cubic meters per day as a result of the commissioning of the last new conditioning module in February of 2025. In addition, operating expenses decreased by ARS 4.4 billion, and the positive monetary effect result increased EBITDA by ARS 1.5 billion. As seen on slide eight, we recorded a negative variation in the financial results amounting to ARS 9.2 billion.

This was mainly due to an ARS 36.1 billion decrease in income from financial assets, given the lower yields achieved in domestic and financial investments. ARS 15.1 billion higher interest costs, mainly attributed to the ARS 500 million bond issued in November 2025, and inflation exposure loss increased by ARS 10.6 billion. These negative effects was partially offset by the ARS 54 billion positive variation of foreign exchange results as the Argentine peso appreciated in the first quarter of 2026 compared to a devaluation occurred in the same period of 2025. Finally, turning to the cash flow on slide nine, our cash position in real terms decreased by ARS 173 billion in real terms during the first quarter of 2026 to ARS 1,806 billion, equivalent to approximately $1.3 billion at the official exchange rate.

EBITDA generation in the first quarter reached ARS 306.5 billion, with 54% generated by non-regulated business even after considering the full normalization of the natural gas transportation segment. This result highlights the increased relevance of the non-regulated activities within the company's overall results. CapEx reached ARS 143.4 billion for the period, while working capital rose by ARS 35.5 billion. We also paid ARS 35.3 billion in interest and ARS 42 billion in income taxes, and we reduced our debt by ARS 52 billion. Lastly, real returns from financial investments declined by ARS 171 billion, mainly due to the 5% exchange rate decrease, while the Argentine peso inflation was 9.4% during the first quarter. This concludes our presentation.

I will now turn it over to Carlos, who will open the floor for questions. Thank you.

Thank you, Alejandro. The floor is now open for questions. If you have questions, please send them through our Zoom chat. We will read it and answer the questions in the order in which they are received. Please make sure to state your name and company so we can introduce you to the audience. Should any participant need assistance, please send us a message in the chat box. Please hold while we call for the questions. Thank you. Well, first question is from George Glasgow from Latin Security. Hi, George. Question is, if it the strong result in the first few in the transportation business segment helped out by any cost reduction versus Q4 2025, or it's just a Peso appreciation?

Hi, George. The reductions in cost, mainly in the transportation business in the first quarter were one time expenses that we have there, in related to internal inspection of our pipelines.

The next question is from Matthew Stone from Citi. Hi, Matthew. The question is about the NGL project. How near we are from signing the agreement?

Hi, Matthew. Well, we are working a lot with our counter parties in the NGLs project. I cannot give any assurance from the time, but it is going to be soon, maybe this month, hopefully.

Well, his second question regarding our view for the liquid business EBITDA, considering the new price scenario for this year. Daniel.

Okay. It's difficult to share a sensitivity of EBITDA. What I can say is that regarding the propane and butane prices, the correlation with the oil prices are not perfect. We obviously are having an increase in these prices for our exports, but not in, at the same level of the oil prices. It depends on offer and supply and demand in U.S. and in Europe, it's difficult to anticipate an exact sensitivity. Regarding natural gas prices, it's in this case, the natural gas price that we export our product is quite correlated with oil prices.

Now, some question from Daniel Guardiola from BTG. Hi, Daniel. His first question regarding from where we are from FID and the CapEx involved in project, what we expect from funding, financing this project, and the risk to mitigate some potential delays in the construction period and potential cost overruns.

Hi, Daniel. Well, regarding the FID, I already answered this. We expect at the end of this month. Total CapEx expected to be around $3 billion. The funding structure, we are working in two sets of structures, one for the imports that we are obliged to finance due to the RIGI requirements of around $500 million. We are well advanced in couple of agreements with four banks regarding the import financing. We also are working with a higher group of banks regarding the project finance structure.

Regarding engineering risk, a mitigator of potential delays, I think that our projection, and the suppliers, the EPCs, different EPCs that we are selecting for this project, in our opinion, they are very strong, solid companies. The same for the equipments. Potential cost of run, we obviously we have some contingency there. The EPCs are all lump sums, so we are very confident that we can finalize the project in time and under budget. Regarding the Perito Moreno expansion, it's smoothly advances as it was planned.

Well, the next question from Daniel, you could answer about the sensitivity of our liquidity, our liquid prices regarding the current prices. We can say that the one that is more correlated to the brand is the natural gasoline. The case of the propane, butane has its own As we know that the gasoline price increased around 70%, you know, 70%, 80%. Meanwhile, propane, butane increased by 30%, that's a big evolution. It's difficult to guess how it can evolve. Next question from Daniel is: When we are expecting to collect the claim related to the flooding in the summary complex?

As you know, we have already collected $10 million. And we expected to collect the rest during this year, maybe in four months or three months, something like that. The liquidators have already finalized their work, they have made a couple of questions that were answered. We are optimist regarding the collection of this claim during this year, maybe in the third quarter.

Okay. One clarification in general is that because we don't give a presentation about the data, sometimes it's very difficult also providing or sharing this information. Another question from Daniel is what is our current spare capacity in the NGL segment regarding pipeline and the processing plant?

Regarding the transportation gathering capacity, currently it's utilized at 50%, sorry. Regarding the capacity in the conditioning plant, we have a spare capacity of 5%-10%, depending on conditions of the natural gas quality and the contracts, obviously.

A question from Juan Ignacio Lopez. Hi, Juan. What you're asking about the pricing dynamics in those segment. Another question from him is how our exposure to the current price environment is whether we are pricing at export parity, how far we are from that benchmark

Hi, Juan Ignacio. We price all our domestic products, propane and butane, at export parity, except for ethane, which is sold to Dow Chemical, to an affiliate of Dow Chemical, a subsidiary of Dow Chemical at a price that has a pass-through mechanism of natural gas price plus a premium. It's export parity. It has some delay with the international prices because the export parity for domestic products is established by the [Non-English content] every month. It's export parity. The evolution should be related to the export prices.

Okay. The question from Andres is, Juliaro on balance. Hi, Andres. For you, the question, the total tariff adjustment during the quarter preceding the monthly inflation updates established in the tariff revision. The quarter, the adjustment was around 8%. It was 8%. Okay? Considering the portion of the initial tariff adjustment that we made last year. Now we have, hi, Lisa Belen from Morgan Stanley. How are you? She want to have some color. I don't know if you can share some information about the steps in the coming month related the NGL segment expansion, perhaps, the transition that you mentioned in the call. Alejandro Basso mentioned that in June, we will receive the remaining offers bids from or the remaining capacity of 9 million in the pipeline.

From the commercial point of view, we close in June. We are working in respecting the time of the timetable within the plans and which another question from Lisa is regarding input costs for the NGL segment in the quarter regarding natural gas prices.

Well, in the call, we already mentioned that natural prices were around $2 per million BTU in the first quarter.

In the quarter, yeah. In the first quarter. Yeah.

A question from Agustín Pacheco from Banco Mariva. Hi, Agustín. Want to have some color regarding the CapEx in the expansion project. If we can provide more color on the actual executed phase. If what we can share is that up to last year, we made CapEx of around $160 million. For this year, we expect $500 million in this project. The remaining, the beginning of this year of our commission.

Also, you have to consider that we have paid advancements to suppliers, to EPCs that are included in the working capital evolution. That's why you may have some below your expectations in this period, yeah. Mainly in the fourth quarter of 2025 when we started out with the project. We have not suffered any delay in the project. No, we facing nothing significant.

Hi, Matías Caprino. The question is if we are complying with all the timeline that Perito Moreno, the CapEx target, if any of those pieces have changed.

This is, April 27, not April 26. Okay.

Yes. Okay. April 27th. Well, repeat the question of the person who said it. We answer. Some question from Alan Feldman that we have answered. Question from Juan Golpoa. From BP's critics, all these questions were answered. Another question from George Rasco, regarding transparency. If we take midstream growth to slow over the next few quarters.

Um-

What are the drivers of this assessment before the GPM expansion comes online?

Well, regarding our midstream growth, especially in Vaca Muerta, growth level for the next years should be obviously slower than we have in 2025, 2026, 2024 due to the expansion, more than $300 million expansion. Nevertheless, we can run some debottleneckings in our plants. In our plant there in Vaca Muerta to be able to process additional volumes or additional or to be able to increase the conditioning revenues and also the transportation revenues, the gathering revenues, but a much slower level. It's going to be just debottleneckings. For instance, we right now are building a new stabilization facility with a total investment of $37 million, which will help us to provide additional capacity for the conditioning plant.

Because the Vaca Muerta gas is getting richer every year, I would say. We have to be able to conditioning richer gas. Obviously with the GPM expansion, we are going to have additional natural gas coming through our facilities. Okay. I say that the existing capacity is enough to gather and condition all this new gas.

Now we have a question from Augusto Soto-Bauman from Rosental Inversiones. Given Pampa's Energy are recently announced fertilizer urea project under the RIGI framework, we can elaborate on whether TGS could potentially participate as natural gas transportation for the project. Similarly to the Profertil case, considering the strategic relationship between Pampa and TGS.

In the case that Pampa goes ahead with the Fertile Pampa project, TGS could provide additional transportation services to Pampa. It probably will require an additional expansion of the GPM pipeline. You know that under the bid that the [Non-English content] and ENARSA ran in 2025, there is 6 million, up to 6 million cubic meters capacity of optional capacity expansion of the GPM. The option is TGSs obviously, and it will depend on the rates of return of the project, obviously.

Flavia Lemmi from Argus Media. Question regarding how the prices of LPG are performing in the second quarter. What we see is the natural gas price, the gasoline, the for gasoline, the price is keeping high around ARS 900 million, $900 per ton. The propane and butane is staying around ARS 415 per 100. Yes, it keeps in the same level as March. The worst half. What we can see perhaps in this quarter is the impact in the local prices. That's for parity, local pricing, because in March were not reflected because the parity consider the average prices of the last two months. Perhaps in the second quarter will be impacted, will be see higher revenue for the domestic trade.

Another question from George regarding the CapEx of GPM that we answered that $900 million will be made. A question from Alan Feldman, why the cost in NGL segment moved faster than revenue? What we can answer is that in revenues, as Alejandro explained before at the beginning, in fact, the prices of the propane and butane before the start of the war were very low compared with the fourth quarter and the first quarter of 2025. And in fact, when the war started, the LPG prices increased 30%.

In total, as you can see in the presentation, the prices, the variation of the sales or the revenue due to the prices changing, prices evolution, went down. Okay. Probably as we explained before, the second quarter we can see a better revenue performance. Okay. Okay. Yes. Another question from Matías is that, with the additional cash that we are generating from the liquid prices, we consider another dividend payment if prices remain at this levels.

Regarding dividends, I cannot give any assurance because it's going to be a shareholder decision. Nevertheless, as we have all these significant projects ahead, I don't think that we are going to pay new dividends. Nevertheless, it's not my decision, obviously.

It's a Board of Directors' decision.

Yes. The Board of Directors. Yeah.

Shareholder decided to create the reserve for the multipurpose purposes. Well, if there are no more questions, this concludes the question and answer section. Now we will turn to Alejandro for final remarks.

Good morning, everyone. I'm Carlos Almagro, Head of Investor Relations. I would like to welcome everyone to TGS' Fourth Quarter 2025 Earnings Video Conference. TGS issued its earnings release last Friday. If you didn't receive a copy of the release, please contact us at investor.tgs.com.ar. Before we begin the call, I would like to inform you that this event is being recorded. [Operator Instructions] I would also like to remind you that forward-looking statements made during today's video conference do not account for future economic circumstances, industry conditions, or company performance and final results. These statements are subject to a number of risks and uncertainties. All figures included herein were prepared in accordance with International Accounting Reporting Standards, IFRS and are stated in constant Argentine pesos as of December 31, 2025, unless otherwise noted. Joining us today from TGS in Buenos Aires is Alejandro Basso, Chief Financial Officer. I will now turn the video conference over to Mr. Basso. Alejandro, please begin.

Thank you, Carlos. Good morning, everyone, and thank you for joining us today to discuss TGS' 2025 fourth quarter earnings and highlights. To begin today's call, I'd like to share some of the most recent corporate developments. Back in November, we successfully issued a new ARS 500 million bond with a 10-year tenure at an 8% yield. Demand was very strong, and the transaction was oversubscribed with the total order book reaching $1.3 billion. Proceeds from this issuance are being used to fund approximately $780 million of capital expenditures related to the expansion of the Perito Moreno pipeline which would add 14 million cubic per day of transportation capacity as well as the final tranches expansion of our regulated pipeline, adding 12 million cubic per day. In addition, we also executed bank loan agreements totaling $67 million to finance imports related to this project. Finally, turning to the commercial side. On February 9, we launched the open seasons during which incremental capacity can be contracted on a firm basis. On March 16, we will receive the bids for the capacity, which will be repaid. Bids for the remaining capacity will be received once ENARSA completes the reallocation of the existing 21 million cubic per day, which are currently assigned to CAMMESA. Moving to Slide 4, I will briefly highlight the key financial results for the fourth quarter of 2025. Please keep in mind that all figures presented for this quarter and comparisons made with the previous quarters are expressed in constant Argentine pesos as of December 31, 2025, following the provisions established by the IFRS for financial reporting in hyperinflationary economies. As seen in the slide, we reported a total net income of ARS 124 billion during the fourth quarter of 2025 compared to ARS 170.5 billion reported in the same quarter of '24. Overall, earnings were lower mainly due to a few factors. First, we had the reversal of the property, plan and equipment impairment provision amounting to ARS 52.1 billion, which was recorded in the fourth quarter of '24. In addition, our financial results were impacted by a negative variation of ARS 17.9 billion and the liquids EBITDA declined by ARS 18.1 billion. That said, these effects were partially offset by the solid performance of our midstream business which delivered higher EBITDA totaling ARS 16.2 billion during the period and a slight increase of natural gas transportation EBITDA by ARS 2.7 billion. Moving on to Slide 5. EBITDA for Natural Gas Transportation business in the fourth quarter of '25 totaled ARS 109.8 billion, which is slightly higher than the almost ARS 107.1 billion recorded in the fourth quarter of '24. It is worth noting that even when we recorded an increase in revenue with tariff adjustment of ARS 31.9 billion, the adjustments were not enough to offset the inflation loss effect of ARS 40.9 billion. However, the higher transportation services, mainly interrupted transportation of ARS 9.6 billion and lower operating expenses of ARS 540 million contributed to generate a slight increase of the EBITDA. On Slide 6, you can see how EBITDA for the Liquids segment decreased to ARS 83.9 billion during the fourth quarter of 2025 compared to ARS 102 billion reported in the same quarter of '24. The decrease in EBITDA was mainly attributed to lower export prices, which fell between 17% and 33% and reduced EBITDA in ARS 31.1 billion. In addition, higher operating costs and insurance reimbursable expenses incurred following the climate event occurred in March '25 reduced EBITDA by ARS 12.8 billion and ARS 4.9 billion, respectively. These negative effects on EBITDA were partially offset by a few positive factors. First, we recorded a positive monetary effect of ARS 13.7 billion as the exchange rate increased above the inflation rate, 43.5% versus 31.5%. Second, butane prices in the domestic market improved following the deregulation under the Programa Hogar starting January '25. This allowed us to sell at export parity prices, generating an additional ARS 9.9 billion in revenues. And finally, higher sales volumes also contributed with a 4.4% increase year-over-year from 338,000 metric tons in the fourth quarter of '24 to 353,000 metric tons in the same year period of '25, resulting in a ARS 7 billion of incremental EBITDA. It is worth noting that the average natural gas price, which is the main variable cost for the Liquids business segment remained stable at $1.6 per million BTU year-over-year. Turning to Slide 7. EBITDA from midstream and other services rose by 36% to ARS 60.7 billion compared to ARS 44.5 billion in the fourth quarter of '24. This increase was mainly driven by higher sales derived from the incremental billed volume of natural gas transported and conditioned in Vaca Muerta totaling almost ARS 20.3 billion. Transported natural gas billed volume rose from an average of 28 million cubic per day in the fourth quarter of '24 to 33 million cubic per day during this quarter. The natural gas conditioning volume also increased from an average of 19 million to 27 million cubic per day. In addition, the monetary effect increased EBITDA by ARS 5 billion. These effects were partially offset by a ARS 8.1 billion in higher operating expenses. As seen on Slide 8, we recorded a negative variation in the financial results amounting to ARS 17.9 billion. This was mainly due to a ARS 12.3 billion higher interest cost, mostly explained by a higher indebtedness, which increased principally by the issuance of the $500 million bond in last November. In addition, we had an ARS 8.1 billion decrease in income from financial assets, given the lower yields achieved in the domestic financial investment and inflation exposure loss increased by ARS 2.1 billion. These negative effects were partially offset by the price import tax charge of ARS 5.9 billion recorded in the fourth quarter of '24. Following the elimination of this tax at the end of '24, no charge was incurred in the fourth quarter of '25. In the last quarter of '24, the tax applied rate was 7.5% for the imports of food and 25% for the imports of services. Finally, turning to the cash flow in Slide 9 -- on Slide 9. Our cash position in real terms increased by ARS 864 billion during the fourth quarter of '25 to ARS 1,808 billion, equivalent to approximately $1.25 billion at the official exchange rate. This steep increase in our cash position stems from the $500 million bond issued in last November. EBITDA generation in the fourth quarter reached nearly ARS 259 billion, which with 57% generated by the nonregulated business even after considering the full normalization of the Natural Gas Transportation segment. This performance highlights the increased relevance of nonregulated activities within the company's overall results. CapEx reached almost ARS 96 billion for the period and working capital rose by ARS 76 billion. We also paid ARS 5.7 billion in interest and ARS 61.6 billion in income taxes while obtaining ARS 150.3 billion in short-term loans. Lastly, real returns from financial investments declined by ARS 11.8 billion, mainly due to the exchange rate rising less than inflation during the fourth quarter. This concludes our presentation. I will now turn it over to Carlos who will open the floor for questions. Thank you.

[Operator Instructions] Well, the question is from Daniel Guardiola from BTG Pactual. He's asking about to give him or give them, the audience a more color about the NGL projects. If there is something that is delaying in order to reach the FID.

Daniel, how are you doing? Well, the project is moving on. We right now are negotiating with gas producers, the terms of the project, and we are expecting to have the FID before June, maybe in May. So we are very confident with the project moving ahead.

Second question for him is, we are facing competition from YPF to extend in shale capabilities.

Well, competition is always a risk. But nevertheless, we are working with YPF, another gas producers right now. So we -- as I said, we are expecting to move forward in the near future.

Well, another question, someone who doesn't introduce himself is, regarding how is evolving the tariff in the transportation business?

Well, tariff adjustment are moving smoothly. We have obtained all the tariff adjustment that we are due to which is the inflation calculation. The monthly inflation based on the wholesale price index and the CPI half-on-half. So everything is going okay. You may see some differences in the dollar revenues or dollar EBITDA from this business because the tariffs are adjusting with inflation. So when the depreciation of the peso is higher than inflation, we may have lower revenues in dollars and the other way around.

We have a question from George Gasztowtt from Latin Securities. The question is regarding the Surrey insurance divestment, if we expect to have it this quarter, or when we expect to have the -- when we will collect this investment?

George, in fact, we have already collected advance payments amounting to almost to $10 million. We are expecting right now a final audit from the liquidator of the insurance this month. Well, after that, I don't know exactly the timing, but we are expecting maybe by June or July. Nevertheless, I think that the magnitude of the recovery could be higher than the expenses that we have, expenses and CapEx that we had because we had some other items in the calculation.

A question from Mat as Cattaruzzi from Adcap. First question regarding the initial project that Alejandro answered. And his second question is regarding the recent weakness in international NGL prices. How do we see the outlook for liquid pricing into 2026? Does the current geopolitical shock positive affect this segment?

Okay. Well, it's true that international NGL prices are weak last month. Nevertheless, we are having a very good margin altogether in this business. So we -- our outlook for liquids prices right now is quite similar to the previous year. So we are not expecting any significant change. Nevertheless, well, current geopolitical conflicts that we are seeing in these days may affect positively this segment. Especially in the natural gasoline price, which is the more related to the Brent prices. The propane and butane maybe it's different. It depends on offer and supply and demand.

Other question from Daniel Guardiola regarding the -- about the potential dividend payment in 2026.

Well, it is my opinion, I am not seeing any potential dividend payments as we are moving forward with the project. Okay? With NGL's project. Obviously, it depends on our shareholders' decision.

Then we have a question from Agustin Pacheco from Banco Mariva. The first question, what is planned strong increase in cash? It was explained by Alejandro that it was regarding the bond that we issued in November that added cash for $500 million. This is the main reason. And his second question, what percentage of total CapEx was allocated to the expansion project? I think that he is talking about the GPM, the transportation expansion.

Well, total CapEx for that project is around $780 million. So the bulk of that amount is going to be invested this year, '26. The project has already started last November, and we should put in service, the 3 new compressor stations by May '27.

Now a question from Daniel Guardiola. I think that you answered that the current area adjustment fully preserve the real return. Are we then seeing a relatively lag eroding EBITDA in real terms. It's no. We have a question from Andres Cirnigliaro from Balanz. The first question is we are planning to participate in the dedicated pipeline for the Southern Energy LNG project?

No, no, we aren't.

His second question is how much incremental gas production do you estimate is necessary to supply our NGL project?

Not much. We already calculated the production of LNG based on current natural gas supplied plus the additional supply that is going to be injected in the GPM once our expansion is in place. We are very confident on gas supply for this project. We may face higher supply than expected.

We have another question from Daniel Guardiola about what is the situation of the progress in the construction of the Perito Moreno expansion, and what is the expected CapEx to be deployed in 2026 and 2027?

Okay. The progress is very, very okay as expected. And well, the CapEx deployment, I think it's around $100 million in '25, with the main advances to suppliers, then around more than $500 million this year, and the remainder in '27.

Mattia Castagnino is concerned about the -- yes, it was answered. And his second question is regarding the FID of NGL project was answered. Luisa Belem, her question is regarding CapEx outlook for 2026. It was answered.

Yes. Well, I told about more than $500 million in the expansion and another $100 million in our maintenance CapEx, so more than $600 million over this year.

What about the working capital and tax payment?

Yes, tax payment -- on the cash flow, we -- were a very high figure given that we don't have any advances the previous year. Moving forward, tax payments should be something lower than we see this year. Not in the quarter, the quarter, I think that -- well, also in the quarter high advances than we are expecting for the second half of '26. And working lines, I don't know. Working capital...

His last question, if I need pipeline, but we don't have any pipeline, just only the expansion of the Perito Moreno and Penal tranches. So there is no pipeline project right now. We have a question from Andres Cardona. How much we estimate the CapEx related with the NGL project.

Well, we -- currently, we have a more accurate estimation of this -- of the project, given that we have already run most of the bids for the construction and also for the equipment. So we're estimating this around $2.9 billion approximately.

We have some questions from Juan Ignacio Lopez were answered. Thank you, Juan. Another question from Armando Moretti. Well, question regarding dividend that was answered. We have some questions that were answered from Guido Vissacero from Allaria. Very answered. A question from Ignacio Irarr zaval regarding the Perito Moreno expansion. When are the biddings for the capacity happening?

Well, as I said in the call, we are expecting bidding for the repaid capacity or prepaid capacity, which 40% of total capacity for next 16th, March 16. And once the Security of Energy and ENARGAS decided the reallocation of the capacity of Gasoducto Perito Moreno, after that, we are going to run the open season for the remainder capacity, 60% of capacity. I think that it may occur before May, as a final due date for that.

The second question is...

And the second question is around the mix of the takers...

What the mix of taker, we are expecting and what regions?

For the expansion to Perito Moreno. Yes, mainly in power plants and industries, okay? As the government is reallocation the capacity to the 21 million cubic meters per day capacity of the GPM mainly to distribution companies, we are not expecting significant distribution companies bid for the capacity that we are currently in the open season. On the regions, well, a very significant part of the capacity could go to the TCS zone via the Mercedes-Cardales pipeline that was already built because the replacement of the liquids imports for the power plants may occur there mainly, and some part of the capacity, obviously going to be to the GBA area also.

We have a question from Santiago Herrera from Allaria. How much of the investment in the initial projects will be financed by project finance?

Well, maybe it's early to say, but right now, we are working with a group of banks, so maybe around $1 billion, something like that. This project is going to be divided in 2 SPVs, 1/3 in TGS Tratayen processing plant. There, we are expecting to finance that project with some bonds in the TCS balance sheet or in the new SPV balance sheet, also have some finance -- import finance from banks or the advances for imported equipment. And then as I said, 1 billion project finance in the second SPV, which is the SPV that is going to have the polyduct, the fractioning and the storage and dispatching facilities.

Another question from Jorgasto. He want to have some color on the decline from revenue as percentage of transportation contract this quarter. It was because the interruptible services revenue increased. This was not because the firm revenue is declining. So this is the reason. Well, we don't have more questions. Well, this concludes the question-and-answer section. Now we will turn to Alejandro for the final remarks.

Well, thank you all for participating in TGS's fourth quarter 2025 conference call. We look forward to speaking with you again when we release our 2026 first quarter results. If you have any questions in the meantime, please do not hesitate to contact our Investor Relations department. Have a good day.

Good morning, everyone. I'm Carlos Almagro, Head of Investor Relations. I would like to welcome everyone to TGS' Third Quarter 2025 Earnings Video Conference. TGS issued its earnings release yesterday. If you did not receive a copy of the release, please contact us at investor.tgs.com.ar. Before we begin the call, I would like to inform you that this event is being recorded. [Operator Instructions] I would also like to remind you that forward-looking statements made during today's video conference do not account for future economic circumstances, industry conditions or company performance and financial results. These statements are subject to a number of risks and uncertainties. All figures included herein were prepared in accordance with International Accounting Reporting Standards, IFRS, and are stated in constant Argentine pesos as of September 30, 2025, unless otherwise noted. Joining us today from TGS in Buenos Aires is Alejandro Basso, Chief Financial Officer. I will now turn the video conference over to Mr. Basso. Alejandro, please begin.

Thank you, Carlos. Good morning, everyone, and thank you for joining us today to discuss TGS' 2025 third quarter earnings and highlights. To begin the call today, I will start by sharing some of the most recent news about the company. As you remember, back in June '24, a private initiative was submitted to the government to expand the transportation capacity of the Perito Moreno pipeline by 14 million of cubic meters per day. As a result, ENARSA launched a tender offer in May. By the closing of the tender on July 28, only TGS had presented a bid. The project was finally awarded to TGS on October 17. The expected CapEx amount is $560 million, and it involves the construction of 3 compressor plants as well as the expansion of the Tratayén compressor plant, totaling an additional 90,000 horsepower. By April 2027, we must commission the incremental capacity while operating and maintaining the Perito Moreno pipeline for a 15-year period. We are also entitled to commercialize the incremental capacity and collect a dollar-denominated unregulated tariff during the period, after which the facilities will be reverted to ENARSA. Last week, we filed this project with the RIGI authorities in order to obtain the approval soon and get the tax benefits this regime provides. In addition to that project, TGS will invest another $220 million to expand the capacity by 12 million of cubic meters per day for its regulated pipelines between Salliqueló and Great Buenos Aires by adding 20 kilometers of pipeline and increasing compression capacity by 15,000 horsepower in one of the compressor plants. Moving to Slide 4. I will briefly highlight the key financial results for the third quarter of '25. Please keep in mind that all figures presented for this quarter and comparisons made with the previous quarters are expressed in constant Argentine pesos as of September 30, '25, following the provisions established by the IFRS for financial reporting in hyperinflationary economies. As seen in the slide, we reported a total net income of ARS 112 billion during the third quarter of '25 compared to ARS 68.8 billion reported in the same quarter of '24. These higher earnings were mostly explained by the better performance of the liquids business, which contributed with a higher EBITDA of ARS 37 billion and the continuous EBITDA growth in the midstream business segment, which rose by ARS 14.5 billion. In the quarter, we also recorded lower negative financial results amounting to ARS 31 billion, which boosted our third quarter earnings, but were partially offset by the natural gas transportation EBITDA decline of ARS 10.5 billion. Moving on to Slide 5. EBITDA for natural gas transportation business in the third quarter of '25 totaled ARS 102.4 billion, which is slightly below the almost ARS 113 billion recorded in the third quarter of '24. The ARS 10.5 billion EBITDA reduction in the regulated business segment was mainly due to that the tariff adjustment from August 24 to August '25, which resulted in a ARS 29.2 billion revenues nominal increase were insufficient to offset the inflation adjustment effect of ARS 42.2 billion. In addition, operating expenses rose by ARS 2.4 billion, while revenues also increased by ARS 4 billion, mainly due to incremental interruptible transportation services provided during the third quarter of '25. On Slide 6, you can see how EBITDA for the liquids segment tripled amounting to ARS 55.2 billion during the third quarter of '25 compared to ARS 18.2 billion reported in the same quarter of '24. Most of the EBITDA increase was explained by the higher volume exported of 61,000 metric tons, rising for 43,000 to 104,000 metric tons, which contributed to a higher EBITDA by ARS 18 billion. In addition, higher ethane volumes of 38,000 metric tons were sold, rising from 53,000 to 91,000 metric tons and adding ARS 11.7 billion to the third quarter EBITDA of '25. This higher volume is mainly related to a higher production, which increased from 173,000 tons to 315,000 metric tons as a result of the higher richness of the natural gas process in this quarter and the 3-week program plant shutdown for maintenance works implemented during the third quarter of '24. In addition, EBITDA increased by ARS 13.2 billion due to higher butane prices in the domestic market following the deregulation of the butane price under the Program Hogar starting January '25, which allow us to sell at export parity price. To a lesser extent, operating expenses decreased by ARS 5.4 billion and monetary effects were positive by ARS 1.1 billion. The positive effects on EBITDA were partially offset by ARS 8.9 billion extraordinary expenses incurred as a result of the March 7 flood, which we expect to recover from the insurance company in the coming months. Additionally, natural gas price increased from $3.1 to $3.4 per million BTU, which impacted negatively the EBITDA in ARS 4.3 billion. Turning to Slide 7. EBITDA from midstream and other services rose to ARS 61.2 billion compared to ARS 46.7 billion in the third quarter of '24. This increase was mainly driven by higher sales derived from the incremental billed volume of natural gas transported and conditioned in Vaca Muerta, totaling almost ARS 21 billion. Transported natural gas billed volume rose from an average of 29 million cubic meters per day in the third quarter of '24 to 32 million cubic meters per day during this quarter. The natural gas conditioning volume also increased from an average of 16 million cubic meters per day to 29 million cubic meters per day. In addition, the monetary effect increased EBITDA by ARS 3.2 billion. These effects were partially offset by ARS 10.4 billion in higher operating expenses. As seen on Slide 8, we recorded a positive variation in the financial results amounting ARS 31.1 billion. This was mainly due to a ARS 43.4 billion increase in income from financial assets given the much higher yields achieved in the domestic financial investments. Additionally, inflation exposure loss decreased by ARS 10.7 billion. These positive effects were partially offset by a higher foreign exchange loss amounting to ARS 21.8 billion during the third quarter of '25, following the Central Bank's decision to make the U.S. dollar exchange rate float starting early April and the consequent depreciation of 15% compared to the 16% rate in the same quarter of '24 under the previous regime of 2% monthly crawling peg. Finally, turning to the cash flow on Slide 9. Our cash position in real terms increased by 22% or ARS 160 billion during the third quarter of '25 to ARS 875 billion, equivalent to approximately $638 million at the official exchange rate. EBITDA generation during the third quarter amounted to almost ARS 219 billion, of which 47% was generated by the regulated transportation business and 53% by the nonregulated businesses. CapEx for the period amounting to 87 billion. Working capital decreased by ARS 36.4 billion, and we paid interest amounting to ARS 29 billion and income tax payment totaled ARS 61 billion. In addition, we obtained short-term loans by ARS 28.6 billion. We finally recorded higher yields from our financial investment by ARS 53 billion in real terms, resulted mainly due to the higher increase of the foreign exchange rate over inflation of this quarter. This concludes our presentation. I will now turn it over to Carlos, who will open the floor for questions. Thank you.

[Operator Instructions] The first question is from Santiago from Allaria. The question is regarding the CapEx to be made in the expansion of the transportation system and our final tranches. How is the breakdown of the deployment of the new $780 million? So this is the first question.

Well, regarding the deployment of the $780 million from the expansion project, for this year, we have some advances to suppliers amounting and some part of the works amounting up to $150 million. Then for the following year '26, we are expecting to spend $450 million and the remaining $27 million in the first 5 months of '27. The financing of the project, we already have almost 70 million bank loans to fund the imports, which is a regulatory requirement under [indiscernible]. And we are currently considering other source of financing for the remainder.

Second question is regarding the insurance claim status for the [indiscernible] event. If you can share what is the total expected recovery amount from the insurance and the time line for collecting the payment?

Regarding the recovery amount, we are estimating this amount could be more than $50 million. And the expectation for the collection maybe $10 million this year and the remainder in the following year, I don't know, maybe in the second quarter.

We have a question from [indiscernible] regarding the strong recovery of the liquids in this quarter. If we can comment on whether the current levels of production and margins are sustainable into fourth quarter of this year? And how do we see prices in 2026?

Okay. Well, regarding the level of production at [indiscernible] level, which was driven by the very -- the richness of the gas stream coming from Vaca Muerta. You know that nonconventional gas is replacing the conventional and also the increase in oil production with associated rich gas, the level of the richness of the gas is higher. And I could say that this level of richness could be substantial for the next years, okay? Regarding the fourth quarter in special, well, it's a different time of the year. So the gas production is lower in the fourth quarter as compared with the third quarter. So the richness could be there, but the gas production should be lower. In spite of that fact, the gas stream coming in our plant is higher than the total capacity of the plant. So it's going to be a sort of arbitration between these 2 variables. Regarding prices for '26, well, current level of international prices are lower than we used to have a couple of months ago. So maybe liquids prices could be lower than the average of this year, but you can know it's very hard to anticipate that.

Next question is from [indiscernible]. Well, this is her first question is regarding what you just explained regarding the liquid business in the future. And her second question is if we expect an acceleration in cash CapEx deployment until year-end.

Regarding our CapEx, our cash CapEx is going to be higher than previous levels as we have already started out with the private initiative project, okay, in the Perito Moreno expansion. As I previously mentioned, we are expecting to spend $150 million this year, mostly in the last quarter.

Next question is from [indiscernible] regarding the Perito Moreno pipeline that we provide all the explanation that we can share. And his second question if we are interested in participating in the project to build a brand new gas pipeline to [indiscernible] provide gas to LNG facilities that is planning [indiscernible] by 2027 and 2028.

Well, regarding the new gas pipeline, currently, we are evaluating our participation in this project. I cannot anticipate any news on that by now.

Next question is from George [indiscernible] Securities. He was expecting to pay significant cash income taxes against -- again next quarter?

George, well, regarding income tax payments, the payments could be quite similar in the fourth -- in the fourth quarter as compared with the third one, okay? The bulk of the income tax payment was paid in May this year. And then you have advances that are quite similar from June to April next year or March next year. So as compared fourth quarter with third quarter, the payments should be in pesos quite similar.

Next question from Daniel Guardiola. When do we expect to reach FID for the Tratayén facility?

Well, we are working very, very hard on the project. The FID could be in the first quarter of next year, hopefully.

Next question from [indiscernible] well, his question was answered because it was regarding initial project that was answered. Next question from [indiscernible] well, his question regarding the initial project was answered and both questions are regarding the initial project, so it was answered. [indiscernible] with partners or perhaps how many companies engaged with both of this -- from the balance sheet perspective of the participation on the in the project and joining with partners or perhaps tapping equity markets?

Well, we are working on that. The idea is to have partners especially in the part of the liquids project that comprise of the transportation and fractioning and dispatching facilities. Our idea is to go with partners in that part of the project, and we are working on that. Up in equity markets, I think that's not -- we are not analyzing that at this moment.

Next question from [indiscernible] regarding the financing of the CPM project that Alejandro explained. Another one, [indiscernible] asking the same question regarding the financing of the Perito Moreno pipeline project [indiscernible] capacity of the CPM?

Well, the answer is yes with additional [indiscernible] expansion of the CPM, our extreme business is going to benefit from that with higher volume also, okay, to the limit of the capacity of our pipeline, of our gas treatment facilities, okay? In the pipeline, we have plenty of space in the [indiscernible] pipeline.

[indiscernible] first 9 months of 2025 [indiscernible] the beginning of September that impacted on the 9-month period. Another question from Guido from Allaria regarding the Perito Moreno [indiscernible] project and we provided all the information that we can share. [indiscernible] same question regarding the financing of the Perito Moreno that we explained. Another question from [indiscernible]. For the time being, we have no other question. This concludes the question-and-answer section. Now we will turn to Alejandro for final remarks.

Well, thank you all for participating in this year's third quarter '25 conference call. We look forward to speaking with you again when we release our '25 fourth quarter results. If you have any questions in the meantime, please do not hesitate to contact our Investor Relations department. Have a good day.