Pampa Energia S.A. (NYSE: PAM), the largest independent energy company in Argentina, saw an uptick at the weekend with PAM stock rising by almost 7%. Oil and gas prices are becoming a concerning scenario across the globe, leading several organizations and countries to focus on clean energy. Currently, Uruguay remains the only nation to generate almost 100% power from renewable resources.
Pampa Energia May Operate at a Higher Capacity in Near Future
The company generates 80.81% of its revenue from Argentina and the remaining from its foreign operations. Currently, Pampa Energia holds a market capitalization of $4.15 Billion. Out of 55.346 Billion shares, 42.229K are closely held by the organization while the rest remain free-floating in the market.
DGS Capital Management, an investment management company, recently expanded its position in the company. They acquired 8,845 shares worth $283K according to a recent Securities and Exchange Commission (SEC) filing. Moreover, Pampa Energia is constantly spreading its roots across Argentina.
In March 2022, news agency Reuters reported the company will boost its natural gas production in Argentina by 60%. Recently, it announced a $500 Million investment into a wind farm in Bueno Aires. Additionally, its first stage is anticipated to be operational by mid-2024.
According to Zacks Investment Research, a stock research company, Pampa Energia might operate at a total capacity of 5,505 MW, out of which, 482 MW is expected to be generated via wind. With so many ongoing expansions, the scenario would come true for the company only when all of them are commissioned officially.
PAM Stock Price Performance
The chart highlights PAM stock price is currently experiencing a bull run since the beginning of 2022. Although it had a fair share of volatility throughout its course, it gained almost 130% during the period. A major rise came between December 2022 and January 2023 can be seen when PAM stock jumped nearly 50%. A triangle pattern appears, following which the shares took a nosedive toward a significant breakdown.
The average true range (ATR) has risen to 1.52, emphasizing high volatility in PAM shares. Rate of change (ROC) is moving upwards, a sign indicating positive development in price. The share value has broken multiple fib levels since March 2023 with the latest momentum highlighting a rebound in price. Currently, PAM stock was changing hands at $40.91 at the publication time.
According to the International Energy Agency (IEA), Argentina generates over half of the nation’s energy using natural gas. Pampa Energia may see spectacular results if they consider shifting their focus to natural gas production. BBC reported in March 2023 that several regions in the South American nation saw a blackout as an after-effect of a massive wildfire affecting the country’s energy grid.
Wildfires caused by heatwaves in different locations across the U.S. are affecting oil and gas companies at large. Recent alerts concerning rising temperatures may hamper oil production in regions including Oklahoma, New Mexico, and Texas.
