Transportadora de Gas del Sur - ADR

NGL project under RIGI: key milestone + financing path + timeline - Surprising/good: On Oct 19, the Economy Minister approved the NGL project to be included in RIGI (official gazette expected shortly). This is important because RIGI brings tax + FX benefits and 30-year regulatory stability. - Financing expectation: Company expects project financing “project close” by December 2026. - Take-or-pay coverage improving: Additional producer agreements increased contracted capacity to 96%, with full capacity contracted expected before year-end. - Financing structure (recourse to TGS): Financing has recourse to TGS with contingent warranties; consolidated net leverage peak estimated < ~2.5x during the 2027 CapEx overlap.

CapEx ramp + where money goes (near-term commitments) - This quarter: CapEx ~ARS 526 bn (IFRS, constant ARS at Sep-30-2026), mainly NGL + pipeline expansion (Perito Moreno). - Next-year/near-term allocation guidance (USD): - Perito Moreno additional CapEx: ~$500m in 2027 - NGL CapEx: ~$400m in 2027 - Perito Moreno options expansion: Company expects approval for an additional 4.5 mm cm/day out of 6 mm cm/day authorized by ENARSA (requested Oct 8). - NGL RIGI investment amount nuance: Mentioned ~$3.2bn vs previously ~$3.0bn—difference includes TGS in-kind contribution to existing processing/plant assets > $200m; cash CapEx schedule highlighted as $400m (this year), $1.1bn (next two years), remainder in 2029/early 2030.

Financial performance (Q3’26): mixed—operational pressure in transport, strength in liquids - Net income: ARS 110bn in Q3’26 vs ARS 149bn in Q3’25 (down YoY). - EBITDA down overall: Natural Gas Transportation EBITDA ARS 118bn vs ARS 141bn (YoY down). - Offsetting drivers: Tariff increases added ~ARS 58.4bn, but was outweighed by interruptible/firm revenue decline (~ARS 21bn) due to system reconfiguration effective May 2026, plus PP&E maintenance ~ARS 6.3bn, and negative monetary effects (inflation). - But liquids improved strongly: Liquids EBITDA ARS 83.6bn increase (vs Q3’25), driven by higher international reference prices (~+ARS 41bn) and lower gas price reducing variable cost (~+ARS 6.5bn)—partially offset by monetary effect and volume declines. - Midstream/Other: Midstream & Other EBITDA down to ARS 67.7bn vs ARS 81.6bn, mainly due to monetary effect (~ARS 21bn) and higher operating expenses.