ENEV3

Eneva S.A. is a Brazilian power company that operates in an integrated way across the natural gas and power generation chain, with common shares traded on B3 under the ticker ENEV3, listed in the Novo Mercado segment. Established in 2001, initially as MPX Mineração e Energia Ltda., the company started out focused on thermal power projects, with its first major asset being a stake in the Termoceará TPP in the state of Ceará. Over the 2000s, it built a portfolio of coal- and gas-fired thermal plants, such as the Porto do Pecém I, Porto do Pecém II and Porto do Itaqui TPPs, contracted in auctions held by the Electric Power Commercialization Chamber (CCEE) through long-term CCEARs. In 2007, it was converted into a corporation, changed its name to MPX Energia S.A., obtained publicly held company registration and carried out an initial public offering in 2008, raising funds to expand its generation park. It later adopted the Eneva brand and consolidated its business by combining thermal generation, natural gas exploration and production, and power trading.

Eneva’s trajectory is marked by the adoption of an integrated business model known as reservoir-to-wire (R2W), which directly links the exploration and production of natural gas in onshore fields to power generation in thermal plants. This verticalization allows the company to operate from the hydrocarbons upstream stage all the way through power generation and the commercialization of electricity and natural gas, as well as derivatives and condensates. The R2W model is established mainly at the Parnaíba Thermal Complex in the state of Maranhão and at the Azulão-Jaguatirica Integrated System, which connects the Azulão field in Amazonas state to the Jaguatirica II TPP in Roraima through a logistics arrangement based on liquefaction, road transport of LNG and regasification adjacent to the plant. This integration reduces dependence on third-party pipelines, increases fuel cost predictability and allows most plants to operate without minimum generation inflexibility, being dispatched according to the merit order of the National Electric System Operator.

Eneva’s generation portfolio predominantly combines natural gas-fired thermal plants with coal- and fuel oil-fired assets and solar photovoltaic generation. As of December 31, 2024, the company had a total installed thermal capacity of around 6.5 GW, considering assets in operation and under construction, of which approximately 5.2 GW were in operation, representing a material share of Brazil’s thermal capacity and a significant slice of the country’s natural gas-fired generation. The Parnaíba Complex comprises six gas and steam plants (Parnaíba I to VI), with about 1.9 GW of capacity connected to the North Subsystem of the National Interconnected System, all supplied with gas produced and processed by the company itself. Eneva also operates the Espírito Santo Cluster (Luiz Oscar Rodrigues de Melo TPP, Viana I TPP and Povoação I TPP), the Jaguatirica II TPP in Roraima and coal-fired plants such as Itaqui in Maranhão and Pecém II in Ceará. The portfolio is complemented by three oil-fired plants (Viana, Geramar I and Geramar II) and solar assets such as the Futura I Solar Complex in Bahia and the Tauá photovoltaic plant in Ceará.

Among its large-scale projects, the Sergipe Hub stands out, whose main asset is the Porto de Sergipe I TPP, a natural gas-fired plant with 1,593 MW of installed capacity located in Barra dos Coqueiros, in the state of Sergipe. The Hub also includes a chartered floating regasification terminal (FSRU), which receives LNG from third parties via LNG carriers, regasifies the fuel for the plant and is connected to the national gas pipeline grid, also enabling on-grid gas marketing. In the solar segment, the Futura I Complex in Juazeiro (BA), with more than 690 MWac of installed capacity and generation primarily geared to the Free Contracting Environment, consolidated Eneva’s entry into renewable sources, with an expansion pipeline for the Futura II project at the same site. The company is also developing the Azulão Complex, which includes construction of the Azulão I and Azulão II TPPs, totaling 950 MW of natural gas-fired capacity in the Amazonas Basin, with gas supplied from onshore fields operated by the company itself.

In upstream, Eneva has established itself as one of the main private onshore natural gas operators in Brazil, with operations concentrated in the Parnaíba, Amazonas, Solimões and Paraná basins. As of December 31, 2023, proved plus probable (2P) reserves totaled tens of billions of cubic meters of natural gas in the Parnaíba and Amazonas basins, with independent certification. The company operates fields, development areas, exploratory blocks and discovery appraisal plans, with production capacity of up to 9 million m³ of natural gas per day, predominantly destined to supply the Parnaíba Complex and the Jaguatirica II TPP. In addition to monetization through power generation, Eneva produces and markets gas, condensate and other associated products, including small-scale LNG (SSLNG) solutions for industrial clients and heavy transport fleets outside the pipeline grid.

From a commercial standpoint, Eneva structures its revenues across several interconnected segments, with a strong weight from long-term thermal generation contracts and energy trading. In fiscal year 2024, consolidated gross revenue reached a level above R$ 12 billion, driven mainly by revenues from CCEARs in the Regulated Contracting Environment and bilateral contracts in the Free Contracting Environment. The regulated contract portfolio has a remaining average term of more than 10 years, with inflation indexation by IPCA, contributing to greater cash flow visibility. The company also operates in energy trading through specific subsidiaries, managing surpluses and deficits in its generation base, buying and selling power in the free market and optimizing the portfolio of gas-, coal- and solar-fired plants. At the same time, gas supply contracts, both on-grid and off-grid, bolster revenue diversification within the same value chain.

Eneva’s geographic footprint is concentrated in Brazil’s North, Northeast and Southeast regions, with operations in states such as Maranhão, Amazonas, Roraima, Bahia, Ceará, Sergipe and Espírito Santo. The Parnaíba Complex in Maranhão is a strategic hub that combines gas production, processing at the Parnaíba Natural Gas Treatment System and power dispatch to the NIS. In the North, the Azulão-Jaguatirica Integrated System ensures power supply to Roraima’s isolated system, reducing the region’s dependence on oil-fired generation. In the Northeast, in addition to coal-fired plants and the Porto de Sergipe I TPP, the company operates solar and gas-fired thermal assets; in the Southeast, it operates gas- and oil-fired plants in Espírito Santo. Its activities are fully focused on the Brazilian market, with an emphasis on security of supply and support for the power system in periods of higher demand or unfavorable hydrology.

Eneva’s activities are embedded in highly regulated sectors under the supervision of agencies such as the National Electric Power Agency (ANEEL), the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the National Electric System Operator. The thermal plants operate under permits and contracts from regulated auctions, while hydrocarbon exploration and production concessions and contracts follow the ANP’s concession regime and oversight. Environmental, licensing and operational safety aspects are central both at the generation and E&P stages, requiring state and federal installation and operating licenses, as well as compliance with environmental standards and emissions and effluent monitoring. In terms of corporate governance, the Novo Mercado listing on B3 entails practices such as capital composed solely of common shares, a board of directors with specific rules and enhanced transparency, elements that shape the company’s relationship with the Brazilian capital market and with ENEV3 holders.

In terms of the environmental, social and governance agenda, Eneva operates an asset base predominantly composed of natural gas-fired plants, a source that plays a relevant role as a transition fuel in a power system based on intermittent renewables, while at the same time developing large-scale solar generation. Expansion of the photovoltaic portfolio, combined with the use of competitively priced onshore natural gas, places the company in a context of seeking greater generation efficiency and a relative reduction in emissions compared to more carbon-intensive fossil sources such as oil and coal. In addition, its presence in remote regions with relatively lower levels of development, such as the interior of Maranhão, Amazonas and Roraima, involves relationships with local communities, job creation and specific socio-environmental responsibility demands. Structured governance and integration between the gas and power links form the basis on which Eneva conducts its long-term strategy in the Brazilian power market, through ENEV3 shares traded on B3.