Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — Debt Investor Presentation (October 2021)
21 slides from Ecopetrol Sa's debt investor presentation, October 2021
Slide 1: Ecopetrol Group - Legal Disclosure
Confidential LEGAL DISCLOSURE This document was prepared by Ecopetrol S.A. (the “Company” or “Ecopetrol”) with the purpose of providing the market and interested parties certain financial and other information of the Company. This document may include strategy discussions and forward-looking stateme
Slide 2: Disclaimer
Confidential Disclaimer This presentation was prepared by Ecopetrol S.A. (the “Company” or “Ecopetrol”) with the purpose of providing interested parties certain financial and other information of the Company. This presentation is for discussion purposes and highlights basic information about Ecopetr
Slide 3: Ecopetrol Presenters
Confidential Ecopetrol Presenters ALBERTO CONSUEGRA FELIPE BAYÓN JAIME CABALLERO URIBE Chief Operating Officer Chief Executive Officer Chief Financial Officer ▪ COO of Ecopetrol since March 2019 ▪ CEO of Ecopetrol since 2017 ▪ CFO of Ecopetrol since August 2018 ▪ Previously interim CEO of Cenit S.A.
Slide 4: Summary Terms of the Offering
Confidential Summary Terms of the Offering Issuer Ecopetrol S.A. Format SEC Registered Ranking Senior Unsecured and Unsubordinated Notes Expected Ratings Moody’s: Baa3 (Negative) | S&P: BB+ (Stable) | Fitch: BB+ (Stable) Currency USD Size Benchmark Tenor(s) [Intermediate to Long Maturity] Coupon Pay
Slide 5: Ecopetrol Group: leading integrated energy and infrastructure company in the region
Confidential Ecopetrol Group: leading integrated energy and infrastructure company in the region Energy and Upstream Midstream Downstream Infrastructure #1 #1 #1 #1 energy in Colombia in Colombia refiner in Colombia transmission company in LatAm ~430,000 668 mboed 984 mbd 362 mbd production in of tr
Slide 6: Consolidated Debt Profile – Ecopetrol Group
Confidential Consolidated Debt Profile(1) – Ecopetrol Group Nominal Figures in USD Million Ecopetrol Ocensa ODL Bicentenario Invercolsa 6,606 ISA Acquisition Credit Facility (2021) $US 3,672 million The goal of the transaction 2 year tenor is to partially refinance the facility Libor 3M + 80bp used
Slide 7: The new Ecopetrol Group
Confidential The new Ecopetrol Group + Committed to energy +120(1) years +18,000(2) 8 countries future and sustainable of experience between development in Colombia committed employees geographical presence the 2 companies and the Region Energy, Logistics, Permian & Gulf of Mexico Exploration, Produ
Slide 8: ISA: Sustained increase in revenues coupled with stable margins
Confidential ISA: Sustained increase in revenues coupled with stable margins Evolution of financial performance Revenue Breakdown (US$ in billion, unless otherwise stated) (%, as of 1H’21) By business line By country 4% 21% 20% 21% 19% 20% 20% 35% Revenue CAGR: 6.2% 2.8 2.8 2.4 2.5 20% 0.5 0.5 0.6 0
Slide 9: Ecopetrol is now a regional energy champion with a larger scale, more stable and diversified platform
Confidential Ecopetrol is now a regional energy champion with a larger scale, more stable and diversified platform Ecopetrol and ISA financial snapshot(1)(2) (1H’21 in US$ billion, unless otherwise stated) Revenues breakdown by business segment (%) Ecopetrol (as of 4Q’20 LTM)(4) Revenue $10.1 $1.4 7
Slide 10: Track record of strong and resilient financial performance
Confidential Track record of strong and resilient financial performance Evolution of financial performance CAPEX by segment (US$ in billion, unless otherwise stated) (%, average for 2018-2020 FY) Production (Mboed) 720 725 697 668(1) 72 64 43 65(1) 8% Brent (US$/BI) 8% Exploration & 46% Production 4
Slide 11: Strategy focused on maximizing value of hydrocarbons portfolio while progressing on Energy Transition
Confidential Strategy focused on maximizing value of hydrocarbons portfolio while progressing on Energy Transition (“ET”) Energy Transition: Four Main Pillars 1 2 3 4 COMPETITIVENESS DIVERSIFICATION DECARBONIZATION TESG Improve costs and production Reposition new businesses in Accelerate and priorit
Slide 12: Competitiveness: multiple avenues to sustain growth and accelerate ET strategy
Confidential 1 Competitiveness: multiple avenues to sustain growth and accelerate ET strategy Business plan highlights (prior to ISA acquisition) Current(1) 2021 2021 – 2023(4) Organic Investment US$2.7bn US$3.5 – 4.0bn US$12.0 – 15.0bn EBITDA(2) Margin 43.1% 35% – 38% Financial 82% Gross Debt / EBI
Slide 13: Diversification: new avenues for growth in the energy value chain
Confidential 2 Diversification: new avenues for growth in the energy value chain Gas portfolio Self-generation Energy Biodiversity & Natural Clean Hydrogen Renewables Transmission Climate Solutions (NCS) Acquisition of 6 First 50kW US$1,300m 400 MW by 2023(1) Million trees by 2022 electrolysis pilot
Slide 14: Diversification: sustainable growth via transformational acquisition of Interconexion Electrica S.A.
Confidential 2 Diversification: sustainable growth via transformational acquisition of Interconexion Electrica S.A. Highlights of the transaction Acquisition rationale Transmission networks will play a key role in the energy Transaction size of ~US$3.67bn(1) transition in LatAm through the integrati
Slide 15: Decarbonization: ambitious strategy announced in 2021
Confidential 3 Decarbonization: ambitious strategy announced in 2021 Ecopetrol aims for Net Zero Carbon Emission by 2050 Scope 1 & 2 MT CO2E 15.8 MAIN INITIATIVES TO 2030 TARGET BY 13.5 Reduction of fugitive 20 25% vs. 2019 REDUCTION Reductions emissions, venting, and 5-6 MtCO2e flaring scope 1 & 2
Slide 16: TESG: tangible initiatives towards a sustainable future
Confidential 4 TESG: tangible initiatives towards a sustainable future Technology Environmental Social Governance US$60m 8,472 ktCO2e +5,000 household natural 8 of the 9 members of the cumulative reduction of gas connections(2) Board of Directors are in certified digital agenda greenhouse emissions
Slide 17: TESG: leading LatAm player in adopting global TESG standards and best practices
Confidential 4 TESG: leading LatAm player in adopting global TESG standards and best practices Priorities Indexes & Rankings Recent Participation Metrics & Standards Evaluators & Radars Latest initiatives (1) Source: Company filings. (1) Ecopetrol will evaluate setting targets certified by the Scien
Slide 18: In summary…
Confidential In summary… Positioned to benefit from growth in countries with attractive economic and 1 demographic indicators ▪ Undisputed leadership in Colombia ▪ Continue expansion in Latin America's most important markets Positioned to capture an increase in demand for oil, gas and 2 petrochemica
Slide 19: Appendix
Appendix This is the file reference containing the file name/path or docs number Confidential © Credit Suisse Group AG and/or its affiliates. All rights reserved.
Slide 20: EBITDA Reconciliation
Confidential EBITDA Reconciliation COP bn. 2017 2018 2019 2020 1H 2021 Net income attributable to the owners of Ecopetrol (Colombian IFRS) 6,620 11,556 13,251 1,688 6,810 Cash flow hedge for future company exports 366 471 419 122 47 Exchange rate effects on tax bases – Deferred tax 192 (646) 73 (223
Slide 21: Thank you.
Confidential Thank you.
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