Ecopetrol Sa · BVC:ECOPETROL

Ecopetrol Sa — Q3 2022 Earnings Presentation

21 slides from Ecopetrol Sa's earnings presentation, Nov 1, 2022

  1. Slide 1: 3Q 2022 Results

    3Q 2022 Results

  2. Slide 2: Legal Disclosure

    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 statements regarding

  3. Slide 3: Speakers

    Speakers Felipe Bayón Yeimy Báez Alberto Consuegra Jaime Caballero CEO VP. of Low-Emission Solutions COO CFO 3

  4. Slide 4: Outstanding Performance

    Outstanding Performance 761 718 715 720 725 697 679 720 706 6 exploratory 54 45 55 72 64 43 71 98 103 successes YTD 119.8 91.7 Growing production 67.8 70.8 720.4 59.2 mboed in 55.2 3Q22 47.7 50.0 42.0 43.4 30.8 31.1 26.6 Cartagena 23.1 21.1 18.0 16.8 16.7 Refinery 11.6 13.3 38% 42% 6.6 45% 44% 34% 4

  5. Slide 5: TESG

    TESG ENVIRONMENTAL SOCIAL GOVERNANCE ST&I* Emissions reduced by 65 new Andesco Certified benefits 229,317 tCO2e as of “Bachilleres Sustainability valued at MUSD 3Q22 Ecopetrol” in 2022 award 136 as of 3Q22 for Corporate Governance Innóvate2022: COP 77% water reused as of Contracted goods 720 M alloc

  6. Slide 6: Advancing in New Energies

    Low Emission Solutions Advancing in New Energies Gas Hydrogen Other Energies CONTRIBUTION GREEN H2 PILOT RENEWABLE ENERGIES CARTAGENA REFINERY (as of 3Q22) +13% 1.3 COP T 100% 18.9 27.6 + 58% Gas and LPG Production* Gas and LPG EBITDA* COP B ktCO2e 3Q22 vs 3Q21 Completed +30% 3Q22 vs 3Q21 Energy cos

  7. Slide 7: Operating Results

    Operating Results

  8. Slide 8: Robust Exploratory Portfolio Contributing to Energy Sovereignty

    Exploration Robust Exploratory Portfolio Contributing to Energy Sovereignty Exploratory Campaign 9M22 UNITED STATES UCHUVA-1 BOLOLÓ-1 EST. SN-15 YODA-A1 PILONERA-1 Tayrona Gua-2 STARMAN-1 13 Drilled 6 Successful CHINCHORRO-1 SSJN-1 CORALINO-1* SN-15 Exploratory Wells 3Q22 MEXICO GUARAPO-1 GORGON-2 Y

  9. Slide 9: Growth Contributing to National Exports

    Production Growth Contributing to National Exports Production MBOED Crude Exports +5.4% (mboed) 683.6 694.7 692.1 704.6 720.4 460 397 414 418 149.8 160.7 163.0 167.5 175.1 341 533.8 534.0 529.1 537.1 545.3 3Q21 4Q21 1Q22 2Q22 3Q22 Crude Gas & Whites 3Q21 4Q21 1Q22 2Q22 3Q22 9M21 9M22 24% Investment

  10. Slide 10: Outstanding Permian Contribution

    Production Outstanding Permian Contribution Ecopetrol Permian 9M21 9M22 Ecopetrol Permian 50.2 MBOED Production Profile Record production Production before 17.3 32.5 in September royalties (MBOED) Before Royalties* MBOED # Cumulative total 112 200 wells drilled* ~16% # Cumulative total production we

  11. Slide 11: Midstream: Growing with the Country's Demand

    Midstream Growing with the Country’s Demand Transported Volume (mbd) Two New Storage Tanks for Refined Products in Sebastopol +6.2% • Tanks 8122 and 8123 each 100 mbls capacity 1.012 1.049 1.041 1.077 1.075 288 290 284 298 305 • Increase of 26% operating storage capacity in the 724 759 757 779 770 c

  12. Slide 12: Downstream: Outstanding Performance and TESG Standards

    Downstream Outstanding Performance and TESG Standards Gross Refining Margin and Integrated throughput Crude Plant Interconnection 29.0 +1,500 Project Cartagena Refinery 395 People hired 13.9 9.0 12.5 93% local workforce from (IPCC) 20.3 Cartagena 365 354 340 325 3Q21 4Q21 1Q22 2Q22 3Q22 150 to 200 m

  13. Slide 13: Focus on Efficiencies Mitigates Inflationary Impacts

    Costs Focus on Efficiencies Mitigates Inflationary Impacts Work fronts Total Unit Cost1 Lifting Cost +15% 52.6 53.4 Competitiveness • Optimization of lifting cost 1,4 0.6 9.24 8.02 and Efficiency 13.0 13.8 • Dilution strategy for heavy USD/Bl USD/Bl and extra-heavy crudes 39.6 39.6 0.3 0.6 • Margin

  14. Slide 14: Financial and TESG Results

    Financial and TESG Results

  15. Slide 15: Financial Strength of the Integrated Business

    Financial Strength of the Integrated Business O&G KPIs ISA KPIs Ecopetrol Group KPIs EBITDA per Barrel EBITDA Margin1 EBITDA Margin EBITDA by 67.3 USD/Bl 83.6% 49.5% segment 67.3 49.5% 45.7% 46.7% 5% 6% 2% 8% 8% 11% 83.9% 83.6% 13% 33.7% 24% 25% 45.3 55% 13% 40.2 75.3% 76.1% 61% 64% 63% 17.9 40% 202

  16. Slide 16: Successful Execution of Investments

    Successful Execution of Investments Indicative Metrics (USD B) (9M22)* E&P Downstream Midstream Others ISA 3.7 3.2 +300 Sanctioned projects 2.3 2.0 Amount: ~BUSD 13 1.8 1.8 1.4 Total NPV : ~ BUSD 2** Average IRR: 20% – 28%** 9M16 9M17 9M18 9M19 9M20 9M21 9M22 Revenue 9M22 Net Income 9M22 EBITDA and

  17. Slide 17: Solid Balance Sheet Despite Growing FEPC Effect

    Solid Balance Sheet Despite Growing FEPC Effect Cash Position (COP T) FEPC Balance (COP T) 14.9 5.5 9.9 6.5 2.1 20.4 5.2 17.0 1.8 15.9 12.0 2Q22 Accumulation Payments 3Q22 Balance Balance 2Q22 Operating Capex Debt Service Dividends Exchange 3Q22 Balance Cash Flow Paid Effect Balance & Others Free Ca

  18. Slide 18: ESG KPIs

    ESG KPIs ENVIRONMENT Cumulative Greenhouse Gas Water reuse vs total for operating* Renewable Energy Capacity Emissions Reduction (MW)* 60% 77% 1,335 2,397 2018 9M22 43 MW 119 MW ktCO2e ktCO2e Fresh water capture 2018 9M22 50% reduction vs 2018 2021 Target: 400 – 450 MW to 2024 2018 SOCIAL GOVERNANCE

  19. Slide 19: Strategic Progress

    Strategic Progress GROW WITH THE COMPETITIVE RETURNS ENERGY TRANSITION • Record financial results • Gas discoveries • Partnerships for hydrogen development Macroeconomic environment New exploration licenses Unconventionals pilots’ CUTTING-EDGE suspension in Colombia KNOWLEDGE GENERATE VALUE • Certif

  20. Slide 20: In Summary…

    In Summary… Delivering results We continue focusing Positive interaction above and beyond on our four strategic with the National the Plan pillars Government for the design of a sustainable energy policy 20

  21. Slide 21: Q&A

    Q&A

Ecopetrol — Q3 2022 Earnings Presentation on 6ix