Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — J.P. Morgan Global Emerging Markets Corporate Conference 2022
21 slides from Ecopetrol Sa's conference presentation, March 2022
Slide 1: J.P. Morgan Global Emerging Markets Corporate Conference
Traducir J.P. Morgan Global Emerging Markets Corporate Conference March 2022
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
Slide 3: Best Results Ever
BEST RESULTS EVER COP T 91.7 87.6 67.8 70.8 66.0 52.1 55.2 47.7 50.0 42.0 31.1 39.2 30.8 24.5 46% 23.1 45.4% 43.9% 18.1 18.0 16.8 16.7 37.2% 41.8% 11.8 13.3 7.4 34.7% 37.7% 6.6 34% 2.3 12.0 1.7 16.3 5.7 2.4 11.6 1.6 5.3 1.2 -4.0 2014 2015 2016 2017 2018 2019 2020 2021 9.6% 1.9% 2.7% 8.6% 13.1% 14.3%
Slide 4: Ecopetrol Continues to Deliver Superior Results
ECOPETROL CONTINUES TO DELIVER SUPERIOR RESULTS ROACE (%) +10 13.6 METRICS 2 0 2 1 TA R G E T 2021 REAL 3.7 Organic Investment USD 3,500 – 4,000 M USD 3,243 M* Operating Cash Flow ~USD 3,500 – 5,000 M USD 5,660 M EBITDA Margin 35% – 38% 46% Majors IOCS NOCS Ecopetrol Gross Debt/EBITDA <2.5x 2.3x Res
Slide 5: US$6,500-8,500 M O&G Annual EBITDA by 2040
** 5 5 **6,500 -8,500 MUS$ O&G Annual EBITDA by 2040
Slide 6: The 22-24 Plan Increases Focus on Profitable Growth of Our Core Business
THE 22-24 PLAN INCREASES FOCUS ON PROFITABLE GROWTH OF OUR CORE BUSINESS AND ON THE DIVERSIFICATION OF THE ECOPETROL GROUP 2022 2022 - 2024 Organic Investments (US$ M) 4,800 - 5,800 17,000 - 20,000* Production (mboed) 700 - 705 ~730 Grow with the Energy Throughput (mbd) 340 - 360 420 - 430 Transitio
Slide 7: Operating Results
S| OPERATING RESULTS
Slide 8: Ecopetrol's Growth Is Levered on Our Ever More Resilient Reserves
UPSTREAM ECOPETROL´S GROWTH IS LEVERED on our ever more resilient reserves 8
Slide 9: On the Road to Recovery
Production and Reserves ON THE ROAD TO RECOVERY mboed 700 - 705 Production sources 2022 +4 +5 +1 -5 Primario Primary Oil +6 Crudo* Recovery* 51% Gas andGas & White 22% Blancos** products** 684 684 690 694 699 695 695 Secundario 676 679 Secondary Oil 20% 661 Crudo Recovery YNC Unconventionals 5% Terc
Slide 10: Progress in Unconventional Reservoirs
PROGRESS IN UNCONVENTIONAL RESERVOIRS PPII P E R M I A N ( U . S . A .) KALÉ PLATERO 250 +22% 132 19.3 EBITDA 20 GE Reserves USD M Wells drilled mboed 21 2023 Drilling 2023 growth since 84% Drilling EBITDA the acquisition Margin 2021 Average net Environmental license Production ECP PERMIAN (Rodeo JV
Slide 11: ISA: A Promise Delivered
Energy Transmission and Toll Roads ISA: A PROMISE DELIVERED 2021 RESULTS EXCEEDING EXPECTATIONS SUCCESSFUL INTEGRATION REVENUES COP 11.2 T (+ 9.8% vs 2020) Financial consolidation: September 2021 and 4Q21 EBITDA Margin 76% People and Culture: Focus on management change EBITDA COP 7.1 T (+ 8.4% vs 20
Slide 12: Financial Performance
FINANCIAL PERFORMANCE
Slide 13: Our Investment Levels Increase in Line with Our Growth and Diversification Strategy
OUR INVESTMENT LEVELS INCREASE IN LINE ALONG WITH OUR GROWTH AND DIVERSIFICATION STRATEGY 22-24 22-24 Transition Agenda INVESTMENT PLAN* 82% 18% 17,000 – 20,000 US$ M US$ M ~ 1,400 O&G Diversification** Decarbonization Optimization of energy Investment by Region sources, wind and solar 4% Upstream U
Slide 14: Robust Cash Balance
ROBUST CASH BALANCE COP T FCF and OCF Sensibility 7.8 FEPC Brent -0.5 0.5 13.3 +/- 1 USD/Bl -0.5 0.5 22.5 TRM -0.9 0.9 9.7 2.8 7.8 +/- 100 COP/USD -0.6 0.6 14.2 0.5 17.5 Production -0.2 0.2 5.9 1.1 +/- 5 mbd production -0.2 0.2 8.1 OCF FCF 2020 Operating Organic ISA's ISA's Investment Debt Dividends
Slide 15: Debt Profile
DEBT PROFILE Source US$ M Ecopetrol ISA Ocensa ODL Bicentenario Invercolsa Local Crédito loans Local 5,321 2% 2% International Inter. Crédito loans Intl. 15% bonds 15% 72% ECA 6% 2,339 Bonos Locales 2,070 Local bonds 5% 1,940 1,940 1,764 15% 1,084 1,013 1,048 860 735 845 416 393 459 248 163 261 106
Slide 16: TESG
TESG
Slide 17: Ecopetrol's Socio-Economic Impact
ECOPETROL’S SOCIO-ECONOMIC IMPACT ~26 COP T 2021 Contribution GOVERNMENT SHAREHOLDERS1 COMMUNITY EMPLOYEES4 SUPPLIERS* +16.7 80.4 0.5 +5.3 3.1 COP T COP B COP T COP T COP T Dividends, taxes and Dividends2 Social and environmental Salaries, benefits and Local contracting royalties investment variable
Slide 18: Moving Forward in Our TESG Commitment
MOVING FORWARD IN OUR TESG COMMITMENT ENVIRONMENTAL SOCIAL CORPORATE GOVERNANCE Emission reductions (mtCO2e) Regional development Executed New Adherence to 2020 2021 2024 (e)* 287 Projects 364 Projects the program -200 -200 2021 subscribed -294 Economic reactivation: -1,600 Rating increased Existing
Slide 19: Advancing in Our Decarbonization Goals
ADVANCING IN OUR DECARBONIZATION GOALS DISTRIBUTION BY TYPE OF INITIATIVE 2025 Abatement Curve Energy energética Eficiencia 11% efficiencies 8% Teas Flaring Renovables Renew ables 56% 25% Price of Fugitive emissions Reducción emisiones carbón reduction fugitivas 40 USD/t DISTRIBUTION BY TYPE OF INIT
Slide 20: Summary
SUMMARY… • We delivered record financial results in 2021 • Profitable growth underpinned by TESG • Progress in diversifying through the new energy transmission and toll roads business (ISA) • Competitive returns ✓ Dividend proposal 2021 COP $280 per share (16x vs 2020) ✓ Efficiencies of COP 3 T ✓ EB
Slide 21: Q&A
Ecopetrol — J.P. Morgan Global Emerging Markets Corporate Conference 2022 on 6ix