Slide 1: Second Quarter 2023 Results
Seconda QGuaner Sa r ope | LM, GROUP
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: Presenters
Ricardo Diana Alberto Yeimy Baez Jaime Caballero Roa Barragan Escobar Consuegra u = Chief Executive VP Sustainable Chief Operating VP of Low Emission Chief Value Officer Officer Development Officer Solutions
Slide 4: Outstanding results underpinned by operational milestones
Outstanding results underpinned by operational milestones 771 716 715 711 726 706 668 698 724 728 59 41 53 71 66 42 65 105 80 78 76,4 73,2 36,7 38,1 34,3 31,6 34,3 32,4 26,3 26,5 23,5 22,2 15,8 15,7 17,6 17,0 14,6 10,3 8,7 11,4 50% 9,7 6,1 6,2 7,3 6,8 44% 4,1 1,7 1,2 2,2 0,2 39% 43% 50% 46% 31% 48%
Slide 5: Proactive commercial strategy for a challenging market
Proactive commercial strategy for a challenging market Opportunities Challenges • OPEC supply cuts • OECD inventory build-up • Global economic dynamism • Crude oil competition in the Asian market • Lower inflationary pressures • Normalization of refining margins Commercial Performance • Strategic po
Slide 6: TESG
Slide 7: Progress in the implementation of our social investment plan
Progress in the implementation of our social investment plan INCLUSIVE RURAL DEVELOPMENT HEALTH Initiation Phase II of the Food Supply Network in Meta 8% of the vulnerable population of Magdalena Department with the Food and Agriculture Organization Medio served by the Mobile Health Unit of the Unit
Slide 8: Balanced Scorecard
Slide 9: TESG leveraging long-term value
TESG leveraging long-term value STRATEGIC COMMITMENTS OBJECTIVE PLAN 1H23 REAL 1H23 2023 Proj. SCIENCE, TECHNOLOGY AND INNOVATION Value generated in ST+i (COP T) 1.01 1.09 11.91 CLIMATE CHANGE Cumulative GHG* reduction (MtCO2e)** -1.06 -1.09 -1.40 Water withdrawal for industrial use (mbod) 724 657 6
Slide 10: Robust financial indicators adjusted to new market variables
Robust financial indicators adjusted to new market variables Ecopetrol Group’s Indicators 1H23 ROACE1 EBITDA Margin2 EBITDA Contribution* By Business Hydrocarbons Transmission Low 17,1% 49,9% Line and Toll Roads Emissions 14,8% 48,1% 6% 18% 15% 16% 17% 25% 9,1% 78% 81% 85% 44,3% 57% 1H23 1H23 1H23 1
Slide 11: Historical execution of the 2023 Investment Plan
Historical execution of the 2023 Investment Plan Business Line Geographic Location Type of Investment Hydrocarbons COP T COP T COP T Colombia Operational Continuity* Low Emissions Other Geographies 12,3 Growth 25,3 – 29.8 30,0 14,0 Transmission and Toll Roads 12,3 12,0 25,0 4,9 8,7 3,0 20,0 5,0 10,0
Slide 12: Effective mitigation of balance sheet risks
Effective mitigation of balance sheet risks Cash Balance FEPC Balance COP T COP T 5.2 10.7 13.0 30,9 ➢ Pending compensation of the FEPC balance for 26,3 8,4 18.1 COP 13.2 T, with 2.5 2.6 dividend payment to the 0.5 13.0 Nation 2022 Operating Capex Debt Dividend Exchange 1H23 2022 Compensation 1H23 1
Slide 13: Low Emission Solutions
Slide 14: Making progress towards the energy transition
Low Emission Solutions Making progress towards the energy transition 160 mboed $2,142 47% Commercialization of ~1.400 MBTUD “Flare Gas” Gas & LPG Gas & LPG2 BCOP EBITDA ~36 ktonCO2Eq reduced per year Production Gas & LPG1 EBITDA Margin 22% total production 1H23 Sustainable H2 Dispensation mobility f
Slide 15: Hydrocarbons
Slide 16: Diversified portfolio underpinning energy security
Exploration Diversified portfolio underpinning energy security Gas Success TAYRONA Orca ORCA Crude Success In evaluation TAYRONA MAKING PROGRESS IN THE EXPLORATORY CAMPAIGN Uchuva-1 Wells 2023 GUAJIRA 3 Discoveries under evaluation** Pollera Norte-1 2023 Successful wells* MAGDALENA Seismic executed
Slide 17: Outstanding production performance
Production Outstanding production performance Production Main growth drivers Caño Sur production curve (mboed) (mboed) 3.3% 704,6 720,5 720,1 719,4 728,0 2Q23 2Q22 vs 2Q23 (mboed) ∆ (%) 40 34 166,7 175,2 166,1 171,1 172,0 19 PERMIAN 58.7 117% 5 6 CAÑO SUR 31.6 577% 1 537,9 545,3 554,0 547,7 556,0 Ju
Slide 18: Permian: Exceptional results in 3 years of operation
Production Permian: Exceptional results in 3 years of operation Rapid growth in production based on short-cycle assets Average Monthly Production Start operations in Ecopetrol before royalties 62.9 the Delaware area 70 (mboed) mboed June 2023 60 The association 50 % Crude reached a record production
Slide 19: Logistical excellence addressing demand requirements
Midstream Logistical excellence addressing demand requirements Transported volume (mbd) Ensuring fuel supply in the south of the country: +1.9% Cabotage from 1,077 1,075 1,090 1,089 1,098 Buenaventura terminal to 298 305 306 306 302 Tumaco. terminal • 9 Vessels 779 770 784 784 795 • 109 Diesel MBL •
Slide 20: Historical refinery throughput and production of cleaner fuels
Downstream Historical refinery throughput and production of cleaner fuels Gross refining margin Fuels production (mbd) and throughput TESG 29,0 Production of AC-30 quality 20,3 19,9 22,6 302 313 asphalt at the Barrancabermeja 14,4 286 257 34 36 refinery 31 228 31 110 26 117 121 412 428 109 92 395 Te
Slide 21: Ongoing efficiency capture and cost optimization
Costs Ongoing efficiency capture and cost optimization Refining cash cost -14% ✓ Main levers impacting EBITDA: 4,58 470 483 3,94 • Heavy and extra heavy crude dilution 1H23 COP initiatives. EFFICIENCIES ~1.6 T • Increasing higher value refined products for the Cartagena Refinery 1H22 1H23 • Improved
Slide 22: Energy Transmission & Toll Roads
Slide 23: Solid results that overcome challenges
Energy Transmission Solid results that overcome challenges BUSINESS LINE CONTRIBUTION 1H23 (COP T)* OPERATING MILESTONES GE without Transmission and Toll Roads Contract awarding: Transmission and Toll Roads Contribution 2 lots in energy transition auction Total Ecopetrol Group by ANNEL1 76.4 73.2 6
Slide 24: In summary…
In summary… • Outstanding results in a challenging commercial environment • Historic execution of the investment plan • Focused on operational excellence, efficiencies, innovation and commitment to energy transition • September: Commemoration of 15 years listed on the New York Stock Exchange 24
Slide 25: Q&A
Q&A crue a ecope