Slide 1: Operating and Financial Results
OPERATING AND FINANCIAL RESULTS
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: Speakers
SPEAKERS ALBERTO CONSUEGRA FELIPE BAYÓN JAIME CABALLERO URIBE COO CEO CFO 3
Slide 4: Quarterly financial results at record highs
Quarterly financial results at record highs MILESTONES 678 681 694 676 661 Contingency management 33 43 45 61 69 during public order disruptions 48% 49% 26,200 purchased doses of Coronavac for nearly 12,000 43% 19.4 workers, relatives 31% 17.2 and allies 24% Lifting of operating 14.2 12.3 restrictio
Slide 5: Market environment enabling greater value capture
Market environment enabling greater value capture Nationwide gas demand Nationwide fuel sales* Price basket US$/BI** FORECAST Gbtud mbd 1,047 261 268 262 264 72.6 990 996 259 257 260 963 974 246 16 21 20 20 20 20 21 198 899 65.23 190 21 217 192 178 61.5 189 167 16 123 49.9 243 203 191 117 115 109 11
Slide 6: Structural drivers of our performance
Structural drivers of our performance Commercial performance Focus on value, Diversification Cost efficiency not volume • Realization prices • Integrated business • Permian • Lifting cost • Market diversification • Maximization of • GAS + LPG • Refining cash cost local oil throughput business • Tact
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Slide 8: Exploration
Exploration Delivering milestones that contribute to the Group's gas strategy 8 Exploratory wells Drilled in 1H 2021 2021 projection: 14 wells Exploration in Gas Exploratory success in Hocol's Arrecife-3 appraisal well Medium Ecopetrol and Parex Agreement Magdalena Arauca and Llanos 38 blocks 50% 50
Slide 9: Production
Production Focus on operational reactivation and profitable production mboed Greater operational 676 661 690 -700 23.8 13.3 19 8 5 7 activity 4.5 154 143 3-5 15- 19 7-8 4-7 • Operational restrictions in Castilla field were solved (+9.7 mboed in 652 648 648 661 680 688 693 June ) 522 518 • 17 rigs in
Slide 10: Progress in unconventional reservoirs
Progress in unconventional reservoirs PPII Permian (EEUU) 4 Rigs in operation 1H21 75 Wells in production as of June 21.2 kboed 16.1 kboed net ECP pre- neto ECP post- royalties 2Q21 royalties 2Q21 79% "ZERO Routine Flaring" initiative EBITDA Margin 2020 2021 2022 2023 1H21 Environmental monitoring K
Slide 11: Midstream
Midstream Intensified focus on integrity and efficiency Transported Volume (mbd) +3.6% 2Q21 Impacts • Intermittent suspension of pumping due to social 926 979 1,027 1,007 960 unrest 170 225 267 275 • Lower production levels 704 756 754 760 733 256 -7% Refined VS. 1Q21 2Q20 3Q20 4Q20 1Q21 2Q21 -4% Cr
Slide 12: Downstream
Downstream Stable operation and recovery of EBITDA Margin Throughput (mbd) EBITDA (COP B) EBITDA Margin (%) 500 9.5 8.9 10.0 1,200 8.5% 10.0% 400 6.2 8.0 1,000 6.7% 8.0% 300 6.0 800 4.8% 4.6% 6.0% 200 600 3.4% 378 360 4.0 979 4.0% 255 400 653 100 2.0 200 2.0% 283 295 345 0 - - -1.3% 0.0% 2Q19 2Q20 2
Slide 13: Cost discipline and efficiency
Cost discipline and efficiency COP B Capex; • Lifting cost optimization and improvement • 245 Deployment of the new operating model at EFFICIENCIES Opex; Cenit • COP 1.0 T in 1H21 524 Continuous improvement in drilling and well completions Ingresos; Revenues; • Optimization in facility construction
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uv) a < Z e < - _
Slide 15: Extraordinary results after the crisis
Extraordinary results after the crisis Net Income 1H20 vs 1H21 COP T Ebitda (+10.4) 2.9 0.1 0.05 0.4 0.9 2.9 7.1 excluding social unrest impacts 8.0 0.3 0.3 6.8 0.2 Net Income Realization Volume Inventory Operational Other Ebitda Non recurring FX effects Income tax Non-recurring Net Income 1H20 Pric
Slide 16: Back to the growth path
Back to the growth path EBITDA Margin EBITDA/Bl ROACE* 48.1 (%) 40.2 USD/Bl 9.1% 14.3 43.9 48.1 35.8 40.2 33.7 30.8 9.0 9.1 17.9 15.3 3.7 2019 2020 1H20 1H21 2019 2020 1H20 1H21 2019 2020 1H20 1H21 Net Income Break Even Gross debt / EBITDA 33.4 USD/Bl 1.8x 37.9 37.5 2.8 29.9 33.4 2.4 1.8 1.2 2019 20
Slide 17: Progress on the investment plan execution
Progress on the investment plan execution Second highest investment during 1H recorded for the last 5 years Main focus on the domestic value chain Millions USD 1H21 1,392 1,373 Growth 1,318 opportunities 57% YTD YTD Integrity and 25% 1,009 69% 31% reliability PY21 PY21 Optimizations 875 79% 21% and
Slide 18: Strong growth of the underlying cash flow
Strong growth of the underlying cash flow 3.5 FEPC COP T 6.2 5.2 3.8 0.3 2.0 0.3 0.2 1.2 8.1 9.1 8.1 7.1 6.2 6.4 5.9 5.9 Cash 2020* Cash flow from Capex Debt Dividends** Returns and others FX effect Cash 2H21* operations OCF & FCF Evolution OCF & FCF Sensitivity 5.3 COP T COP T Brent 3.5 2.1 +/- 1 U
Slide 19: TESG
Slide 20: Technology, Environment, Social, Governance
TECHNOLOGY ENVIRONMENT SOCIAL GOVERNANCE • USD 20,5 million in • Capacity expansion • Somos Colombia rounds • Stakeholders certified benefits, as of to 61MW of San +COP16,700 million in Capitalism Metrics 1H21 Fernando solar park business with MSMEs* (SCM) first report • Cybersecurity • Castilla sol
Slide 21: Potential ISA stake acquisition
Potential ISA stake acquisition DUE DILIGENCE FUNDING • Expert advisors in each area Expected post transaction • +30 sessions with ISA management Gross Debt/EBITDA EG + ISA (times) • 30 Board sessions and 32 of its BANK LOAN GOAL <2.5 committees: UP TO 100% OF 2.2 2.2 2.1 2.0 THE PURCHASE o Business
Slide 22: In summary
In summary… PASSIONATE FOCUS ON COMMITMENT TO FOR INCREASING THE COUNTRY'S EXCELLENCE THE PACE OF SOCIO-ECONOMIC EXECUTION REACTIVATION • Higher Financial Results • Recovery in operations • Reliable, safe and affordable energy Historically Reported in a towards goals set for the end Quarter of 2021
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Slide 24: Q&A Participants
Q&A PARTICIPANTS Felipe Bayón CEO Alberto Consuegra Jaime Caballero Uribe COO CFO Elsa Jeanneth Jaimes Jorge Osorio VP of Exploration VP of Development and Production Milena López Cenit VP of Strategy and Walter Fabian Canova Finance VP of Refining and Industrial Processes Pedro Manrique Commercial
Slide 25: Glossary
GLOSSARY Acronym Definition Bl Barrel bped Barrels of oil equivalent per day COP B Billion Colombian Pesos (Nine zeros) COP M Million Colombian Pesos (Six zeros) COP T Trillion Colombian Pesos (Twelve zeros) FCF Free Cash flow JV Joint Venture Mbd Thousands of barrels per day Mboed Thousands of barr