Ecopetrol Sa · BVC:ECOPETROL
Ecopetrol Sa — Q1 2022 Earnings Presentation
21 slides from Ecopetrol Sa's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Results
FIRST QUARTER 2022 RESULTS
Slide 2: 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 the probable dev
Slide 3: Speakers
SPEAKERS ALBERTO CONSUEGRA FELIPE BAYÓN JAIME CABALLERO COO CEO CFO 3
Slide 4: Best Quarterly Results Ever
BEST QUARTERLY RESULTS EVER 712 701 728 735 676 692 55 67 64 51 61 98 48.8% 49.0% COP T 11.5 approved dividends 46.1% 47.6% 43.5% 32.5 10.4% Dividend Yield* 34.9% 17.2 April’s average monthly 15.9 15.1 15.9 production: Highest since 14.6 13.4 March 2020 7.1 7.4 8.2 5.8 6.6 5.3 March: April: 2.6 2.7
Slide 5: Strategic Milestones
STRATEGIC MILESTONES GROW WITH THE GENERATE VALUE CUTTING-EDGE COMPETITIVE TRANSITION THROUGH TESG KNOWLEDGE RETURNS • Exploratory success of El • Adherence to the World • Strategic Alliance: Platform on • First cargo of crude sold by Niño 2 well - Boqueron Block Economic Forum’s 1 Trillion efficien
Slide 6: Navigating an Evolving Market
NAVIGATING AN EVOLVING MARKET Challenges Opportunities • Competitive realization prices • Inflationary pressures within O&G sector • Ecopetrol Trading Asia consolidation • Supply chain disruptions • Systematic monitoring of supply prices • Efficient inventory management • Increased competition with
Slide 7: Operating Results
OPERATING RESULTS GRUPO magi PeTROL
Slide 8: Ensuring a Competitive Portfolio
Exploration ENSURING A COMPETITIVE UCHUVA-1 1 CONVENTIONS PILONERA-1 2 PORTFOLIO DRILLING (4) SUCCESSFUL (1) SEALED AND ABANDONED (2) EST.SN-15 3 PRODUCTION FROM EXPLORATORY WELLS UNDERGOING DRY (2) SSJN-1 INITIAL AND EXTENSIVE TESTING 1Q 2022 PERDICES IN EVALUATION (2) SN-15 GORGON-2 33% PEV 0 40 8
Slide 9: Back to Plan
Production and Reserves BACK TO PLAN PRODUCTION • Strengthened operating model for the Upstream segment mboed • 131 development wells drilled and completed in the quarter Production levels • Impacts associated to blockades mainly in the Yariguí, 695 692 681 689 705 >700 mboed Capachos and CPI Surori
Slide 10: Progress in Unconventional Reservoirs
Production and Reserves PROGRESS IN UNCONVENTIONAL RESERVOIRS PERMIAN (USA) PPII KALÉ PLATERO 23 21 1Q 111 EBITDA >9 times Drilled wells Completed 20 USD M wells 2023 Expected Drilling 2023 135 3.5 vs 1Q21 22 87% EBITDA Margin Activity aligned with Expected resolution Public Hearings 2H22 Total well
Slide 11: Growth in Line with Economic Recovery
Midstream GROWTH IN LINE WITH ECONOMIC RECOVERY +3.3% 3.3% growth of crude transported by pipelines 1Q21 vs 1Q22 ✓ Reception of crude from Nare Association ✓ Additional third-party transportation 1,007 1,012 1,049 1,041 3.3% growth of products transported by 960 multi-purpose pipelines 275 256 288 2
Slide 12: Operational Reliability and Favorable Price Environment
Downstream RGP* Deliveries and OPERATIONAL RELIABILITY AND Esenttia Total Margin FAVORABLE PRICE ENVIRONMENT 50. 0 45. 0 290 266 380 413 171 280 40. 0 124 Gross Refining Margin and Throughput 180 35. 0 30. 0 80 25. 0 -20 20. 0 450 12.5 13.9 15. 0 15. 0 -120 10.1 9.5 9.0 10. 0 -220 10. 0 5.0 26.0 22.
Slide 13: Efficiencies and Cost Optimization
Costs EFFICIENCIES AND COST OPTIMIZATION EFICIENCIES 1Q22 CAPEX COP B 358 DRILLING COST (USD/ft) 212 211 40 • Comprehensive strategy focused on mitigating inflationary effects -0.4% 136 COP B • 89% of initiatives positively impacted EBITDA results 2021 1Q22 182 COMPLETION COST • Capex efficiencies f
Slide 14: Financial Performance
FINANCIAL PERFORMANCE awe PeTROL GROUP
Slide 15: Record First Quarter
RECORD FIRST QUARTER Net Income 4Q21 vs 1Q22 COP T 2.2 0.3 0.3 1.7 6.6 6.1 0.2 0.2 4Q21 Net income EBITDA Non-recurring Other net income effects Income Tax Provision 1Q22 Net income Items (*) ISA´s net income contribution** *Non-recurring (before taxes): Assets derecognition from Rydberg project (Ec
Slide 16: Unprecedented Financial Results
UNPRECEDENTED FINANCIAL RESULTS O&G KPIs ISA KPIs Ecopetrol Group KPIs EBITDA by EBITDA/Bl EBITDA Margin1 EBITDA margin segment 57.2 USD/Bl 83.5% 49.0% (%) 57.2 83.5% 47.6% 49.0% 46.1% 3% 5% 8% 37.9 75.1% 12% 35.8 74.2% 10% 71.5% 35% 27% 47% 15% 22.2 34.9% 65% 62% 62% 47% 1Q19 1Q20 1Q21 1Q22 1Q19 1Q
Slide 17: Robust Cash Position
ROBUST CASH POSITION COP T Cash sensitivity** 6.3 COP T 14.1 7.8 3.8 3.4 1.2 0.3 0.1 Brent +/- 1 USD/Bl -230 230 TRM -781 781 17.5 16.4 16.5 16.5 +/- 100 COP/USD Production -500 500 FEPC’s impact +/- 5 mbd 2021 Operating Capex Debt* Dividends Paid Others - March 2022 Cash Balance Cash Flow Exchange
Slide 18: FEPC's Balance Evolution
FEPC’s BALANCE EVOLUTION Producer Revenue (PR) vs International Parity Price CONTEXT (USD/Bl) Ecopetrol Group Gasoline* Diesel 171 180.0.0 • Realization prices and competitive margins based on 142 160.0.0 160.0.0 international references 200% 123 140.0.0 200% 137 112 126 140.0.0 106 104 120.0.0 114
Slide 19: Strong Corporate Governance
STRONG CORPORATE GOVERNANCE • General Shareholders Meeting - high coverage and access structures • Shareholders with >5% stake can bring proposals to JD MINORITY • Investor Relations benchmark SHAREHOLDERS • 8th & 9th BoD lines defined by O&G Producer Departments and Minority Shareholders • 6 Commit
Slide 20: In Summary...
IN SUMMARY… Proactive Historical results driving Relentless focus on management of the strategy delivery of business plan challenges and opportunities within new environment 20
Slide 21: Slide 21