Ecopetrol SA Q4 FY2024 earnings call

Reserves and Production: Reserve replacement ratio was 104% with 260 million barrels of oil equivalent added, doubling the 2023 addition. Average production reached 746,000 barrels of oil equivalent per day, exceeding the annual goal. Exploration drilled 16 wells (43% success rate). Midstream and Downstream: Midstream exceeded annual goal with 1,119,000 barrels per day transport. Downstream faced electrical challenges but had 94.5% operational availability and 414,000 barrels per day throughput. Financial: Total revenues 133.3 trillion pesos, EBITDA 54.1 trillion pesos, net income 14.9 trillion pesos. CapEx over $6 billion. TESG: Second-best global rating in oil and gas, reduced GHG emissions by over 462,000 tons CO2 equivalent since 2020, 81% water reuse, invested in sustainable projects, joined IEA greenhouse gas research program.

Hydrocarbons: In 2024, Ecopetrol achieved a reserve replacement ratio of 104% with 260 million barrels of oil equivalent of proven reserves added, maintaining an average reserve life of 7.6 years. Average production was 746,000 barrels of oil equivalent per day. Midstream transported an average of 1,119,000 barrels per day. Downstream had an average operational availability of 94.5% and an average throughput of 414,000 barrels per day. Transition Energies: By end of 2024, accumulated 611 megawatts of non-conventional renewable energy capacity, with a potential contribution of 1.6 terawatt-hours per year. Achieved energy efficiency cumulative of 19.9 petajoules. Transmission and Road (ISA): In 2024, ISA achieved highest net profit in history, with 12% revenue increase, 8% EBITDA rise, and 43% net income growth. Invested 4.8 trillion pesos in 2024.

Production: Estimated production for 2025 is between 740,000 and 750,000 barrels of oil equivalent per day. Investment: 2025 investment plan between 24-28 trillion pesos, 60% allocated to energy security (enhancing crude oil production, refining throughput) and 40% to energy transition. EBITDA Margin: Projected EBITDA margin of 39% for 2025.

External Factors: Exchange rates, inflation, and social unrest affecting production. Electrical Reliability: Challenges in downstream refineries impacting operations. Regulatory Changes: Impact of regulatory shifts on business operations and market volatility.

Q: I'd like to understand a little bit of the impairment terms of that the refining segment because one of the reasons to do that reversal is that the difference between the prices and margins were adjusted to the upper side.

A: This is Camilo Barco... regarding the impairment exercise based on discounted cash flows for short, medium, and long terms, using price curves, local crude availability, and discount rate adjustments Q: What can we expect after the acquisition of CPO-9 in terms of development?

A: The acquisition of CPO-9 strengthens Ecopetrol's position in Llanos Orientales basin, with potential to expand development and see synergies in cost and operations, expecting to add significant barrels to production