Ecopetrol S.A. Q4 FY2025 earnings call

Over the last nine months, Ecopetrol focused on core operations, financial discipline, and energy transition. Operations showed robust performance with 751,000 bbl/day average production, exploration exceeded expectations with 10 wells drilled. Transportation achieved 1,098,000 bbl/day average throughput. Refining rebounded to 413,000 bbl/day after maintenance. Sustainability efforts saw greenhouse gas emissions reduced, renewable energy capacity increased. Hydrocarbons line had key exploration and production milestones, midstream reaffirmed operational recovery, refining performance strengthened with maintenance completion and margin growth.

Hydrocarbons: Average production 751,000 barrels per day over nine months, accumulated EBITDA $691 million with 78% margin. Midstream: Average throughput 1,118,000 barrels per day in Q3 2025, reaffirmed operational recovery. Refining: Consolidated throughput ~429 thousand barrels per day, integrated gross refining margin grew 22% vs 2024. Energy transition: Renewable self-generation capacity 234 MW, gas supply initiatives and hydrogen project progress.

Anticipate a more challenging price environment in 2026. Focus on strengthening resilience and competitiveness, keep lifting cost below $12 per barrel, maintain capital discipline and healthy debt metrics, prioritize cash preservation, and incorporate efficiency initiatives.

Potential disinvestment of Permian asset, risk of management member on ALFAC list affecting financing and operations, tax embargo controversy and its impact on bond defaults and obligations.

Q: Regarding Permian asset sale and management member on ALFAC list.

A: Ecopetrol and shareholders not interested in Permian disinvestment; corporate governance system monitors risks.

Q: Exchange rate impact and Sirius project assistance.

A: Exchange rate has positive effect on net profit, Ecopetrol assists Sirius project with government collaboration.

Q: DIAN embargo effect on bonds.

A: DIAN stated no embargo, Ecopetrol has measures to protect rights and meet financial obligations.

Q: Production perspective and refining margins.

A: Production expected to be in range, refining margins improved through operating availability and cost reduction.

Q: Capital allocation and upstream profitability.

A: Capital allocated to high-profit assets, upstream profitability driven by efficiency, infrastructure utilization, and portfolio optimization.

Q: Dividends and lifting costs.

A: Dividend distribution within policy range, committed to reduce lifting costs through efficiency plan.

Q: New loan facility and Tibu operation suspension.

A: Committed line details and efforts to reestablish Tibu gas operation.