Financial Data and Key Metrics Changes - The company achieved a semester production of 751,000 barrels of oil equivalent per day, the highest level in a decade, despite a challenging environment marked by high volatility and declining crude prices [3][4] - Revenue and profits were impacted by a 22% decline in RIM compared to 2024, although the company achieved the best quarterly crude differential in four years [6][7] - The company committed $2.5 billion in investments so far this year, maintaining its production target for 2025 [7][8] Business Line Data and Key Metrics Changes - In the upstream segment, domestic crude oil production reached 517,000 barrels per day, the highest since 2021, driven by fields like Canisur and the acquisition of 45% interest in Block CPO-nine [17][19] - The midstream segment saw transported volumes decrease by 6% compared to 2024, but EBITDA increased by 9% in the first half of the year [20][21] - The downstream segment reported a 52% increase in EBITDA compared to the same period in 2024, with throughput reaching 413,000 barrels per day [23][24] Market Data and Key Metrics Changes - The company secured long-term contracts for natural gas in Colombia, ensuring national supply through five-year agreements [5][32] - The company achieved a 5.6% self-generation of electricity from renewable sources, significantly up from 0.6% five years ago [34][35] Company Strategy and Development Direction - The company is focused on maximizing high-value products, portfolio diversification, operational efficiency, and sustainability [26][28] - The company continues to advance its TESG agenda, expecting to exceed the goal of 900 megawatts in renewable energy generation by 2025 [8][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by geopolitical tensions and third-party disruptions but emphasized the company's resilience and operational adaptability [3][6] - The company remains committed to protecting its cash position and maintaining capital discipline while monitoring market conditions [61][62] Other Important Information - The company completed the full payment of dividends to shareholders, delivering a 10% return [7] - Significant investments were made in renewable energy projects, including the acquisition of Winfecce, the company's first wind project [5][8] Q&A Session All Questions and Answers Question: Can you explain how you reached the peak of production and your expectations for the rest of the year? - The peak production was achieved through anticipation of activity and better performance of drills, with expectations of an average production of 90 to 190 barrels per day for the rest of the year [65][66] Question: Could you expand on the topic of disinvestment of assets? - The company constantly evaluates its portfolio and is looking at processes underway for potential disinvestments, particularly in Colombia [69][70] Question: What is the expected cash and breakeven EBITDA for the upstream business? - The company indicated that 99% of its fields have breakevens below $50 per barrel, allowing for strategic investment decisions [72][74]

Financial Data and Key Metrics Changes - The company achieved a semester production of 751,000 barrels of oil equivalent per day, the highest level in a decade, despite a challenging environment marked by high volatility and declining crude prices [4][17] - Revenue and profits were impacted by a 22% decline in RIM compared to 2024 [7] - The company declared efficiencies totaling COP 2.2 billion, exceeding the semester's target by 27% [8] - The total projected investment for the upstream segment is $4 billion, with $3.6 billion allocated for production and $400 million for exploration [19] Business Line Data and Key Metrics Changes - In the upstream segment, domestic crude oil production reached 517,000 barrels per day, the highest since 2021, driven by fields like Canisur and the acquisition of CPO-nine [17] - The midstream segment saw a 9% increase in EBITDA compared to the first half of 2024, despite a 6% decrease in transported volumes [20] - The downstream segment reported a 52% increase in EBITDA compared to the same period in 2024, with throughput reaching 413,000 barrels per day [22][23] Market Data and Key Metrics Changes - The company achieved the best quarterly crude differential in the past four years, thanks to a diversified basket and active marketing strategy [7] - The integrated gross refining margin reached $12.5 per barrel, a 37% increase compared to 2024 [25] Company Strategy and Development Direction - The company aims to maintain competitiveness through an integrated strategy based on maximizing high-value products, portfolio diversification, operational efficiency, and sustainability [26] - The company continues to advance its TESG agenda, expecting to exceed the goal of 900 megawatts in renewable energy generation by 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by geopolitical tensions and third-party disruptions but emphasized the company's resilience and operational adaptability [4][8] - The company remains committed to generating value and competitive returns, having completed full dividend payments to shareholders [8] Other Important Information - The company signed an agreement to acquire its first wind project, marking a key step towards carbonization and reducing energy costs [6] - The company reported a reduction of 242,000 tons of CO2 equivalent emissions, contributing to its decarbonization efforts [9] Q&A Session Summary Question: Production peak and expectations for the rest of the year - The company reached a peak production of 165,000 barrels per day due to improved drilling performance and anticipates an average production of 90,000 to 190,000 barrels per day for the rest of the year [63][64] Question: Disinvestment of assets - The company evaluates its asset portfolio regularly and is considering disinvestment in non-core assets to increase investments in hydrocarbon sectors [68][69] Question: Breakeven EBITDA for upstream business - The company stated that 99% of its fields have breakevens below $50 per barrel, allowing for strategic investment decisions without harming production and reserves [72]

Financial Performance - Ecopetrol Group's EBITDA reached 244 trillion COP in 1H-2025, with an EBITDA margin of 40%[87] - Net income was affected by external factors, including price, inflation, and FX rate[16] - The company achieved 80% progress in additional cost and expense reduction measures, targeting 1 trillion COP[87] - CapEx for 1H-2025 was 2582 million USD, with investments in Colombia accounting for 62%, Brazil 17%, USA 15%, and others 6%[17, 100] - The company paid dividends equivalent to a 10% return[17] Operational Highlights - Production for 2Q-2025 reached 755 mboed[13, 31] - The company achieved its highest first-half production since 2015[28] - Transported volume decreased by 4% to 1088 mbd in 1H-2025[33] - Refinery throughput decreased by 3% to 413 mbd in 2Q-2025[43] - Operational availability in refining reached 958%[42] Energies for the Transition - The company is expected to exceed its 2025 target for the renewable energy portfolio, projecting over 900 MW[20, 106] - Accumulated GHG emissions reduction exceeded the semiannual target by 132%, totaling 183 thousand tCO2e[20] - The company commercialized long-term imported natural gas (60 GBTUD block for 5 years) for the first time in Colombia[12] Exploration and Production - Commerciality was declared for the Lorito discovery, estimated to have 250 million barrels of oil equivalent (MMBOE) in recoverable resources[12, 26] - Investments of 156 million USD were executed in exploration during 1H-2025[23] - Lifting cost was 1159 USD/Bl in 1H-2025, a 4% decrease[54]

During the first half of 2025, we maintained a solid operating performance, demonstrating our ability to generate sustainable value and respond in advance and effectively to challenging market conditions such as the decline in Brent benchmark crude prices, external environment events, and geopolitical tensions. Our financial results were underpinned by market and portfolio diversification, integration across the hydrocarbons value chain, cost cutting maximization, and operational optimization, enabling us t ...

Core Viewpoint - Ecopetrol has been trending in stock searches, with recent performance showing a decline of -10.2% over the past month, contrasting with the S&P 500's increase of +5.4% [2] Earnings Estimates - For the current quarter, Ecopetrol is projected to report earnings of $0.52 per share, reflecting a year-over-year increase of +23.8% [5] - The consensus earnings estimate for the current fiscal year is $1.62, indicating a decrease of -2.4% from the previous year [5] - For the next fiscal year, the earnings estimate is $1.6, showing a decline of -1.2% compared to the prior year [6] - The Zacks Rank for Ecopetrol is 4 (Sell), suggesting potential underperformance in the near term [7] Revenue Growth - The consensus sales estimate for the current quarter is $7.26 billion, representing a year-over-year decline of -12.7% [11] - Estimated revenues for the current fiscal year are $29.2 billion, indicating a decrease of -10.8%, while the next fiscal year's estimate is $28.59 billion, reflecting a -2.1% change [11] Last Reported Results - In the last reported quarter, Ecopetrol generated revenues of $7.5 billion, a year-over-year decrease of -6.1% [12] - The EPS for the same period was $0.36, down from $0.5 a year ago, with reported revenues falling short of the Zacks Consensus Estimate of $8.19 billion by -8.48% [12] Valuation - Ecopetrol is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]

Core Insights - Ecopetrol S.A. has acquired the Windpeshi wind power project from Enel S.p.A. for $50 million, located in La Guajira, Colombia [1][8] - The project has a total installed capacity of approximately 205 megawatts (MW) and is expected to generate around 1,006 gigawatt hours (GWh) of power annually, which will cover about 8-9% of Ecopetrol Group's energy needs [2][8] Project Overview - The Windpeshi project will consist of 41 turbines, each with a capacity of 5 MW [2] - The total development cost of the project is estimated at $350 million, part of Ecopetrol's broader investment plan [3] - Development is expected to commence before the end of 2025, with commercial operations projected to start by 2028 [3] Colombia's Clean Energy Targets - The Colombian government, under President Gustavo Petro, aims to transition from fossil fuels to a cleaner energy mix, including renewable sources like solar and wind [4] - The country faces challenges in advancing renewable energy projects, including resistance from indigenous communities and regulatory hurdles [4]

Core Viewpoint - Ecopetrol has successfully acquired 100% of Wind Autogeneración S.A.S. from Enel S.A.S., marking a significant step in its energy transition strategy and commitment to renewable energy projects in Colombia [1][6]. Group 1: Acquisition Details - The acquisition was approved by Ecopetrol's Board of Directors in December 2024 and has now been completed following the fulfillment of regulatory and anti-trust conditions [1]. - The integration of Wind Autogeneración S.A.S. into Ecopetrol's corporate structure has commenced [7]. Group 2: Windpeshi Project Overview - The Windpeshi project, located in La Guajira, will have an installed capacity of 205 MW and is expected to contribute an average of 1,006 GWh/year, which is approximately 8-9% of Ecopetrol Group's energy demand [2]. - The project aims to optimize energy costs and is projected to result in a decarbonization benefit of about 4.8 million tons of CO2 emissions, with estimated investments of nearly $350 million from 2025 to 2027 [3]. Group 3: Project Development Timeline - Ecopetrol plans to restart construction of the Windpeshi project by the end of 2025, with operations expected to begin before 2028 [4]. - The company intends to engage top-tier contractors for the development and construction phases [4]. Group 4: Community Engagement - Ecopetrol emphasizes the importance of engaging with the Wayuu indigenous communities affected by the project, coordinating efforts with national, regional, and local authorities [5]. Group 5: Strategic Positioning - The Windpeshi Project represents the beginning of Ecopetrol's non-conventional renewable energy initiatives in La Guajira, a region recognized for its potential in solar and wind energy development [6]. - Ecopetrol is the largest company in Colombia, responsible for over 60% of the country's hydrocarbon production and holds significant positions in various energy sectors across the Americas [8].

Core Viewpoint - Ecopetrol S.A. is facing a proposed tax adjustment and penalty from the Colombian Tax and Customs Authority (DIAN) amounting to COP 1.2 trillion, plus estimated interest of COP 0.5 trillion, related to VAT on diesel fuel imports from 2022 to 2024 [1][2]. Group 1: Tax and Customs Issues - On June 3, 2025, DIAN notified Ecopetrol of Special Customs Requirement No. 525, indicating its intention to issue an official adjustment assessment related to VAT on diesel fuel imports [1]. - Ecopetrol formally opposed the proposed tax adjustment and penalty in its response submitted on July 1, 2025, highlighting differing legal interpretations between DIAN and the Company [2]. - Since January 2025, Ecopetrol has been making VAT payments on diesel and gasoline imports at a 19% rate, which does not affect its right to challenge DIAN's interpretation [3]. Group 2: Company Overview - Ecopetrol is the largest company in Colombia and a major integrated energy company in the Americas, employing over 19,000 people [5]. - The Company is responsible for more than 60% of Colombia's hydrocarbon production and holds leading positions in petrochemicals and gas distribution [5]. - Ecopetrol has expanded its operations internationally, with drilling and exploration activities in the United States, Brazil, and Mexico, and holds significant positions in power transmission in Brazil, Chile, Peru, and Bolivia [5].

Core Viewpoint - Ecopetrol S.A. has received authorization from the Financial Superintendency of Colombia to amend its bond issuance program, aligning it with the company's decarbonization and energy transition strategy while expanding capital market alternatives [1][2]. Group 1: Bond Issuance Program - The amendment formalized through Addendum No. 5 will be incorporated into the prospectus of Ecopetrol's local public bonds and commercial paper [2]. - Since the initial bond issuance in August 2013, totaling COP 900 billion, no additional issuances have occurred, allowing for potential future issuances up to COP 2.1 trillion [3]. - The company will inform the market of any future issuances under the program [3]. Group 2: Company Overview - Ecopetrol is the largest company in Colombia and a major integrated energy company in the Americas, employing over 19,000 people [4]. - The company is responsible for over 60% of Colombia's hydrocarbon production and holds leading positions in petrochemicals and gas distribution [4]. - Ecopetrol has expanded its operations internationally, with interests in strategic basins in the U.S., Brazil, and Mexico, and holds significant positions in power transmission in Brazil, Chile, Peru, and Bolivia [4]. Group 3: New Bond Features - The updated program will allow for the issuance of local public bonds linked to sustainable performance, including green, social, sustainable, and blue bonds [6]. - It will also enable bonds that allow in-kind payments by investors and the reopening of previous bond issuances [6]. - Additional features include bonds indexed to the UVR (Real Value Unit) and TRM (Representative Market Exchange Rate), as well as securities allocation through a book-building process [6].

Core Viewpoint - Ecopetrol S.A. has received an affirmation of its global credit rating at Ba1 with a stable outlook from Moody's, reflecting its strong position in the oil and gas sector in Colombia and Latin America [1][2]. Group 1: Credit Rating and Financial Strength - Moody's Ba1 global rating indicates Ecopetrol's leading role as Colombia's primary oil and gas producer and its significant power transmission operations [2]. - The global rating is three notches above the standalone rating due to government support through the phase-out of fuel subsidies and improved liquidity from reduced accounts receivable related to the Fuel Price Stabilization Fund (FEPC) [3]. - The standalone rating highlights the stability of Ecopetrol's cash flow, bolstered by its power transmission subsidiary (ISA) and midstream affiliates, which contributed 18% to EBITDA in 2024 [4]. Group 2: Company Overview and Operations - Ecopetrol is the largest company in Colombia, responsible for over 60% of the country's hydrocarbon production and holding key positions in petrochemicals and gas distribution [4]. - The company has a 51.4% stake in ISA, engaging in energy transmission and managing real-time systems, along with road concessions [4]. - Internationally, Ecopetrol operates in strategic basins across the Americas, including the Permian basin and the Gulf of Mexico, and holds significant positions in power transmission in Brazil, Chile, Peru, and Bolivia [4].