FINANCIAL RESULTS 1st Quarter Legal Disclaimer Financial Results 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 development of Ecopetrol's business. Said projections and statements include references to estimates or expectations of the Company regarding its futu ...

Financial Data and Key Metrics Changes - The first quarter of 2025 saw stable financial performance despite lower Brent prices, with net income at COP 3.1 trillion and EBITDA at COP 13.3 trillion, resulting in an EBITDA margin of 42% [38] - The refining margin decreased by $3.9 per barrel compared to the same period last year, attributed to various factors including product differentials and scheduled maintenance [22][23] - The company executed investments of $1.2 billion, exceeding the average for the first quarter over the past five years [39] Business Line Data and Key Metrics Changes - In the hydrocarbons line, average production reached 745,000 barrels of oil equivalent per day, marking the highest crude oil production in Colombia in the last five years [17] - The midstream segment experienced a 2% decrease in transported volumes compared to the first quarter of 2024, primarily due to scheduled maintenance [19] - The refining throughput for the first quarter was 396,000 barrels per day, representing a nearly 7% reduction compared to the same period in 2024 [21] Market Data and Key Metrics Changes - Ecopetrol supplied approximately 68% of Colombia's natural gas demand during the first quarter, reaffirming its critical role in national energy security [7][32] - The company reported a significant contribution from the energy efficiency program, generating savings of nearly COP 23 billion and avoiding over 90,000 tons of CO2 equivalent emissions [8][32] Company Strategy and Development Direction - The company is focused on diversifying its customer base and enhancing commercial management to navigate global uncertainties and price volatility [4] - Ecopetrol is committed to increasing its renewable energy capacity, aiming for over 1,000 megawatts of cell generation capacity this year [8] - The company is advancing projects in natural gas and renewable energy, including a regasification project expected to begin operations in Q2 2026 [6][28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of maintaining operational and capital discipline in response to geopolitical tensions and OPEC supply increases [4] - The company anticipates challenges due to potential declines in Brent prices but has implemented measures to enhance resilience and financial flexibility [45][48] - Management expressed confidence in the company's ability to generate sustainable value despite market volatility [49] Other Important Information - The company has made significant progress in its efficiency program, achieving COP 700 billion in savings across various segments [26] - Ecopetrol's cash balance closed at COP 17 trillion, generating a positive free cash flow of COP 1.4 trillion [40] - The company is actively managing its debt levels, with a gross debt to EBITDA ratio remaining steady at 2.2 times [40] Q&A Session Summary Question: Impact of falling oil prices on EBITDA and revenue - Management confirmed that each dollar change in Brent impacts EBITDA by COP 740 million and net profit by COP 370 million, with a breakeven for production at $55 per barrel [51][56] Question: VAT implications and future payments - Management explained that the new VAT ruling requires ongoing payments, with expectations to recover 93% of the amount through tax returns [66][68] Question: Sensitivity of production to CapEx reduction - Management indicated that 99% of production has a breakeven of $55 per barrel, and priority will be given to investments that create new production [74][75]

Financial Data and Key Metrics Changes - The first quarter of 2025 saw stable financial performance despite lower Brent prices, with net income at COP 3.1 trillion and EBITDA at COP 13.3 trillion, resulting in an EBITDA margin of 42% [37] - The refining margin decreased by $3.9 per barrel compared to the same period last year, attributed to various factors including product differentials and scheduled maintenance [22][21] - The company executed $672 million in investments during the first quarter, achieving 17% progress on its investment plan [18][9] Business Line Data and Key Metrics Changes - In hydrocarbons, average production reached 745,000 barrels of oil equivalent per day, marking the highest crude oil production in Colombia in the last five years [17] - The midstream segment experienced a 2% decrease in transported volumes compared to Q1 2024, primarily due to scheduled maintenance at the Barrancabermeja refinery [19] - The refining throughput for Q1 2025 was 396,000 barrels per day, a nearly 7% reduction from the same period in 2024 [21] Market Data and Key Metrics Changes - Ecopetrol supplied approximately 68% of Colombia's natural gas demand during Q1 2025, reaffirming its critical role in national energy security [32] - The company reported a significant contribution from the energy efficiency program, generating savings of nearly COP 23 billion and avoiding over 90,000 tons of CO2 equivalent emissions [32][8] Company Strategy and Development Direction - The company is focused on diversifying its hydrocarbon portfolio and increasing reserves, with significant investments in exploration and production, particularly in the Permian and offshore Brazil [16][13] - Ecopetrol is committed to renewable energy, aiming to achieve over 1,000 megawatts of solar generation capacity this year [7] - Strategic projects are underway to enhance refining capacity and improve product quality, contributing to the energy transition and reducing fuel imports [25][24] Management's Comments on Operating Environment and Future Outlook - Management highlighted the high global uncertainty and volatility in Brent prices due to geopolitical tensions and OPEC+ supply increases, but expressed confidence in the company's strategies to navigate these challenges [4] - The company anticipates that Brent prices may fall below financial projections for 2025, prompting proactive measures to enhance operational and financial resilience [45][49] - Management emphasized the importance of maintaining capital discipline and operational continuity amid market fluctuations [48] Other Important Information - The company has made significant progress in its efficiency program, achieving cost reductions and optimizing operations across all segments [26] - Ecopetrol's cash balance closed at COP 17 trillion, generating a positive free cash flow of COP 1.4 trillion [40] - The company is actively managing its debt levels and has secured a loan facility to meet operational cash requirements [41] Q&A Session Summary Question: Impact of falling oil prices on EBITDA and revenue - Management confirmed that each dollar change in Brent impacts EBITDA by COP 740 million and net profit by COP 370 million, with a breakeven for production at below $55 per barrel [56][60] Question: VAT implications and future payments - Management clarified that the new VAT ruling will require ongoing payments, with expectations to recover approximately 93% of the VAT through tax returns [68][69] Question: Sensitivity of production to CapEx reduction - Management indicated that while there is flexibility in CapEx, priority will be given to investments that protect production and reserves, with no current plans to cut back on production [76][75]

Group 1 - Ecopetrol S.A. has been authorized by the Ministry of Finance and Public Credit to execute a loan agreement of up to USD 500 million with Banco Santander, with a term of five years and an interest rate indexed to the SOFR rate [1][2] - The funds from the loan will be allocated to non-investment expenses and will assist in achieving the Gross Debt/EBITDA target for 2025 [2] - The loan agreement reflects the international financial sector's support and confidence in Ecopetrol Group's strategy, despite a challenging market context [3] Group 2 - Ecopetrol is the largest company in Colombia and a major integrated energy company in the Americas, responsible for over 60% of the country's hydrocarbon production [4] - The company has a significant presence in energy transmission and holds leading positions in petrochemicals and gas distribution, with operations in the United States, Brazil, Mexico, and other countries [4]

Core Viewpoint - Ecopetrol S.A. is initiating a joint plan to ensure the continuity of gas projects in the Southern Caribbean following Shell's withdrawal from its offshore assets in the region [1][2]. Group 1: Project Continuity and Development - Shell's withdrawal is linked to its global portfolio strategy, impacting gas discoveries in the Col 5, Purple Angel, and Fuerte Sur blocks, which are considered priority projects for Ecopetrol and Colombia [2][3]. - The Gorgon development project is expected to be completed by the first half of 2029, with production anticipated to start between 2031 and 2032 [3]. - Ecopetrol is exploring connection options with the National Transportation System to commercialize gas from the Gorgon project and meet national demand [3]. Group 2: Strategic Partnerships and Investments - Ecopetrol continues to partner with Shell and Total Energies in the development of the Gato Do Mato field in Brazil, with significant resources allocated for 2025 [4]. - The company is committed to developing gas resources in the Caribbean Sea, viewing gas as a key component of the energy transition [4]. Group 3: Company Overview - Ecopetrol is the largest company in Colombia, responsible for over 60% of the country's hydrocarbon production and holding leading positions in petrochemicals and gas distribution [5]. - The company has a significant international presence, with operations in the United States, Brazil, and Mexico, and holds leading positions in power transmission in several South American countries [5].

Core Insights - Ecopetrol S.A. is the largest company in Colombia and a major integrated energy player in the Americas, employing over 19,000 people and responsible for more than 60% of the country's hydrocarbon production [1] - The company has recently acquired 51.4% of ISA's shares, expanding its involvement in energy transmission and real-time systems management, as well as road concessions [1] - Ecopetrol has significant international operations, including drilling and exploration in the U.S. (Permian basin and Gulf of Mexico), Brazil, and Mexico, and holds leading positions in power transmission in Brazil, Chile, Peru, and Bolivia [1] Management Appointments - Julián Fernando Lemos has been appointed as Corporate Vice President of Strategy and New Business, effective May 1, 2025, bringing 19 years of experience in leadership and investment management [3] - Diana Marcela Jiménez will serve as Director of Institutional Relations and Communications, effective May 1, 2025, with 20 years of experience in stakeholder engagement and corporate communication [3] - Julio César Herrera has been appointed as Vice President of Commercial and Marketing, effective May 1, 2025, with over 15 years of experience in the energy sector [3]

Core Viewpoint - Ecopetrol S.A. has filed its annual report under Form 20-F for the fiscal year ended December 31, 2024, with the U.S. Securities and Exchange Commission, fulfilling its reporting obligations to various stakeholders [1][2]. Group 1: Financial Reporting - The annual report includes financial statements audited by Ernst & Young Audit S.A.S. for the years 2022, 2023, and 2024, in accordance with International Financial Reporting Standards (IFRS) [2]. - The 2024 Form 20-F is accessible online through the SEC's website [2]. Group 2: Company Overview - Ecopetrol is the largest company in Colombia and a major integrated energy company in the Americas, employing over 19,000 individuals [2]. - The company is responsible for more than 60% of Colombia's hydrocarbon production and holds leading positions in petrochemicals and gas distribution [2]. - Ecopetrol has acquired 51.4% of ISA's shares, expanding its involvement in energy transmission and infrastructure projects [2]. - Internationally, Ecopetrol has operations in strategic basins in the U.S. (Permian basin and Gulf of Mexico), Brazil, and Mexico, and holds significant positions in power transmission in Brazil, Chile, Peru, and Bolivia [2].

Core Points - Ecopetrol S.A. has confirmed the continuation of Guillermo García Realpe and Mónica de Greiff Lindo as Chairperson and Vice-Chairperson of the Board of Directors respectively [1] - The Board of Directors has approved the formation of several support committees, including Audit and Risk Committee, Business Committee, Corporate Governance and Sustainability Committee, Remuneration, Appointments, and Culture Committee, HSE Committee, and Technology and Innovation Committee [2] Company Overview - Ecopetrol is the largest company in Colombia and a major integrated energy company in the Americas, employing over 19,000 people [2] - The company is responsible for more than 60% of hydrocarbon production in Colombia and has significant roles in transportation, logistics, and hydrocarbon refining systems [2] - Ecopetrol holds a 51.4% stake in ISA, which allows it to participate in energy transmission and manage real-time systems [4] - The company has international operations in strategic basins across the Americas, including drilling and exploration in the United States (Permian basin and Gulf of Mexico), Brazil, and Mexico [4] - Through ISA and its subsidiaries, Ecopetrol has leading positions in power transmission in Brazil, Chile, Peru, and Bolivia, as well as road concessions in Chile and involvement in the telecommunications sector [4]

Financial Performance - Ecopetrol reported a net income attributable to owners of Ecopetrol, reflecting overall financial performance improvements[34]. - The financial plan for 2025 anticipates transfers to the Nation of approximately COP 35 trillion (USD 8.4 billion) through dividends, royalties, and taxes[77]. Production and Reserves - Oil and gas production increased to 745.8 mboed in 2024, up from 736.6 mboed in 2023, representing a growth of 1.6%[34]. - Proved oil and gas reserves stood at 1,893 mmboe in 2024, slightly up from 1,883 mmboe in 2023, indicating a stable reserve base[34]. - The 1P reserves replacement ratio improved to 104% in 2024, significantly higher than the 48% recorded in 2023[34]. - The company confirmed its position as the largest operator and producer of crude oil and natural gas in Colombia as of December 31, 2024[110]. - Ecopetrol S.A. accounted for approximately 63.6% of crude oil production and 59.9% of natural gas production in Colombia in 2024[146]. Exploration Activities - The company is actively involved in exploration activities both within Colombia and internationally, aiming to increase its reserves and production output[18]. - The number of exploratory wells drilled decreased to 16 in 2024 from 26 in 2023, indicating a reduction in exploration activity[34]. - Ecopetrol's exploration strategy focuses on high reward projects in Colombian onshore and offshore basins, as well as international areas like the Gulf of Mexico[112]. - In 2024, Ecopetrol drilled 15 exploration and appraisal wells in Colombia, with 6 successful wells and 6 dry wells[117]. Investment Plans - The 2025 investment plan aims to enhance operational efficiency and expand production capabilities[18]. - The 2025 Investment Plan has a budget between COP 24 trillion (USD 5.9 billion) and COP 28 trillion (USD 6.9 billion), focusing on energy security and transition[71]. - Approximately COP 17.2 trillion (USD 4.0 billion) is allocated for upstream investments, targeting crude oil production of 740,000 to 750,000 barrels of oil equivalent per day in 2025[71]. - The company plans to invest between COP 20 trillion and COP 30 trillion annually by 2040, focusing on enhanced recovery technologies and Caribbean offshore gas developments[55]. Environmental and Sustainability Initiatives - Ecopetrol's strategy includes a 2040 vision focused on energy transition and generating value through TESG (Technology, Environment, Social, and Governance) initiatives[18]. - The long-term strategy aims for a 55% reduction in methane emissions by 2030 and net-zero carbon emissions by 2050[49]. - Ongoing investments in technology and innovation are aimed at improving operational efficiency and reducing carbon emissions[30]. - The company intends to invest over USD 183 million in low-emission businesses over the next three years, including green hydrogen projects and carbon capture initiatives[58]. Market and Economic Context - The average Brent Crude oil price for 2024 was USD 79.84 per barrel, a decrease of USD 2.33 per barrel compared to 2023, while the forecasted price was USD 75 per barrel[37]. - Global oil consumption grew by 1 million barrels per day in 2024, below the pre-pandemic trend rate of 1.2 million barrels per day[38]. - The Colombian economy grew at a rate of 1.7% in 2024, up from 0.6% in 2023, driven by a 1.6% increase in private consumption and a decrease in the unemployment rate to 9.1%[46]. Operational Efficiency and Technology Development - The company is actively managing risks related to climate change and cybersecurity as part of its integrated risk management system[30]. - The company is actively pursuing new strategies for market expansion and technology development to enhance production capabilities[189]. - Future outlook includes potential increases in production capacity through new drilling initiatives and joint ventures[193]. - The company aims to optimize its resource management and operational strategies to improve overall performance in the upcoming fiscal periods[199].

Group 1 - Ecopetrol S.A. has published its year-end report for 2024, focusing on social and environmental practices, including climate issues, in compliance with Colombian financial regulations [1][2] - The company has confirmed that its financial statements and public reports are accurate, reflecting the true financial situation and operations of Ecopetrol S.A. [2] - 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 [2] Group 2 - The company has acquired 51.4% of ISA's shares, expanding its involvement in energy transmission and other infrastructure projects [2] - Ecopetrol operates in strategic basins in the U.S., Brazil, and Mexico, and has a strong presence in power transmission and telecommunications in several South American countries [2]