Ecopetrol(EC)2025-04-23 21:06Financial 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].