Ecopetrol(EC)2024-04-18 21:10Corporate Structure and Strategy - Ecopetrol reported a total of 41,116,694,690 common shares outstanding as of the end of the fiscal year 2023[5]. - The company is classified as a large accelerated filer, indicating a significant market presence and compliance with reporting requirements[10]. - Ecopetrol's corporate strategy includes a focus on energy transition and generating value through TESG (Technology, Environment, Social, and Governance) initiatives[14]. - The company is committed to research and development, focusing on innovative technologies to improve operational performance and sustainability[14]. - The company has established joint ventures and contractual arrangements to optimize resource utilization and expand its market reach[14]. - The company is focused on forming strong joint ventures with international oil companies to enhance operational expertise and technology[127]. Investment Plans and Financials - The 2024 investment plan aims to enhance operational efficiency and expand production capabilities, aligning with the company's long-term growth objectives[14]. - The 2024 investment plan is budgeted between USD 5.6 billion and USD 6.6 billion, focusing on energy security and transition[63]. - The company expects to invest approximately USD 3.9 billion in hydrocarbon production and exploration in 2024, targeting organic production levels of 725,000 to 730,000 barrels of oil equivalent per day[63]. - The investment plan allocates resources to unconventional renewable energy, targeting a reduction of nearly one million tons of CO₂ equivalent emissions between 2024 and 2026[68]. - Approximately USD 1.4 billion is allocated for electric power transmission, telecommunications, and toll roads, with USD 1.2 billion supporting the energy transmission business[69]. - The 2024 Investment Plan includes approximately USD 911 million in sustainability investments, with 36% for climate change initiatives and 24% for water management[70]. - The company maintains a dividend policy of 40% to 60% of operating results, with expected annual transfers to the Nation between COP 13 trillion and COP 20 trillion[62]. Production and Operational Performance - Oil and gas production increased to 736.6 mboed in 2023, up from 709.5 mboed in 2022, representing a growth of 3.1%[34]. - Refinery throughput rose to 422,623 bpd in 2023, compared to 360,451 bpd in 2022, marking an increase of 17.3%[34]. - The average daily crude oil production in Colombia by Ecopetrol S.A. was 498.7 thousand bopd in 2023, representing a year-on-year increase of 1.2%[148]. - The average daily production of natural gas by Ecopetrol S.A. reached 129.17 thousand boepd in 2023, a decrease of 2.6% compared to 2022[155]. - The total gross production of Ecopetrol Group in Colombia was 663.3 thousand boepd, slightly up from 662.4 thousand boepd in 2022[139]. - The total number of gross development wells owned and operated by Ecopetrol in Colombia decreased to 336 in 2023 from 412 in 2022, a reduction of approximately 18.4%[167]. Reserves and Exploration - Proved oil and gas reserves decreased to 1,883 mmboe in 2023 from 2,011 mmboe in 2022, a decline of 6.4%[34]. - The 1P reserves replacement ratio was 48% in 2023, down from 104% in 2022, indicating a significant decrease in reserve replacement[34]. - The number of exploratory wells drilled was 26 in 2023, a decrease from 29 in 2022, reflecting a reduction of 10.3%[34]. - The company drilled and completed 336 development wells in 2023, primarily in the Andina Oriente region[143]. - The company is advancing the Pau Brasil-1 well in Brazil's Santos Basin, expected to be drilled in the first semester of 2024, considered a high-impact well[129]. Market Conditions and Economic Factors - The average exchange rate for 2023 was COP 4,330.14 per USD 1.00, impacting financial results[27]. - The ongoing geopolitical tensions, including the Russian invasion of Ukraine, may affect operational performance and market conditions[30]. - The Colombian economy grew at a rate of 0.6% in 2023, significantly lower than the 7.5% growth rate in 2022[42]. - In 2023, the average Brent oil price was USD 82.17/Bl, a decrease of USD 16.88/Bl compared to 2022[36]. - Global oil demand increased by 1.9 million barrels per day in 2023, surpassing the pre-pandemic growth rate of 1.2 million barrels per day[37]. - OPEC+ supply was 1.5 million barrels per day lower than in 2022, with cuts reaching 2.2 million barrels per day[39]. Environmental and Regulatory Compliance - Ecopetrol is subject to various regulations governing exploration, production, and environmental standards, which are integral to its operational framework[14]. - The long-term strategy aims for a 55% reduction in methane emissions by 2030 and net-zero carbon emissions by 2050[45]. - The company plans to invest over USD 300 million in low-emission businesses over the next three years, including green hydrogen projects[54]. - The company is focused on managing risks related to climate change and cybersecurity as part of its strategic initiatives[30].