Ecopetrol Unveils $2 Billion Debt Plan to Fund Inorganic Investments

Core Insights - Ecopetrol S.A. plans to take on $2 billion of additional debt in 2024 to finance inorganic investments, with $1 billion allocated for structural debt and another $1 billion as a temporary measure [1][2] - The company is focusing on acquiring new assets and starting new ventures, with a specific interest in the Windpeshi wind project in La Guajira, Colombia, developed by Enel SpA [2][3] - Ecopetrol has outlined an investment plan of $5.9 billion to $6.8 billion for 2025, primarily funded by its cash reserves of $4.4 billion at the end of 2024 [4] Financial Performance - The company's net profit dropped by 22% in 2024, attributed to lower international oil prices and a stronger U.S. dollar [5] - Average production in 2024 was reported at 745,800 barrels of oil equivalent per day (boepd), with projections for 2025 ranging from 740,000 to 750,000 boepd, including contributions from a recent acquisition of a 45% stake in the CPO-09 field [4][5] Market Position - Ecopetrol currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook compared to other energy sector stocks [6] - Other better-ranked stocks in the energy sector include Archrock Inc. (Rank 1), Matador Resources Corporation (Rank 2), and Cheniere Energy (Rank 2), highlighting competitive investment opportunities [6]