Core Points - Ecopetrol S.A. announces the resignation of Dr. Mónica De Greiff Lindo from the board of directors, effective immediately [1][2] - Dr. Angela María Robledo Gómez, the current Vice Chair, will assume the role of Chair of the board of directors following Dr. De Greiff Lindo's resignation [3] - The company expresses gratitude to Dr. De Greiff Lindo for her contributions during her three-year tenure [4] 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 interests in strategic basins in the U.S., Brazil, and Mexico, and holds significant positions in power transmission in Brazil, Chile, Peru, and Bolivia [5]

Core Insights - Colombian state-run oil company Ecopetrol is preparing to initiate the bidding process for a regasification project at its Covenas maritime terminal [1] Company Summary - The CEO of Ecopetrol, Ricardo Roa, announced the upcoming bidding process, indicating a strategic move towards enhancing the company's infrastructure capabilities [1]

Group 1: Stock Performance - Ecopetrol's stock decreased by 1.44% to $8.88, underperforming the S&P 500 which gained 0.49% [1] - Over the last month, Ecopetrol's shares increased by 1.24%, lagging behind the Oils-Energy sector's gain of 3.95% and the S&P 500's gain of 2.99% [1] Group 2: Earnings Expectations - The upcoming earnings release is expected to show an EPS of $0.39, a decline of 9.3% compared to the same quarter last year [2] - Revenue is projected at $6.83 billion, reflecting a 19.07% decrease from the equivalent quarter last year [2] Group 3: Annual Estimates - For the annual period, earnings are anticipated to be $1.35 per share and revenue at $28.27 billion, indicating declines of 18.67% and 13.68% respectively from the previous year [3] Group 4: Analyst Estimates and Rankings - Recent modifications to analyst estimates are crucial as they reflect near-term business trends, with positive changes indicating analyst optimism [3] - The Zacks Rank system, which incorporates estimate changes, currently ranks Ecopetrol at 3 (Hold) [5] Group 5: Valuation Metrics - Ecopetrol's Forward P/E ratio is 6.66, which is lower than the industry average of 10.83 [6] - The Oil and Gas - Integrated - International industry ranks in the top 42% of all industries, with a current Zacks Industry Rank of 102 [6] Group 6: Industry Performance - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The European Commission has approved Henlius and Organon's biosimilars BILDYOS® and BILPREVDA®, both of which are denosumab products, indicating a significant advancement in the biosimilars market [1] Group 1 - The approval of BILDYOS® and BILPREVDA® represents a strategic move for Henlius and Organon in expanding their product offerings in the biosimilars sector [1] - This approval is expected to enhance competition in the market for denosumab, which is used for conditions such as osteoporosis and certain cancers [1] - The introduction of these biosimilars may lead to cost savings for healthcare systems and patients, promoting greater access to treatment options [1]

Core Insights - Colombia's state-run energy company Ecopetrol is projected to exceed its 2025 target of drilling 10 oil wells by 20% to 40% according to the company's vice-president for hydrocarbons Rafael Guzman [1] Company Summary - Ecopetrol is on track to drill between 12 to 14 oil wells by 2025, surpassing its initial goal [1]

Core Insights - Ecopetrol S.A. has made significant advancements in its operational and financial performance, reflecting a robust growth trajectory in the energy sector [1] Group 1: Company Performance - The company reported a substantial increase in revenue, driven by higher oil prices and increased production levels [1] - Ecopetrol's net income showed a remarkable year-over-year growth, indicating effective cost management and operational efficiency [1] - The company has successfully reduced its debt levels, enhancing its financial stability and capacity for future investments [1] Group 2: Industry Context - The energy sector is experiencing volatility due to fluctuating oil prices, which presents both opportunities and challenges for companies like Ecopetrol [1] - There is a growing emphasis on sustainable practices within the industry, prompting Ecopetrol to invest in renewable energy initiatives [1] - Regulatory changes in the energy market are influencing operational strategies, with companies adapting to new compliance requirements [1]

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]

Financial Performance - The company reported revenues of COP 61.0 trillion for the first half of 2025, with an EBITDA of COP 24.4 trillion and a net income of COP 4.9 trillion, reflecting a 40% EBITDA margin [3][12] - In 2Q25, revenues totaled COP 29.7 trillion, with an EBITDA of COP 11.1 trillion and a net income of COP 1.8 trillion, indicating a decrease in revenues by 9.1% compared to 2Q24 [3][15] - The company achieved a dividend payment of COP 8.8 trillion, resulting in a dividend yield of approximately 10% [4] Operational Highlights - Hydrocarbon production reached 751 mboed in the first half of 2025, driven by strong performance in Colombian fields and the Permian Basin in the U.S. [5] - Transported volumes amounted to 1,088 mbd, supported by repair and alternative evacuation strategies [5] - The company declared commercial feasibility for the Lorito discovery, the largest in the last decade, enhancing energy security [6] Market and Strategic Initiatives - The company emphasized market and portfolio diversification, integration across the hydrocarbons value chain, and cost-cutting measures to maintain competitive profitability levels [2] - The acquisition of the Windpeshi wind project, with 205 MW of self-generation capacity, marks a significant step in the company's energy transition strategy [8] - The company reported a strong contribution from subsidiaries in Houston and Singapore, achieving the best crude trading differential in four years at -USD 3.7/Bl [7] Investment and Future Outlook - Total investments reached USD 2,582 million as of the end of 2Q25, with a focus on hydrocarbons, energy transition, and transmission and toll roads [10][49] - The company continues to monitor market prices and global developments to navigate external challenges and protect shareholder value [11] - The effective tax rate for 2Q25 was 34.3%, a decrease from 42.3% in 2Q24, primarily due to lower income tax surcharges [32]