Ecopetrol comments on information published in the media

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) announced on March 24, 2023, that it is not pursuing an acquisition of Monómeros Colombo Venezolanos S.A. despite recent media speculation. This clarification aligns with its 2040 strategy and business plan. As the largest company in Colombia, Ecopetrol plays a crucial role in the energy sector, accounting for over 60% of the country’s hydrocarbon production. The press release also contained forward-looking statements about the company's growth prospects and investment plans, highlighting potential risks related to market conditions, oil prices, and the performance of the Colombian economy.

Positive

• Ecopetrol remains committed to its 2040 strategy, providing clarity on its business direction.
• As the largest energy company in Colombia, it maintains a strong market presence.

Negative

• Market speculation regarding acquisitions may lead to volatility.
• Forward-looking statements indicate reliance on uncertain market conditions.

News Market Reaction – EC

+3.95%

1 alert

+3.95% News Effect

On the day this news was published, EC gained 3.95%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BOGOTA, Colombia, March 24, 2023 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that, with regards to statements in the public media about a possible acquisition by Ecopetrol S.A. of the company Monómeros Colombo Venezolanos S.A., Ecopetrol warns the public that, within the framework of its 2040 strategy and business plan announced to the market, it is not advancing in discussions regarding possible transactions involving this company.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 18,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This press release contains business prospect statements, operating and financial result estimates, and statements related to Ecopetrol's growth prospects. These are all projections and, as such, they are based solely on the expectations of the managers regarding the future of the company and their continued access to capital to finance the company's business plan. The realization of said estimates in the future depends on the behavior of market conditions, regulations, competition, and the performance of the Colombian economy and the industry, among other factors, and are consequently subject to change without prior notice.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, reserves, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.

For more information, please contact:

Head of Capital Markets (a)
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co

Head of Corporate Communications (a)
Juan Guillermo Londoño
Correo electrónico: juan.londono@ecopetrol.com.co

Logo - https://mma.prnewswire.com/media/95646/ecopetrol_s_a__logo.jpg

View original content:https://www.prnewswire.com/news-releases/ecopetrol-comments-on-information-published-in-the-media-301781206.html

SOURCE Ecopetrol S.A.

FAQ

What did Ecopetrol announce on March 24, 2023 regarding Monómeros?

Ecopetrol announced that it is not advancing in discussions for an acquisition of Monómeros Colombo Venezolanos S.A.

How does Ecopetrol's 2040 strategy affect its business plans?

The 2040 strategy outlines Ecopetrol's long-term business direction and growth prospects without involving acquisitions of Monómeros.

What is Ecopetrol's role in Colombia's energy sector?

Ecopetrol is the largest company in Colombia, responsible for over 60% of the country's hydrocarbon production.

What risks are mentioned in Ecopetrol's press release?

The press release mentions risks related to market conditions, oil prices, and the Colombian economy that could affect its growth.