Ecopetrol Stock Price, News & Analysis

The Ecopetrol Group reported an increase in proven hydrocarbon reserves to 2,011 million barrels of oil equivalent (MBOE) by the end of 2022, marking the highest level in eight years. The Reserve-Replacement Ratio (RRR) was 104%, indicating that production was fully replaced with an additional 4%. Key developments include the incorporation of 249 MBOE of proven reserves, with 215 MBOE attributed to the management of development fields, and 89% of reserves originating from Colombia. The reserves were valued based on a Brent price of 97.9 USD per barrel, significantly higher than 69.2 USD in 2021.

Ecopetrol S.A. (NYSE: EC) announced that it will publish its financial and operational results for the fourth quarter and full year 2022 on February 28, 2023, after market close. Following the announcement, senior management will host two conference calls on March 1, 2023, at 08:00 a.m. (Spanish) and 10:00 a.m. (English) Colombian time, to discuss the results. The earnings release and live webcast will be accessible on Ecopetrol's website. As the largest company in Colombia, Ecopetrol plays a crucial role in the country's hydrocarbon production and is heavily involved in energy transmission across Latin America.

Ecopetrol S.A. (BVC: EC; NYSE: EC) has addressed local media reports about the resignation of Carlos Gustavo Cano from its Board of Directors, stating that they have not received any official communication regarding such a resignation. The company emphasizes its commitment to fulfilling disclosure obligations and will convey any significant news in a timely manner. As Colombia's largest company, Ecopetrol significantly contributes to the country's hydrocarbon production and holds vital positions in energy sectors across the Americas, including oil and gas exploration and power transmission.

Ecopetrol has announced a cash tender offer for its 5.875% Senior Notes due 2023, intending to buy up to $1 billion of its outstanding debt. The offer, announced on January 30, 2023, will expire on February 13, 2023, unless extended. Holders who tendered by January 30, 2023, will receive a total consideration that includes a $30 early tender premium per $1,000 principal amount. The total amount of Notes outstanding is $1.8 billion, with a maximum tender amount set at $1 billion. The offer is managed by Citigroup Global Markets, which also serves as the dealer manager. Detailed terms are outlined in the Offer to Purchase documentation.

Ecopetrol announced that Felipe Bayón Pardo will serve as CEO until March 31, 2023. His leadership since September 2017 has brought significant achievements, including excellent financial results and improved energy security in Colombia. Under his guidance, Ecopetrol has committed to a carbon-neutral future by 2050 and has made strides in technological transformations and diversity programs. The company also successfully acquired 51.4% of ISA shares, enhancing its position in decarbonization and electrification. The Board of Directors will select a new CEO following a rigorous process.

Ecopetrol S.A. (NYSE: EC) announced the filing of a petition from coexisting unions regarding its Collective Bargaining Agreement, which expires on December 31, 2022. The current agreement, signed in 2018 for a term of four and a half years, allows parties to express intent to modify it through a petition. If unions present demands, Ecopetrol will enter negotiations for a new agreement. As Colombia's largest company, Ecopetrol plays a significant role in the energy sector, overseeing over 60% of the country's hydrocarbon production.

Ecopetrol has received authorization from the Financial Superintendence of Colombia to renew its Program for Issuance and Placement of Domestic Public Debt Bonds and Commercial Paper for an additional five years, until December 22, 2027. This program, which originally began in August 2013, still has a remaining balance of COP 2.1 trillion. However, the authorization does not obligate Ecopetrol to issue any debt and future offerings will depend on favorable market conditions.

Ecopetrol S.A. has secured a USD 1.0 billion credit agreement with The Bank of Nova Scotia and Sumitomo Mitsui Banking Corporation to manage its 2023 debt maturities. The loan, with conditions including a variable interest rate of SOFR + 210 basis points, will be amortized in equal semiannual installments over the final two years. This refinancing effort is authorized by the Ministry of Finance and Public Credit, aimed at substituting a previous USD 665 million loan and addressing maturities related to the Cartagena Refinery.

Ecopetrol's Board of Directors has approved a general investment plan for 2023, allocating between COP 25.3 trillion and COP 29.8 trillion to support the company’s energy transition and security initiatives. The plan emphasizes low-emission projects, with about 23% of the budget aimed at diversifying into hydrogen, renewables, and carbon capture, targeting nearly 400,000 tons of CO2 reduction and incorporating 900 MW of renewable energy by 2025. The hydrocarbons segment projects production between 720,000 and 725,000 barrels equivalent per day, while social investments focus on regional development.