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JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A.

Ecopetrol S.A. · Jun 10, 2015 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 1
    ECOPETROL Corporate Group Investor Presentation Jun 2015
  2. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 2
    Agenda 1. Overview 2. Navigating the New Price Environment 3. Strategic Plan for 2015-2020 4. Upstream 5. Midstream 6. Downstream 7. Financials 3
  3. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 3
    Overview
  4. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 4
    Ecopetrol: Key Investment Highlights 1 Largest company in Colombia, representing 25% of the Market Capitalization of the entire Essential Part of Colombian stock market the Colombian Oil & Gas sector accounts for over 53% of total…
  5. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 5
    Ecopetrol: Key Investment Highlights (Contd) 4 Production increased by 1.7x between 2008 and 2014 1P reserves 22% growth between 2010 and 2014; reserve replacement ratio of 146% in 2014 Positive above peer average Operating Track…
  6. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 6
    Colombia: Favorable Regulatory and Fiscal Environment Colombia: Positive Macroeconomic Environment Favorable Oil & Gas Tax Regime in Global Context High real GDP growth, projected at 3.5 % for 2015 and 3.9% for Colombias tax and…
  7. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 7
    Integrated Operations with International Presence Ecopetrol - Subsidiaries & Affiliates Key Operating Metrics Direct Market Share in Entities 2014 Colombia Exploratory area: Exploration acreage: 35% 18.6 MM ha Proved reserves:…
  8. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 8
    O&G Financial Metrics Comparison (1) ROCE Revenue Growth 2014 2008 2014 CAGR 17.1% 14.3% 13.4% 12.3% 7.6% 10.3% 9.4% 0.3% 8.8% 8.6% 7.4% -0.4% -1.4% -2.5% 3.8% 3.5% 3.0% -4.6% (2) -21.6% EBITDAX per Produced BOE 2014…
  9. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 9
    Navigating the New Price Environment
  10. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 10
    Navigating the New Price Environment Lifting Cost (1) US/bbl 2015 USD0.8bn CapEx cuts (to USD7.9bn or -9.2% vs. 2014) 11.3 2014 Reductions in CapEx declining further to USD6bn by 2018 7.5 1Q-2015 CapEx and OpEx (-24% or USD1.9bn…
  11. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 11
    Strategic Plan for 2015 - 2020
  12. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 12
    Our strategic objectives: Pursuing sustainability and value creation Profitable production Exploration and Operational (value over volume) Recovery as growth excellence and and efficient barrels drivers to ensure sustainability in…
  13. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 13
    Maintain focus on production capabilities 1 Production Focus on value creation rather than volume expansion Profitable barrels 1 Profitable and sustainable production (870 mboed by 2020) 2 Exploration Safe and clean operation 3…
  14. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 14
    Focus on exploration with diversified and sizeable opportunities 1 Build a sustainable Exploration Portfolio to deliver future growth and value creation Production 2 Focus on material projects onshore and offshore Colombia, Gulf of…
  15. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 15
    Maximize value in both Midstream and Downstream 1 Production Continue capturing efficiencies in operations 3 Reficar project completion in 2015 2 Optimization of product and sales mix Exploration Increased focus on processing heavy…
  16. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 16
    Target of 6 Bn USD of Structural Cumulated Savings by 2020 UPSTREAM Materials and services Transportation and dilution of heavy crudes Structural savings targets 2015-2020 Maintenance Energy costs 6B At least 1 Bn USD of yearly…
  17. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 17
    CAPEX 2015 2020: Focus in the upstream and Capex reductions Target Investment Plan 2015 - 2020 7.9 - 27% Exploration & Production Others 6.7 6.8 6.0 5.8 5.8 78% 85% 88% 88% 59% 61% 2015 2016 2017 2018 2019 2020 18
  18. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 18
    Upstream
  19. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 19
    Operational Metrics Production Growth Reserve Replacement Ratio (1) 2008 2014 CAGR 3-Year Average, % (2012 2014) 9% 131% 129% 120% (2) 3% 3% 112% 111% 107% 97% 95% 94% 90% 0% 0% 80% 0% (1%) (2%) (2%) (3%) Oil as a % of…
  20. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 20
    Diversified and Growing Resource Base Original Oil & Gas in Place: Ecopetrol + Partners in Colombia(1) bn boe 58.6% 53.3 Produced 9.8 19.7 2.7 1P Reserves Resources 4.7 33.6 36.1 Remaining Oil 2007 2007-2014 Revisions + New…
  21. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 21
    1P Reserves 1P Reserves 2010-2014 2014 Highlights mmboe + 5.7% in proved reserves vs 2013 +22% 2,084 Reserves/production of 8.6 years (8.1 in 2013) 1,972 1,857 1,877 1,714 2010-2014 sustained growth: +22% Reserves replacement ratio…
  22. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 22
    Increase in Proved Reserves 1P Reserves (1) Balance: 2007 2014 (2) Sources of Addition: 2008 - 2014 mmboe Extensions RRR (3) 2008 - 2014: 164% and discoveries 2,084 34% Revisions 619 2,300 52% 1,210 Gas 353 2.300 mmboe Oil 1,426…
  23. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 23
    Improved Recovery Initiated Improved Recovery Pilots in 2015 1Q 2015 Highlights First pilot started during 1Q, Llanito (H&P). REGION MILESTONES 2015 3 additional pilots to start during 2Q to reach 1Q 2Q 3Q 4Q half of the total 8…
  24. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 24
    Exploration in Colombia and Abroad Highlights 2011 2014 2015 Acquisition of new blocks and areas: 3 offshore wells: 2 in the Colombian Caribbean (Calas Successful participation rounds and Kronos), one in the US GoM (Sea Eagle)…
  25. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 25
    Midstream 26
  26. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 26
    Midstream Overview Cenit Highlights 1Q 2015 Highlights 2011 2014 Guarantees Ecopetrol the required capacity for Expansions in pipeline, storage and port capacity hydrocarbon transportation enabling transport of increasing…
  27. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 27
    Downstream 28
  28. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 28
    Refining Modernization to Improve Profitability Ecopetrol holds 100% of the refining capacity in Colombia, which makes it a self-sufficient vertically integrated company Pre-Modernization Future (1) Reficar (Cartagena) Capacity…
  29. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 29
    Financials 30
  30. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 30
    Sales Growth Driven by Exports Total Sales (1) Destination of Crude Oil Exports mboed Local sales (2) Price of Crude Export Basket (3) US / barrel mboed (% of total) Exports Other 570 103 91 U.S. 99 86 Asia 1,029 1,037 923 881…
  31. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 31
    Corporate Groups Net Income and Earnings Net Income (COPTn) 3.89 - 5.45 - 0.11 0.16 + 0.28 + 0.45 + 1.01 - 0.18 + 0.27 (1) 1Q 2014 Volume Price FX Taxes Exploratory Interests Other 1 Q 2015 Activity Earnings by segment…
  32. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 32
    Financial Highlights: Ecopetrol S.A. Cash Flow 2014 Ecopetrol S.A. Cash Flow (1) US billion + 7.18 - 6.78 2.65 - 6.00 + 3.17 + 1.20 -0.31 1.11 Initial Cash Net cash from CapEx Dividend New Debt Other Fx differences Final…
  33. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 33
    Ecopetrol Groups Investment 2015 * Investment (US million) Allocation Key Projects Production Production of 760 thousand boed 7,860 US 4,185 mm Investments for the development of fields mainly in the Llanos Orientales region…
  34. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 34
    Financials Highlights: Debt & Liquidity Sources of Funding Debt by Currency Ecopetrol Consolidated Debt 1.0% 0.5% 3% 2% 1% 14.8% 17% 5% 10.8% 21% 68% 4.6% 68.3% 83% Int'l Bonds & ECA's Local Bonds Ecopetrol Reficar…
  35. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 35
    Primary equity offerings and shareholders Primary Equity Offerings of Ecopetrol Ecopetrols market float (BVC, NYSE and TSX) (April 30/2015) US 2.8 bn Foreign inv. 10.1% and ADRs 20.0% Retail inv. 2.6% US 3.4% 1.3 bn 1.4%…
  36. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 36
    Investor Relations Phone + 571 234 5190 Email investorsecopetrol.com.co Website www.ecopetrol.com.co 37
  37. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 37
    Appendix 38
  38. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 38
    (1) Financial Obligations: Ecopetrol S.A. 1 Issued / Outstanding: COP1.84 tn (May 2013) / COP1.84 tn 2013 Local Maturity: 12 years (including 3-year grace period) Syndicated Loan Interest rate: DTF + 2.5% anticipated quarterly rate…
  39. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 39
    (1) Financial Obligations: Ecopetrol S.A. 3 International Bonds: USD 7.2 bn Issued / Outstanding: US1.5 bn (Jul 2009) / US1.5 bn Coupon: 7.625% (semiannual) Jul 2009 Maturity: 10 years (Jul 23, 2019) Amortization: bullet Issued…
  40. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 40
    Financial Obligations: Subsidiaries Issued: COP800 bn (Aug 2013) Issued: COP500 bn (Oct 2009) Local Commercial Outstanding: COP640 bn Outstanding: COP200 bn ECs Share Maturity: 7 years (including 2-year grace period) Securitization…
  41. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 41
    Colombias O&G growth trend Crude oil production Exploratory wells drilled (A3) MBOD No. of wells CAGR: 14% CAGR: 7% 1,010 990 1,029 126 131 915 944 113 112 115 785 99 671 588 525 529 531 70 75 56 35 6 1Q -2015…
  42. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 42
    Income Statement: Ecopetrol Consolidated (1) US billion (2) 2010 2011 2012 2013 2014 1Q14(3) 1Q15(3) Total Revenues 22.1 35.7 38.3 37.7 34.5 9.0 5.0 Gross Income 8.4 15.8 15.8 14.9 11.9 3.6 1.5 Operating Income 6.8 14.0 13.5 11.7…
  43. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 43
    Balance Sheet: Ecopetrol Consolidated US billion (1) 2010 2011 2012 2013 2014(5) 1Q15(5) Total Assets 35.9 47.5 64.4 68.6 47.2 47.3 Total Debt 4.7 4.5 7.8 11.5 14.6 16.6 Net Debt 2.7 1.0 3.3 6.9 11.7 12.3 Total Liabilities 14.1…
  44. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 44
    Dividends Dividends per share (COP) and payout ratio Extraordinary Dividend Ordinary Dividend Payout Ratio 300 291 37 36 260 225 33 105 145 133 115 263 255 91 227 145 133 115 115 91 2008 2009 2010 2011 2012 2013…
  45. JUNE 2015 INVESTOR PRESENTATION – Ecopetrol S.A. – slide 45
    Para uso restringido en Ecopetrol S.A. Todos los derechos reservados. Ninguna parte de esta presentacin puede ser reproducida o utilizada en ninguna forma o por ningn medio sin permiso explcito de Ecopetrol S.A.

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