Colombian National Oil Company Energy for the Future Our iguana has a new home: NYSE September 2008
Non-deal roadshow management team Presenter Summary Bio Javier G. Gutirrez (57) Mr. Gutirrez has served as our President and CEO since January 22, 2007. Prior to becoming our CEO, Mr. Gutirrez served as CEO of Empresa de…
Launch of Ecopetrols ADR Level II listing Company ECOPETROL Offer Type ADR level II Ticker EC Listing ADR Depositary Ratio 1:20 Market Cap/Float US54,775mm/10.1% As of August 31, 2008 9 3
Agenda Company overview Colombia oil & gas sector framework Investment highlights Financial performance Closing remarks 4
Ecopetrol is a vertically integrated O&G company with a unique track record in the industry and is currently transforming itself into a global energy player Historical events 1905: De mares and Barco concession 1951: Ecopetrols…
Ecopetrol is present in most of the subsectors of the O&G chain in Colombia with a leading participation Portfolio highlights ECOPETROL Direct Cartagena refinery Figures as of Dec. 2007 Market Share P1: 1,499 MMBOE Total: 74%…
Ecopetrol is the largest company in Colombia with strong operational and financial metrics Key operational highlights Key financial highlights (In US bn) LTM Jun. 30, 2008 Dec 31, 2007 Gross 14.9 reserves Revenues 11.1 1,499…
Ecopetrols core strengths Favorable economic environment and strong industry framework in Colombia 1 Outstanding financial performance and Quality of asset 7 2 resources to support base and reserves growth World-class…
Agenda Company overview Colombia oil & gas sector framework Investment highlights Financial performance Closing remarks 9
The Colombian economy has experienced strong growth, Favorable economic environment and strong industry framework reflecting investor confidence and increasing foreign investment Real GDP (% change) and credit rating Credit rating…
Colombia has a very transparent and stable regulatory Favorable economic environment and strong industry framework and institutional framework for the oil and gas sector Institutional Structure Regulatory and legal framework…
Strong E&P metrics continue attracting key international Favorable economic environment and strong industry framework players; Ecopetrol is the preferred partner International players in Colombia Colombias total exploration activity…
Since 2003, Colombia has entered into a new Favorable economic environment and strong industry framework exploratory cycle 30,000 80 High Impact Discoveries A NEW EXPLORATORY CYCLE 70 CAO LIMON 25,000 SAN FRANCISCO 60…
Agenda Company overview Colombia oil & gas sector framework Investment highlights Financial performance Closing remarks 14
Ecopetrol is strengthening its exploratory position in Colombia while diversifying its portfolio with new opportunities abroad Local Exploration Projects International Exploration Projects Quality of asset base and reserves…
Exploratory activity has increased over the past five years Ecopetrols exploratory activity (No. of wells and Km of seismic) Ecopetrol Direct Ecopetrol Joint Venture Ecopetrol and partners seismic (Equivalent km) Quality of asset…
with significant efforts to maintain a strong reserve base Crude oil and natural gas gross reserves1 (MMBOE) 115 21 142 41 148 Quality of asset base and reserves 48 1,565 1,558 1,499 Dec. 2005 Revisions Extensions…
Ecopetrols production profile continues to show a positive trend Development wells Number of wells Wells in joint venture Wells owned and operated by Ecopetrol Quality of asset base and reserves 403 205 283 210 125 148 152…
Ecopetrols natural gas business presents attractive opportunities due to market dynamics Natural Gas gross production (MMCFD) Quality of asset base and reserves 484 421 394 412 343 356 2003 2004 2005 2006 2007 2008-2Q…
Ecopetrol continues improving its refining performance while meeting the local demand of oil byproducts Throughput and utilization Barrancabermeja Cartagena Quality of asset base and reserves Utilization 300 305 296 312 310 307…
Ecopetrol has been able to manage operational costs below the industry average World-class operations with strong operating efficiency Finding and development costs (US/Bl) Lifting costs (US/Bl) Finding Development 13.4 7.2…
Ecopetrol is improving its environmental, safety and security indicators World-class operations with strong operating efficiency Environmental incidents Accidents Frecuency of combined accidents (per mm of worked hour) 112…
A solid foundation supports our strategy to Growth prospects and strong platform to pursue opportunities capture growth opportunities Strategy map Upstream Downstream Mainly focused on the upstream Selectively capture business…
Upstream Ecopetrols growth strategy is mainly Growth prospects and strong platform to pursue opportunities focused on the upstream business Organic and acquisition growth Upstream CAPEX (USD in million) Further development of…
allowing it to selectively capture Downstream Growth prospects and strong platform to pursue opportunities downstream opportunities, synergies and higher margins Downstream investments Significant CAPEX in new projects Achieve…
Upstream Downstream First class partners are part of our Growth prospects and strong platform to pursue opportunities strategy Some of our Partners: Upstream Downstream BP GLENCORE BHPBILLITON OCENSA CEPSA OLEODUCTO DE…
Recent transactions prove Ecopetrols Growth prospects and strong platform to pursue opportunities Upstream Downstream capacity to acquire assets and win concessions in a competitive environment Selected strategic transactions…
Ecopetrol has high-standards of corporate governance practices driven by an independent Board of Directors Corporate Governance Code Unilateral Statement of the principal High standards of corporate governance shareholder (The…
Experienced senior management team leading more than 6,000 employees with an average of 13 years of service Experienced management team Javier G. Gutierrez P. Core business unit President-CEO 2 years Corporate Adriana…
Creating a world class workforce to support our business strategy Strong corporate culture and developing Importance of research and development competencies for employees Experienced management team In 2006 Ecopetrol…
Agenda Company overview Colombia oil & gas sector framework Investment highlights Financial performance Closing remarks 31
Outstanding financial performance and resources to support growth Consistent revenue growth Revenues by segment (USD in millions) Transportation and other Refining Production 11,085 79.3% 9,127 8,640 7,700 5,721 6,478 6787 61%…
Outstanding financial performance and resources to support growth with improving operating margins and cash generation Costs and expenses (USD in millions) Operating Expenses Variable costs* Fixed costs 6,436 5,647 666 4,799…
Outstanding financial performance and resources to support growth Improving levels of profitability with an attractive dividend policy Net income (USD in millions) 2,571 2,938 1,615 1,684 789 1,048 1,015 2003 2004 2005 2006…
Outstanding financial performance and resources to support growth Strong price per share performance since the initial public offering Price per share performance and volume (base 100) Ecopetrol IGBC S&P O&G Index Volume (USmm) 180…
Outstanding financial performance and resources to support growth Capacity to fund growth through optimization of the capital structure Balance sheet (USD bn) Assets Equity Liabilities 14.7 13.3 9.3 10.3 28.8…
Outstanding financial performance and resources to support growth Annex: USGAAP Reconciliation (US Million) Revenues Costs and expenses 11,085 11,310 7,112 6,063 6,436 9,128 9,660 5,647 2006 2007 2006 2007 Source:…
Agenda Company overview Colombia oil & gas sector framework Investment highlights Financial performance Closing remarks 38
Closing remarks We are a growing vertically integrated Oil & Gas company with Excellent operating and financial track record demonstrated by (i) attractive level of production growth and reserve replacement, (ii) improved margins,…
Closing remarks (contd) We are a growing vertically integrated Oil & Gas company with Experienced management team with proven track record supported by a committed and skilled workforce Available internal and external financial…
Presentation will be available at www.ecopetrol.com.co 41
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