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Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A.

Ecopetrol S.A. · Sep 9, 2009 · 36 slides

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Slides

  1. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 1
    Ecopetrol: Company Overview Deutsche Bank Global Emerging Markets Conference New York, September 9-10 of 2009 1
  2. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 2
    AGENDA Company overview Industry framework in Colombia Strategic plan and recent evolution Financial highlights 3
  3. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 3
    ECOPETROLS HIGHLIGHTS Transforming in to a global energy player Among the four largest oil and gas companies in Latin America Market leader in Colombia Major upstream growth potential Increasingly efficient refinery, petrochemical…
  4. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 4
    THE COMPANY HAS BEEN IN THE OIL AND GAS BUSINESS FOR MORE THAN 50 YEARS, AND IN 2003 BEGAN TO TRANSFORM INTO A GLOBAL ENERGY PLAYER Key milestones From a local O & G company . To a global O & G player 1951 2003 2004 2005 2006…
  5. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 5
    ECOPETROL HAS HIGH STANDARDS OF CORPORATE GOVERNANCE PRACTICES DRIVEN BY AN INDEPENDENT BOARD OF DIRECTORS Ownership structure* Corporate Governance Code Unilateral Statement of the Principal Shareholder In compliance with IFC, OCDE…
  6. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 6
    WE HAVE THE LEADING MARKET SHARE IN THE SEGMENTS OF THE OIL AND GAS CHAIN IN COLOMBIA Portfolio highlights 2009 Business Area Current levels (2Q09) Market Share in Colombia Exploration P1 Reserves* 1,474 MMBOE 62% Oil: 67% Gas:…
  7. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 7
    AGENDA Company overview Industry framework in Colombia Strategic plan and recent evolution Financial highlights 8
  8. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 8
    COLOMBIA HAS A VERY TRANSPARENT AND STABLE REGULATORY FRAMEWORK FOR THE ENERGY SECTOR Institutional Structure Regulatory and legal framework Selected E&P companies Policies Favorable and stable contractual system Exploration and…
  9. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 9
    AS A RESULT OF IMPORTANT REGULATORY CHANGES COLOMBIA ENTERED A NEW EXPLORATORY CYCLE IN 2003 Exploratory Cycle (seismic kms and no. of exploratory wells) Source: Ecopetrol 11
  10. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 10
    CONTINUED GROWTH IN EXPLORATION ACTIVITY IN COLOMBIA SINCE 2003 HAS LEAD TO A HIGHER PRODUCTION OF OIL & GAS Number of Wells and Seismic Activity (000 sq. kms) Key highlights Producer Dry Testing Outstanding foreign direct investment…
  11. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 11
    AGENDA Company overview Industry framework in Colombia Strategic plan and recent evolution Financial highlights 13
  12. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 12
    ECOPETROLS STRATEGIC PLAN Main strategic goals Progress 2008-09 CAPEX 2008-20151 2007 2008 2015 Total US 60 billion Production of 504 MBOED 10 Acquisitions Production 399 447 1,000 International operation in (MBOED) Peru, Brazil…
  13. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 13
    UPSTREAM STRATEGY: REACH 1,000 MBOED BY 2015 Exploration: to achieve a balanced portfolio Production Local International Presence in the most prospective Gain expertise from partners in areas Increase recovery factor from 23% to…
  14. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 14
    SOLID AND BALANCED RESERVE BASE Gross proven reserves (MMBOE) New gross royalty reserves (MMBOE) Oil Natural gas Extensions and discoveries Revisions Acquisitions SEC NA NA 1,558 1,499 1,385 RRR 199% 31% 110% 1,748 1,601 1,611…
  15. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 15
    ATTRACTIVE EXPLORATORY POSITION IN COLOMBIA Exploration contracts as of Dec. 2008 Number of wells and seismic activity Ecopetrol has exploration contracts for approx.17.5mm Ha Number of wells Seismic Kilometers (000) Ecopetrol has…
  16. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 16
    FOCUS ON MAINTINING PRODUCTION GROWTH Production growth (2008 vs. 2007) Projected growth 12.0% 7.1% 9.2% Current secondary recovery rate is 23% 1,000 6.3% 4.3% 3.1% 190 1.3% 0.9% 0.5% 447 810 -2.1% -3.4% 85 -3.8% -6.2%…
  17. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 17
    THROUGH DIFFERENT INITIATIVES WITH OUTSTANDING RESULTS Development wells Number of wells Brown fields average daily production (MBOED) Stand Alone Partnership La Cira Petrolea y Sardinata Yarigui-Catagallo 618 Casabe La Cira 35…
  18. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 18
    43% OF OUR INVESTMENTS ARE FOCUSED ON CURRENT FIELDS DEVELOPMENT IN COLOMBIA Production as of Jun-09 (mboed) Regions in Colombia Investment Region Production % 2009 (est) USD mn Central 148.5 29.5% 908 Northeast 128.4 25.5% 482…
  19. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 19
    ECOPETROL IS BALANCING ITS PORTFOLIO WITH LOCAL AND INTERNATIONAL OPPORTUNITIES Gulf of Mexico1 Early production areas Proved basins 2 blocks 5 blocks 8 blocks United states Frontier areas Production assets Offshore area: K2…
  20. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 20
    ACQUISITIONS SUPPORT LOCAL AND INTERNATIONAL PORTFOLIO DIVERSIFICATION USA-Gulf Mexico Colombia K2 Hocol US 510 mn Share: 9.2% US748 mn Production: 1 MBOD Share: 100% Production: 22 MBOD Peru Petrotech Peruana US496 mn…
  21. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 21
    UPSTREAM PROGRESS IN 2009 Internationalization strategy Brazil: Participation Agreement with Anadarko to explore in BMC-29, an offshore concession located in the Campos Basin 248 seismic kilometers acquired Peru: Authorization to…
  22. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 22
    DOWNSTREAM STRATEGY Downstream Refinery Petrochemicals Upgrade refineries (Barrancabermeja and Cartagena) - deep Maximize additional value from the integrated nature of the conversion (heavy crude oil) Company Meet international…
  23. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 23
    DOWNSTREAM PROGRESS IN 2009 Acquisition of 51% interest in Refineria de Cartagena closed Progress in Cartagena Master Plan cost synergy analysis with Refining Barrancabermejas refinery upgrade 82% progress in Hydro-treatment…
  24. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 24
    MODERNIZATION PLANS Barrancabermeja modernization plan Cartagena expansion plan Current conversion rate < 76% Modernization plandeep conversion 95% Heavy crude Medium crude Increase capacity above Other2 Bottoms Medium…
  25. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 25
    DOWNSTREAM PROGRESS IN 2009 Refinery Runs (MBOD) Gross Refining Margin (USD/Bl)* 233 214 8.0 (92%) (86%) 79 79 (98%) (98%) 3.4 2008-2Q 2009-2Q Barrancabermeja Cartagena 2008-2Q 2009-2Q Refining Costs (USD/Bl)…
  26. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 26
    PROGRESS IN ORGANIZATIONAL CONSOLIDATION 2009 Plans for technical competence development completed for 100% of employees Work plans to improve corporate work environment Human talent Strengthening of leadership style 5 year…
  27. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 27
    IMPROVING ENVIRONMENTAL, SAFETY, AND SECURITY PERFORMANCE Environmental incidents Accidents (per million of labor hours) 112 5.8 88 59 56 2.6 41 1.8 1.7 0.9 2005 2006 2007 2008 2009 2Q 2005 2006 2007 2008 2009 2Q Stolen…
  28. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 28
    AN AMBITIOUS CAPEX PLAN IS REQUIRED TO LEVERAGE GROWTH Capex plan 2003 2009 (USD mn) 29% 6.224 163% 4.824 36% 40% 12% 9% 1.760 922 1.255 Capex in 553 651 USD million 2003 2004 2005 2006 2007 2008 Sol. 2009 09/08…
  29. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 29
    INVESTMENT PLAN PROGRESS 2009 CAPEX investment 1st half 2009 (USD Bn) Investment highlights 2Q/09 Progress 61% * Acquisitions 3.81 Cartagena Refinery Finalized acquisition of 51% share in 0.07 Others Cartagena Refinery for a…
  30. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 30
    AGENDA Company overview Industry framework in Colombia Strategic plan and recent evolution Financial highlights 32
  31. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 31
    STRONG BALANCE SHEET AND CAPACITY TO FUND GROWTH Balance Sheet (USD Billion) 48.0% 10.16 43.8% 10.3 13.3 10.00 15.4 20.9 23.9 21.7 20.83 23.21 50.5% 44.3% 28.9% 13.06 10.6 10.6 10.83 52.0% 56.2% 6.3 49.5% 55.7% 71.1%…
  32. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 32
    PROGRESS IN FINANCING PLAN 2009 Loan facility Financing Syndicated loan with 11 local banks Amount COP 2.2 trillion Term 7 years (including two year grace period) Interest DTF + 4% T.A. semi-annual Capital payments Semi-annual with…
  33. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 33
    A TRACK RECORD OF REVENUE GROWTH, IMPROVING OPERATING MARGINS, AND CASH GENERATION Revenues (local and exports) (US billion) 15.1 11.1 5.5 9.1 36.4% 3.1 27.9% 63.6% 8.7 3.5 38.5% 72.1% 3.0 34.5% 5.5 61.5% 9.6 65.5% 8.0 2.2…
  34. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 34
    HIGHER PROFITABILITY AND ATTRACTIVE DIVIDENDS Net income (USD billion) 5.2 2.6 2.9 1.7 1.0 2006 2007 2008 2008 1H 2009 1H Dividends declared per share (USD cents) 12.00 131,9% * 140.00% 10.00 120.00% 89.9% 100.00%…
  35. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 35
    CONTACT INFORMATION - ECOPETROL S.A. Investor Relations Department Director Alejandro Giraldo (alejandro.giraldoecopetrol.com.co) Analysts Claudia Trujillo: (claudia.trujilloecopetrol.com.co) Silvia Angulo:…
  36. Deutsche Bank Global Emerging Markets Conferenc – Ecopetrol S.A. – slide 36
    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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