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March 2008 Investor Presentation – Ecopetrol S.A.

Ecopetrol S.A. · Mar 26, 2008 · 41 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. March 2008 Investor Presentation – Ecopetrol S.A. – slide 1
    STRATEGY AND CURRENT SITUATION Adriana Echeverri Chief Financial Officer adriana.echeverriecopetrol.com.co mircoles, 26 de marzo de 2008
  2. March 2008 Investor Presentation – Ecopetrol S.A. – slide 2
    DISCLOSURE This document was prepared by Ecopetrol S.A. with the purpose of providing the market and interested parties certain financial and other information of the Company. This document may include strategy discussions and…
  3. March 2008 Investor Presentation – Ecopetrol S.A. – slide 3
    CONTENT 1. THE OIL MARKET IN COLOMBIA LATEST CHANGES 2. COMPANY OVERVIEW 3. USEFUL INFORMATION WHAT WE HAVE DONE AND WHERE WE ARE HEADED MAIN PROJECTS SOCIOS ECOPETROL 3
  4. March 2008 Investor Presentation – Ecopetrol S.A. – slide 4
    CONTENT 1. THE OIL MARKET IN COLOMBIA LATEST CHANGES 2. COMPANY OVERVIEW 3. USEFUL INFORMATION 1. WHAT WE HAVE DONE AND WHERE WE ARE HEADED 2. MAIN PROJECTS SOCIOS ECOPETROL 4
  5. March 2008 Investor Presentation – Ecopetrol S.A. – slide 5
    REACTIVATION OF THE EXPLORATION CYCLE IN COLOMBIA. ECOPETROL HAS BEEN ACTIVELY INVOLVED IN CURRENT AREAS 30,000 80.0 A NEW EXPLORATORY CYCLE CAO LIMON 70.0 25,000 APIAY SAN FRANCISCO Equivalent seismic kilometers 60.0…
  6. March 2008 Investor Presentation – Ecopetrol S.A. – slide 6
    ROYALTY SYSTEM CHANGED IN 2002 (LAW 756 AND DECREE 3176) Percentage of production 25% 18,75% Light crude oil 20% 15% Heavy crude oil 8% < 150 API 6% 0 5 125 400 600 Daily oil production (KBPD) Source: ANH
  7. March 2008 Investor Presentation – Ecopetrol S.A. – slide 7
    HIDROCARBON SECTOR HAS CHANGED IN THE LAST YEARS ECOPETROL IS NOT THE ONLY PLAYER OF THE MARKET Hidrocarbon Sector Policy Starting 2003: Separation of roles Ministry of Mines & Government / Company Energy Ecopetrol is now another…
  8. March 2008 Investor Presentation – Ecopetrol S.A. – slide 8
    FOREIGN DIRECT INVESTMENT IN COLOMBIA HAS BEEN GROWING E&P Contract Profitability Foreing Direct Investment Contractual and Legal Stability MUSD Democratic Security Policy 10,240 Improved Environmental Licensing process 6,464…
  9. March 2008 Investor Presentation – Ecopetrol S.A. – slide 9
    CONTENT 1. THE OIL MARKET IN COLOMBIA LATEST CHANGES 2. COMPANY OVERVIEW 3. USEFUL INFORMATION 1. WHAT WE HAVE DONE AND WHERE WE ARE HEADED 2. MAIN PROJECTS SOCIOS ECOPETROL 9
  10. March 2008 Investor Presentation – Ecopetrol S.A. – slide 10
    ECOPETROLS BEING TRANSFORMED INTO A GLOBAL ENERGY COMPANY 2003 2004 2005 2006 2007 Decree 1760/03 ANH Law 1118/06 Initial Public Sector Contract Authorization for Offering (IPO) Deregulation. New going public concesion ANH…
  11. March 2008 Investor Presentation – Ecopetrol S.A. – slide 11
    LEADING COMPANY IN THE PETROLEUM INDUSTRY IN COLOMBIA Fourth petroleum company in Latin America and 39th in the PIW* league tables Largest company in Colombia (assets, net worth and profits**) Duff & Phelps Rating: AAA local.…
  12. March 2008 Investor Presentation – Ecopetrol S.A. – slide 12
    INTEGRATED OIL AND GAS COMPANY Exploration Production Refining Transportation Trade and Marketing Major clients are: 46 blocks being explored Barrancabermeja: Transportation network in Colombia ECP Fields: 267 (100%) of crude oil…
  13. March 2008 Investor Presentation – Ecopetrol S.A. – slide 13
    FIRST CLASS PARTNERS ARE PART OF OUR PHILOSOPHY Upstream Joint Participation in BP Competitive Bids BURLINGTON CEPSA CHEVRON Entry Project Partners EMERALD EXXONMOBIL Project offers to Partners HESS GROUP HOCOL LUKOIL Mutual…
  14. March 2008 Investor Presentation – Ecopetrol S.A. – slide 14
    CONTENT 1. THE OIL MARKET IN COLOMBIA 2. A GLANCE TO THE COMPANY 3. USEFUL INFORMATION WHAT WE HAVE DONE AND WHERE WE ARE HEADED MAIN PROJECTS SOCIOS ECOPETROL 20
  15. March 2008 Investor Presentation – Ecopetrol S.A. – slide 15
    ECOPETROL IS BEING IMPLEMENTING AN AGGRESSIVE INVESTMENT PLAN FOCUSED IN UPSTREAM (E&P) 7.500 Total Annual Investment US Million Dollars 3.756 1.760 1.255 922 535 651 2003 2004 2005 2006 2007 Goal Average 2008 2008-…
  16. March 2008 Investor Presentation – Ecopetrol S.A. – slide 16
    EXPLORATION: ECOPETROL'S SHARE IN THE NUMBER OF WELLS DRILLED HAS INCREASED SUBSTANTIALLY 80 70 A-3 Partners A-3 Ecopetrol A3 ANH 70 60 56 37 50 22 Pozos 40 35 4 4 30 28 12 3 9 20 1 21 16 30 30 1 14 2525 22…
  17. March 2008 Investor Presentation – Ecopetrol S.A. – slide 17
    EXPLORATION & PRODUCTION: THE NUMBER OF WELLS IS INCREASING 45 Exploratory Wells 20 12 8 3 1 4 2003 2004 2005 2006 2007 Goal 2008 Goal 2011 516 440 144 Development Wells 60 205 215 260 223 168 148 159 152 152 126…
  18. March 2008 Investor Presentation – Ecopetrol S.A. – slide 18
    OIL & GAS PRODUCTION: SUSTAINED GROWTH 550 425 384 399 367 366 375 78 72 KBOED 64 67 75 60 550 316 327 347 292 306 311 0% 2% 2% 4% 7% 2003 2004 2005 2006 2007 Goal 2008 Goal 2011 Oil Equivalent Gas…
  19. March 2008 Investor Presentation – Ecopetrol S.A. – slide 19
    OWN OIL PRODUCTION 414 347 327 306 311 316 292 151 177 113 123 138 157 KBOPD 179 183 173 176 170 159 5% 2% 2% 4% 6% 2003 2004 2005 2006 2007 Goal 2008 Goal 2011 ECP ECP + Partners Royalties included Source:…
  20. March 2008 Investor Presentation – Ecopetrol S.A. – slide 20
    HEAVY CRUDE OIL PRODUCTION TRIPLED IN 5 YEARS 170 50 121 98 30 30 89 76 12 19 21 59 8 17 17 KBOPD 46 5 16 4 16 90 13 60 62 70 52 30 38 2003 2004 2005 2006 2007 Goal Goal 2008 2011 Castilla - San Fernando Nare…
  21. March 2008 Investor Presentation – Ecopetrol S.A. – slide 21
    MATURE FIELDS SUSTAINED GROWTH Reservoir characterization Development wells Enhanced Oil Recovery Some examples: 58 16 41 31 13 13 25 21 13 10 KBOPD 12 9 8 29 7 7 18 10 5 6 2005 2006 2007 Goal 2008 Goal…
  22. March 2008 Investor Presentation – Ecopetrol S.A. – slide 22
    GAS: GROWING MARKET Offshore drilling Guajira capacity to 625 KSCFD Cusiana Gas Plants: 200 KSCFD and growth to 410 KSCFD in 2009 Gibraltar: development to 30 KSCFD 600 445 404 MPCD 341 127 108 81 263 288 227 33…
  23. March 2008 Investor Presentation – Ecopetrol S.A. – slide 23
    E&P INTERNATIONALIZATION, RISK DIVERSIFICATION AND LARGER PORTFOLIO Brazil (7 Blocks): Tucano-156 with Petrobras. 6 blocks awarded with Petrobras, Petrogal, Valle del Ro. USA Golfo Per (9 Blocks): Block 101 and Block 134…
  24. March 2008 Investor Presentation – Ecopetrol S.A. – slide 24
    REFINING: ECOPETROL HAS NOTABLY IMPROVED ITS OPERATION STANDARDS Refineries loads 306 312 310 305 300 296 286 KBDC 2002 2003 2004 2005 2006 2007 2008 Goal 1706 Unscheduled shutdowns 1066 DAYS 567 500 418…
  25. March 2008 Investor Presentation – Ecopetrol S.A. – slide 25
    ECOPETROLS AVERAGE REFINING GROSS MARGIN 11,37 10,4 9,06 8,89 7,24 7,11 US/ BL 5,18 2002 2003 2004 2005 2006 2007 2008 Goal Source: Ecopetrol SOCIOS ECOPETROL 33
  26. March 2008 Investor Presentation – Ecopetrol S.A. – slide 26
    REFINING GOALS: INCREASE CONVERSION, CAPACITY AND CLEAN FUELS Increase conversion factor to 95% by 2013 to maximize production of gasoline and medium distillates and minimize production of fuel oil Process larger volumes of heavy…
  27. March 2008 Investor Presentation – Ecopetrol S.A. – slide 27
    BIOFUELS Become biofuels leader in the local market Production of biodiesel and ethanol based on different sources Ecodiesel company: partnership between ECOPETROL and palm growers in the Middle Magdalena. Estimated investment: USD…
  28. March 2008 Investor Presentation – Ecopetrol S.A. – slide 28
    PETROCHEMICAL: UTILIZATION OF REFINERY BYPRODUCTS Actual demand greater than current offer in the domestic market, in the areas of: construction (asphalt), plastic (polyethylene), chemicals (solvents), other ( lubricant bases and…
  29. March 2008 Investor Presentation – Ecopetrol S.A. – slide 29
    TRANSPORTATION: REDUCTION OF NEARLY 9 TIMES THE VOLUME OF STOLEN PRODUCTS IN 6 YEARS 7.270 5.777 2.942 Barrels Day 1.601 942 561 575 2002 2003 2004 2005 2006 2007 2008 Goal Source: Ecopetrol SOCIOS ECOPETROL…
  30. March 2008 Investor Presentation – Ecopetrol S.A. – slide 30
    TRANSPORTATION: MAKE HEAVY CRUDE VIABLE AND OPTIMIZE OPERATION Construction of heavy crude transportation infrastructure for Castilla and Rubiales fields. Improve even more the operating efficiency through: Reduction of fuel…
  31. March 2008 Investor Presentation – Ecopetrol S.A. – slide 31
    THROUGHPUT SUSTAINED VOLUME 193,8 180,7 Thousand barrels per day 152,2 155,1 159,4 471,06 516,6 426,6 445,2 443,8 2003 2004 2005 2006 2007 Crudo Refinados Source: Ecopetrol SOCIOS ECOPETROL 39
  32. March 2008 Investor Presentation – Ecopetrol S.A. – slide 32
    REVENUES AND CASH GENERATION SHOW SUSTAINED GROWTH 22.332 18.390 15.513 13.051 Billions of COP 11.526 10.381 9.825 8.072 6.837 5.700 4.473 3.850 2002 2003 2004 2005 2006 2007 Revenues Ebitda Source:…
  33. March 2008 Investor Presentation – Ecopetrol S.A. – slide 33
    CASH GENERATION AND PROFIT 8.786 23% 21% 18% 16% 14% 14% 5.179 Billions of COP 4.531 3.015 3.934 4.756 2.127 3.254 3.391 1.336 1.589 2.111 2002 2003 2004 2005 2006 2007 Operational Income Net Income Net Income…
  34. March 2008 Investor Presentation – Ecopetrol S.A. – slide 34
    BALANCE SHEET: ASSETS HAVE DOUBLED AND NET WORTH BECAME STRONGER 60,000 3.5% 50,000 2.9% 48,112 3.0% 42,138 2.5% 40,000 Billions of COP 1.9% 2.0% 30,000 26,808 24,374 1.5% 21,302 21,304 20,000 17,105 20,836 1.0%…
  35. March 2008 Investor Presentation – Ecopetrol S.A. – slide 35
    LIABILITIES: CHANCES TO CREATE VALUE BY OPTIMIZING THE CAPITAL STRUCTURE Ecopetrol has no financial debt. Leveraging of the company to Short Term be started by 2009. 6,065 Liabilities 87% of pension liabilities is funded.…
  36. March 2008 Investor Presentation – Ecopetrol S.A. – slide 36
    FINANCIAL INDICATORS OPERATIONAL MARGIN EBITDA MARGIN OPERATIONAL PR. / REVENUES 39 EBITDA/ REVENUES 47 30 44 44 44 29 26 26 22 39 39 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 ROA ROE Net Profit /…
  37. March 2008 Investor Presentation – Ecopetrol S.A. – slide 37
    GOOD GOVERNANCE PRACTICES ECOPETROLs Code of Good Governance complies with the guidelines of the IFC, OCDE and Resolution 275 / 2001, Law 964 / 2005 and Cdigo Pas (Country Code). CODE OF GOOD GOVERNANCE Equal rights and treatment…
  38. March 2008 Investor Presentation – Ecopetrol S.A. – slide 38
    WHY WOULD YOU INVEST IN ECOPETROL COUNTRY: The country offers very attractive conditions to invest in E&P HYDROCARBON SECTOR Sector with high historic profitability COMPANY: Leading company in the hydrocarbon sector in…
  39. March 2008 Investor Presentation – Ecopetrol S.A. – slide 39
    SHARE PRICE HAS INCREASED FROM COP 1.400 TO 2.095 Daily Closing Price 2095 2.100 2080 2.000 1.900 1910 1.800 1.700 1.600 1575 1.500 1.400 SOCIOS ECOPETROL 81
  40. March 2008 Investor Presentation – Ecopetrol S.A. – slide 40
    ECOPETROLS SHARE: TRADED VOLUME PER DAY 140.000 120.000 100.000 80.000 COP Million 60.000 40.000 20.000 0 SOCIOS ECOPETROL 82
  41. March 2008 Investor Presentation – Ecopetrol S.A. – slide 41
    For restricted use by Ecopetrol S.A. All rights reserved. No part of this presentation can be reproduced or used in any way or by any means without explicit permission from Ecopetrol S.A.

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