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September 2015 Investor Presentation – Ecopetrol S.A.

Ecopetrol S.A. · Sep 15, 2015 · 44 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 1
    ECOPETROL Corporate Group Investor Presentation September 2015
  2. September 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 3
    Overview
  4. September 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 Colombian stock market Essential Part of the Colombian Oil & Gas sector accounts for over 53% of total exports…
  5. September 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. September 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 %, 3.9% and 4.2% for Colombias tax and royalty…
  7. September 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. September 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 9
    Navigating the New Price Environment
  10. September 2015 Investor Presentation – Ecopetrol S.A. – slide 10
    Navigating the New Price Environment Lifting Cost (1) US/bbl 2015 CapEx cuts (to USD7.9bn or -9.2% vs. 2014) 11.3 2014 Reductions in CapEx declining further to USD6bn by 2018 7.5 7.5 1Q-2015 CapEx and OpEx (-24% or USD1.9bn from…
  11. September 2015 Investor Presentation – Ecopetrol S.A. – slide 11
    Strategic Plan for 2015 - 2020
  12. September 2015 Investor Presentation – Ecopetrol S.A. – slide 12
    Our strategic objectives: Pursuing sustainability and value creation Exploration and Operational Profitable production Recovery as growth excellence and (value over volume) drivers to ensure sustainability in and efficient barrels…
  13. September 2015 Investor Presentation – Ecopetrol S.A. – slide 13
    Maintain focus on production capabilities 1 Production Focus on value creation rather than volume expansion Profitable 1 barrels 2 Exploration Profitable and sustainable production (870 mboed by 2020) 3 Midstream & Safe and clean…
  14. September 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. September 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 start up IV Q 2015 2 Exploration Optimization of product and sales mix 3 Increased focus on processing…
  16. September 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 target 2015-2020 Maintenance Energy costs 2 At least 1 Bn USD of 6B 8…
  17. September 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 18
    Upstream
  19. September 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 Total Reserves…
  20. September 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. September 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 22
    Increase in Proved Reserves 1P Reserves (1) Balance: 2007 2014 (2) Sources of Addition: 2007 - 2014 mmboe RRR (3) 2007 - 2014: 152% Extensions 2,084 and discoveries 619 34% 2,300 1,210 Revisions 2.300 Gas mmboe 52% 353 Oil 1,426…
  23. September 2015 Investor Presentation – Ecopetrol S.A. – slide 23
    Improved Recovery and Efficiencies Initiated Improved Recovery Pilots in 2015 2Q 2015 Highlights REGION MILESTONES 2015 1Q 2Q 3Q 4Q 3 pilot projects launched during Mid 2Q 2015 11 11 1 Magdalena Water injection at Suria field…
  24. September 2015 Investor Presentation – Ecopetrol S.A. – slide 24
    Exploration in Colombia and Abroad Highlights 2011 2014 2015 Acquisition of new blocks and areas: 2 offshore wells: 2 in the Colombian Caribbean (Calas Successful participation rounds and Kronos), one in the US GoM (Sea Eagle)…
  25. September 2015 Investor Presentation – Ecopetrol S.A. – slide 25
    Midstream 26
  26. September 2015 Investor Presentation – Ecopetrol S.A. – slide 26
    Midstream Overview Cenit Highlights 2Q 2015 Highlights 2011 2014 Guarantees Ecopetrol required capacity for Expansions in pipeline, storage and port capacity hydrocarbon transportation enabling transport of increasing production,…
  27. September 2015 Investor Presentation – Ecopetrol S.A. – slide 27
    Downstream 28
  28. September 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 29
    Financials 30
  30. September 2015 Investor Presentation – Ecopetrol S.A. – slide 30
    Sales Growth Driven by Exports Total Sales (1) Destination of Crude Oil Exports mboed Price of Crude Export Basket (3) Local sales (2) US / barrel mboed (% of total) Exports Other 103 97 U.S. 99 86 578 Asia 1,019 923 960 881…
  31. September 2015 Investor Presentation – Ecopetrol S.A. – slide 31
    Corporate Groups Net Income and Earnings Net Income (COPTn) 2.60 + 0.57 + 1.16 + 0.26 1.51 - 0.07 - 0.27 - 4.16 + 1.42 (1) 2Q 2014 Volume Price FX Taxes Exploratory Activity Interests Other 2Q 2015 Earnings by segment…
  32. September 2015 Investor Presentation – Ecopetrol S.A. – slide 32
    Financial Highlights: Ecopetrol S.A. Cash Flow 1Q Ecopetrol Consolidated Cash Flow US billion - 3.03 10.94 + 0.02 + 1.66 7.02 - 0.96 + 2.32 - 0.18 + 4.09 Initial Cash Net cash from CapEx Other Cash from Dividend New Debt…
  33. September 2015 Investor Presentation – Ecopetrol S.A. – slide 33
    Ecopetrol Groups Investment 2015 * Investment (US million) Allocation Key Projects 7,860 Production Production of 760 thousand boed US 4,185 mm Investments for the development of fields mainly in the Llanos Orientales region…
  34. September 2015 Investor Presentation – Ecopetrol S.A. – slide 34
    Financials Highlights: Debt & Liquidity Sources of Funding Debt by Currency Ecopetrol Consolidated Debt 1% 3% 2%2% 14% 15% 4% 10% 18% 71% 4% 70% 85% Int'l Bonds & ECA's Local Bonds Ecopetrol Reficar USD COP Local Loans…
  35. September 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) (Jul 31st /2015) US 2.8 bn 10.1% Foreign inv. 20.0% and ADRs Retail inv. 2.9% US 3.4% 1.3 bn 1.4%…
  36. September 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 37
    Appendix 38
  38. September 2015 Investor Presentation – Ecopetrol S.A. – slide 38
    Financial Obligations: Ecopetrol S.A.(1) 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. September 2015 Investor Presentation – Ecopetrol S.A. – slide 39
    Financial Obligations: Ecopetrol S.A.(1) 3 International Bonds: USD 8.7 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. September 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. September 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: 7% CAGR: 14% 990 1,029 126 131 1,010 915 944 115 113 112 785 99 671 588 75 525 529 531 70 56 35 13 2008 2005 2006…
  42. September 2015 Investor Presentation – Ecopetrol S.A. – slide 42
    Income Statement: Ecopetrol Consolidated (1) US billion (2) 2010 2011 2012 2013 2014 1H15(3) Total Revenues 22.1 35.7 38.3 37.7 34.5 10.6 Gross Income 8.4 15.8 15.8 14.9 11.9 3.4 Operating Income 6.8 14.0 13.5 11.7 8.3 2.4…
  43. September 2015 Investor Presentation – Ecopetrol S.A. – slide 43
    Balance Sheet: Ecopetrol Consolidated US billion (1) 2010 2011 2012 2013 2014(5) 2Q15(5) Total Assets 35.9 47.5 64.4 68.6 47.2 48.8 Total Debt 4.7 4.5 7.8 11.5 14.6 17.8 Net Debt 2.7 1.0 3.3 6.9 11.7 14.2 Total Liabilities 14.1…
  44. September 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…

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