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Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A.

Ecopetrol S.A. · Jan 8, 2020 · 14 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. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 1
    A Unique Deal Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin August, 2019
  2. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 2
    Overview of Transaction Joint Venture (JV) agreement with Oxy to develop oil & Transaction gas properties in the prolific Midland Basin Ecopetrol: 49% interest for US1.5bn in an all cash transaction Oxy: 51% interest and…
  3. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 3
    Transaction fully aligned with Ecopetrols strategy Existing fields Reserves and Production Growth Exploration in Colombia Competitiveness Unconventional and Sustainability Strict Capital Cash Protection International…
  4. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 4
    Permian: Fastest Growing U.S. Basin With Top-Tier Returns The Permian Basin has the Highest Amount of Drilling Activity in the U.S. The Permian is the Leading Basin in Production Growth in the U.S. Other Appalachia Eagle Ford Bakken…
  5. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 5
    The Permian Basin Has Best in Class Resource Potential to Support Significant Production Growth Total Estimated Recoverable Resource1 Total Estimated Production by Basin (Bboe) (Mboe/d, 20:1 gas conversion) Permian, USA 16,000 Ghawar,…
  6. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 6
    JV: Strategic Partnership with a Top-Tier and Experienced in-basin Operator 147% improvement since 2015 Oxy is a Proven, Large-scale Operator in the Permian Oxy continues to improve its well performance 25% improvement from 2017 to 2018…
  7. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 7
    Midland Transaction Activity and Valuations Through Time Acreage Mutiples Adjusted for Production Deals US200mm (000 per Acre)1 60 53 53 46 48 43 45 39 Midland Average 37 36 per Acre 31,87 34 34 30 27 27 JV Average per Acre…
  8. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 8
    Ecopetrol to Book 160 mmboe of Proven Reserves in 2019 and Reach a Peak Production of 95 kboed in 2027 Expected Total JV Production (kboed) Transaction expected to add 160 mmboe of proved undeveloped reserves upon closing1 200…
  9. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 9
    Summary of Selected Deal Terms BoD Advisor Corporate Governance Symmetric Board representation Financial Advisor Parties to consent on critical development and capex allocation decisions Agreed instances for technical and…
  10. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 10
    Transformational transaction for Ecopetrol 1 2 5 4 6 Significantly Value Knowledge Improved High quality Partnership enhances accretive and portfolio acreage with OXY reserves and transaction technology structure xxx production…
  11. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 11
    Value accretive transaction to Ecopetrol that enhances shareholder returns EBITDA (USbn) ROACE (%) 1.1 0.5% 0.2 13.1% 10.4 +11.0% 7.8 8.6% 6 2.7% 2016 2017 2018 2019-21 2022-27 2016 2017 2018 2019-21 target* 2022-27…
  12. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 12
    Knowledge and technology transfer accelerates Ecopetrols learning curve in unconventionals Strategic link to Colombia Comparison of Colombias Unconventional vs Midland Basin Tailored Secondment Agreement with Oxy to transfer…
  13. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 13
    Q&A 13
  14. Ecopetrol and Oxy form Strategic Joint Venture in the Midland Basin – Ecopetrol S.A. – slide 14

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