Business Plan Update 2019-2021 2020+ Strategy March 2019
Best financial results of the last five years Average Brent 120 99 54 45 55 72 100 45.4% 115.0 41.8% 45 .0% 37.1% 37.7% 40 .0% 80 95.0 34.7% 35 .0% 60 67.8 75.0 30 .0% 66.0 USD/Bl 52.1 55.2 25…
2018 operational results reflect the consolidation of the strategy RRR* PRODUCTION Entering the Brazilian Pre-Salt and 129% 720 mboed growing our position in the Gulf of Mexico Increasing our exposure to high prospective basins…
Early fulfillment of the 2020 plan value proposition 2020 Target in Plan Delivery by year 2018 Reserves addition (MMBOE) 600 647(1)(4) Saturno and Pau Brasil, USGoM International expansion Americas blocks, Mexico Offshore…
The achieved results place the Group in a robust competitive position ROACE%* ROACE (%) 2018 IOCs NOCs ECP 15 14 2018 12 12 ECP** 10 9 8 2017 6 6 4 2 3 2016 2015 0 0 -2 -2 0 2 4 6 8 10 12 14 -40 0 40 80 120 160 200…
Strategy 2020+ Value creation as an integrated Business Group Existing fields Reserves and Production Growth Exploration Unconventional in Colombia Competitiveness and Sustainability Strict Capital Cash Protection…
Incumbent position of the Group in Colombia* 67 years of operation gives us a deep knowledge of Ensures sustainability and leverages growth opportunities the environment in which we operate 55.3 BBOE HCIIP 82% of oil pipelines…
The Groups organic production at 2021 would be in the 750-770 mboed range +3% CAGR 2019 2021 mboed 900 740-760 750-770 720…
Colombian asset base has proved potential to develop the Core Business Evolution of Hydrocarbons Initially in Place (HCIIP) Systematic review of potential in 2018 Through: BBOE Development plans +12% +20 60.0 Re-processing…
With no increase of HCIIP, Ecopetrol could take its cumulative recovery to 21%* in 2021 Cumulative ECP could also take its expected proven reserve recovery factor Gross potential volume recovery factor to 24%* in 2021 55.3 10.60…
Strategy for the primary, secondary and tertiary recovery of extra-heavy crude (Chichimene field) 67 mboed of production Current by 2021 Target Recovery Factor 5.6% 11% 27% Historical Projection 90 80 2017 2018 2019 2020 2021…
Exploration in Colombia: diversified portfolio including near field exploration, onshore, underexplored basins and offshore Onshore gas province Colombia Offshore Focus on: CAPEX: US70 - 100 M Gas provinces of South Caribbean and 5 12…
Internationalization in high prospective basins US Unconventionals Projects under evaluation Options Drivers: know how / short cycle access GoM - USA Mexico Brazil K2, Gunflint and Blocks 6 and 8 awarded position…
Unconventional potential of 10 TCF (natural gas) and 4-7 BBO (crude oil) has been identified Cesar Ranchera Lower Magdalena Valley CBM and Shale Gas potential No estimation of potential (10 TCFs Gas) 2019-2021 2 Negotiation with…
Downstream: capturing value from current assets and profitable investments in response to market conditions Priorities 2019 - 2021 2022+ 2019 - 2021 Throughput 370 400 1 Maximum value from existing assets mbod 5 Growth…
Midstream: achieve higher efficiency of oil pipelines and capture growth opportunities of product pipelines Priorities 2019 - 2021 2022+ 2019 - 2021 Higher efficiency Transported volumes 1,100 1,250 1 and optimization of…
Commercial transformation Development of the natural gas market Digital and technological 6 enablers transformation Competitiveness to support our strategic for sustainable growth levers Efficiencies ESG Energy…
Commercial Transformation: evolving to optimize the value chain and develop asset-back trading CRUDE OIL BASKET PRICE REALIZATION NATURAL GAS EBITDA CONTRIBUTION +31% Contribution Brent US/BL 71.7 US0.5 B US0.3 B EBITDA 2018…
Natural gas commercialization opportunities underpin national energy security Colombias Total Demand Breakdown* Supply and Demand Balance* GBTUD Opportunity for new gas GBTUD sources or imports Pacific region demand (Pacific Regas…
Digital and technological transformation could generate up to US1.0 B EBITDA per year with investments of US120 M with potential generation of More than 40 initiatives in the first wave EBITDA up to US1.0 B per year Upstream…
The Group has set a new savings target of US 2 B between 2019 -2021 Cumulative Efficiencies of the Group Levers 2019-2021 US B 2.5 Reducing drilling times 2.1 Upper range 0.65 Standardization of facilities 2.0 US2.1 B 0.65 0.65…
ESG* ensures the Groups sustainability Stakeholders ENVIRONMENTAL MANAGEMENT SOCIAL-ENVIRONMENTAL INVESTMENT Education, Integral water management US 0.7 B(1) health and sports Environmental Investment management Rural…
Energy transition: focused on efficient consumption and incorporation of renewable sources into the energy matrix ENERGY EFFICIENCY SELF-GENERATION RENEWABLE ENERGIES Energy cost savings Group (1) Additional self-generation capacity…
Self-funded CAPEX plan under strict capital discipline criteria 1% 2% CAPEX plan Other Corporate 2019 2021 (US B) Downstream 7% Sustainability and Value Capture Midstream 100% Organic 12 -15 US B Investment Profitable…
Solid cash generation provides flexibility to grow through different price cycles Groups 2019-2021 Cumulative Cash Flow US B 30 Brent US65/Bl 25 20 12-15 15 2 1 10 5 5 12 0 Initial balance Operating cash CAPEX Debt service…
Business plan focused on attractive value generation at US 65/Bl Brent Gross debt / EBITDA Ecopetrol Group (times) ROACE Ecopetrol Group (%) TIMES BRENT 54 45 55 72 65 65 (US/Bl) 2.9 13.1 2.5 11.5 11 1.8 8.6 1.5 1.2…
2019-2021 Targets PRODUCTION 2021 SUSTAINABILITY, GROWTH AND INTEGRATED 750 770 VALUE CREATION mboed CAPEX ROACE** US12 15 B Above 11% TRANSPORTED VOLUME 1,100 1,250 mbd Cumulative Free Cash Flow Gross debt/EBITDA US12 B…
Loading...
