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Investor Presentation – Ecopetrol S.A.

Ecopetrol S.A. · Oct 1, 2014 · 51 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. Investor Presentation – Ecopetrol S.A. – slide 1
    ECOPETROL S.A. Investor Presentation October 2014
  2. Investor Presentation – Ecopetrol S.A. – slide 2
    Agenda 1. Overview 2. Upstream 3. Midstream 4. Downstream 5. Financials 3
  3. Investor Presentation – Ecopetrol S.A. – slide 3
    Overview
  4. Investor Presentation – Ecopetrol S.A. – slide 4
    Ecopetrol: Key Investment Highlights 1 Largest company in Colombia, representing 31% of the Market Capitalization of the entire Colombian stock market (1) Essential Part of Essential source of revenue to the Colombian government…
  5. Investor Presentation – Ecopetrol S.A. – slide 5
    Ecopetrol: Key Investment Highlights (Contd) 4 Production increased by 1.8x between 2008 and 2013 Positive 1P reserves increased by 1.7x since 2008; reserve replacement ratio above peer average Operating Track New reserves mainly…
  6. Investor Presentation – Ecopetrol S.A. – slide 6
    Colombia: Stable, Favorable Regulatory and Fiscal Environment Colombia: Positive Macroeconomic Environment Favorable Oil & Gas Tax Regime in Global Context High real GDP growth, projected at over 4% for the next few years Colombias…
  7. Investor Presentation – Ecopetrol S.A. – slide 7
    Colombias O&G growth trend Crude oil production Exploratory wells drilled MBOD No. of wells 1,007 1,008 126 131 915 944 112 115 785 99 671 588 525 529 531 70 75 75 56 35 2005 2006 2007 2008 2009 2010 2011…
  8. Investor Presentation – Ecopetrol S.A. – slide 8
    Integrated Operations With International Presence Ecopetrol - Subsidiaries & Affiliates Key Operating Metrics Direct Market Share in Entities 1H-2014 Colombia Exploratory area: Exploration acreage: 37% 22.5 MM ha Proved reserves:…
  9. Investor Presentation – Ecopetrol S.A. – slide 9
    Leading Company in Colombia and One of the Largest in LatAm Top 5 Colombian Companies by Revenue Top 5 Colombian Companies by Investment 2013 US bn 2013 US bn 37.7 7.6 2.1 7.8 7.0 6.9 6.4 1.5 1.1 1.0 Market Capitalization of…
  10. Investor Presentation – Ecopetrol S.A. – slide 10
    Financial Metrics Market Capitalization (1) Revenue Growth US bn 2008 2013 CAGR 424 18.9% 16.9% 270 260 246 6.8% 150 147 136 1.7% 1.1% 1.0% 1.0% 100 91 90 71 NM (2) (0.3%) (1.5%) (3.7%) EBITDA per Produced BOE ROIC…
  11. Investor Presentation – Ecopetrol S.A. – slide 11
    2008-2013 Highlights 1.8x growth in production 2.1x growth in revenues Upstream 1.7x growth in 1P reserves and High operational, net income average RRR of 167% Financials and EBITDA margins Strong cash flow generation 2.3x growth…
  12. Investor Presentation – Ecopetrol S.A. – slide 12
    2014-2020 Capex Plan Focused on Upstream Total: 68.5bn Total: 68.5bn Other 0.2 0% Downstream 6.5 10% Equity 7.5 11% Midstream 6.1 9% Debt 9.6 14% Upstream 55.7 81% Cash Generation 51.4 75% Uses Sources 81% allocated to…
  13. Investor Presentation – Ecopetrol S.A. – slide 13
    Upstream
  14. Investor Presentation – Ecopetrol S.A. – slide 14
    Operational Metrics Production Growth Reserve Replacement Ratio (2) 2008 2013 CAGR 3-Year Average, % (2011 2013) 12.0% 151% 143% 137% 130% 129% 128% 120% 115% 112% 3.5% 103% 100% 0.5% 0.1% (0.1%) (0.3%) (0.5%) (0.7%) NM (1)…
  15. Investor Presentation – Ecopetrol S.A. – slide 15
    Diversified and Growing Resource Base Original Oil & Gas in Place: Ecopetrol + Partners in Colombia(1) bn boe Tertiary 3 Primary Recovery 1 +46% 49.1 Recovery (Thermal (Infill Recovery: Produced 9.0 drilling: 15.5 2.3) 2.6 1P…
  16. Investor Presentation – Ecopetrol S.A. – slide 16
    Reserve Replacement Ratio 1P Reserves Balance (1) (2) Reserve Replacement Ratio (2) mmboe 3-Year Average, % (2011 2013) Peers Average: 117% Gas 151% 1,972 143% Oil 1,857 1,877 137% 1,714 128% 129% 130% 27% 120% 1,538 26% 27%…
  17. Investor Presentation – Ecopetrol S.A. – slide 17
    Increase in Proved Reserves 1P Reserves (1) Balance: 2007 2013 (2) Sources of Addition: 2008 - 2013 mmboe Extensions RRR (3) 2008 - 2013: 164% and discoveries Revisions 1,972 38% 48% 538 1,210 Gas 1,945 353 1,945 mmboe 1,434 Oil…
  18. Investor Presentation – Ecopetrol S.A. – slide 18
    Upstream Strategy 1 Increase Recovery Factor in existing fields Primary Recovery EOR / IOR (Enhanced Oil Recovery / Improved Oil Recovery) 1 Increase Recovery Factor 2 Exploration Colombia: Llanos Orientales 2 Exploration…
  19. Investor Presentation – Ecopetrol S.A. – slide 19
    Recovery Factor Growth 1 Increase Recovery Factor 1 Increase Primary Recovery Recovery Factor EOR / IOR (Enhanced Oil Recovery / Improved Oil Recovery) 2 Exploration Highlights 2011 2014 Strategy 2014 2020 3 Unconventional…
  20. Investor Presentation – Ecopetrol S.A. – slide 20
    Upstream: Main Projects in Llanos Basin Castilla Chichimene 20 drilling rigs by 4Q 2014 6 drilling rigs by 3Q 2014 and 8 rigs by 2Q 2015 Oil handling capacity of 170 mbod by 1Q 2015 Oil handling capacity of 80 mbod by 4Q 2014 and and…
  21. Investor Presentation – Ecopetrol S.A. – slide 21
    Upstream: Secondary Non Thermal Recovery in Producing Fields Schedule 2013 - 2020 Phase 1: Feasibility 20 15 2 GAS/WAG 12 3 9 1 CEOR 2 10 9 9 WF Non Thermal Projects 2013-2020 (pilots and implementation) 2 2013 2014 2015 2016…
  22. Investor Presentation – Ecopetrol S.A. – slide 22
    Upstream: 2014 Secondary Recovery Pilots BASIN MAIN FIELDS MILESTONES 2014 1Q 2Q 3Q 4Q Tisquirama - San Roque (WF) Mid Galan (WF) Magdalena Casabe (CEOR) Yarigui (CEOR) Santa Clara (WF) Brisas (WF) South Palo Grande (CEOR)…
  23. Investor Presentation – Ecopetrol S.A. – slide 23
    Upstream: Chemical Enhanced Oil Recovery and Water Flooding Pilots San Francisco Field Chemical Enhanced Oil Recovery (CEOR) Pilot Galan Field Water Flooding (WF) Pilot 24
  24. Investor Presentation – Ecopetrol S.A. – slide 24
    Upstream: Tertiary - Thermal Recovery in Heavy Oil Fields Pilots Scheduled in Colombia: 2012 - 2020 Teca-Cocorna 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 onwards Chichimene Quifa Quifa Air Chichimene Injection Other…
  25. Investor Presentation – Ecopetrol S.A. – slide 25
    Exploration Potential in Colombia and Abroad 2 Exploration 1 Increase Colombia: International: Recovery Factor Llanos Orientales Brazil 2 Exploration Caribbean Offshore US GoM Caguan-Putumayo 3 Unconventional Sustained activity…
  26. Investor Presentation – Ecopetrol S.A. – slide 26
    Unconventional Hydrocarbon Strategy in Colombia 3 Unconventional 1 Increase Assessment of potential Recovery Factor Joint ventures with strategic partners with ample shale expertise 2 Exploration Highlights 2011 2014 3…
  27. Investor Presentation – Ecopetrol S.A. – slide 27
    Midstream
  28. Investor Presentation – Ecopetrol S.A. – slide 28
    Midstream Overview Cenit Overview Highlights 2011 2014 Cenit: Ecopetrols subsidiary specialized in Midstream Transported volumes increased by 14% and Logistics Diversified network of crude and product pipelines 100% owned by…
  29. Investor Presentation – Ecopetrol S.A. – slide 29
    Downstream
  30. Investor Presentation – Ecopetrol S.A. – slide 30
    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 80…
  31. Investor Presentation – Ecopetrol S.A. – slide 31
    Refining Modernization to Improve Profitability (Contd) Feedstock: Increase processing of heavy Output : Maximize Gasoline and Mid Dists. crudes reduces the cost production to increase revenues 80 mbd 165 mbd 80 mbd 165 mbd Reficar…
  32. Investor Presentation – Ecopetrol S.A. – slide 32
    Financials
  33. Investor Presentation – Ecopetrol S.A. – slide 33
    Sales Growth Driven by Exports Total Sales (1) Destination of Crude Oil Exports mboed mboed (% of total) Sales Growth: 1.9x US / barrel 99.7 99.1 102.6 98.5 96.7 (3) Other 448 72.0 U.S. 63.0 61.8 857 881 923 908 733 Asia 650…
  34. Investor Presentation – Ecopetrol S.A. – slide 34
    Income Statement: Ecopetrol Consolidated (1) US bn (2) Source: Ecopetrol (1) Starting the second quarter of 2013 Ecopetrol adjusted the EBITDA calculation in order to comply with guidelines in SEC Regulation G. Calculation is as…
  35. Investor Presentation – Ecopetrol S.A. – slide 35
    Cash Flow: Ecopetrol Consolidated US bn (1) 2008 2009 2010 2011 2012 2013 LTM2Q14 Initial Cash Balance 1.9 0.9 1.7 1.9 3.5 4.5 3.5 (+/-) Net cash from operations 5.3 4.3 7.6 12.5 11.8 9.4 9.0 (-) Capex (3.4) (6.0) (5.4) (7.9) (8.6)…
  36. Investor Presentation – Ecopetrol S.A. – slide 36
    Balance Sheet: Ecopetrol Consolidated US bn (1) Source: Ecopetrol (1) End of Year FX Rate: COP/USD 2248.60 (2008), 2043.80 (2009), 1913.98 (2010), 1942.70 (2011), 1768.23 (2012), 1929.50 (2013), 1881.19 (Jun 2014) (2) Total…
  37. Investor Presentation – Ecopetrol S.A. – slide 37
    Credit Profile Ecopetrol is currently rated Baa2 (Moodys)/BBB (S&P) /BBB (Fitch) and has received 3 upgrades since 2007 Total Debt / EBITDA Total Debt / Total Capitalization Sources of Funding (1) Local Other 1.0x 27.4%…
  38. Investor Presentation – Ecopetrol S.A. – slide 38
    Primary equity offerings and shareholders Primary Equity Offerings of Ecopetrol Ecopetrols market float (BVC, NYSE and TSX) (June 30/2014) US 2.8 bn Foreign inv. and ADRs 10.1% 20.0% Retail inv. 1.6% Other US 3.6% 1.3 bn…
  39. Investor Presentation – Ecopetrol S.A. – slide 39
    Dividends Dividends per share (COP) and payout ratio Extraordinary Dividend Ordinary Dividend Payout Ratio 300 291 37 36 260 225 33 105 145 115 91 263 255 227 145 115 115 91 2008 2009 2010 2011 2012 2013 2014…
  40. Investor Presentation – Ecopetrol S.A. – slide 40
    2014 Capex Capex (USmn) Breakdown of Capex 3% EC's projects 6,463 13% Production Exploration EC's inv. in subsidiaries 1,908 US10.6 20% 48% billion Refining Transport 8,371 Total Capex EC 17% Other Subsidiaries*…
  41. Investor Presentation – Ecopetrol S.A. – slide 41
    Investor Relations Phone + 571 234 5190 Email investorsecopetrol.com.co Website www.ecopetrol.com.co 42
  42. Investor Presentation – Ecopetrol S.A. – slide 42
    Appendix
  43. Investor Presentation – Ecopetrol S.A. – slide 43
    Financial Obligations: Ecopetrol S.A. (1) Issued / Outstanding: COP1.84 tn (May 2013) / COP1.84 tn 2013 Local 1 Syndicated Loan Maturity: 12 years (including 3-year grace period) Interest rate: DTF + 2.5% anticipated quarterly rate…
  44. Investor Presentation – Ecopetrol S.A. – slide 44
    Financial Obligations: Subsidiaries Issued: COP800 bn (May 2010) Issued: COP500 bn (Oct 2009) Local Outstanding: COP640 bn Outstanding: COP300 bn ECs Share 65.00% Commercial Maturity: 7 years (including 2-year grace period)…
  45. Investor Presentation – Ecopetrol S.A. – slide 45
    Income Statement: Ecopetrol S.A. (1) US bn (2) 2008 2009 2010 2011 2012 2013 2Q14 LTM Total Revenues 16.6 12.9 19.3 30.6 33.1 33.4 32.7 Gross Income 7.5 4.8 8.1 14.5 14.3 12.9 11.9 Operating Income 6.5 3.8 7.0 13.2 12.7 10.5 9.5…
  46. Investor Presentation – Ecopetrol S.A. – slide 46
    Balance Sheet: Ecopetrol S.A. US bn (1) Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Jun 14 Total Assets 23.0 26.0 34.0 43.9 56.9 59.1 62.5 Total Debt (2) 2.3 2.7 3.5 3.2 3.1 6.4 8.5 Net Debt (0.2) 1.5 2.6 0.9 0.1 4.4 6.4 Total…
  47. Investor Presentation – Ecopetrol S.A. – slide 47
    Income Statement: Ecopetrol S.A.(1) COP bn 2008 2009 2010 2011 2012 2013 2Q14 LTM Total Revenues 32,749.3 27,674.0 36,661.2 56,492.3 59,524.6 62,514.3 63,138.1 Gross Income 14,694.6 10,243.4 15,422.6 26,704.6 25,706.8 24,078.8…
  48. Investor Presentation – Ecopetrol S.A. – slide 48
    Balance Sheet: Ecopetrol S.A. COP bn Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Jun 14 Total Assets 51,626.2 53,092.4 65,126.0 85,251.2 100,648.0 114,041.2 117,543.9 Total Debt (1) 5,215.8 5,421.5 6,614.2 6,171.6 5,475.6 12,320.3…
  49. Investor Presentation – Ecopetrol S.A. – slide 49
    Income Statement: Ecopetrol Consolidated COP bn 2008 2009 2010 2011 2012 2013 2Q14 LTM Total Revenues 33,896.7 30,404.4 41,968.3 65,967.5 68,852.0 70,428.7 72,098.6 Gross Income 14,812.2 10,498.3 16,009.3 29,262.9 28,316.5 27,874.4…
  50. Investor Presentation – Ecopetrol S.A. – slide 50
    Balance Sheet: Ecopetrol Consolidated COP bn Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Jun 14 Total Assets 53,702.5 55,559.5 68,769.4 92,277.4 113,879.6 132,428.0 137,130.8 Total Debt 5,916.7 6,151.4 8,912.9 8,801.5 13,705.9 22,198.6…
  51. Investor Presentation – Ecopetrol S.A. – slide 51
    Sep ENERGY FOR THE FUTURE Ecopetrol S.A. All rights reserved. The re production of this presentation is forbidden without the written authorization of Ecopetrol S.A.

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