Ecopetrol S.A.

What they do

Ecopetrol operates upstream exploration and production in Colombia and Brazil, with offshore projects in the Caribbean. It also runs refining operations in Colombia and holds infrastructure concessions for energy and road projects in Peru, Bolivia, Chile, and other countries. The company's portfolio includes crude oil, natural gas, and refined products.

Revenue drivers

• Upstream oil and gas production — Core revenue from crude oil and natural gas sales, primarily from Colombian fields and exploration blocks in Brazil and offshore North Caribe, with working interests ranging from 0.30 to 1.00.
• Refining and petrochemicals — Refining activities, notably at the Barrancabermeja refinery, convert crude into fuels and petrochemicals, contributing to revenue across domestic and export markets.
• Energy and infrastructure concessions — Through subsidiaries like ISA and others, Ecopetrol earns revenue from electricity power concessions in Peru, Bolivia, and Colombia, and road concessions in Chile and Panama.

Recent performance

For fiscal year 2025, the filing reflects a total asset figure that includes property, plant, and equipment with useful lives extending to 2056, and goodwill recognized under IFRS. Specific revenue or profit figures are not provided in the excerpts, but the company's 20-F was filed on 2026-04-30, indicating reporting for the year ended December 31, 2025. The company's asset base includes significant long-term concessions and exploration contracts.

Strategy

Ecopetrol's strategy involves expanding exploration in Colombia and Brazil, with new contracts signed in 2025 and 2024. The company is also advancing offshore projects in the North Caribe region, which includes both exploration and production phases. Investments are directed toward maintaining and extending the useful life of existing assets, as evidenced by the range of depreciation periods up to 2056. Additionally, the company is managing risk through commodity price hedges, including Brent call options and collar contracts, to stabilize cash flows.

Risks

• Commodity price volatility — Revenue is sensitive to Brent crude oil prices, and the company uses derivatives like puts and collars to mitigate but not eliminate price risk.
• Regulatory and tax changes — Ecopetrol's impairment testing considers varying tax surcharge rates (0%, 5%, 10%, 15%), exposing it to potential changes in Colombian tax law that could affect earnings and project economics.
• Exploration and production risk — Exploration projects in Brazil and offshore Colombia carry geological and operational risks, with uncertain reserve replacement and development costs.
• Concession contract renewals — Many infrastructure concessions, such as those in Peru and Chile, have fixed-term contracts expiring between 2025 and 2041, posing renewal and renegotiation risks.

Outlook

Management's outlook focuses on executing exploration and production projects in Colombia and Brazil, with several new contracts signed through 2025. The company is also investing in long-term infrastructure assets, including concessions with lives extending to 2056, indicating a commitment to stable, long-duration cash flows. Hedging strategies suggest a proactive approach to managing oil price uncertainty. However, no explicit forward-looking guidance was provided in the excerpts.