Ecopetrol Q1 2026 Earnings Call - Refining Margins Surge 60% as Geopolitical Volatility Tests Logistics

Juan Carlos Hurtado Parra, Acting President and Chief Executive Officer, Ecopetrol Group: Welcome to the first quarter 2026 earnings call. It’s an honor to address you as acting president of the Ecopetrol Group. 2026 began in a volatile international environment marked by an intensification of geopolitical tensions, with direct impacts on energy markets and global logistics. Within this context, our operational capabilities were key to sustaining the group’s performance. Let me highlight the main milestones of the quarter. In exploration, we underscore the successful result of the Copoazú-1 well in the Caribbean offshore. This confirms new gas accumulations independently from Sirius and expands the block’s potential, contributing to the country’s energy security. In production, we reached 725,000 barrels of oil equivalent per day. The strength of domestic crude production at 527,000 barrels per day, partially offset lower gas production, a structural challenge that we continue to address.

In addition, we advanced with the optimization of our upstream portfolio through agreements with Parex and Gran Tierra in the Magdalena Medio region. In transportation, we moved 1,122,000 barrels per day, close to a 2% increase compared to the same period of the prior year, driven by integrated management aimed at maximizing infrastructure utilization. The reversal of the Corredores Ayacucho system was key to incorporating crude oil and mitigating lower domestic production. In refining, we achieved a consolidated throughput of 417,000 barrels per day, a 5% increase versus the first quarter of 2025. The Barrancabermeja Refinery reached one of the highest throughput levels in its history, while Cartagena maintained solid performance despite operational events in March.

As a result, the refining margin reached $17.3 per barrel, a 60% increase versus the first quarter 2025, reflecting favorable market conditions and consistent operational execution. Consistent with our diversification and international expansion strategy, we advanced since the agreement to acquire majority stake in Brava Energia in Brazil. Upon closing, this investment is expected to strengthen our presence in a strategic geography, add reserves, and incorporate high-quality assets to our portfolio. On the commercial front, we managed increases in freight rates by implementing strategies to strengthen logistics reliability and supply continuity, including the contracting of time-chartered vessels for products and crude. That aims to secure transportation capacity in a volatile environment, improve supply timing, and reduce logistics costs.

In gas, we advanced in structuring import and regasification solutions in the Caribbean, leveraging infrastructure for the receipt, storage, and delivery between 126 and 370 million cubic feet per day of imported natural gas into the national transportation system in 2026. Finally, ISA received the award of new transmission projects in Brazil, while in Colombia, we advanced power transmission expansion initiatives aligned with the country’s needs. Please move now to financial results. During the first quarter of 2026, Ecopetrol Group recorded revenues of COP 28.6 trillion, an EBITDA of COP 13.5 trillion, and a net income of COP 2.9 trillion. We highlight the expansion of the EBITDA margin to 47%, driven by disciplined cost execution and a stronger contribution from the refining business. The price environment showed mixed dynamics. Brent strengthened toward the end of the quarter.

However, the appreciation of the Colombian peso put pressure on revenues, while differentials widened versus the previous year. Additionally, higher logistics costs, particularly freight, generated significant pressures across the value chain. Amid this environment, the group captured value supported by a robust commercial strategy, market diversification, and positioning of our crude in international markets. On the corporate front, the general shareholders’ meeting approved the merger with Parque Solar Portón del Sol, a relevant milestone in our energy transition and operational efficiency strategy. It also reaffirms our commitment to shareholder value creation, reflected in the dividends paid at the end of April. The investment plan is progressing as planned, with approximately 23% executed to date, including key projects in sustainability and ESG initiatives.

We closed the quarter with a balance of COP 4.2 trillion in the Fuel Price Stabilization Fund in a context of higher international fuel prices and the accumulated balance from 2025. We highlight the filing of the 2025 Form 20-F with the U.S. Securities and Exchange Commission, reflecting our commitment to transparency and rigorous market disclosure. Let’s move to the next slide. Consistent with our growth and sustainability strategy, we are progressing in the potential acquisition of a stake in Brava Energia S.A. in Brazil. Brazil is a geography where the Ecopetrol Group has operated for over 20 years. Through this transaction, we would expand our position, diversifying our asset base, and strengthening our international portfolio. We expect to implement a relationship model with Brava that enables operational and financial synergies, including human capital, offshore and onshore expertise, enhanced recovery and onshore assets, and others.

The transaction contemplates a private acquisition of approximately 26% of the company’s equity and the launch of a volunteered tender offer with the objective of reaching a controlling stake of up to 51%. Based on 2025 figures, this represents a company with 459 million barrels of oil equivalent in 1P reserves, production of approximately 81,000 barrels per day, and an EBITDA of around $806 million, positioning it as a relevant asset in the region. This transaction would allow us to increase our reserves and strengthen group production. Closing remains subject to the fulfillment of precedent conditions, particularly the success of the tender offer and the corresponding regulatory approvals. Let’s move to the next slide. In line with our strategy, the agreements with Parex and Gran Tierra allows us to accelerate the development of mature assets by incorporating strategic partners that bring capital and capabilities.

With Parex, we are enabling an investment of about $250 million, fully funded by the partner to execute activities, with a potential to add approximately 94 million barrels of oil equivalent gross, while extending the economic life of the Casabe and Llanito assets. With Gran Tierra, we are progressing in Tisquirama and San Roque with an investment of about $92 million, also fully funded by the partner, to execute activities with the potential to add about 30 million barrels of oil equivalent gross, strengthening recovery and the sustainability of these fields. While in the short term we share production, we do so with the clear objective on enabling higher production, additional reserves, and lower unit costs in the medium term, unlocking greater value from our assets. Now I hand over to Carlos Ávila to provide further detail on hydrocarbon segment results. Thank you, Juan Carlos.

Carlos Ávila, Executive Vice-President, Hydrocarbon Segment, Ecopetrol Group: On the exploration front, we continue to strengthen a high-potential portfolio in Colombia. At the close of the first quarter, we drilled 5 wells, achieving our first success with the Copoazú-1 well, located at the GUA-OFF-0 block, about 9 kilometers from the Sirius-1 and Sirius-2 wells. This well confirmed the presence of gas in 2 accumulations separate from Sirius, expanding the block’s discovered potential. Initial testing is currently underway, with the aim of obtaining the first estimate of its potential by year’s end. In the same block, we’re making progress with planning an exploratory wells on BL-1, which drilling is expected in the second half of the year. Regarding Sirius, we are moving forward with the prior consultation process in coordination with the National Prior Consultation Authority, with the goal of completing this phase by year’s end and filing the environmental impact assessment the first quarter of 2027.

Let’s move on to the next slide, please. Let’s talk about production. On the production front, in the 1st quarter, production reached 725,000 barrels of oil equivalent per day, reflecting the following dynamics. First, domestic oil production increased by 6,000 barrels per day compared to the 4th quarter of 2025, driven by growth at CPO-09, the commissioning of new wells in Capachos, the strong performance in the Castilla field, and the addition of a development well in Putumayo under our agreement with Parex. Second, gas sales decreased by around 5,000 barrels of oil equivalent per day, mainly in line with seasonal sales patterns. Third, international production declined by approximately 5,000 barrels of oil equivalent per day associated with the investment plan that we have in Permian and scheduled maintenance at Ecopetrol America.

It should be noted that we are maintaining our full year production target between 730,000 and 740,000 barrels of oil equivalent per day. We have the several key operational enablers. To continue our drilling campaign, focusing on CPO-09 and Caño Sur, advance the in-situ combustion pilot in Chichimene as part of our enhanced oil recovery plan, expand processing facilities in Rubiales, and ensure that Permian’s contribution to the plan by adding 4,000 barrels of oil equivalent per day. In addition, to further enhance our asset in Colombia and optimize capital allocation, we signed 2 farm-in agreements, 1 with Gran Tierra in the Tisquirama, San Roque fields, and another with Parex in the Casabe and Llanito assets, both located in the Middle Magdalena region.

Our plans also incorporate external challenges that may affect production during the remainder of the year, such as El Niño weather phenomenon. Finally, the financial performance of the hydrocarbon segment reflects improved profitability with the EBITDA per barrel reaching $27 and a margin of 40%. This represents a material improvement compared to the previous quarter’s trend, despite a lower realized basket price versus the first quarter of 2025 driven by heavier crude market conditions. This performance is supported by disciplined capital allocation and efficient cost management. Let’s move on to the next slide, please. Let’s talk about refining and transportation. On the refining front, strong operational execution and timely commercial decisions allowed us to capture better international market crack spreads.

During the quarter, we highlight first, consolidated throughput of 417,000 barrels per day, 5% higher compared to the first quarter of 2025, which was less. Second, we improved our valuable product yield by 2 percentage points, reaching 73% during the quarter. Third, we optimized our crude slate by prioritizing higher-value barrels, enhancing overall refinery economics. Finally, refining gross margin increased 60% year-over-year to $17.3 per barrel. As a result, the segment delivered a strong performance with EBITDA reaching COP 1.9 trillion, nearly 2.9 times higher than the first quarter in 2025. This was supported by operational and energy efficiencies that allowed us to maintain refining cash costs under control and strengthen competitiveness in the current pricing environment.

Focusing on the transportation segment, it reached 1.1 million barrels per day transported, a 3% increase compared to the same period of the previous year. This improvement was due to the capture of third-party volumes of about 27,000 barrels per day, as well as the implementation of the bidirectional flow of the Corredores Ayacucho pipeline, enabling the import of 18,000 barrels per day of crude into the Barrancabermeja Refinery. Lastly, we began the Nafta Cusiana project with shipments of about 42,600 barrels per month from Monterrey, replacing land transportation, optimizing production dilution costs, and generating revenue of about $3.15 per barrel. On a financial perspective, EBITDA improved sequentially versus the previous quarter, while declining year-over-year, mainly due to external factors such as FX. Let’s move to the next slide.

During the first quarter of 2026, our efficiency program continued to be a key enabler for cost optimization and control. The idea is to help mitigate pressures from inflation and FX. hydrocarbon segment EBITDA reached COP 11.2 trillion, COP 3.4 trillion higher than in the fourth quarter of 2025, and COP 0.4 trillion versus the first quarter of 2025. That is 44.4% growth respectively, confirming a strong sequential recovery. In terms of unit costs we have, the total unit costs in the hydrocarbon segment was at COP 166,601 per barrel, a reduction of 9% quarter-over-quarter and 13% year-over-year.

Lifting costs in COP decreased to COP 45,916 per barrel, down 4% versus the fourth quarter of 2025, and 11% versus the first quarter of 2025. In USD terms, lifting costs closed at $12.2 per barrel, and excluding FX, we would have reached $10.8 per barrel. This performance reflects a clear improvement in cost trends in local currency and demonstrates progress in operational discipline and cost management driven by contract optimization, maintenance efficiencies, digital solutions and infrastructure, and energy efficiency and flexibility. While FX dynamics continue to exert pressure on dollar-denominated metrics, you can say that the company’s commitment to structural key cost indicators. Now Bayron will cover the main milestones in our energy transition segment.

Bayron Triana, Executive Vice-President of Energy Transition, Ecopetrol Group: In 2026, at Ecopetrol, we remain committed to contributing to the country’s natural gas supply in the short and long term. To this end, regarding current contracts, we reached a volume of 296 GBTUDs in the first quarter, equivalent to 52% of the market’s contract and volume share, with Ecopetrol being the one player to have offered firm long-term gas supplies. Similarly, our operational efforts enabled us to reduce our own consumption by nearly 8% and increase energy substitution by 10% compared to the same period in 2025. In addition, with the aim of increasing our response to demand, in the first quarter, we offered monthly volumes ranging from 23-72 GBTUDs, including both firm and interruptible gas, and we project to market between 18 and 67 GBTUDs monthly from June to November 2026.

As to the market of gas imported from the Caribbean, in February and March 2026, we offered volumes from 226 to 370 GBTUDs in the market for up to 7 years. Turning to LPG, we offered the market 30,500 tons a month for the period from March to August 2026, up 2,500 tons a month compared to the previous marketing period. Next slide, please. At Ecopetrol, we are strengthening the supply and diversification of natural gas through regasification import alternatives in Colombian Pacific and the Caribbean regions. In the Pacific, we launched an open and competitive tender for the procurement of liquefied natural gas under the delivery ex-ship modality for Buenaventura.

The volumes to be contracted will be allocated to the receiving, storage, and regasification infrastructure with a capacity of 60 GBTUDs to meet the natural gas sales commitments in Buga. We estimate that contract signing and the first LNG cargo will take place during the second semester of 2026. In the Colombian Caribbean, we signed the comprehensive logistics and regasification services contract, which will enable the development of the infrastructure required for the receipt, storage, and delivery of between 126 and 307 giga GBTUDs of imported natural gas into the national transportation system. This aligns with Puerto Huelles key since it shortens time-to-time operation mitigates execution risks. On a complementary basis, we continue to explore alternatives that optimize the group’s assets and allow the delivery of natural gas from both imported sources and offshore production into the interior of the country.

Next slide, please. During the first quarter of 2026, the Ecopetrol Group’s energy demand reached 2,185 gigawatts hour, equivalent to 10.9% of Colombia’s total demand, growing up to 6% versus comparable quarters of 2025. Therefore, we continue to strengthen the Ecopetrol Group’s energy coverage focused on cost efficiency and on mitigating spot market price volatility, particularly given the risk of a potential El Niño phenomenon. During the same period, 88% of demand was met through the combination of conventional and renewable self-generation, as well as energy contracts in the wholesale energy market. Furthermore, the demand met through this market benefited from tariffs that were on average 14% and 3% lower than the benchmark rates in the regulated and unregulated markets, respectively.

This has also resulted in tariff reductions for existing contracts and efficiencies of more than COP 4 billion. In parallel, we continue to consolidate our renewable energy portfolio for self-supply. In 2026, we expect to add 347 MW of capacity for a total of 1,298 MW, of which 432 will be in operation by year-end, pointed to sustained planned growth and competitive low-emission energy. During the first quarter of 2026, the combined operation of the group’s renewable generation assets delivered savings of close to COP 2 billion through tariff reductions. The general shareholders’ meeting approved the merger by absorption of the subsidiary Parque Solar Portón del Sol into Ecopetrol, with the objective to materialize and maximize the tax benefits under Law 1715.

Besides, the construction activities at the Quifa Solar Farm were successfully completed with a total capacity of 50 MWp, and we have begun energization of the asset. In addition, we signed the trust agreement with ISA, which sets the framework for the execution of JK One and JK Two wind projects in the Jemeiwaa Ka’I cluster in La Guajira, with a combined capacity of 259 megawatts. Likewise, in the Windpeshi project, the contract was awarded for the construction of the transmission line. In parallel, we have fostered ongoing dialogue with local communities, reaffirming our commitment to a responsible and socially responsible sustainable energy transition. Finally, at the end of the first quarter, we reached energy optimization of 0.7 PJ, with savings of close to COP 24 billion across the group’s operations, which also reduces our spot market exposure and lowers gas demand.

Camilo Barco, Chief Financial Officer (CFO), Ecopetrol Group: Camilo Arco will cover the financial highlights of the quarter. The first quarter 2026 results reflect our focus on three priorities: financial and operational discipline, liquidity protection, and rigorous capital allocation. In this context, the Ecopetrol Group generated a EBITDA of COP 13.5 trillion with a standout performance from the main downstream segment, which maintained a sustained trend of increased contribution to the Group’s EBITDA. In particular, its share rose from 4% in the first quarter of 2025 to 14% in the same period of 2026, reflecting the capture of more favorable conditions in refined product markets. In terms of profitability, we achieved an EBITDA margin of 47%, a level comparable to some of the best historical quarters of the Group.

This performance was driven by greater operational flexibility, which allowed us to capitalize on higher Brent prices and improved product crack spreads, therefore offsetting lower crude differentials, inflationary cost pressures, and a less favorable exchange rate. From the leverage standpoint, financial discipline was reflected in the gross debt-to-EBITDA ratio, which remained at 2.3 times at the group level and 1.6 times when excluding ISA. In addition, interest coverage improved versus the previous quarter, supported by operating performance and efficiencies achieved through recent liability management transactions. In term of investments, we closed the quarter with organic CapEx of $1.4 billion in line with the plan. Of the total, 73% was allocated to growth opportunities across the 3 business lines and the remaining 27% to maintenance and reliability.

By business line, about 64% was allocated to hydrocarbons, followed by transmission and roads with 28%, and energy transition businesses with 8%. The full-year investment range remains in line with the investment plan between $5.4 billion and $6.7 billion, with execution trending toward the upper end of the range, driven by strict capital discipline and operational flexibility. The company is currently working with the base case scenario of $83 per barrel Brent, which supports execution toward the high end of the range, as I said. In terms of efficiencies, we achieved optimizations about COP 702 billion, reaffirming our commitment to sustainability contributions across EBITDA, CapEx, and working capital. We received updates to our global credit ratings from rating agencies.

We received updates to our global credit ratings from rating agencies. Standard & Poor’s adjusted the rating in line with the sovereign, while Moody’s mentioned a lower expectation of government support. It is worth noting that both agencies affirmed the standalone credit profile, highlighting the group’s financial strength, strategic relevance, and diversification. Let’s look at the next slide. At the end of the first quarter of 2026, we recorded a net income of COP 2.9 trillion, reflecting a strong recovery versus previous quarters and a marginal decrease of COP 0.2 trillion compared to the first quarter of 2025, mainly explained by 3 factors. First, market factors contributed a net positive effect of about COP 700 billion, driven by a more favorable environment compared to the prior year.

The increase in Brent prices from $75 to $78 per barrel and improved refined product spreads strengthened revenues and inventory valuation, largely offsetting a lower average exchange rate, weaker crude differentials, and inflationary pressures on costs and expenses. Second, tax-related factors that impacted results by about COP 600 billion. Half of this impact is explained by the update of the income tax surcharge, increasing from 0 to 10% in line with Brent price projections, and the other half by the extraordinary wealth tax corresponding to the recognition of one quarter of the total tax amount. It is worth noting that the wealth tax will have an impact of about COP 1.2 trillion on full-year results and will be recognized proportionally each quarter in accordance with the current accounting policy and applicable regulations.

Third, operational and financial factors had a net impact of COP 300 billion, driven by two key elements. On the one hand, the execution of a structured liquidity transaction related to the management of VAT receivables, which generated a financial cost of about COP 400 billion and improved the company’s working capital. On the other hand, OpEx control contributed a positive effect of COP 100 billion, supported by disciplined and consistent efficiency management. Let’s move to the next slide, please. We closed the quarter with a cash balance of COP 14 trillion, maintaining a solid position supported by healthy operating cash flow and efficient working capital management. Operating cash flow reached COP 7.2 trillion, driven by higher prices, the strong performance of the refining segment, and active management of tax receivables.

Cash flow from investing activities represented an outflow of COP 3 trillion, mainly associated with CapEx at Ecopetrol S.A., Brazil, ISA, and Permian. As a result, free cash flow was positive at COP 4 trillion. Regarding dividends, financing, and other activities, the quarter recorded a cash outflow of COP 2.9 trillion. Of this total, COP 0.5 trillion corresponded to dividends paid to non-controlling interests in subsidiaries, while COP 2.4 trillion was primarily allocated to debt service. Additionally, on April thirtieth, dividends were paid to all shareholders for approximately COP 4.4 trillion, with the second installment corresponding to the majority shareholder scheduled for payment in June. The ending cash balance consisted of COP 12.9 trillion in cash and cash equivalents and COP 1.1 trillion in investment portfolios, with a share of 59% in US dollars and 41% in Colombian pesos.

Regarding the FEPC, the account receivable closed at COP 4.2 trillion, reflecting an accumulation of COP 1.2 trillion during the quarter, plus the 2025 balance. A payment agreement was executed with the government for about COP 1.6 trillion, corresponding to the first quarter of 2025. This will be paid in short-term test bonds in December of this year with interest accrued until payment. On the tax front, group companies fulfilled their obligation to pay the wealth tax amounting to COP 1.2 trillion. About half was paid in cash in April. The remainder was offset against tax receivable during the first days of May. Regarding the ongoing process with DIAN related to VAT on fuel imports for the 2022-2024 period remained in the corresponding legal stage with no accounting provisions recorded.

During the quarter, we strengthened our financial position through active liquidity management. This included the monetization of tax receivables for approximately COP 1.8 trillion, tax offsets of COP 1.9 trillion, and intragroup cash mobilization of approximately $521 million. In terms of financing, we highlight the $1.25 billion liability management transaction, which generates savings of approximately 90 basis points in the total cost of debt. In line with this, we maintain a controlled maturity profile and do not expect to incur incremental debt to finance the organic capital investment plan at Ecopetrol S.A. Now let’s hand over to the CEO, who will present conclusions. In summary, the quarter’s results reflect strong execution capabilities in a volatile geopolitical environment. We were able to sustain and optimize value generation, offsetting external pressures through the efficiency and flexibility of our integrated model.

Juan Carlos Hurtado Parra, Acting President and Chief Executive Officer, Ecopetrol Group: Looking ahead, our priorities are clear: deepen structural efficiencies, grow through value accretive opportunities, strengthen the core business, and accelerate the development of gas as a pillar of energy transition. We are evolving to a more diversified model, focused on stable results and disciplined capital allocation. Thank you. We will now open the floor for the Q&A session.

Moderator, Earnings Call Moderator, Ecopetrol Group: Muchas gracias. Comenzaremos ahora la sesión de preguntas y respuestas. Les recordamos a todos los analistas seleccionar.

Juan Carlos Hurtado Parra, Acting President and Chief Executive Officer, Ecopetrol Group: All the analysts to choose in the interpretation globe the language you will be asking the question, otherwise we cannot hear you. Daniel Guardiola from BTG is online with a question. Please go ahead.

Daniel Guardiola, Analyst, BTG Pactual: Buenos días y gracias.

Good morning, thank you for your presentation. I’d like to talk about two things. First, about the acquisition of Brava, I’d like to know what price did you purchase the 26% that you already agreed with the investors group. When do you plan to launch the OPA in the market? Is there any risk to expand this OPA for 100% of the stocks considering that you will be the new controller? If you do not reach that 25%, can you declare the OPA as deserted? That’s when it comes to the transaction of Brava.

About Brava, looking at the many reserves that Brava has re-recorded in past years, I’d like to know if you considered or do you have an estimate or adjustments for the reserves since you consolidate this with the balance of Ecopetrol, incorporating them with the methodology applied by Ecopetrol. Last, it’s about the sensitivity you expect for the remaining 9 months of the year, the sensitivity of the EBITDA and free cash flow if the dollar is above the price you have. Thank you.

Moderator, Earnings Call Moderator, Ecopetrol Group: [Foreign language]Buenos días, Daniel. Juan Carlos Hurtado Parra, Presidente Encargado. En relación a la primera pregunta que nos haces, nosotros informaremos los acuerdos que lleguemos con cada uno de los accionistas.[/Foreign language]

Juan Carlos Hurtado Parra, Acting President and Chief Executive Officer, Ecopetrol Group: When we look at the agreements we have with each of this once we close the transaction. The OPA is projected to be launched this second quarter. It will be announced.

When we have the terms agreed or according to the schedule, but the purpose is to acquire at least 51%, and if we can’t reach that percent, we will not be part of the business. When it comes to the reserves, understanding that there are major volumes today in the company, we have to keep in mind that they have a methodology that’s different to what we apply. We apply SEC and they, the IFRS. Once the transaction is closed, we can validate the volumes according to our regulation and do everything according to the volumes identified. When it comes to the CapEx guide and the gas flow, we have been making updates of prices monthly, and we’ve been adjusting and placing the resources where we find the most value within the projects. That’s what we’re seeking right now.

Camilo Barco, Chief Financial Officer (CFO), Ecopetrol Group: The Brent of the year, we’re analyzing again this and monthly, understanding that for the last 2 and a half months, we’ve been undergoing the process of high prices because of the conflict in the Middle East, the sensibility of the EBITDA cash flow. We have metrics, and let me give the microphone to Camilo Barco to talk about this. Thank you for your question, good morning, Daniel. My name is Camilo Barco, I am the CFO of Ecopetrol Group. Allow me to particularly refer to your question. Everything has to do with the guidance and the multiples that can give us at least an orientation or a guide of what we can expect this year with this new price setting in terms of CapEx, EBITDA, profitability, and possibly cash flow. I think that what’s most important has been said.

Regularly, we make a review of projections, of course, in this highly volatile and uncertain time. This is very much related to the duration of the market disruption, and it’s a hard question to answer still. We have projections that are updated, aligned with the market’s consensus. Some of the projections of agents are all kept in mind. We work with a margin that or better range between $83 and $93 per barrel for the rest of the year. Emphasizing, of course, not only the Brent prices, but also the exchange rate and the differentials of products have major differences in the indicators.

When it comes to the theoretical exercise and clarifying that this gives us a range, but still these are more approximate than anything else, we can say that $1 variation in the price of Brent has an effect on the COP and the net profit for every variation of $1 on the Brent price. On the other hand, the exchange rate, I said, is an important factor, the exogenous that has an influence on the results, and this has an effect of about COP 1.6 trillion on the EBITDA, and with the variation of COP 100 on the quote of the exchange rate. When it comes to the net profit, an effect of about COP 800 million.

Juan Carlos Hurtado Parra, Acting President and Chief Executive Officer, Ecopetrol Group: That’s like an overview of the indicator that gives us a guidance of where the results can stand for the year so far of 2026 with the Brent in a range of $83-$93 per barrel and an exchange rate between COP 3,600 and COP 4,000. Thank you so much for your answers. We are also joined by Katherine Ortiz from Davivienda Corredores. Hello to everyone. Can you hear me? Yes, we can. Thank you. I have several questions. Following the topic of the acquisition, just to confirm Daniel’s question, at least 51% means that there’s a chance of an IPO for 100%.

Katherine Ortiz, Analyst, Davivienda Corredores: Also, I’d like to ask for more information on your outlook on the metrics to leverage initially with the acquisition, and how do you expect the performance and when will you reach again levels that are more optimal for Ecopetrol and the management given to the pressure of liquidity, keeping in mind that financing would be made with a bridge short-term loan. I’d like to understand the strategy to refinance once the acquisition takes place. That’s regarding the acquisition. I have another question related to the FEPC. On the fourth quarter, we saw that FEPC generated a super profit surplus of COP 300 effect of the higher prices of oil. I would like to know monthly, how much is the accumulation of the surplus of FEPC since March in average?

I don’t know if you have the calculation of how much will the prices increase of fuels to have again at least a zero level, or to go back to the super profit we had. That’s regarding the FEPC. Lastly, I’d like to understand a bit more the context of deficit of gas. Ecopetrol has been very active, and you showed us, making agreements and leading this process to increase the gas through new regasifiers. Regarding the regasification agreement with Puerto Gualea, could you please tell us more about this business with the Ecopetrol and the commercialization process that you mentioned that took place in February and March? What percentage was contracted and commercialized, and if this was on a 7-year term?

Juan Carlos Hurtado Parra, Acting President and Chief Executive Officer, Ecopetrol Group: I’m asking this because one of the biggest concerns is that there’s a major offer now for regasification projects, and there’s a chance in the future of having new projects. And there’s a concern on the profitability and of the chance of capturing or recovering better probably the investment in these projects. I’d like to get to know more about this process of commercialization. Those are my questions. Thank you. Good morning, Katherine. Juan Carlos Hurtado Parra, CEO, Acting Chief Executive Officer. Let me begin with your second question. What do we have to date? An accumulated COP 4.2 trillion. In the past every month, billion COP debt could be generating the FEPC. We’ve been working on this, like this, to be more precise. With regards to your first question, we are going for the 51%. If we don’t reach that percentage, we’re not part of the business.

We’re not gonna ask for more than 51%. That gives you a precise answer. Camilo, could you give us a hand with the other question? Katherine, good morning. Thank you for your question. I’m going to specifically refer to the topics related to finance, the Brava transaction, and several of the finance and metrics that we use. Let me expand a bit on these metrics. When it comes to the Brava transaction, let me refer to two things. First, in terms of the debt of the EBITDA of the target firm, Brava, the metric is similar to that of Ecopetrol, between two and 2.5 times the EBITDA, clarifying that it has a robust cash position, which allows its net debt versus EBITDA is substantially lower.

Camilo Barco, Chief Financial Officer (CFO), Ecopetrol Group: This means that still using a financing, a bridge, on a short-term basis, it does not impact, but just marginally even after post-acquisition. What does this mean? We will have our indicator still at 2.2 times debt EBITDA. You mentioned before that this indicator was closer to 2.5 at the end of the last year. It’s important to keep in mind with the new price scenario and the better EBITDAs and the lower exchange rate, today we have an indicator that gives us an additional margin as that’s closer to 2.1 or 2.2 times debt EBITDA. If we add to this that a good part of the debt comes from ISA, we see the indicator of 1.6 times debt EBITDA for Grupo Ecopetrol without excluding ISA.

Bayron Triana, Executive Vice-President of Energy Transition, Ecopetrol Group: This is healthy, and it gives you an idea not only of the position of liquidity, but the capacity of debt that the group can have under these conditions. I would stop here in terms of financing, and ahead perhaps we can provide additional details. Bayron Triana is Bayron Triana of Ecopetrol’s energy transition. When it comes to the Executive Vice-President of Energy for Transition, the group has been committed to supply gas through import sources at the lowest price and as soon as possible. What the alternatives we found, the Puerto Bahía project, a project that has a value, a promise to contribute gas to the country in 2026.

We signed an agreement of logistics and integral service with Puerto Auria, in which they are in charge of making the investment, assuming all the risks of development and construction of the project, while we commercialize the molecule, and we pay them for the regasification process day by day. When it comes to the commercial process, we placed 250 gigawatts day, average day, in the next 7 years, and it has 2 phases. The first phase, the first 2 years of 167 sq ft, and the other 170. The priority in the commercialization is of the Ecopetrol Group in both processes. The process launched, we took gas to 13 agents, where we have the main distributors of the country, and they are commercializing and generators agents, and this allows us to give a better situation for this process.

Camilo Barco, Chief Financial Officer (CFO), Ecopetrol Group: Katherine, Camilo Barco, again, I was seeing that I missed something to talk about in your question about financing, so allow me to refer to the refinancing strategy. We said that firstly, the financing of the acquisition at Brava would be at, with a bridge, it’s important to say that as of now, we’re working on the takeout and on financing this on a long term. For this, we are assessing all of the alternatives possible. We constantly monitor the capital market and the conditions. Initially, we do not see yet conditions that have the level or enough attractiveness to make a decision on that matter. We are evaluating, again, different alternatives, banking and in the market. Also, for this takeout, surely we will not refinance 100% of the amount of the transaction.

Katherine Ortiz, Analyst, Davivienda Corredores: It will be a lower percentage since we are foreseeing that part of the flows used will come from reassigning CapEx and rotations of portfolio. I think that with this we have a good framework of the scenario to refinance in the next year. [Foreign language] Perfect. Thank you. Let me confirm from Puerto Bahía, of the COP 126 million be You gave the COP 126 to these three agents or? Hello, Katherine. Because of commercial and strategic topics, we cannot give you the exact value. Yes, these were assigned to the 13 agents because of the amount gas. As you said, because of the El Niño, we are even going to place more amounts when the infrastructure is built.

Bayron Triana, Executive Vice-President of Energy Transition, Ecopetrol Group: It’s the alternative 126, we see with the regasification backup trains, we can even place more gas to face the El Niño weather phenomenon. It is important to clarify that Puerto Bahía still works on trying to place more amounts, and there are scenarios in which we can place even 300 gigawatts a day. We’re working in different scenarios. We have line baseline of the 126, and most of it is commercialized and sold. Perfect. [Foreign language]. Perfect. Thank you to you all.