Ecopetrol S.A.

Good morning. My name is Hilda and I'll be your operator today. Welcome to Ecopetrol's Group Second Investor Day. Today we will discuss the financial and operational results for the second quarter of 2020 and the 2020 and 2022 business plan update. All lines have been muted. There will be a Q&A session at the end of the presentation. Before we begin, it is important to mention that the comments in this call by Ecopetrol's senior management include projections of the company's future performance. These projections do not constitute any commitment as to future results, nor do they take into account risks or uncertainties that could materialize. As a result, Ecopetrol assumes no responsibility in the event that future results are different from the projections shared in this conference call. The call will be led by Mr. Felipe Bayón, CEO of Ecopetrol, Alberto Consuegra, COO, and Jaime Caballero, CFO. Thank you for your attention. Mr. Bayón, you may begin your conference.

Good morning, everyone, and thank you for joining us during the second Ecopetrol Investor Days in 2020, where we will discuss operating and financial results for the second quarter of the year and the 2020-2022 business plan update. On behalf of Ecopetrol, we hope you and your families are keeping safe during this very difficult time. We reiterate our gratitude for your participation in this conference call and your permanent support in other events hosted by the company, especially under the current circumstances. First of all, I would like to highlight that the life and well-being of our employees remain as our main priority to cope with the current challenges caused by this pandemic. Currently, about 80% of our employees continue to work remotely thanks to our digital transformation. In order to ensure the wellbeing of our employees and their families, we have decided to maintain the remote working scheme for the rest of 2020 for those employees whose tasks allow it. For 2021, we will continue to assess a progressive and safe return of these employees to the workplace. Since March, as part of our contingency plans, We adjusted our operations by reducing our drilling and projects work runs in Colombia from some 300 during the first quarter of the year to 50 work runs in April. By the end of June, thanks to the progressive increase in activity levels, some 200 work runs were active. Activity will continue to increase as we confirm favorably and save conditions to operate. As part of our commitment with the communities where we operate, we have already announced 88 billion pesos in social investments through our social investment program named Apoyo País for COVID-19 Emergency. This program is mainly focused on the delivery of food kits, biosafety elements, medical equipment, strengthening the health system in the country, support to technological initiatives, and solidarity with those families that most need it in 21 departments where we operate. This has been possible thanks to strategic alliances with different entities. Please let's move on to the next slide to discuss market conditions. In line with the guidance we provided our previous earnings conference call, the second quarter has been, at this time, the most challenging period of the current crisis, with a reduction of 38% in Brent prices as compared to 2019 year end. In April, prices reached their lowest level, decreasing 71%. Local demand of our main products, such as gasoline, diesel, and jet fuel, had a steep drop mainly during April and May. Since the month of June, we have seen a gradual recovery related to the easing of lockdown restrictions. The crude oil basket reported a significant decline during the first semester, reaching $29.8 per barrel compared to $59.8 per barrel in the same period of 2019. Despite the unprecedented contraction in demand, our commercial strategies successfully positioned our goods in the market, and we were able to protect all the production that was profitable. Let's move on to the next slide for a summary of our second quarter results. Despite the gradual improvement in oil prices and local demand for products since May, our operating and financial results were strongly impacted in line with the negative performance of the global economy and the industry. During the second quarter, Ecopetrol Group's production was 677,000 barrels of oil equivalent per day in the high end of the range announced in the first quarter. This lower production combined with a negative impact of oil prices resulted in a 54% decrease in revenues in comparison to the same quarter of 2019. Despite the exceptional environmental conditions, Ecopetrol Group reached an EBITDA of 2 trillion pesos and a net income of 25 billion pesos during this quarter. I now give the floor to Alberto Consuegra, who will provide further details of our operational results for the semester.

Thanks, Felipe. On exploration, we completed the drilling of seven wells during the first half of the year, highlighting the successful completion of the Gato-Domato 4 well. Hochul announced the discovery of gas in the Merecumbe One well in the Colombian Department of Atlantic in July. Additionally, I would like to mention the official approval granted on June 12 by the Brazilian Ministry of Mines and the National Petroleum Agency to Ecopetrol's 30% interest in the Gato Domato discovery. On production, Despite volatility in the price of crude and the impact of the pandemic and public order events, we reached 706,000 barrels of oil equivalent per day during the first half of the year. Drilling campaigns were impacted so that we completed 148 wells during the first half of the year in contrast to the 311 drilled and completed in the first semester of 2019. The key milestones were the closing of the acquisition by Hochul of 43% of the offshore gas assets in La Guajira, the entry into production of 18 wells in May in the Permian Basin, as well as the upturn of 11,000 barrels of oil equivalent per day in June that were closed due to sustainability criteria in our Colombian fields. Our current production remains profitable at less than $30 per barrel. Gas remains as a strategic pillar in our energy transition strategy as well as in our production portfolio. During the quarter, we provided financial reliefs to end users in the amount of 168 billion pesos. Additionally, we rapidly reacted to lower demand and the country's energy requirements in order to supply the thermal power sector. With regards to the midstream segment, the transport of crude and refined products decreased, reflecting the effect of lower local production. Midstream companies offered commercial reliefs, such as discounts and financing of the transport tariffs, up to six months, and, in certain cases, in volume requirements, on the ship or pay contracts were made more flexible. In the downstream segment, results were affected by the contraction of both domestic and international demand for their main products. Our refineries have been adapting their operational schemes, implementing measures such as adjustments in throughputs and maintenance rescheduling in order to guarantee the integrity and reliability of our operations. Our refineries reached a joint throughput of 255,000 barrels per day during the first quarter and 300,000 barrels per day during the first half of the year, with a growing trend since April's operating minimums. Gross refining margin reached $6.2 per barrel during the quarter. However, we have seen a gradual recovery in demand and margins since mid-May. On petrochemical side, Sentia continues to deliver excellent financial and operational performance. In addition, due to the partnership with companies, both from the group and the national plastic industry, it has led initiatives to provide protective equipment during the pandemic. These results were feasible thanks to a proactive commercial strategy that enabled production above the minimum operating vital of our refiners through agreements with new clients and anticipated sales of crude and product surpluses within international markets. Let's continue to the next slide to discuss our progress in terms of efficiencies. We have reacted appropriately to reduce costs and expenses to confront this new environment through the capture of significant savings and activity with barrels. The results of these measures were reflected during the second quarter with May and June the months with the highest deficiencies. Lifting cost was $7.1 per barrel during the first half of the year, with efforts focused on tariff renegotiation, infrastructure optimization, energy matrix, and exchange rate impacts. The cost per transported barrel was $3 during the first half of the year, slightly lower when compared to the same period of 2019, mainly due to the optimization of contracts, prioritization of activities, and exchange rate effect. The average purchase tariff of non-regulated energy portfolio was 29% below market price as a result of the incorporation of bilateral contracts and self-generation optimization during the first half of the year. I now give the floor to Jaime Caballero, who will share the group's main financial results.