Ecopetrol S.A.

Good morning. My name is Camila Arjuela and I will be your operator today. Welcome to Ecopetrol's Earnings Conference call in which we will discuss the main financial and operational results for the first quarter of 2023. There will be a questions and answers session at the end of the presentation. Before we begin, it's 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 on this conference call. The call will be led by Mr. Ricardo Roa. CEO of Ecopetrol, Diana Escobar, Vice President of Sustainability Development, María Paula Camacho, Vice President of Legal Affairs and General Secretary, Jamie Baez, Vice President of Law Emissions Solution, Alberto Consuegra, COO, and Jaime Caballero, CBO. Thank you for your attention. Mr. Roa, you may begin your conference.

Good morning, everyone, and welcome to the earnings conference. It's my privilege to address you today to present the Co-Petrol Group's results for the first quarter of 2023. Before I begin with the material that we have prepared for you, I would like to express my sincere gratitude to all the members of this organization for their commitment and dedication to their daily work. Clearly, Ecopetrol employees are fully engaged and passionate about their work. It is an honor to lead such a talented and committed team. Together, we will work to secure that Ecopetrol continues to be a reference within the energy sector with operational excellence and financial performance and a global leader for the energy transition. I want to express my deep commitment to strengthen and continue Ecopetrol Group's 2040 strategy, which was announced at the beginning of last year, fostering the group's consolidation as a leading energy group in the region. Energy that Transforms answer the current challenges associated with the energy transition in which society must be balanced simultaneously. Three energy priorities, availability, accessibility in terms of cost and efficiency, and all of this in an environmentally responsible manner. For the Ecopetrol Group, this is possible through our four strategic pillars, growing with the energy transition, generation value through TESG, cutting-edge knowledge, and cooperative returns. Our 2023 plan is a key milestone for the strategy, and we are committed to effectively and efficiently implementing it to achieve our goals. The cap is between 25.3 to 29.8 trillion pesos to accelerate the path of transition and energy security. Production between 720 and 725,000 barrels of oil equivalent per day that are key for the trade balance stability and energy supply. transfer to the nation of over 40 trillion Colombian pesos in 2023. All this in addition to increase the impact of social investment and always seeking a close and open communication with society and communities with whom we work on a daily basis in our operation. Let's move on the next slide to present the main results and milestones for the first quarter of 2023. I would like to start highlighting our resilience as we move within a high-changing market environment on the price side, as well as challenging local environment and security situations at the beginning of the year. First quarter production averaged 719,000 barrels of oil, equivalent per day, and increased 27,000 barrels versus the first quarter of 2022. Growth was supported by the company's operational strength and higher production from key fields such as Caño Sur, Truviales, and Permian in Texas, United States. In the first quarter of the year, we registered revenues of $38.9 trillion, EBITDA of $17.8 trillion, and net income of $5.7 trillion. These results were a consequence of a strengthening of the Brent prices present in the Colombian pesos, given the devaluation of the currency. Operational strength in the hydrocarbon business, with higher production and refinery throw-off output, as well as growth in transported crude and refined products. Also, it is worth noting that the gas and LPG business record and a bid margin of 59% in the quarter last. We also highlight the performance of the energy transmission and tool road segment due to the new projects and the adjustment in tariff because of induction factors. On the other hand, I would like to point out that the dividend payment approved by the shareholders' general meeting of 24.4 trillion pesos, equivalent to 593 pesos per share, the highest in the company's history. This value will represent a dividend yield of 25% and implies the dividend payout of 73% of the 2022 net income. We also highlight our target to reduce methane emissions by 45% by 2025 and 55% by 2030, compared to the 2019 baseline in the direct operations of the production segment through the detection, measurement, and elimination of fugitive emissions and the reduction of venting in tanks and wells. Let's please move to the next slide. The global economic environment for 2023 is challenging, with low growth expectations and inflationary pressures that limit the possibility of a change in contractionary monetary policy. In this context, the group has taken strategic actions to ensure the completion of the business plan by closely monitoring the different market risks, which include not only those related to the price of crude oil and refinery products, but also macroeconomic variables such as inflation, the exchange rate, and the cost of debt, among others. Regarding the price of crude oil during the first quarter of the year, Brent crude oil fell from $84 per barrel to $79 per barrel between January and March. The movement was explained by the resilience of Russian production, the building of crude inventories, In the United States, Europe and Japan and the financial state observed in the second week of March with the banking crisis that began in the United States. During the quarter, we saw opportunities that we were able to take advantage of, such as the recent OPEC Plus announcements to cut production starting in May, supporting the spreads of our crude oil baskets. Likewise, the reactivation on demand in China represents an opportunity for our society in Singapore. To materialize these market opportunities, Ecopetrol will continue to use different contactless schemes that include the delivery of crude oil and products marketed by the company at the customers' facilities. In the Co-Petrol Group, each business line is constantly looking for new efficiencies which allow us to manage the impact of inflation and also alternatives that allow us to use technology and innovation to fulfill our business plan for an increasingly efficient use of resources. I now give the floor to Diana Escobar, President of Sustainable Development, so that we can begin to review progress on the milestones of the TESG strategy.

Thank you, Ricardo. In 2023, we continue to generate significant social value. It is worth emphasizing that for this year, the investment plan within the Copetrol Group's Sustainable Development Portfolio amounts to a record-breaking 773 billion Colombian pesos, representing a 25% increase compared to 2022. here are some relevant milestones during the first quarter we made remarkable progress in our contribution to the goals of national public education benefiting thirty one thousand students in march We selected 94 new students to grant them with scholarships through the Bachilleros Ecopetrol program to pursue higher education studies. Furthermore, 35 talented young women earned a place to participate in the program called She is an Astronaut, an initiative aimed at enhancing STEM skills culminated in a transformative visit to NASA's Space Center in August. Within the scope of the Ecopetrol Emprende program, through technical business companionship, we successfully completed our support for 100 entrepreneurs, micro and small-sized enterprises from Villavicencio in the META department. As a result, they achieved an increase of 36% in sales and expanded their customer base by 52%. With the goal of narrowing the national gap in access to public services, we achieved a significant milestone this quarter by connecting over 11,500 families to natural gas in the city of Barranquilla and in the municipalities of Arauquita, Arauca, Puerto Rondón, and Cravo Norte in the Department of Arauca. Moreover, I would like to emphasize our commitment to sustainability and the energy transition. In a collaboration between Ecopetrol and Essentia, we proudly inaugurated the first sustainable wagon of Bogotá's mass transportation system Transmilenio, which operates under environmental sustainability criteria. To honor our commitment to be in close proximity to the country's communities, during this quarter, we conducted nine social dialogues, engaging community action boards, academy, entrepreneurs, and local institutions. On top of that, we actively participated in the 2023 National Popular Communal Assembly, where we had the opportunity to engage with 5,000 members, gaining valuable insights from social leaders across the country on topics such as energy transition, dynamics of the hydrocarbon sector, popular economy, and environmental protection. In collaboration with HOCO, we coordinated the roadmap for prior consultations with the Alto Uno Mameta Indigenous Reserve of Puerto Gaitán and the Indigenous Communities of Ortega and the Department of Tolima. These consultations are crucial to modify Rubiales Fields Environmental License and the Drilling Injector Wells project, respectively. Last but not least, we volunteered in revitalizing public spaces, conducting pedagogical activities for the responsible use of plastic, and installing a children's playground with seven tons of recycled plastic. Now, I pass the floor to Maria Paula Camacho, who will enlighten us on the accomplishments in corporate governance and responsibility.