Ecopetrol S.A.

Good morning. My name is Natalia 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 2024. There will be a questions and answer 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. Ricardo Roa, CEO of Ecopetrol, Alberto Consuegra, COO, and Maria Catalina Escobar, Acting CFO. Thank you for your attention. Mr. Roa, you may begin your conference.

Good morning, everyone. Welcome to the first quarter of 2024 Earnings Call, a quarter in which we are moving forward on the path of growth thanks to the collective work and support of all our employees and partners. The results show that we are still maximizing the opportunities in our traditional business. We continue to achieve excellent operational figures. We closed the first quarter with a production of 741,000 barrels of oil equivalent per day, a transported volume of 1,118,000 barrels per day, and refining loads of 428,000 barrels per day, with a high operational availability of our refineries in 96%, reaching levels comparable with the best refineries in Latin America. During the quarrel, we announced the commercial viability of the RRCP gas field in the Cordoba Department, adding approximately 6.7 million cubic feet of gas and the signing of a gas exploration agreement in Piedemonte Norte with Paris. This milestone is trading our commitment to the country's energy security. These achievements are complemented by the outstanding commercial strategy highlighting our subsidiary in Houston, Ecopetrol US Trading, which started operations in October 2023 which a commercialization of 16.7 million barrels of crude and produce generating an EBITDA of $37.1 million and a net profit of $28.5 million in the first quarter of 2024, 185% above the plan for the previous. We are able to face that El Niño phenomenon with resilience, implementing, planning, optimization, and saving strategies throughout the operations and the processes. Examples include the accelerated maintenance at Copiagua, diesel timely delivery to the power plants, and an 80% water reuse rate in our operations. Moving to the next slide. Our growing production translates into solid financial figures with competitive profitability showing an EBITDA margin in line with the average of the last eight years. In this way, Revenues of 31.3 trillion pesos, EBITDA of 14.2 trillion pesos, net profit of 4.0 trillion pesos, and ROCHI of 11% in line with our annual target. The main impacts on the results compared to the first quarter of 2023 are mainly due to exogenous variables. Over the past year, the exchange rate dropped by 8045 pesos, affecting the respiration of variables in pesos, explaining 80% of the variation in EBITDA. When analyzing the figures in dollars for the quarter, we observed financial results at similar levels compared to the first quarter of 2023. Other variables affecting the results are increased costs due to the El Nino phenomenon, inflationary pressures, and the fall in product differentials as a result of the market oversupply. Efficient management of the accounts receivable with the fuel price stabilization fund, accompanied by adjustment to gas line prices, allowed us to reduce the accumulation by 72% compared to the first quarter of 2023, ensuring lower working capital pressures for the company. Additional, on April the 1st, we received the transfer of 7.80 trillion pesos corresponding to the account for the first quarter of 2023, highlighting the nation's commitment to pay back payments. I want to highlight the successful closure of the legal process of the arbitration award of the Cartagena Refinery after seven years of work and effort in which we protect the interest and reputation of the company and for which we have already received the corresponding compensation. I want to give special recognition to the Cartagena Refinery and its entire team for their constant work and commitment to successfully completing this process. We maintain competitiveness in return for our shareholders. At the general shareholders meeting, a dividend distribution of 67% of the profits for 2023 was approved, corresponding to 312 pesos per chair to be paid in two installments in 2024, one which has already been paid to minority shareholders in April. Additionally, I highlight the annual dividend yield of 14%, which continues to be highly competitive in the industry. Moving to the next slide. the operational achievements shown go along with environmental, social and governance milestones that support the gut performance of traditional business and the path towards a fair energy transition. In the environmental field and in line with our ambition to achieve net zero emissions by 2050 and decarbonize our operations in the first quarter of the year, We achieved a reduction of 50,000 tons of CO2 equivalent of direct emission scopes 1 and 2, accumulating a reduction of 1.54 million tons of CO2 equivalent from our operation, which, to give you an idea, is equivalent to the annual electricity consumption of 80 million Colombian households. We also manage responsibly and efficiently the water that we use for our operations. In the quarry, we achieved a reuse of 39.6 million cubic meters. This value is equivalent to the quarterly domestic demand of 5.4 million Colombians. In line With the above, we highlight the launch of the new circular economy model, which we have a production and construction system that promotes efficient and sustainable management throughout the product lifecycle in our value chain, and we focus our effort on achieving climate change, water, biodiversity, among other goals. On the renewable energy incorporation front, we announced the inauguration of the Cartagena solar farm, making it the first refinery in Latin America with a solar power plant. In the social feed during the fifth quarter of the year, 65.8 billion pesos were exacted in social, environmental, and relationship investments, and 50 projects were developed through the tax for works mechanisms for a value of 431.6 billion pesos since the beginning of the mechanisms. Through the social gas line, we achieved the connection of 80,052 homes to gas fuel networks, accumulating a total of 43,971 connections since 2019, thus contributing to the expansion of access to essential public service for the people living in the communities where we operate. Additionally, and in line with our commitment With these communities, we generate more than 73,000 jobs through our contractor companies, hiring around 85% of local labor and generating 23% inclusive jobs. The update of the bylaws reflect our commitment to gender diversity and the adequate preparation of our leaders, ensuring that at least 30% of the board of directors are women and requiring more than 12 years of experience for members of this governing body, ensuring the presence of experts from diverse fields. The recent change in the composition of the co-patriot boards of directors do not imply modifications or changes in the implementation of the Ecopetrol Group's 2040 strategy by itself. Like always, the corporate governance model remains valid, and to date no change proposals have been presented by the Ecopetrol Administration. Finally, at the end of March, we observed normal change in senior management, among which I want to highlight that 73% of the new vice presidents come from internal talent in the Ecopetrol Group in the Spectre Line Association, reflecting our commitment to the development and recognition of talent and high performance within our organization. And finally, on the science, technology, and innovation front, I highlight that within the framework of Ecopetrol-Colombian Navy Agreement, the participation in the 10th Antarctic Expedition concludes where measurements of gases and sampling of particulate matter will carry out the data of which will serve in the research of offshore energy generation from renewable sources. Now I give the floor to Alberto, who will talk to us about the hydrocarbons line, not without first thanking him for his valuable management during more than seven years in the Ecopetrol group. His contribution to the achievements reached were fundamental for the consolidation of the strategy. Ecopetrol wishes him much success in his new challenges. Rafael Guzman, current president of Jocol, will take over as executive vice president of May 11, 2024. We welcome Rafael, who has been president of the subsidiary for more than five years and has around 14 years of experience in the Ecopetrol Group. Go ahead, Alberto.

Thank you, Ricardo. We highlight the advances in the exploratory campaign, allowing us to progress discovered resources into contingent resources and reserves. I would like to mention the following. The commerciality of the Arrecife gas field, 100% operated by HOCOL, located in the Department of Córdova, consisting of the producing wells Arrecife 1, Sightrack, Arrecife 3, Arrecife Norte 1, and Coralino 1. The field showed an initial production between 5 to 10 million cubic feet per day, already available in the local market and is expected to reach a production between 20 and 30 million cubic feet per day by 2026. We continue pursuing the commerciality of the exploratory success of the Arauca 8 well, drilled in 2023 in the Llanos foothills by our partner PADEX with a 50% participation. The well confirmed the presence of light crude of 32 API degrees in the Gacheta Formation and condensate gas in the Une Formation. With a gross production of approximately 4,573 barrels of oil per day, and 7.5 million cubic feet per day of gas as of the end of April. Additionally, I would highlight the agreement with our partner, Parex Resources, to explore new sources of domestic gas and light crude in the Piedemonte Norte foothills. The agreement includes the Llanos 4-1, Llanos 16-1, Llanos 121, and CDD blocks, with a 50% participation for each party, as well as the option to jointly participate in two additional blocks. With this alliance, both companies expand their exploratory portfolio and work together to reactivate exploratory areas expecting to increase gas supply in the medium term. Regarding offshore exploration activity, progress is being made in the maturation of the Uchuva II appraisal well, which is expected to start drilling by the end of this month in partnership with Petrobras as operator. We also continue to make progress in structuring the business case for the development of the Corgon and Glaucus discoveries. Let's move on to the next slide, please. During the first quarter of 2024, the Ecopetrol Group achieved a production of 741,000 barrels of oil equivalent per day, increasing by 22,000 barrels of oil equivalent per day compared to the same period of the previous year, maintaining outstanding results even under security issues and blockades in some territories, which impacted production by 7,500 barrels of oil equivalent per day. These results were leveraged by the increase in production from our subsidiaries, mainly in Permian, as well as positive results in Caño Sur, CPO-09, and the contribution of secondary and tertiary recovery through water injection. We highlight the successful execution of the scheduled turnaround of the Cupiagua plant in January, which improved its reliability and integrity. The plant maintenance was executed in a shorter time, with less production losses and more flaring reduction compared to the plant, thanks to the operational discipline and the use of equipment with state-of-the-art technologies. The higher production level during the first quarter triggers that our projection for the year increases to a range between 730 and 735,000 barrels of oil equivalent per day. In line with our TESG strategy, it is important to highlight that 93% of the water required to operate in the upstream segment came from the reuse of production water, thus reducing dependence on water resources. Let's go to the next slide, please. Regarding our activities in the Permian Basin, 25 new wells were drilled during the first quarter of 2024, reaching a production of 84,600 barrels of oil equivalent per day for Ecopetrol before royalties, which represent 11% of the group's production. We also highlight the strong financial results of Ecopetrol Permian. In the first quarter of 2024, we achieved an EBITDA of $229 million and an EBITDA margin of 80%. Next slide, please. The upstream segment contributed 54% of the group's EBITDA, being a profitable and sustainable segment that leverages the energy transition. The EBITDA per barrel increased by 4%, reaching $29.2 per barrel, mainly due to higher production levels, better crude basket prices, and cost efficiencies, which partially offset the exogenous effects such as inflation, higher exchange rate, and the El Nino phenomenon. On the other hand, the lifting cost was $12.1 per barrel. If normalized for exogenous factors, which represent about $3.45 per barrel, the lifting cost would be at levels similar to those of the first quarter of 2023. We also achieved efficiencies of $0.38 per barrel, driven by the execution of strategies focused on electrical power, reliability, and subsurface maintenance, which contributed to mitigating the impact on the lifting cost. Let's go to the next slide, please. Transported volumes increased by approximately 28,000 barrels per day, mainly driven by the increasing crude oil production in the Llanos area and higher deliveries of Castilla Norte crude at the Barranca Bermeja refinery. During the first quarter, five reversal cycles were carried out through the Bicentenario pipeline with more than 1.2 million barrels transported in response to a preventive intervention at kilometer 153 of the Caño Limón-Coveñas pipeline, which affected operations in the Banadilla-Ayacucho section in March. After successful completion of the repair work, the pipeline resumed operations on April 7th. As part of the strategy against crude oil theft, beginning November 2023, the Co-Petrol Group implemented an operational adjustment to transport crude oil production from the southern region of the country through Ecuador's pipelines. During the first quarter, the Transandino system has remained in contingency mode, being available for use as needed. This measure will be reviewed over the year. Lastly, we highlight the segment's financial results, generating revenues of nearly 3.6 trillion pesos and an EBITDA of 2.8 trillion pesos, contributing with 20% of the group's EBITDA. Next slide, please. In the first quarter of 2024, the combined refining throughput reached 428,000 barrels per day, leveraged on more than 96% operational availability, the rigorous execution of scheduled major maintenance activities, and the maximization of domestic crude loads. The integrated refining gross margin was $14.8 per barrel. mainly affected by weaker diesel jet and gasoline spreads. This resulted in an EBITDA of 1.4 trillion pesos for the quarter. In this quarter, we accomplished multiple milestones, of which we highlight this. The commissioning of the mechanical recycling plant at Essentia, currently under stabilization, with a production capacity of 12,000 tons per year. The startup of the third chemical recycling reactor to increase the production of pyrolysis oil for processing at the Barranca Bermeja refinery. The completion of the construction phase of the solar park at the Cartagena refinery, inaugurated on April 12th with a self-generation capacity of up to 22.1 megawatts. The commissioning of the new wastewater treatment plant at the Barranca Bermeja refinery in February of this year. Lastly, the solid cost generation of the segment resulting from strong operational results and the repayment of the FEPEC to the Cartagena Refinery on April 1, 2024, corresponding to the balance of the first quarter of 2023. Now, I will turn it over to Ricardo, who will discuss the main milestones of the low-emission solution business line.