Ecopetrol S.A.

Good morning. My name is Natalia and I will be your operator today. Welcome to the COPETROS Earnings Conference Call, in which we will discuss the main financial and operating results of the first quarter of 2025. There will be a questions and answers session at the end of the presentation. Before we begin, it is important to mention that the comments in this call by Ecopetrol 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, Rafael Guzman, Executive Vice President of Hydrocarbons, Camilo Arco, CFO, and David Riaño, Executive Vice President of Transition Energies.

Quarter results call of the Ecopetrol Group for 2025. The first months of the year were marked by high global uncertainty with a notable volatility in Brent prices, driving by geopolitical tensions and an increased supply from OPEC+. These factors required the activation of different plans to address lower price scenarios. At Ecopetrol, we have historically anticipated these challenges with a strong strategy diversifying our customer base, enhancing our commercial management, and maintaining operational and capital discipline. This approach has enabled us to navigate the environment confidentially and take advantage of the opportunities that emerged. In the hydrocarbons line, we close the quarry with an average production of 745,000 bottles of oil equivalent per day in line with our annual goals and maintaining a growing trend despite local events. We are moving ahead with our exploration campaign and have achieved important milestones in the Caribbean offshore and our operations in Brazil, reporting our commitment to growth and the sustainability of reserves. In transportation, we maintain our resilience, controlling social events, preserving operational continuity, while developing key infrastructure to reduce the time and cost of logistics for our crude, oil, and fine products. Regarding our refineries, as anticipated, the throughput was temporarily affected by scheduled maintenance shutdowns according to the plan, ensuring safe, reliable, and efficient operations. The refining margin decreased by $3.9 per barrel compared to the first quarter of the last year, explaining by 53% due to product differentials, 30% due to the scheduled maintainments, 14% due to unplanned operational events, and 3% due to other events. Among these events there were energy issues at the Cartagena refinery where we maintain our mitigation planning progress. Let's move to the next slide, please. We firmly believe that natural gas is a key energy source for the energy transition and the electrification of the country. We continue contributing to national supply with significant progress in the development of shore gas along with important milestones such as the signing of the regasification services contract on Colombian Pacific coast. This project has a potential of 60 giga BTUD and is expected to begin operations in the second quarter of 2026. We are also advising the Caribbean Regasification Project, which will leverage Ecopetrol Group's assets to commercialize a 250 giga BTUD with an estimated start in 2027. Our executive vice president for the energy transition will provide more details about this project shortly. I want to highlight that Ecopetrol Group supplied approximately 68% of the country's natural gas demand during the first quarter, reaffirming our critical role in the Colombian energy security. In renewable energy, we remain committed to achieve 900 megawatts of cell generation, capaciting our position as the leading cell generator of renewable energy in the country. During the first quarter, our energy efficiency program generated savings of nearly 23 billion Colombian pesos, reaching a total 21 petajoules since the program began in 2018. Finally, we continue to achieve managed environmental licenses and the complementary regulations required to legally enable our energy transition projects. Let's move on the next slide. Financially, this was a stable product despite lower brand prices. I want to highlight several aspects. First, we continue to strengthen our efficiency program, optimizing cost and generating more value for every invested dollar as part of the company's culture, which is reinforced to face current scenarios. Secondly, I want to highlight the progress of the investment plan for the year, which has reached near to the 20% execution. This progress has been affected by external events in the Rubiales-Castilla and Cañosur fields. However, we have achieved important advances in efficiencies through new initiatives in drilling and completion in our operations in the Permian and through circular economic projects involving material reuse. Thirdly, I want to mention that we received early payments from the fuel price stabilization fund by the government covering the balances of the second, third, and fourth quarters in 2024. In addition, the lower accumulation during this quarter reflects both the government's commitment and Ecopetrol's effective management. And last, the payment of dividends to our shareholders, demonstrating our financial strength. Let's move to the next slide, please. In terms of corporate governance, I want to highlight the results of the general shareholders meeting held in March. The board of directors were formed with members of extensive experience in key areas of the company, completing all the directors provided for in the status mostly independent. The new directors are already familiarizing themselves with the strategy and operation of the Ecopetrol Group and have reiterated their commitment to continue generating competitive returns for our investors. Additionally, we publish our integrated management report and the annual corporate governance report, which includes our main initiatives, goals, and results in this area. The approved dividends was within the range of our internal policy, balancing returns to shareholders with the need to continue investing in our operations and strategy. On the environmental front, we continue to reduce our greenhouse gas emissions in Scopes 1 and 2. Our wireless reuse capacity continues to grow and remains at levels comparable to the most demanding international standards. With these results, we reaffirm that Ecopetrol remains a solid company strategy for the country and prepared for future challenges. I now give the floor to Rafael Guzman, who will present the results of the hydrocarbons business line.

Thank you, Ricardo. As of 2025, we have a 17% progress in our exploration investments, with four wells finished and two more wells in drilling operations. out of 10 planned for the year. Key highlights for this investment include operations in a GUA of zero block with the successful completion of the initial formation testing of the a production potential higher than initially estimated. Additionally, as part of the development environmental licensing process for the series discovery, we have successfully completed the required consultation process with the 116 communities certified by national authority for prior consultation. Furthermore, drilling began on the Buenasuerte 1 well. This well, located 11 kilometers from the serious discovery, aims to test the presence of gas in an exploration concept different from that of the aforementioned discovery. As for the onshore activity, all present was confirmed in this in 2023 by Geopark in partnership with Ocol in the Llanos Orientalis area. The well is currently undergoing full test. Regarding the offshore assets in the South Caribbean, where Shell has been our operator partner in the Coal 5, Purple Angel, and Fuertesul blocks, we have been conducting a review since February 2025 to assess the best alternatives to continue executing the investment. in light of a potential decision by the partner to divest its interest. These projects are a priority for Ecopetrol and have solid technical and economic viability. The next steps in the development of these discoveries include a continuation with the conceptual, basic and detailed engineering for connecting the gas to the national transportation system, as well as efforts with the Ministry of Mines and Energy and the Energy Ecopetrol has full capacity to ensure the continuity of operations. Let's move on to the next slide. During the first quarter of 2025, the final investment decision for Gata-Domato was approved. This development is part of our strategy to geographically diversify the hydrocarbon portfolio and increasing reserves. We expect partial reserves incorporation in 2025. This decision follows a re-engineering process for its development and includes the installation of an SPSO designed to process up to 120,000 barrels of oil per day. This is the first development project in which Ecopetrol participates in the pre-sold area of the Santos Basin in Brazil. Gato Tomato has certified 112 million barrels of 2C contingent oil resources net to Ecopetrol before royalties. Production is expected to begin in 2029, reaching approximately 33,000 barrels of oil per day net to Ecopetrol. Let's move to the next slide. As shown in the top right graph in the first quarter of 2025, Ecopetrol reached a production of 745,000 barrels of fuel due to the expansion of water processing facilities at the Centaurus facility and better performance in the permit. With these results, Ecopetrol achieved the highest crude oil production in Colombia in the last five years. This was possible despite the impact of external factors in Canizur, Kifa and Rubiales between March 31st and April 30th, caused by blockades by indigenous guards, as well as the impact on production from fields in the northern Arauca due to interruptions of the Cañolimón, Coheñas, and Bicentenario pipeline as a result of attacks to the infrastructure. Ecopetrol demonstrated its resilience by quickly recovering 100% of the production from Canizul and Rubiales fields. Regarding investment activity, during the first quarter of the year, $672 million were executed, with 17% progress on the segment's investment plan. A total of 94 work covers and 114 development wells were drilled. For the Cañosur asset, the startup of the pipeline and the expansion of the Centauros Station stand out. These milestones will allow operational continuity of the field with an increase in its production. Let's move to the next slide, please. In midstream, the volumes transported decreased by 2% compared to the first quarter of 2024, as shown in the first graph. primarily due to the scheduled maintenance of the Barranco Bermeja Refinery, which impacted both oil and refined product volumes. The midstream segment activated alternative logistics schemes complement the necessary volumes and meet domestic production demand, maximizing the use of available infrastructure during such maintenance. This included the delivery of NAFTA and diesel at the Pozos-Colorados loading terminal and gasoline and the Ayacucho plant, as well as the reception of Sebastopol and imports via Buenaventura of over 810,000 barrels of diesel and gasoline. Additionally, we successfully evacuated more than 3.7 million barrels from the Aroca fields through the Bicentennial Pipeline, following the suspension of the Panadilla-Ayacucho section of the Canelimón-Coheñas Pipeline. In line with what was mentioned on the previous slide, the new Canesuro Pipeline began operation this quarter, connecting the field to the ODL system. With a capacity of over 50,000 barrels per day, it will enable the evacuation of 100% of the current production from the field, providing operational reliability and reducing vulnerability to external risks. Lastly, I would like to highlight the financial strength of the midstream segment, which continues to contribute to the stability of the group's financial results in terms of volatility, with an 11% growth in EBITDA, driven by both exogenous factors and improved operational performance. Let's move to the next slide. Important maintenance activities were carried out in our refineries during the quarter. In Barrancarameja, scheduled maintenance took place in the crude unit, the diesel hydrotreater, and the automatic plant. Additionally, major maintenance work began at the UOP2 cracking unit, and it's progressing as planned. In Cartagena, an unscheduled total shutdown occurred from February 14 to 20 with no impact on refined product supply in Colombia, followed by the commencement of scheduled maintenance on the hydrocracking unit. The consolidated refining throughput for the first quarter of the year was 396,000 barrels per day, representing nearly 7% reduction compared to the same period in 2024, due to schedule, maintenance, and the operational events mentioned earlier. The refining margin for the first quarter was $10.9 per barrel, which is $3.9 per barrel lower than the same period last year. 53% is associated with a reduction in international fuel price differentials, 30% with scheduled maintenance, and 14% with unplanned operational events, including the shutdown of the Cartagena refiner. Similarly, during the first quarter of the year, there was a 67% decrease in EBITDA compared to the quarter of 2024, with 40% of the impact related to exogenous factors such as falling prices, exchange rate fluctuations, and refined product theft. 43% of the reduction was due to the operational expenses arising from the maintenance plan, inventory management, and higher gas costs. 10% reduction due to unplanned operational events, such as the previously mentioned shutdown of the Cartagena refinery. Compared to the fourth quarter of 2024, there was an increase in both refining margin and EBITDA, driven by better product definitions. To address the challenges of 2025, we have made progress in the following value levers. At the Cartagena refinery, significant progress has been made in recovering electrical reliability, with seven of the 16 planned milestones achieved to date. By June 2025, we expect to mitigate the risk from very high to mid. Regarding cost optimization, an 8% reduction in refining cash costs was achieved compared to Q4 2024, primarily due to the reduction in unplanned maintenance. To maximize value products, two key projects are being developed. First, the expansion of the cooking capacity of the Cartagena unit, which is underway and is expected to be operational in 2027. Second, various initiatives aimed at increasing productivity at the Barrancabermeja Petrochemical Fund are being advanced. Lastly, in the strategic projects aimed at diversifying and exploring new markets, I would like to highlight the approval by the Board of Directors of the project Fuel Quality Baseline Ibarral-Cabermeja and the project Implementation of Improvements to the U-107 NAFTA Hydro-Treater in Cartagena. These projects are intended to improve the EBITDA of the downstream segment by generating higher value products and the improvement of gasoline quality. They also contribute to reducing fuel imports for the country and improving air quality in Colombia by 2030. These projects are key to advancing the energy transition and the future incorporation of biofuels, such as sustainable aviation fuel SAF. Let's move to the next slide. in the first quarter of the year we made progress on the efficiency plan and we are above expectations achieving 0.7 trillion pesos from the upstream midstream and downstream segments as well as from the corporate areas these efficiencies higher than those of the first quarter of 2024, have allowed us to advance in cost control, with reductions in lifting costs, transportation cost per barrel, and refining costs compared to last quarter of 2024. Additionally, I would like to highlight that lifting costs reached levels lower than those of the first quarter of 2024, with a decrease of $0.85 per barrel, driven by the achievement of efficiencies and higher production that more than offset the operational cost pressures of higher energy consumption and treatment of higher volumes of fluids as fields mature, and the effect of higher dollar to peso exchange rate. In 2025, we continue with an asset profitability enhancement plan that will allow us to maintain lifting costs below $12 per barrel. Now, I'll turn it over to David, who will discuss the main milestones of the energies for the transition business line.