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 operating results of the second 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'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, Rafael Guzman, Executive Vice President of Hydrocarbons, Camilo Barco, CFO, and Bayron Triana, Executive Vice President of Transition Energies. Thank you for your attention. Mr. Roa, you may begin your conference.

Welcome to Ecopetrol Group's second quarter of 2025 earnings call. During the quarter, we maintained solid operations with improvements in upstream, recovery in downstream, and resilient results in the midstream segment. Despite a challenging environment marked by high light volatility and declining crude prices due to geopolitical tensions and third-party disruptions to the transportation system infrastructure. We reached a semester production of 751,000 barrels of oil equivalent per day. We reached a semester production of 751,000 barrels of oil equivalent per day, the highest level in a decade. This was driven by fields in Colombia such as Caño Sur and CPO-09, which contributed to the highest national crude production in four years, as well as strong performance in the Permian Basin in the United States. We declared the commercial viability of the Lorito discovery in methane the most significant in the past 10 years, following in the recent acquisition of 45% of the CPO-09 block. Additionally, we began drilling the papayula well in the Caribbean offshore, aimed at expanding the country's gas potential. In the midstream, volumes exceed 1 million barrels per day, supported by operational solutions that mitigate the impact of external events. We highlight the expansion of the Pozos-Colorados terminal, including the completion of the country's largest tank with a capacity of 320,000 barrels and the unloading capacity increased to 550,000 barrels, enabling the reception of largest vessels. In downstream, we reached 405,000 barrels per day in throughput with full operational recovery after completing major maintenance activities. We expect to capitalize on these with improved margins in the second half of the year. In the gas segment, we completed the first long-term commercialization of imported natural gas in Colombia, securing national supply through five-year contracts. Finally, we signed the agreement to acquire Winfeche Ecopetrol's first wind project developed by our own, located in La Bojira. This is a key step toward advancing decarbonization and reducing energy costs in our operations. In summary, Ecopetrol's operations have adapted swiftly to the environment, maintaining the positive trends seen in recent works. Let's move on to the next slide, please. The solid operational progress during the quarter was partially offset by the decline of the crude price. REM fell by 22% compared to the second quarter of 2024, impacting both revenue and profits. On the commercial front, we achieved the best quarterly crude differential in the past four years thanks to a diversified basket and an active marketing strategy that allows us to capture value even in a low-price environment. We achieved efficiencies totaling 2.2 trillion Colombian pesos, exceeding the semester's target by 27%, helping to mitigate the impact of lower prices. In terms of investments, we have committed over $2.5 billion so far this year, aligned with our long-term strategy. It is worth noting that we are maintaining our producing target for 2025. During the quarter, we completed the full payment of dividends to our shareholders, delivering a 10% return, reaffirming our commitment to generating value and competitive returns. Regarding the optimization plan announced last quarter, we have made a... percent progress in reducing costs and expenses, strengthening our financial and cash position for the year. In conclusion, this was acquired market by strong operations underpinned by competitive commercial decisions and by efficiencies that support the group's financial performance. Let's move on to the next slide, please. We continue to make steady progress on our TESG agenda. We expect to exceed the goal of 900 MW in renewable energy for cell generation by 2025, thanks to acquisitions made during the quarter, which will be detailed later in the presentation. In the decarbonization, we continue to surpass our greenhouse gas emission reduction target with a reduction of 242,000 tons of CO2 equivalent, comparable to average annual energy consumption emission of 190,000 Colombian households. On the social front, through the EU of taxes mechanisms, we completed six initiatives representing an investment of 43 billion Colombian pesos, benefiting approximately 350,000 people across various regions of the country. Additionally, we allocated more than 180 billion Colombian pesos to our sustainable territorial development portfolio, which includes social, environmental, and community engagement investments. In World Resource Management, we use over 44 million cubic meters of heat in our direct operations. This is equivalent to nearly twice the annual domestic consumption of approximately 500,000 residents of the entire Casanare department. In job creation, we facilitate over 66,000 labor engagements in the first semester through our contractor companies, reaffirming our commitment to economic development in the regions where we operate. With these achievements, we continue to strengthen our contribution to regional well-being and the country's sustainable development. I now hand over to Rafael Guzman, who will present the results of the hydrocarbons business line.

Thank you, Ricardo. During the first half of 2025, we achieved significant progress in the upstream segment, driving forward key discoveries towards their development phase. To highlight the following milestones. The commercial declaration of the Lorito discovery in June to be covered in more detail in the next slide. The recognition by the Brazilian National Agency of Petroleum and Biofuels of the Commerciality Declaration for the Development Areas of Gato del Mato, now named ORCA and SouthORCA, on May 20, 2025. This fulfilled a key milestone enabling the start of proven research incorporation in can for the floating production unit and processing facilities, along with safety analysis and the consolidation of project teams. The serious project progress towards its development phase. Work is currently underway on the contract model for the design, construction, and operation of the necessary surface facilities for gas treatment. Moreover, ethnic, social, and environmental feasibility activities are being carried out after obtaining the provenance certificate for the beach crossing granted by the National Authority for prior consultation. Regarding the Southern Caribbean offshore assets, on June 9, 2025, we submitted a request to the ANH to assign Shell's 50% interest in the bloc in favor of Ecopetrol. We continue advancing on the evaluation of alternatives for executing the development. By the end of the semester, 6 out of 10 planned exploratory wells had been drilled, with $156 million of investment already executed. These include the exploratory success of the Currugutu I well, operated by Geopark in partnership with OCOL, in block Llanos 123. This well is located in the same eastern Llanos basin as the Toritos Discovery, which reduces technical uncertainty in the block and expands its production potential to the north. The exploration campaign in block Gua of Zero continued with the drilling of Buena Suerte I well. Such well did not show commercial hydrocarbon accumulations. However, the well provided valuable geological insight into a plate different from the one of Sirius, with additional prospectivity to be matured based on the data obtained. Drilling began in Papayuela I well, targeting a plate similar to that of Sirius. Let's move on to the next slide. The Declaration of Commerciality for the Lorinto Discovery, located in the municipality of Formal, Meta, marks the culmination of a successful exploration process and reflects the strategic value of acquiring the 45% interest in Block CP09 from Repsol. It represents the most significant discovery in terms of resource potential over the past decade, with approximately 250 million barrels of oil in recoverable resources, including 109 million barrels classified as certified contingent resources. This commercial milestone enables the development of 13,584 acres of area a size comparable to the Chichimene field and incorporates into the production two wells, Tejon Uno and Guamar Profundo Uno, located near the Acacias field, with a combined production potential of 1,450 barrels per day. As shown on the map, its proximity to existing production and transportation infrastructure, as well as the potential continuity of the reservoir with nearby fields such as Acacias and Chichimene, facilitates commercial production, technical delineation and enables capturing of operational synergies. The development plan will be submitted to the ANH in the fourth quarter of the year. This plan will include the proposed activities, licensing requirements, necessary investment for the future progression to reserves. Let's move on to the next slide. During the first half of 2025, we reached total production of 751,000 barrels of oil equivalent per day, the highest level recorded since 2015, driven by the following facts. First, the contribution from domestic crude oil production that reached 517,000 barrels of oil per day, the highest level since 2021, driven primarily by Caño Sur, which added 10,000 barrels per day, compared to the same period last year, and the acquisition of 45% interest in BlockCP09, which contributed an additional 11,000 barrels per day. Second, the drilling campaign in the Permian Basin reached a production of 106,000 barrels of oil equivalent per day for the semester, an increase of 14,000 barrels compared to the same period last year. This result reflects the optimization of completion designs, the efficiency in bringing new wells online, and an accelerated schedule enabled by operational efficiencies in drilling and completions. As shown in the top right graph, in June we were able to recover natural crude oil production that had been affected by external events unrelated to the control operations mainly concentrated in April. This recovery was possible thanks to our experience in effective incident management and minimization of operational disruptions. During the semester, $1.4 billion were invested, highlighting the expansion of water treatment capacity in Rubiales and Cañosur crew treatment capacity at the Orotoy Station, which by July had increased to 35,000 barrels. These facilities enable the operational continuity of the fields and supported production growth. Additionally, we executed 180 workovers, a 59% increase over the same period last year, and 220 development wells, reaching levels close to those of 2024. As part of the efficiency strategy on investment prioritization based on brand price, total projected investment is $3.6 billion for production and $400 million for exploration, for a total of $4 billion in the upstream segment. These optimizations do not impact reserve incorporation or production levels. We maintain our established target of 740 to 750,000 barrels of oil equivalent per day for 2025. Let's move on to the next slide, please. The midstream segment delivered solid financial results with a 9% increase in EBITDA in the first half of the year compared to the same period in 2024. This demonstrates the operation's resilience in a challenging environment. In volumetric terms, transported values decreased by 6% compared to the second quarter of 2024 and by 4% compared to the first half of the previous year, as shown in the top-left graph. This was mainly due to an increase in external events such as blockades, attacks on transportation infrastructure, hydrocarbons theft and lower crude oil production from third parties in the country. Additionally, scheduled maintenance at the Barranca Bermeja refinery impacted volumes of both crude and refined products. In response to third-party impacts on transportation infrastructure, we have implemented strategies such as stronger operational control, leveraging technology for rapid detection, repair and evacuation at affected points. These efforts were coordinated with government agencies and included the implementation of alternative evacuation routes, enabling transportation of more than 7 million barrels from the Llanos Norte fields via the Bicentenario oil pipeline and the segregation of these crude from Araguanay to the Barranca Bermuda Refinery preserving its quality and properties. At the same time, the segment made decisive progress that enhanced the resilience of the midstream systems with some milestones as follows. In refined products, a highlight included storage expansion at the Pozos Corrales terminal, reaching 1.5 million barrels of storage capacity and the capacity to receive refined product vessels of up to 550,000 barrels. In crude oil pipelines, capacity was increased in several systems. The Vasconia to Barranca Bermeja line capacity was increased by 7%, enabling greater availability of domestic crude oil to the refinery. The Aragonese to Cusiana evacuation capacity was increased from 50 to 80,000 barrels per day, allowing faster inventory reduction from General Norte fields and lowering risk of production deferrals. The stabilized operation of the Cayo Sur to Odele pipeline with evacuation flows exceeding 50,000 barrels per day, which help mitigate production deferrals and capture savings of 77 billion Colombian pesos. This set of achievements demonstrate how, in a challenging context, the segment continues to execute strategic projects that reinforce the capacity and efficiency of Colombia's hydrocarbon transportation system. Let's move to the next slide. In the second quarter of 2025, the downstream segment showed a recovery in its financial results, with a 53% increase in EBITDA compared to the same period in 2024. This was supported by an improvement in operational availability, which reached 9%. 95.8%, up from 91.2% in the first quarter of 2025. These results reflect continuous improvement in performance and operational stability at the refineries, driven by progress in the major maintenance cycle, with 8 out of 10 scheduled works completed, including those of Kraken UOP2, Oriethylene-1, and Prime-G units. As a result, consolidated throughputs reached 413,000 barrels per day in the second quarter of the year, showing a 4% recovery compared to the first quarter of 2025, as shown in the top left graph. basis, the throughput reflected the impact of increased maintenance activity in the first quarter, showing a 5% decrease versus the same period of the previous year. In terms of integrated gross refining margin, the segment reached 12.5 dollars per barrel, mainly driven by operational improvements that boosted availability and by better international gasoline and diesel definition. This represents an increase of 37% compared to the second quarter of 2024 and 15% versus the first quarter of 2025, as illustrated in the top right charts. For the first half of 2025, the integrated gross refining margin was $11.7 per barrel, slightly below the figure for the same period in 2024. A decrease of 2%. This was due to maintenance cycle and the unexpected power outage at the Cartagena refinery. Lower availability of light crude due to external events and other market-related factors. As shown in the bottom left graph, The segments evidently grew 38% compared to the first quarter of 2025 and 53% compared to the second quarter of 2024, reflecting efficient management, lower stock costs, and better product differentials. However, on a semester basis, the indicator was impacted by external events and the scheduled maintenance plan. Looking ahead, Ecopetrol projects to maintain its competitiveness through an integrated strategy based on four pillars. Maximization of high-value products, portfolio diversification, operational efficiency, and reliability, and sustainability. During the second quarter, the following key milestones were achieved in support of this sustainability plan. Contributing to operational reliability, progress was made on the Cartagena Refinery's electrical reliability plan. out of 16 planned milestones completed by June 2025. In the maximization of high-value products, progress in transforming low-value bottoms supported the export of higher-quality refined products with better margins, such as the first export of high-end F-038 marine fuel to the United States and a record in liquid asphalt exports from the Barranca-Rivera refinery. Likewise, on July 15, the first direct export of liquid paraffin to Brazil was completed, with expansion projected into other Latin America markets. Finally, on July 10, an alliance with the Civil Aviation Authority of Colombia was formalized to promote the development of sustainable aviation fuels SAF in Colombia. Let's move on to the next slide, please. in 2025 the hydrocarbons business line continues to deliver on its integrated efficiency and competitiveness strategy contributing trillion pesos by the end of the second quarter of 2025 12 high than the same period in 2024 as shown in the top left chart. 64% of these efficiencies had a direct impact on EBITDA through initiatives that reduced and optimized operating costs with 684 billion pesos in open savings and generated additional income of 668 billion pesos. Among the implemented initiatives, the following stand out. Tariff optimization in new service contracts, energy efficiency projects in operations, lower crude evacuation costs due to the start-up of the Cañosur-Odele pipeline, synergies captured in transportation systems and producing assets to inter-integrated operations, production and commercialization of higher quality, higher margin products, improved margins in refined product purchases, and imports, and include exports, among others. In addition, new investment cost optimizations were incorporated, accounting for 30% of total efficiencies, along with working capital improvements, which had a positive cash flow impact of 108 billion pesos achieved through inventory management and savings in financial expenses. Regarding lifting costs, it stood at $11.59 per barrel in the first half of the year, reflecting a decrease of $0.45 per barrel compared to the same period in the previous year, thus maintaining the target announced to the market as shown in the top right chart. This result was supported by a favorable exchange rate, effect and capture efficiencies primarily in optimization of the operation and maintenance model in non-industrial areas, reuse of materials in subsurface operations, improved maintenance contract rates, efficient energy management with a gradual and structural decrease in energy intensity per barrel, despite a significant increase in the total volume of fluids produced, as shown in the bottom right slide. The efficiency plan allowed to double its contribution to lifting costs compared to 2024, partially mitigating the impact of inflation, higher costs associated with labor reform, accelerated scheduling of subsurface and surface maintenance activities, and increased treatment costs due to higher total production volumes. Meanwhile, the cost per barrel transported and the refining cash cost increased by 2% and 3%, respectively, due to lower transported volumes and reduced refining throughputs, as previously explained. These increases were partially offset by efficiencies captured in each of the segments. Now, I will turn it over to Byron, who will share the main milestones from the energy transition business line.