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 2026. 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 on this conference call. The call will be led by Mr. Juan Carlos Hurtado. Acting CEO of Ecopetrol, Camilo Barco, CFO, and Carlos Mauricio Avila, Acting Executive Vice President of Hydrocarbons. Thank you for your attention. Mr. Hurtado, you may begin your conference.

Welcome to Ecopetrol Group's second quarter 2026 earnings conference call. This is Juan Carlos Hurtado Parra, Acting Chief Executive Officer of the Ecopetrol Group During the second quarter, the Copetrol Group successfully capitalized on a favorable international crude oil and fuels market environment, supported by the strength of our integrated business model, differentiated commercial strategy, and disciplined operational execution. As a result, we delivered 40.2 trillion Colombian pesos in revenue. 17.7 trillion Colombian pesos in EBITDA and 6.1 trillion Colombian pesos in net income representing increases of 35, 59 and 235% respectively compared with the same period last year. These results reflect our ability to capture value across the entire value chain and were primarily driven by three factors. First, A favorable pricing environment with Brent averaging 97 USD per barrel and a strong recovery in international refining margins. Second, differentiated commercial management, which enabled us to improve our crude oil differentials by 3.67 USD per barrel compared to their first quarter, despite a challenging environment for heavy crude grades. And third, Strong operational execution in transportation and refining, with the latter making a significant contribution to value creation during the quarter. Regarding investments, we continue advancing according to plan. As of June, we had executed US$2.9 billion, maintaining our focus on production, energy security, strategic infrastructure, and energy transition projects. That support the group's competitiveness and future growth. Additionally, during the first half of the year, we complied with the dividend payment schedule approved by the General Shareholders Meeting, reaffirming our commitment to the value creation for all shareholders. With respect to the Fuel Price Stabilization Fund, during the quarter we received 1 trillion Colombian pesos statement corresponding to the accrual of the second quarter of 2025. Furthermore, higher international prices resulted in an accumulation of approximately 6 trillion Colombian pesos during the first half of 2026, the management of which we will continue to pursue with the national government. Let us now move to the next slide to review the key operational highlights of this quarter. From an operational standpoint, we continue advancing our strategic priorities and strengthening the capabilities that support the group's sustainable growth. In exploration, we drilled three wells during the quarter, bringing the total to eight wells during the first half of the year. We highlight the progress at Copua Sub 1, at the offshore Caribbean, and following the quarters closed, the Sandia 1 discovery. These milestones continue strengthening the region's gas potential and enhance the group's resource incorporation outlook. On the inorganic road front, We advance with the process related to Brava Energia following the authorization granted by Securities and Exchange Commission, CVM of Brazil, to assume the public tender offer. We will communicate this to the market and the decisions in due course. In commercial activities, we continue strengthening our international platform through market expansion, the onboarding of new customers, and the development of trading capabilities. In our gas and energy transition business, we continued contributing to the country's energy security. As the Ecopetrol Group, we supply approximately 62% of Colombia's natural gas demand. While continuing to develop solutions to expand supply availability for the market, in 2026 we have offered 293 GBTUD of firm long-term natural gas. Meanwhile, the transmission and toll roads business maintained positive momentum, securing new contract awards totaling US$428 million, strengthening the growth and value creation of ESA and its subsidiaries. In production, we reached The most significant was a 76-day blockade that impacted operations in fields located in the Meta department and delayed the execution of key projects aimed at expanding processing facility capacity. Looking ahead to the second half of the year, we are implementing specific actions to recover these volumes. We also continue to closely monitor risks associated with the operational and weather conditions, including the potential impact of the El Niño phenomenon. In transportation, volumes transported increased by 4% compared with the same quarter last year, driven by the optimization of logistics corridors and higher deliveries of refined products. Finally, in refining, we achieved the highest quarterly throughput in our history, reaching 439,000 barrels per day, Thank you Juan Carlos. Our second quarter All of these underpinned by rigorous financial and capital discipline. During the quarter, the Copetrol Group generated EBITDA of 17.7 trillion col. pesos, representing a 59% increase compared to the second quarter of 2025. With an EBITDA margin of 44%, approximately 6 percentage points higher than the same period last year This performance was driven by the outstanding contribution from the refining segment which delivered record margins and throughput levels for the second quarter In addition, higher transportation volumes and defective commercial management enabled us to capture market opportunities more effectively As a result, we continued strengthening our financial position The gross debt to EBITDA ratio closed at two times at the group level and 1.3 times excluding ISA's debt, while interest coverage maintained its favorable trend relative to the previous quarter. By the end of the first half of the year, we executed US$2.9 billion in organic investments, in line with our plan. Investments were primarily allocated to Colombia, which accounted for 71% 22% and the United States and other countries 7%. This level of execution reflects a disciplined capital allocation strategy focused on high-value projects, operational continuity and profitable growth while preserving the group's financial flexibility. By business segment, approximately 63% of investments were allocated to hydrocarbons Followed by Transmission and Toll Roads with 29% and Energy Transition Initiatives 8%. Efficiency gains continue to be a structural driver of value creation, contributing 2.6 trillion pesos during the first half of 2026, the highest level recorded for this period. Of this amount, 63% positively impacted Evita, 20% CAPEX and the remaining 17% working capital. Let us now move to the next slide. As of the end of the first half of 2026, the Copetrol Group reported net income of 9 trillion Colombian pesos, matching in just six months the net income generated during all of 2025. The year-over-year variation in net income is primarily explained by three factors. First, market-related factors contributed a positive net effect of 5.6 trillion Colombian pesos, supported by effective commercial execution that allowed us to capture the benefits of this favorable price environment. The increase in the average rent price from 71 to 88 US dollars per barrel, together with the net effect of crude and product differentials, Thank you for watching. mainly explained by the income tax surcharge which increased from 0% in 2025 to 10% in 2026 in line with the Brent price outlook for this year as well as the recognition of the new wealth tax. Third, financial and other factors had a net negative impact of 300 billion Colombian pesos primarily associated with a liquidity management transaction related to tax credits. During the second quarter of 2026 Net income maintained its upward trend and reached 6.1 trillion Colombian pesos, equivalent to 3.4 times the level reported in the same period of the previous year and the highest quarterly result recorded since the fourth quarter of 2022. Let us now move to the next slide. As of June 2026, the Acopetrol Group reported a consolidated cash position of 11.3 trillion pesos, maintaining strong financial capacity to support operations, Thank you for your attention. 8.4 trillion pesos, mainly associated with capital expenditures at Ecopetrol S.A., Brazil, ESA and Permian Basin. As a result, the group generated 6 trillion COP in free cash flow, demonstrating the business ability to sustainably fund its growth. Among the main cash outflows during the period were 6 trillion pesos in dividend payments, both to Ecopetrol shareholders and to non-controlling interests in subsidiaries. Additionally, net cash flow from financing activities and other items amounted to 1.1 trillion pesos, primarily related to debt service payments. Regarding the fuel price stabilization funds, as of June 2026, the outstanding receivable stood at 8 trillion pesos. These balance includes approximately 2 trillion corresponding to 2025 and an accrual of 6 trillion during 2026. By company, 79% of the balance corresponds to Ecopetrol, and the remaining 21% to the Cartagena Rim winery. By year-end 2026, we estimate that the FEPEC receivable balance will range between 8 trillion and 12 trillion pesos, subject primarily to the evolution of Brent prices and exchange rates. During the second quarter of 2026, we continued strengthening our financial position through active liquidity management. These included the offsetting of tax credits totaling 3.3 trillion Colombian pesos and the movement of funds within the group amounting to 716 million US dollars, initiatives that contributed to optimizing liquidity and enhancing the company's financial flexibility. Let us now move to the next slide. Thank you, Camilo. Let us now continue with the hydrocarbon segment. In exploration, we continue to execute our activities in line with the plan. Today, we are pleased to share very positive news for Colombia regarding the Sandia 1 well located in the Colombian Caribbean offshore. But by the end of the first half of the year, we had drilled eight exploratory wells, resulting in two successful discoveries. In March, we announced the discovery of the Copo Azul 1 well located in the Guajira Offshore 0 block. Today we can confirm that during initial testing, the well reached a maximum rate of 35 million cubic feet per day, constrained by the maximum capacity of the testing facilities. Vivita Sur 1 ST2, located in the Janos 123 E&P contract, and operated by Geopark with a 50% interest in partnership with our subsidiary HOKOL which holds the remaining 50% was rapidly brought into production after being incorporated into the commercial area of the Saltador discovery. As I mentioned at the beginning, together with our partner Petrobras, we have announced the discovery of the Sandia 1 well located at the Guajira offshore zero block. This discovery further expands the area's gas resource potential. Regarding the series project, contracts were signed with our subsidiary HOCO for the engineering and permitting of the gas processing facilities in Ballena. We also made significant progress in the prior consultation process with 120 certified communities. These milestones allow us to maintain the planned schedule for filing the environmental impact assessment during the first quarter of 2027. In the Llanos foothills, we completed the drilling of Floreña N18Y ST1, reaching the target depth in June. We are now evaluating the zones of interest to assess their potential. During the quarter, we also filed environmental impact assessments for the Tinamu, Magnus and Chimera discoveries located in the CP09 block as we continue advancing these resources towards potential further development phases. Let us go to the next slide, please. Going into further detail, together with Petrobras, we confirmed a new natural gas discovery with the drilling of the Sandia I well in the Guajira offshore zero block, located 42 km off the Colombian coast and reaching a total depth of 5,440 m. Located 18 km from Sirius and 9 km from Copo Azul, this discovery confirms the gas potential of the Colombian offshore and strengthens the prospects of adding resources that could contribute to energy security in Colombia and the region. Following the completion of drilling and after reaching the target depth on 29 July 2026, we are now evaluating the gas-faring intervals. to characterize the discovery and estimate its resource potential. Next slide, please. In production, I would like to highlight the stock profitability of our portfolio with margins about 40% of 9 percentage points compared to the same quarter last year. A favorable realized prices and the sale of crude oil cargoes in transit, which helped offset lower production volumes. During the first half of the year, Production averaged 713,000 barrels of oil equivalent per day. This result was mainly impacted by external events, including disruptions to surface operations in the meta-department and power supply events at strategic growth assets such as CPO09, Chichimene, Castilla and Rubiales. In particular, temporary restrictions at CPO09, Castilla and Chichimene resulted in deferred production of up to 23,000 barrels per day. Operations are currently progressing toward a gradual stabilization. Our gas business and international production performed in line with expectations providing stability and diversification to our portfolio. Looking ahead to the second half of the year, we are implementing concrete actions to restore production growth and strengthen value generation. These actions include 1. Accelerating activity in the Permian, with an additional 7-well campaign in the Delaware Basin. 2. Bringing the Lyria Wiser 10 development well in the Janus Fort Hills into production. While maintaining production levels at Gibraltar 3. Implementing a comprehensive production assurance plan focused on enhanced recovery, additional drilling campaigns, particularly in Caño Sur, increased work-over activity and the expansion of production facilities at Castilla 4. Evaluating inorganic opportunities that complement our growth strategy and strengthen the long-term sustainability of our portfolio While we continue to monitor external factors, including weather conditions associated with the El Nido phenomenon and other elements of the operating environment, the actions underway support our outlook for a gradual production, recovery and strong cash generation through the second half of the year. Next slide, please. In refining, we delivered one of our strongest quarters in recent years, achieving a record integrated throughput of 439,000 barrels per day and a refining gross margin of 29.8 USD per barrel, compared with 12.5 USD per barrel in the same period last year. This performance demonstrates our ability to capture favourable conditions through outstanding operational execution, high plant availability and operational flexibility. These factors enabled us to strengthen Colombia's energy supply while reducing import requirements. At the Barrancada de Reveja refinery, we achieved record throughput and refining gross margins. Meanwhile, the Cartagena refinery increased throughput compared with the previous quarter and reached a record gross margin of 31.6 soles per barrel, supported by greater operational stability and the completion of major maintenance activities in key units. We also continued to expand our sources of value creation by developing new markets for coke and surfer. In petrochemicals, performance was supported by higher polypropylene sales and favourable commercial conditions across strategic markets. Looking ahead, we remain focused on the disciplined execution of major maintenance activities, preserving asset reliability and prioritising initiatives that strengthen competitiveness, efficiency and sustainable cash flow generation. Turning now to the midstream segment, it continued to reinforce its role as a key enabler of our integrated business model, transporting more than 1.1 million barrels per day, an increase of 3.8% compared to the same quarter last year, supported by our commercial and operational flexibility, which enabled us to incorporate new volumes, transporting imported crude and optimized logistics corridors and inventories, thereby offsetting lower domestic production. These results reflect the segment's ability to maximize the utilization of existing infrastructure and respond quickly to the system's requirements. Key achievements included the optimization of strategic routes and enhanced logistics capabilities to supply our refineries and Colombia's domestic fuel market. Overall, the segment demonstrated strong operational resilience and efficient execution, contributing to the continuity of the integrated business, value capture across the chain, and the competitiveness of the group. Next slide, please. What do we have in terms of profitability and costs? During the first half of 2026, the hydrocarbon segment continued to improve its profitability through the disciplined execution of operational efficiency and optimization initiatives, consolidating a more competitive and resilient cost structure. This performance resulted in EBITDA of 25.7 trillion Pesos, representing a 26% increase compared to the first half of 2025. While the EBITDA margin expanded from 38% to 45%. These results further consolidate the positive shift in our cost performance that began to emerge in 2025. During that period, we delivered 1.3 trillion pesos in efficiency gains through operational optimisation, energy management, water management, enhanced recovery and the new technology. Moreover, when excluding the foreign exchange effect, our cost indicators show even greater improvements. These confirms that the progress achieved reflects structural efficiency measures rather than short-term factors. In terms of costs, compared with the first half of the year, lifting costs and refining cash costs increased by 3% and 4% in Colombian peso terms, respectively. Meanwhile, the transportation cost per barrel increased by 8%, mainly due to the additional requirements related to emergency response and external operating conditions. Overall, these results demonstrate the ability of the hydrocarbons segments to absorb inflationary pressures and partially offset the impacts of lower productions caused by external events as well as higher labour costs. This was achieved through structural efficiency measures that support margin expansion and the long-term sustainability of our results. I will now hand it over to Juan Carlos who will discuss the key highlights of the energies for the transition segment. Thank you, Carlos Mauricio. During the second quarter of 2026, the Ecopetrol Group reaffirmed its role as a key contributor to Colombia's energy security. We currently supply approximately 62% of the country's natural gas demand, and year-to-date we have offered 293 dbt UED of long-term firm gas supply, consolidating our position as the market's leading supplier. At the same time, we maintain an LPG supply equivalent to 38% of the national demand and continued advancing strategic projects that will strengthen the competitiveness of our growth of our gas business. On the Pacific coast, the Buenaventura regasification project reached 73% completion as of June and it is expected to begin operations in the fourth quarter of 2026 with a capacity of 60 GDT-UD. In parallel, we continue progressing through the competitive process to contract LNG supply, supporting the long-term marketing of imported gas. On the Caribbean coast, we signed the Charter Agreement for the floating storage and regasification unit at Puerto Bahia. With an operational capacity of up to 500 million cubic feet per day, the commercialization process for the domestic market is underway and startup is expected in the first quarter of 2027. Next slide please. As a part of our commitment to securing Colombia's natural gas supply during the contingency associated with the specs maintenance outage, The Co-patrol implemented coordinated and planned actions across the group that enabled us to deliver an additional 97 GBTUT to the market, helping meet essential demand and support the thermal power generation sector. Next slide, please. We maintained a reliable energy matrix and an increasingly robust renewable energy portfolio. During the quarter, we covered approximately 90% of the group's energy demand. Through self-generation and power supply contracts, maintaining competitive costs and generating significant efficiencies for the business, we continued strengthening our self-generation capacity through the startup of Thermocoa and the restoration of the Thermocusiana generation system. In addition, we consolidated our position as the country's largest renewable energy self-generator, reaching a portfolio of 951 megawatts. Among the quarter's main achievements where the startup of the Kifar Solar Farm continued progress on the Winpachi wind project and the acquisition of 49% stake in the JK1 and JK2 wind projects. These initiatives strengthen our long-term growth portfolio and support a responsible energy transition. In terms of energy efficiency, the quarter delivered 1.6 petajoules toward the annual target of 3.14 petajoules Bringing cumulative savings since 2018 to 26.4 petajoules. These initiatives generated efficiencies of approximately 48.5 billion pesos, reducing consumption, lowering exposure to sport market prices, and freeing up additional gas to the market. Given the high probability of an El Nido weather event during the second half of the year, we have implemented a comprehensive plan aimed at strengthening the group's operational resilience and contributing to the country's energy security. This plan includes increasing the availability of gas and fuels to support national demand, leveraging nearly two gigawatts of self-generation and renewable energy capacity, advancing energy efficiency initiatives and ensuring responsible water resource management. It also incorporates preventive measures to mitigate risk associated with wildfires and other climate-related events that could affect our operations. Through these actions, we continue strengthening the reliability of the national energy system while reaffirming our commitment to sustainable value creation for our shareholders and to a responsible energy transition. Next slide for our closing remarks. During the second quarter, we demonstrated the Copetrol Group's ability to translate exceptional market conditions into outstanding results. The combination of favourable prices, differentiated commercial approach and disciplined operational execution enabled us to deliver one of our strongest financial performances in recent years. We find it was one of the key value drivers in this quarter. We achieved record throughput and margins Thank you very much. Thank you. and a portfolio of opportunities that positions us well to deliver on our 2026 objectives. Finally, I would like to highlight that these results were made possible by the commitment and talent of our people. We are proud that the latest workplace climate assessment conducted under the international standard of the Great Place to Work Institute reflected significant progress, with our score improving from 77 points from 68 in 2025 and our rating rising from very satisfactory to outstanding. For the second consecutive year, we reached the target set by the Great Place to Work Institute, a recognition that reflects a culture built in trust, respect, fairness, and the priority belonging to Ecopetrol. With that, we will now open the floor for the Q&A session.

Thank you very much.

We will now start with a Q&A session. We remind you to ask a maximum of two questions so that we can have enough time for everyone. We will start with questions in English.

We remind all the analysts to select the language of your choice instead in the

Interpretation mode.

Otherwise, we will not be able to hear. That's why it's online.

You may ask a question. Hi, everyone. Thanks for taking my question here. I think I wanted to take advantage of the recent presidential election in Colombia and the new president potentially with a different view for the ONG sector. And I would like to ask maybe a broader question to management. I'll speak the same question maybe in three parts here. First, looking at ecopetrol in the past three to four years, what would you highlight as the main deliveries, the main projects that you enjoy delivering? Second part, which projects you had the biggest challenge in either moving forward or even approving and not being able to evolve? And the third part, if we look from now on, What would you like to have as the key priorities for the company? The main projects, the main sub-sectors to focus on? Those are the two parts of the question. Thank you.

Juan Carlos Hurtado Good morning, TASO. This is Juan Carlos Hurtado. I am the acting president.

As part of the main success we have is the expansion

Exploration rate that we have achieved in the last few years and this is of course explained in the announcements we have made in this first quarter with the discoveries of Copo Azul and Sandia One. That of course in terms of the, that is added to the diversification of our energy grid that is related to more self-generation systems. We can talk about solar plants where We are delivering, that are delivering energy to our premises that we have called Kifa for the fields next to Puerto Gaitán, La Iguana which is also providing or supplying energy to the Barranca Bermeja and the Casabe fields, and finally La Sida that supplies the start fields in operation that adds Another one to highlight is Portón del Sol, that is operating Ladora Caldas, 128 MW that are remote operation. These additional achievements, we are trying to show the growth in the production of crude oil nationally, mitigating the natural decline of our fields, and we can Also advancing a higher recovery factor related to secondary recovery and advancing with tertiary recovery projects with improved water. In second place, one of the biggest challenges we have is the environment and all the different processes that we have to do with environmental compliance. If we talk about exploratory compliance, in Sirius we have been Thank you. And also so that we can have an approval to execute at the end of 2027 challenges, environment and technical challenges to continue our operations in terms of efficiencies in the production of total fluid in reducing costs Thank you for watching! We have been focusing on traditional business studies, of course, related to exploration, production, refining, and transportation that has been leveraged, as I said, by some other projects that diversify our generation matrix to be more efficient in terms of energy. In the future, there is a door that is opening up, and it's the opportunity that we have in light crude, light oils. and all some non-conventional fields in terms of legal compliance and capital discipline. We have some pilot projects that were suspended depending on what the environment establishes and the different scenarios that we have to work on those. We have to continue working on exploratory blocks and the potential that we are declaring with the Sandia discovery is the gas capacity we have In the northern coast to go into the heavy crudes in the east of the country, in the method department, in the light crude oils in the Magdalena, Medio, Middle Magdalena area, and finally advancing in the exploratory projects on the foothills to be able to develop and mitigate the natural decline of our gas production fields.

Very clear. I appreciate it.

The next question comes from Bruno Montanari. Mr. Montanari, you may ask your question.

Good afternoon. Thanks for taking my questions. Two on my side as well, one on production and one on the CPEC. On production, can you help us bridge the second half of 2026 outlook on the back of the challenges we saw now in the second quarter? So how should we think about Thank you very much. Thank you very much. You mentioned you see a potential 8 to 12 trillion pesos accumulation by the end of the year. But looking into next year and within the new government, do you have any expectation to collect those funds maybe quicker than what we were seeing in the past few years? And a quick follow-up on that, when you talk about the 8 to 12 trillion pesos, This was by the end of the year. What type of grant and ethics rate are you assuming to come up with that range? Thank you very much.

Good morning, Bruno. My name is Carlos Mauricio Avila. I'm in charge of the executive vice presidency of hydrocarbons. I am going to answer the first questions about the production. In fact, as we have In the first half of the year, we had an average of 715,000 barrels equivalent per day. And the difference between the guidance that we currently have is associated to what we mentioned in terms of the environment events that we have had, especially in the fields with the largest production, which are in the method department. and the situations responded to a very specific event that happened due to some expectations and some work claims that were had in the area and which ended up in a blockade and the stop of 16 teams of work over for more than 70 days. This of course affected the production in around 23,000 barrels per day however these Blockades were already lifted last month and we're continuing with the production and recovering in these fields that are, of course, that are the ones that contribute the most to the production of crude in the country and, of course, to the production of the group. We feel very comfortable with what we have mentioned in terms of keeping the production target between 730 and 740,000 barrels per day. We have deployed the actions that will allow us to recover this production that have to do with managing the maintenance of wells for increasing the production that was affected by these blockades and we're also working on improving the electric reliability which has affected us on the last two months. It is worth mentioning that For the last days of June, we were achieving almost 730,000 barrels per day, which, of course, is good news. And we believe that we are going to continue with what was mentioned. In terms of the linear phenomenon, we have some estimates of what we could end up having in terms of effects on our production, and we are mitigating those. Thank you very much. Thank you. And I will also add some broader elements about how this Stabilization Fund works for the prices of fuels in Colombia. First of all, about the probability of recovery and the payment schedule, it is important to mention that the payments have been made on time and the dynamics of these payments is of course something that happens in Three-month quotas or payments that expire on a yearly basis. To give you an example, last year we had 3,000 million that were paid in three installments this year. The first one for 1,600 million, the second one for 1,000 million, and the other one for 400,000 million. About the last quarter we came to a payment agreement in December and we expect to collect this payment just as the first and third instalments were collected this year and these are short term titles and the payments have been made and we continue to receive them likewise. In terms of the figure for accrual of this rate, it is a range between 8 to 12 billion. Of course, this will depend on the behavior of the brand and the TRM. Of course, it depends on the crash price of the products, especially diesel and gasoline. Those are the ones that have the largest impact on the accrual of this FEPIC account. The calculations for this year are made with a Brent projection range for 2026 that is around 84, between 84 and 90 dollars per barrel. And we are working on this projection with a TRM that is between 3,200 and 3,500 pesos per dollar for 2027. We will have to wait for the new government to have new guidelines. We understand that it is a priority of this new government to start closing the gap that has been created given the subsidy to fuels and about this there have been different alternatives explored and amongst others one idea is to increase the price of fuels for the final user. And one more could be the change in the formula for the IPA, which is where we recognize the value to the producer. So this is a series of alternatives that will necessarily depend on the guidelines and the public policies of the new government. As I said, we have manifested publicly the need to solve Andres Cuello Andres Cuello Andres Cuello It's something that we are forecasting to be in the range between 3,200 and 3,600 pesos per dollar. And this, of course, takes us to foresee that for 2027 we will have an accumulation between one and three trillion pesos for the FAPEC account. This is receivable for EcoPatrol, of course. And, of course, these estimations, as I said at the beginning, will be related to the volatility of the spreads, the cracked spreads of products, especially diesel and gasoline, and the decisions that the government can eventually make about the behavior of the prices or the adjustments to the final user price of these fuels or to the way the formula is calculated to recognize ecopetrol.

Thank you very much.

We also have Andrés Cardona from Citi. Mr. Cardona, you may ask your question. Hi, good morning. Thank you very much for this Q&A session. You were mentioning that you had had a conversation with the new government about the prices of fuels. I would like to explore more about these interactions you have had with the new elected government and we would like you to share with us what could be the most significant changes both for Ecopetrol and for the sector at large, the oil sector. What have you perceived in this new government? Thank you. Andrés, good morning. This is Camilo Barco. Thank you for your question. It is worth clarifying that we haven't really had this dialogue with the new government. We recognize the general declarations they have made about the fuel price policy and the need to close this gap that is created given the subsidies to diesel fuel especially. However, we are expecting to have new guidelines and definitions for new policies. We have explored different alternatives, but this has not really been very interactive with the new government. This has just been the result of constant work that is done with the authorities, Ministry of Mines and Energy and the Ministry of Minister of Finance and these are conversations that come from before really and have to do with the management of the FEPEC account for collecting it. We are expecting that the new government assumes office and so that we can open a communications channel with Andrés Carlos Hurtado, I am the acting president. Related to that, we from the document and all the possibilities we have, we are ready since a couple of weeks ago to be able to give all the information to the new government as they require. As part of the projections or forecasts that we have and the opportunities we have, we would like to continue working on exploration and consolidating the recovery factor and the development of secondary and tertiary recovery supported by new technologies whether they are on-site combustion or improved water. And we will continue developing the heavy crews in the foothills and also working on the different exploration and development projects that we have in the foothills. And of course thinking about the product and the option Like real oils related to non-conventional fields, where we already have had some information according to the regulations of the company, we have to, of course, comply with all the environmental legal requirements and our capital discipline. And, of course, distribution to ensure any information that the new government requires. Thank you. The next question comes from Álvaro Leyva from BTG. Mr. Leyva, your question. Good morning. Thank you for this possibility to ask questions. My question has to do to the future of Permian and what is the projection you expect for the next quarters and years? I know that you had announced a perforation campaign or a drain campaign for this year. But I don't know if you can see some decline in production given the deterioration of the productivity or is it because of the current drilling plan? If it's due to the drilling plan, I would like to know whether there will be a review of this year or next year. Thank you. Thank you for your question. I am Julian Lemos. Vice President of Corporate Strategy and New Businesses. I would like to talk to you a question about the forecast for production in Permian or the performance that we can see and this is responding to the agreement we have with Oxy and the planning that we did last year. Considering the price environment that we saw there and the conditions of the industry that we saw that time where we agreed and we reduced the number Andres Garcia Cuello Andres Garcia Cuello Andres Garcia Cuello Andres Garcia Cuello The short cycle hydrocarbon allows us a different flexibility. And having agreed with OFSI, we have decided to accelerate or include seven wells that were not part of the 2026 planning. And as I said, we are continuously evaluating what options we will have. This will have to do with the price scenario that both partners can see for 2027. and to determine whether we will maintain the same level of activity to see if we have the same number of preparation equipment that we would have in the contract or whether we will have to increase that. But that will be discussed and that will be part of the analysis of the surroundings of the environment and the agreement that we make with our partner.

Thank you. That was very clear.

We also have Andres Duarte from Corfi, Colombiana. Mr. Duarte, you may ask your question. Thank you. I have two questions. The first one has to do with the knowledge transfer in terms of what you do at Permian according to the joint venture with Occidental. I would like to know how much of what you have learned can be applicable to the development of non-conventional fields in, I understand, the middle Magdalena area was where you had some opportunities. And the second question has to do with the reduction that you can see in the operating cash flow from the second quarter of 2035 is that, With taxes, or is there another reason for the cash flow to be reduced? Thank you for taking my questions. Good morning, Andrés. This is Juan Carlos Hurtado, the acting president. In terms of the plan that we had when we started the joint venture with Occidental, We had personnel that was working together and there are still people working and they're working at our subsidiary but together with our Occidental to work on this learning experience to be able to capitalize once we can develop this unconventional reservoirs in the country and we have professionals that in terms of reservoirs and production to be The leaders of these projects, when they happen. In terms of the cash flow, last question, I give the floor to Camilo. Thank you for the question, Andrés. About the variations of the cash flow in this quarter, the answer is yes. This, of course, responds substantially to the FEPEC behavior And as we said before, this specifically has to do with the 1.6 trillion payment where we came up with a payment agreement with the Ministry of Finance. And this payment was postponed to December, of course, that has an effect for the same amount in the cash flow of the quarter. The second part of the answer is that it indeed has to do with the taxes and there are two components. The first one has to do The wealth tax for a total amount that was accrued, that's 1.2 trillion pesos, and that also, of course, has a direct effect on the cash flow. And additionally, the surcharge, the fuel surcharge, that apart from the increase to the market price from $80 upwards, this starts creating a surcharge that is equivalent to 10%. So of course there is a surcharge here and the income tax which has been accrued this year. These are the reasons for the variation. It is important to mention that the free cash flow, free operating cash flow is a healthy flow and we have accumulated almost 6 trillion pesos for the year of which the second In the second trimester we generated 2.8. And it is also worth mentioning that historically the second quarter is a strong quarter in terms of the cash flow because in this second quarter several of the amortizations for debt coincide. Payments for taxes and what's very important is the dividend payment. This year we paid 6 trillion pesos to our shareholders. Both to the government, the nation as the main shareholder, and to the other shareholders. And this tax payment, which in other years has been crossed with the FedPAC payments, this had an impact on the cash flow. And it's available to, for the end of the year, we can see a stable cash flow. Above the minimum provided cash flows that we have foreseen, the second semester will be an accumulation semester and we consider that we do not have major challenges in the remaining part of the year. In fact, we are foreseeing that apart from the private transaction, there won't be any need to We continue with Juan Felipe Becerra from Credit Corp. Mr. Becerra, you may ask your question. Thank you for the presentation. I have two questions on my side. The first one is a follow-up. Thank you very much. and the client in the volumes that were transported and refined. That is my first question. And the second question is whether you could give us a schedule of what will happen after the BRAVA public offer given. If it's successful, when would we be expecting to see the consolidation of that transaction in terms of a timeline? Thank you. Thank you. This is Juan Carlos Hurtado, active president. In terms of your first question, The main focus is to maintain this line in terms of volumes in the three segments of the traditional business. In terms of volume, we are maximizing throughput to obtain better margins, according to what we have in market, increasing and optimizing our transport system, whether it's oil pipelines, multi-product pipelines, to maximize the value. And in terms of value, we are maintaining the volumes that we estimated I will ask you a second question about the timeline for BRAVA. The past 15th of June, through our subsidiary in Brazil, we received from the authorities in Brazil an answer to our appeal To continue with the stock market operation with that favorable resource and some elements that with some prior conditions we are in the condition to launch tomorrow the auction for this tender offer. We just wanted to mention that we have green light from the institution in charge and the green light from the bondholders. and dad holders for Brava and the green lights from the photo directors of Brava. In terms of the terms, we are launching this auction. So this is, of course, our future diligence for the tender offer. If everything is successful tomorrow, on the 17th of August, we would be conducting the liquidation of that tender offer, which is basically a disbursement of the resources for the Thank you very much. The next question comes from Leonardo Marcondes from Bank of America. Mr. Marcondes, you may ask a question. Are there any pending environmental or regulatory approvals that could affect the schedule of the development of the blocks? Thank you very much. This is Carlos Mauricio Avila, Vice President of the Hydrocarbon Slide. Your first question has to do with what we are doing to reduce the costs of the upstream, basically beyond having a production guidance. We, in fact, our message is that we have to guarantee the cost indicators that the segment has. In that sense, we are working very strongly on different initiatives that have to do with the efficiencies program, which basically targets the core of those costs that are, of course, the most important for the segment. We're talking about costs related to Electricity, where the matrix or the grid in terms of how much it weighs is 26 to 30%. And we are working on that to be able to optimize those net tariffs that are, of course, created on the segment due to energy consumption. We're also working on water management. One of the challenges that we have in the assets of petro-petrol is specifically Colombia has to do We're working to have efficiencies in terms of the costs associated to the services related to the wells. To reduce and implementing new technology, implementing options to increase the recovery factor, as the President mentioned. and other alternatives that will allow us to have other alternatives at lower costs and everything that has to do with the services contracted where we have implemented a series of strategies so that the costs are reduced in terms of dollar per barrel. In terms of the environmental approvals or regulatory approvals that have to do or that are affecting the development of the new blocks What we're doing here is we're trying to work together with each one of the institutions in the government so that we can effectively obtain to have all the different permits, the adequate permits, so that we can actually obtain those permits in the times we have. We have been improving our relationship with all these institutions or entities and we think we can optimize some of those times for those permits. And there are different projects depending on where we develop them in the country. But we believe that working with the environmental authorities and others, we can keep our goals in terms of compliance without reduction so that they are not affected by these approvals. That's very clear. Thank you.

Continuamos con Alejandra Andrade.

Continue with Alejandra Andrade from J.P. Morgan. Hi, good afternoon. Thank you very much for taking my question. I have two questions. The first one is I want to understand in terms of financing for Prada and what you had Already insured, I don't know if it was a bridge loan, and then the idea would be to refinance that coming from international markets. How is that transaction structured? And related to that, I wanted to understand if you were analyzing possibilities to conduct a liability management exercise alongside the BRAVA financing. Thank you.

Alejandra, buenos días.

Good morning, Alejandra, and thank you for your question. My name is Camilo Barco, CFO.

About the first question related to the drama financing.

This is a typical structure for this operation. As you mentioned in the same question, we are going to do a short-term financing with a bridge and loan. To finance this acquisition, we are foreseeing that before the year ends, we will do a take-out where we include all the possibilities, or a take-out to a long-term credit, or also a take-out to an operation in the capital market. And with that, I go to the second question about liability management. and of course a strategic approach in terms of financing is to optimize costs we have seen a positive evolution of the margins of the different securities of sovereign debt and the behavior of the copetrol bonds and we can foresee good conditions in the second semester and in the markets we can see this type of transaction We have reduced the financial costs and we will continue working on this with the purpose of prolonging the average maturity of this portfolio. We will continue monitoring the different conditions and assessing all the possibilities of both the banking market and the capital market.

Thank you.

We now continue with Hugo Beltrán from Acciones y Valores.

Mr. Beltrán. Thank you very much. I would like to ask if you could expand on the liquidity operation on tax credits. What is the magnitude or the dimension of those balances? I mean, we expect this type of liquidity operations in the following periods. And finally, how you are Moving forward with the litigations with the PAN in terms of the VAT to fuels, that was, that litigation was happening in 2025.

Thank you. Thank you, Hugo, for your questions.

I will answer your questions in the same order. The first question related to the Tax credits or balances from taxes, as you described, in the second quarter, sorry, in the first quarter, we carried out an operation as one of the levers for liquidity where we managed to structure the sale of a package of obligations or let's say saldos de impuestos a favor and this operation had a value of $500 million and we were given, made a payment of around 2 trillion pesos and the financial cost is also reflected in that period with an amount that is consistent to the discount that we received due to the anticipated forward sale of these and this is an operation that can create a good context or background that can give us liquidity of these sets of receivables that have been growing in Copetrol. So we believe that in effect this will continue being an alternative mechanism that is possible and that As we need, depending on the cash flow, when it is worth doing it, this will be an alternative to provide liquidity for the company at very competitive costs that are close to the average financing costs that we have in the rest of the portfolio. In terms of that operation for the receivables, in terms of the VAT litigation process, we continued advancing in the different and instances in this controversy with the tax authorities. We have six different processes, sorry, eight different processes, six led by the Cartagena Refinery and two by Ecopetrol and we have made different appeals that are in process and we have requested some measures in several of these cases. And what we could say is that they are basically undergoing the different discussions in their corresponding instances. But I would like to mention that in the previous quarter, Law 2586 was issued by the Congress of our Republic, which is the customs... Charter, and in Article 113 they have a provision for an alternative mechanism for solving controversies with the tax authorities. Diana, this is an alternative that we are assessing that offers favorable conditions to explore an alternative solution to this controversy that has been created around VAT. While we explore this alternative and we verify and double-check the benefits that we would have for Ecopetrol, we will continue moving forward with the litigation.

Thank you. Thank you very much. There are no more questions.

We will continue with the... Questions as in the chat. Mr. Stanicek, considering the results of the cooperation with Petrobras in developing the offshore gas resources, is EcoPatrol assessing to expand this model of alliances to the exploration, the offshore exploration of

Good morning, Juan Carlos Hurtado, Acting President.

At this point, given the announcements we have made recently and those reinforced with the discovery of Sandia One Block, We can see the capacity of developing some important gas volumes in the offshore component. And we are working with Petrobras to develop these exploration capacities to be able to materialize these resources that we have identified so far and to be able to have the opportunity of discovering the other blocks that are within those areas that are shared with Petrobras. We have the KGG block at 100% and we have been maturing as a copetrol but we can see alternatives of involving a strategic partner such as Petrobras from now onward to develop the capacitors that we would have in terms of volumes and Lastly, being able to move forward with what we have with ANARCO and validating the environmental aspects to continue developing the exploration projects.

Michelle Galvez, the Principal Financial Group, nos pregunta.

Principal Financial Group Act The gross margin 29.8 dollars per barrel with the Cartagena record with records Cartagena 31.6, Parra, Cermeja 28.4 depending on the crack spread of the still given the disruptions in almost what refining margin are we assuming for the second half of the year for 2026 If crack is compressed, and how much would the record be for the second half of the year, and how much was it structurally given tillages? Hi, I'm Julio César Herrera, I'm commercial vice president, and I will answer this good question on behalf of the commercial and refining areas. They will be able to complement my answer. It is true that even though the refining matters of the second quarter benefited from an exceptionally favorable

Andres Garcia Cuello Andres Garcia Cuello Andres Garcia Cuello

And we are not providing specific guidance for this, but what I can say is in terms of refining what we have reached is structural. These benefits have been structural, and the margins will continue being determined by external factors, of course, such as the international differentials of use and the prices of crude oil, which is what we have at the refinery. and the general conditions of the energy market. From the perspective of value creation, it is worth highlighting that that record performance responded to several factors that take me to say that this was a structural benefit. You heard about the throughputs of the refinery, Batranca, $240,000 per day, Cartagena exceeding $210,000. and that's not the last thing. We have the optimization of the diet and the fact that we're working both in Paranca, Bermeja and Cartagena with an operational integration and we have more yields from the operational discipline and Their decision to go for more valuable products, that is what has been the result. Even though the market margins were being normalized, we continue strengthening the structural capacities of the refining system to sustain that value capture, which will be competitive if the market continues behaving in that way, where we will have those crack spreads in the refining area.

Diego Galvan from Global X asks, Are we planning to make adjustments in terms of corporate governance to safeguard the board of directors of Ecopetrol?

In the last four years there were changes that had impacted the election of some of the members of the board of directors.

Any comments?

Are you planning an extraordinary assembly in the short term?

Good morning, Diego.

This is Cristina Toro, legal vice president and general secretary. According to the legislation that is applicable and the Charter of Ecopetrol, the General Assembly of shareholders will make decisions about the board of directors and this is the competent body to elect and remove members from the board of directors At the moment, given the resignations of two members, the photo directors can continue deliberating in a valid manner with the members that are still there.

This without meaning that

The assembly can be summoned to choose all the members. When that happens will depend on the specific circumstances. However, once we need to have a full list of candidates that requires the verification of different requirements and the different Conditions established internally and only once we have conducted those verifications, two weeks after that, an assembly can be summoned. Thank you. When do you expect to consolidate the results of Brava Energy in the accounts of the Ecopetrol Group? If that is successful, if the acquisition is successful for 51%, How much do we expect this wood to contribute in barrels per day of production? This was asked by Harold Rubio.

Thank you very much to Harold for the question. Camilo Barco here again.

In the timeline that we have, and once the operation is successful, the Grava operation is successful, and once the auction, you know, the tender offer and then the auction that follows, we expect to consolidate the results in Copetrol Results at the In the third quarter of 2026, as a part of the production that we will have, we expect to receive a contribution of around 42,000 barrels of production per day. That is consistent with the participation of a copetrol that is 51%. Camilo Díaz is asking, could you please tell us what is the daily energy demand in megawatts for the group and how much of this demand is covered with self-generation with renewable energy? That means without purchases at the MME and the stock market. Good morning, this is Ernesto Gómez, Vice President for Energy. Thank you for the question, Camilo. Ecopetrol has a consumption of 24 gigawatt hour, which corresponds to 9% of what the country consumes.

And of that that Ecopetrol is using every day, 54% is done through self-generation sources.

Out of that 54%, 49% is conventional self-generation, and 5% is renewable sources. Those are the figures that we have at the moment and you know that we have a portfolio of renewables that is growing and in solar 414 megawatts. Thank you for the question. También nos preguntan

I have a question.

Have you thought of a rotation strategy of the assets portfolio to reduce the level of total debt of the Copetrol Group? If that is the case, could you give us more information?

Thank you, Camilo, for your question.

Julio Lemos, Corporate Advisor for Century Energy Businesses. I would like to start saying that the debt levels of the group are healthy, and as it was previously mentioned by my National Vice President, Camilo, and even after the acquisition of Brava, we will continue being within the limits that were previously reported to the market. However, this Portfolio rotation exercise is something that we permanently do in the company and we are assessing different alternatives with that purpose and we will be informing the market when they are executed or when they are about to be executed. Thank you.

Muchas gracias. Cerramos el espacio de preguntas.

We conclude this Q&A session. We now give the floor to Marcela Hurtado who is the acting president of the Co-Petrol for final remarks. Thank you very much. I would like to thank all of you for participating and for your interest in the results of the second quarter and the forecast that we have for 2026 and onwards. Thank you to the team for your participation and thank you for the results. Have a great day.

Thank you.

Thank you everyone and with this we conclude our results call for the second quarter of 2026. Thank you for your participation and the call will end now. Thank you.