Professional Documents
Culture Documents
Investor Presentation
Jan. 2012
Disclaimer
This document was prepared by Ecopetrol S.A. with the purpose of providing the market and interested parties certain financial and other information of the Company.
This document may include strategy discussions and forward-looking statements regarding the probable
development of Ecopetrols Business. Said projections and statements include references to estimates or expectations of the Company regarding its future and operational results. Potential investors and the market in general should be aware that the information provided herein does not constitute any guarantee of its performance, risks or uncertainties that may occur or materialize. Real results may fluctuate and differ from
those provided herein due to several factors outside of the control of the Company. Neither Ecopetrol nor its
advisors, officers, employees, directors or agents, make any representation nor shall assume any responsibility in the event actual performance of the company differs from what is provided herein. Moreover, Ecopetrol, its advisors, officers, employees, directors or agents shall not have any obligation whatsoever to update, correct, amend or adjust this presentation based on information attained or events occurred after its disclosure. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by Ecopetrol. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of Ecopetrol.
Agenda
Total Oil Production in Colombia* and Milestones (thousand barrels per day)
4 5 3 6
2 1
Key milestones: 1. Beginning of oil production in Colombia (1922) 2. Ecopetrols incorporation (1951) 3. Discovery of Cao Limn field (1983) 4. Discovery of Cusiana and Cupiagua fields (1988) 5. New hydrocarbon regulation: royalties and contracts (2002-03) 6. Incorporation of the National Hydrocarbon Agency - ANH (2003) 7. Ecopetrols IPO (2007)
*Total country (Ecopetrol + other companies) Source: Revista Semana , National Hydrocarbon Agency (ANH), Colombian Petroleum Association (ACP)
Reserves
(Oil Reserves: Billion Barrels, Gas Reserves: TCF)
Mexico
Reserves Oil * 11.4 Gas** 17.3
2,958
T&T
Reserves Oil * 0.8 Gas** 12.9
Colombia
Reserves Oil * 1.9 Gas** 4.4
Venezuela
Reserves Oil * 211.2 Gas** 192.7
801
651
Ecuador
495 146 157
Peru
Brasil
Mexico
Venezuela
Brazil
Colombia
Argentina
Ecuador
Trin.&Tob.
Per
Reserves Gas** 12.5
5.3
Oil * 1.2
Bolivia
Oil * -
Reserves
Gas** 9.9
3.9
Argentina
Reserves 1.4 1.4 1.1 Oil * 2.5 Gas** 12.2
Mexico
Argentina
Trin.&Tob.
Venezuela
Brazil
Bolivia
Colombia
* In the Jan-Sep period of 2011, Colombias oil production reached 904 mbod, and 1.0 bcfd of gas Source : BP statistics. Average figures for 2010.
U.K. 1.3
Algeria 1.8 Irak 2.5 Saudi Arabia 10 Iran 4.2
China 4.0
Nigeria 2.4
Argentina 0.7
2008
61.7 million hectares* Total contracted and reserved area 38%
2011
102.0 million hectares* Total contracted and reserved area 63%
Colombia 2011 (Sep): 25.2 million hectares under exploration Exploration activity on 294 blocks 100+ companies in E&P
* Area includes: production, exploration, TEAs and in preparation Source: ANH
70%
53%
60% 50%
200
150
33%
40%
39%
41% 98 108 64 51 41 29 47 28 63 36 45
100
14%
21% 56 28 18 14 12 2 10 6 4 22 6 11 10 12 6 21 35 70
50
10%
26 29
34
19 16 22
0%
-10%
2007 2008 2009 2010 Jan-Sep 2011
2000
2001
2002
2003
2004
2005 Dry
2006
Producer
Source: ANH
6.0 5.0 4.0 3.0 2.0 1.0 2003 2004 2005 2006 2007 2008 2009 2010 % of total FDI 0.3 0.5 2.0 3.3 3.4 2.4 2.8
30 25 20 15 10 5 0 0% 10% 30%
20%
1.1
2004
2005
2006
2007
2008
2009
2010 (p)
10
12% market float Listed in BVC, NYSE, BVL and TSX Dow Jones Sustainability Index
Market Cap
12
10%
11%
US$ 25.7 bn
43%
14% 1.8
Production Acquisitions Transportation * e: estimated
16%
Refining & Petroch. Exploration Other
2007
2008
2009
2010
2011e*
Source: Ecopetrol
13
Clean fuels Reduction in accidents and in environmental incidents Emission reduction Statement from the majority shareholder Clear dividend policy Corporate Governance Code Competitive salaries and variable compensation Leadership development program Work environment management Trust agreement with unions Commitment with stakeholders Sustainability report Social investment and project support Integrated process management: SOX, COSO, COBIT Internal controls Technological developments
MANAGEMENT &
CONTROL
Source: Ecopetrol
14
Biofuels:
E&P:
E&P:
Source: Ecopetrol
15
Exploration
Biofuels
Transportation Sales & Marketing
Source: Ecopetrol *As of Sep.2011; ** As of Dec. 2010 ; *** 2009. Reduction in liquid fuels market share due to the blending with ethanol and biodiesel.
16
Refining 7%
US$ 80 bn
Exploration 25%
Production 60%
17
447
85
97
81
109
153
224
294
2007
Jan-Sep 11
19
+28%
Catatumbo Orinoquia
+2%
+2%
OOIP @ 2007 OOIP @ 2009-2010
Average Recovery Factor in Colombia of 19% 90% of the fields under primary recovery 11% of Colombian production comes from secondary recovery Less than 1% of production comes from Enhanced Oil Recovery
Central South
+4%
+61%
Minor fields
+4%
20
Source: Ecopetrol
Central
42%
Castilla Chichimene Rubiales + Quifa Guajira Cusiana La Cira Infantas Nare Tib Orito Tenay Tello
Northeast
29%
Mid Magdalena
12%
Catatumbo South
8% 9%
Source: Ecopetrol
21
98
116
132
2010
(e) estimated
2011 (e)
2012 (e)
22
Average Production (mboed) Heavy crude (9 API) Oil in place: 2.8 bn boe (e) 2012: 40 wells (e)
Source: Ecopetrol
19 2010
(e) estimated
36
56
2011 (e)
2012 (e)
23
Rubiales and Pirir fields: 60% and 50% Ecopetrols share, respectively
Capex 2011 US$ 0.3 bn
Production (mboed) Heavy crude (12 API) Oil in place: 4.4 bn boe (e)
72
97
107
2010
(e) estimated
2011 (e)
2012 (e)
24
Production (mboed) Medium crude (19-22 API) Oil in place: 4.0 bn boe (e) 2012: 150 wells (e)
Source: Ecopetrol
17
20
27
2010
(e) estimated
2011 (e)
2012 (e)
25
Production (mboed) Medium crude (21-23 API) Oil in place: 1.9 bn boe (e) 2012: 55 wells (e)
Source: Ecopetrol
16
20
22
2010
(e) estimated
2011 (e)
2012 (e)
26
NARE
Heavy crude (11-13 API) Oil in place: 1.1 bn boe (e) 2012: 19 wells (e)
(e) estimated
Source: Ecopetrol
Production (mboed)
13 17
21
2010
2011 (e)
2012 (e)
27
10
6 3 2 12 2 2007 2008 6 6 1 30 15 3 36
Successful wells
13
5
16
13 5 4
2010
8
2011 ( e ) Jan-Sep 2012 ( e ) 2011 57%
28
2009
Geological Success
16%
33%
26%
26%
Lisama Norte 1P
2009
Pachaquiaro
Akacias Norte CSE-8 Mito Quifa9 Quifa6 Quifa 5 Quifa 8 Fauno Quifa 7 CSE 8ST TRASGO Nunda Pinocho
2010
2011
Quriyana Tinkhana
Source: Ecopetrol
29
Reserves Addition
(million barrels of oil & gas)
RRI **
6,200
193%
359%
46%
1,137
1,714 1,538
1,109
109 643
357
2008 2009 2010
2008 - 2010
Exploration Revaluations Acquisitions
2011 - 2020 ( e )
30
Jan-Sep 2011
2011 (e)
2012 (e)
2015 (e)
2020 (e)
(e): estimated
Source: Ecopetrol
31
Upstream strategy
1
2
Increasing
Production
Exploration
Strategic lines
Unconventional resources
ROCE : 28%
32
Breakdown by source
Gas 12%
WO & stimulation 1%
Source: Ecopetrol
33
Fields
Prod. increase
Gibraltar 36 mmcf
Cusiana LTO II
200
270
+70
Gibraltar
36
+ 36
Cupiagua
140 mmcf
Allowing for:
Cupiagua
140
+140
Source: Ecopetrol
34
Upstream strategy
1 Increasing
Production
Exploration
Strategic lines
Unconventional resources
35
Exploration strategy
LEVERAGE GROWTH
SUSTAINABILITY
9%
Short term results to lever growth Moderate risk
Colombia
EARLY PRODUCTION PROVEN BASINS
71%
Contingent resources which shifts the growth High risk
COL-CARIBBEAN OFFSHORE
20%
Frontier plays of late development High risk
COL-PACIFIC OFFSHORE COL-CAGUAN
COL-HEAVY OIL
COL-FOOTHILLS
Description
International
GOM -MIOCENE
BRA-PRESALT
PER-FOOTHILLS
Source: Ecopetrol
36
Colombia
International
21.3 5.2
exploration
Assets
exploration
Assets
hectares hectares
*Includes: Ecopetrol S.A., Hocol, and Equion 37
Blocks in Colombia
9%
20%
Atlantic Ocean
Venezuela
71%
Leverage
Sustainability
Growth
Early production
53 blocks
Proven basins
Pacific Ocean
Ecuador
Brazil
Peru
Source: Ecopetrol
38
Caribbean sea
Exploration assets
(71 blocks)
16.1 mn Hectares
Operated directly: 52 Blocks(74%) Not operated: 18 Blocks (26%)
Basins
1 Llanos 2 Mid
Venezuela
Catatumbo Magdalena Valley 3 Upper Magdalena Putumayo 4 Offshore Caribbean 5 Lower Magdalena Valley 6 Offshore Pacific
Pacific ocean
6
Producing assets
(116 Blocks)
2.0 mn Hectares
Source: Ecopetrol
39
Llanos basin
Operated by ECP Not operated by ECP Prodution ECP
SIRIRI
LLA ARAUCA
CATLEYA
38
Total Area: 8.8 mm Hectares No. of Blocks: 71 33 Exploration 38 Production Operator: 63% Non Operator: 37%
META CPE-1
LLA 41 LLA
LLA 4
LLA
LLA
5
Mundo Nuevo
6
LLA
LLA
10
LLA LLA 14
11
JOROPO LLA 18
9
NISCOTA
LLA 15
LLA 16 LLA 17
ANH ANH
ODISEA
CUBIRO
CLARINERO
Venezuela
BHP CPE-5
CPE-4
LLA 26 LLA31 CEBUCAN CANAGUARO BALAY CASIMENA UPIA SURIMENA PAJARO MORICHITO PINTO LLA32 SAN CPO-1 ANH GARIBAY ANTONIO PUNTERO LLA34 TIPLE
LLA 29
LLA 47 COCLI
CONDOR
LLA 31
SALTARIN
CERRERO LLA 59
CABRESTERO
LLA 37
SKCPO-4 ANH
ONGC CPO-5
CPO-10 CPO-9
CHIGUIRO W CPO-16
Foreland
CHIGUIRO E
CPO-11
META P CPO-12
TECPECOL CPO-13
TALISMAN CPE-8
CAO SUR
CPO-17
PLUSP CPE-6
PLUSPETROL CPE-7
Source: Ecopetrol
Potential Analysis
40
APIAY
CPO 10 CUBARRAL CPO 9 PIRIRI CAO SUR CAMOA CAO SUR CPO 16 CAO SUR CPO 11 RUBIALES
CAO SUR
CPO 17
14 6 20
3 3 4 4
2 1 3
6 6
1 1
2 1 3
41
Source: Ecopetrol
Catatumbo basin
Caribbean Sea
Total Area: 0.2 mm Hectares
Venezuela
RIO ZULIA
URIBANTE
Source: Ecopetrol
42
Venezuela
PLAYN
Operated by ECP
MAGDALENA MEDIO
Other Operators
Pacific Ocean
Source: Ecopetrol
LA POLA VAROSA
VMM 16
Stratigraphic Play
Prospectivity analysis 43
GUAUYACO MECAYA GRANTIERRA ALEA 1848 CAG-5 CONSORCIO META TERECAY PACIFIC
SAMICHAY B
SAMICHAY A
No. of Blocks: 10 2 Exploration 8 Production Operator: 80% Non Operator: 20% Corporate group owns 20% of the contracted area
Source: Ecopetrol
AREA OCCIDENTALC
TACACHO PACIFIC
Frontier area
Ecuador
Per
Pacific Ocean
Calcareous Plays
VSM 12 ALLANGE VSM 22 TELPICO VSM 14 ECNICA VIAL TELPICO SAN JACINTO
VSM 32 EMERALD
Source: Ecopetrol
45
Caribbean Sea
GUA OFF 3 SHELL RC-10 TAYRONA RC-7 RC-4 RC-5 RC-6 RC-8 RC-9
GUAJIRA
FUERTE NORTE
Venezuela
Potential analysis
FUERTE SUR
Operator: 41% Non Operator: 59% Corporate group has 67% of the contracted area
Source: Ecopetrol
Operated by ECP Not operated by ECP Production ECP Equion Other operators
46
Caribbean Sea
TIBURN OMIMEX
SIN SJ N-1 SSJN-3 PACIFIC PERDICES SIN SJ 4 SAMAN SIN SJ 7 PACIFIC SIN SJ 1 VIM 5 OGX VIM-6
SSJN-5 SK
Venezuela
47
Pacific Ocean
New exploration plays
BOROJO NORTE
BOROJO SUR
TUMM OFF-3
Source: Ecopetrol
48
Miocene Paleogene
Exploration Area
9.6 mm Has
GoM Miocene Brazil post-salt pre-salt Peru maran
GOM
Jurassic
Peru offshore
Sustainability
Para Maranhao
Campos Santos
Espiritu Santo Campos Santos
Para-Maranhao
Source: Ecopetrol
49
Upstream strategy
1 Increasing
Production
Exploration
Strategic lines
Unconventional resources
50
Methane hydrates Gas in Situ 434.2 TCF Shales 31.7 TCF (Higher potential in VMM 29 TCF) Coal Bed Methane 7.5 TCF (Higher potential in Cesar 2.4 TCF and Guajira 3.4 TCF)
CBM - CESAR
SH - CATATUMBO
CBM - MONTERIA
SH - VMM
CBM - CORDILLERA
SH - VSM
SH - PUT
51
Drivers Regional geological knowledge Land positioning Access to infrastructure and social - environmental knowledge Access to potential markets for gas and liquids to be produced High potential
SH - PUT SH - CATATUMBO
SH - VSM
52
106 117
27
20
1,000
730
2011 (e)
Current fields
Unconventional
(e) : estimated
Source: Ecopetrol
53
300
840
110
50
1,300
Current fields
Unconventional
Total 2020
(e) : estimated
Source: Ecopetrol
54
8.58
World
Ecopetrol
Lifting cost
2010
USD/bl
Peers* max
Peers* min
Ecopetrol**
*Peer group includes: Petrobras, Marathon, Hess, Repsol and Oxy **Lifting cost of Ecopetrol Jan-Sep 2011: US$9.5/boe Source: Herold, Bloomberg, Quarterly results reports, and Ecopetrol 55
2.7
2005
2006
2007
2008
2009
Source: Ecopetrol
56
Downstream strategy
1 MARKET
FOCUS
2 MARGIN
IMPROVEMENT
3 OPERATIONAL EXCELLENCE
58
547
216 331
650
302 348
719
356
841
480
Local sales
363
361
Exports
2007
2008
2009
2010
Exports
302
16 49 233
480 356
20
148
53 95
216
51 149
37
56 400
312
2007
2008
2009
2010
Jan-Sep 2011
59
Canada
U.S. Gulf Coast Destinations Caribbean and other South America Far East
Jan-Sep 2011
8%
1%
Crude References
2010
5%
60
907
GBTUD
721
760
2006
2007
Refineries LDC Exports
2008
2009
2010
1H-2011
Unconventional
Gas Shale: Mid Magdalena Valley and Catatumbo 15-42TCF
Petrochemical CNG
LDC: local distribution companies CNG: compressed natural gas Source: Ecopetrols calculation
Demand
1,500 1,250
GTBUD
Unconventional Hydrocarbons Conventional HCs Imports Supply from other producers Supply from Ecopetrol
1,000
750 500
250
2015
2030
61
+100 mmcfd
Panama (power plants)
+700 mmcfd
Caribbean and Central America
+250 mmcfd
Ecuador
+ 265 mmcfd
Barrancabermeja and Cartagena refineries
62
250.0
200.0
150.0
100.0
50.0
0.0 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Ecopetrol
GASOLINES Gasolines
LPG
64
Diesel
Colombia Medelln Bogota and Public Transportation Systems
1,200
2001 2007 2008
500
2009
500 500
50
2010
50 2012
Gasoline
Source: Ecopetrol
ULSD* Imports
Thousand barrels/day
Lower
39
imports
25
Before HDT **
2008 2009 2010 Jan-Sep 11 1H - 2010
2H-10, 1H-11
With HDT **
Cost
7.11 5.98 Refining Cost
USD/bl
control
5.49 5.33
Market
USD/bl 12.4 7.5 9.7 7.8 2009 WTI
conditions
8.4 8.5 2010 Brent
21.8
2009
2010
2011
2012
2008
66
Cartagena
Billion +/- 10%
165MBD
Barrancabermeja
Estimated Investment Capacity of
Billion +/- 11%
Modernization
250MBD
67
>95%
45%
61%
28%
2010 2013 2010 2013
4%
Heavy
Medium
Light
6 8
68
Status
Overall EPC completion (Sep-2011): 44.5%
VDU 102
New Revamp
DCU 45
Timeline
IIIQ - 13
EPC
CAPEX
US$ 4.0 Bn
+/- 10%
IIQ - 10
69
Barrancabermeja modernization
Lower cost of crude
24%
10% 21%
55%
69% 21% 2010 Heavy Medium 2016 Light 2010 Fuel &Coke Gasolines Petrochem.
70
Barrancabermeja modernization
Goals
NHT 13 CDU 250 REF 9.5 ULSD 57 ALKY 7
Load >175 MBD of Colombian acid/heavy oils High conversion factor (> 95%) Better quality of fuels
FCC 89
HCN 21
Status
HCU 80
NCHT 17
VDU 125
SDA 45
DCU 54
100% 100%
New
Revamp
Existing
May 2011
Timeline
IIIQ - 16
Capex
US$ 3.4 Bn
+/- 11%
Site Prep.
IIQ-12 to IIIQ-13
EPC
IIIQ-12 to IIQ-16
71
Utilities Project
Reficar Project
2012
2013
2014
2015
2016
2020
Reficar Ebitda
Barranca Ebitda
72
Operational excellence
Barrels spilled due to operational causes (Bls / yr)
158 2.5 1.7 6 2007 2008 1.9 1.6
0
2009
10 2010
0
1H-2011 2005 2006 2007 2008 2009 2010 1H-2011
177
170 163
221
2007
2008
2009
2010 1H-2011
73
Biodiesel
E20
Thousand barrels/day 25.0 20.0 15.0 10.0 5.0 0.0
B14
B13 B10
E14 E10
0.0
2009 2011 2013 2015 2017 2019 2021 2023 Demand Offer
Offer
Land use
(millions ha.)
21.5 1 0.2 0.6 1.5 Forestal Forest
Colombia has favorable regulation, land availability and market, and more productive biomass per ha / year (sugarcane and palm oil)
21.1
*including biofuels
75
Ethanol
2011 2013 Bioenergy 2016 Ecodiesel 2 2018 Etanol 2020 Bioenergy 2
Total Capex US$282 millions Start of operations: 2012 Max. Capacity: 480,000 liters/day Future blending of 10% through wholesalers Ecopetrol s interest : 88%
Ecodiesel
76
Potential Partners
Lower agricultural and industrial risk Knowledge Lower capital requirements Operational excellence
77
Transportation strategy
1 INFRASTRUCTURE
FOR PRODUCTION GROWTH
2 OPERATIONAL EXCELLENCE
ROCE: 11%
79
Capacity increase
Transported volumes (mbod)
710 194 517 2007 752 209 542 800 223 576 771 931 1,223 1,036 265 292
72% 2007-2011
2008
2010
Jan-Sep 11
24% 2007-2011
2007
2008
2009
2010
Jan-Sep 11 80
Coveas
Miraflores Guaduas
THIRD PARTIES
PIPELINES FOR NAFTA
Tocancip Porvenir Monterrey Gualanday Toldado Guand Apiay Chicoral Chichimene Saldaa Castilla Purificacin Tenay YaguaraTello
Santiago
Rubiales
System
Crude Pipelines (Kms) Stations
Ecopetrol 100%
3,005 23
Third parties
386 15
Total Country
5,594 32
81
Churuyaco
Cartagena Coveas
2 6 8 5
11
5. OBC Phase 1: Pipeline Casanare Coveas (+ 120 MBOD) Jun. 12 6. Magdalena Medio (+25MBOD) Jul. 12 7. Diluent Pipeline 120 MBOD (+ 37 MBOD) Jul. 12
Vasconi a
10
Araguaney
Santiago
1 4
Orito
Rubiales
Increased Capacity:
Main Lines Secondary Lines Multipurpose lines Storage
1,200 MB
82
370 MBOD
570 MBOD
60 MBOD
1,455
1,705
1,705
991
1,033
1,137
1,240
1,315
2010
I H-2011
II H-2011
I H-2012
II H-2012
I H-2013
II H-2013
2014
2015
2016
2011 2013
2014 2016
Pipeline to Pacific Ocean: 0 to 500 mbod
Key
Projects
Source: Ecopetrol
Ocensa (Seg. III): from 390 to 420 mbod ODC: from 210 to 240 mbod Bicentenario: phase 1: 140, Phase 2: 240, Phase 3: 450 mbod Magdalena Medio: from 52 to 100 and then to 140 mbod Cao Limn: from 110 to 150 mbod
83
Operational excellence
Attacks against infrastructure (No. of attacks)
249 167 133 66 85 95 47
2003 2004 2005 2006 2007 2008
Accident frequency with labor time loss (days away of work per mm labor hrs.)
6.51
173 2.70 84 51 44 34
2010 Jan-Sep 11
1.92 1.03
1.03
0.95
2010
0.76
Jan-Sep 11
2000
2001
2002
2009
2005
2006
2007
2008
2009
550
2008
385
2009
501
2010
493
Jan-Sep 11 2007 2008 2009 2010
214
Jan-Sep 11
Crude
Products
84
85
1.
2. Increased float and ADR liquidity 3. Assured funding for capex plan
86
Financial results driven by rising production, higher prices and cost saving initiatives (1/2)
WTI
(Avg. price in USD/bl)
$ 72.30
$ 98.40
19.4 14.1
22.1
15.0
Total Sales *
(USD bn)
9.6
2.7 6.9
12.8
5.6
7.2
39% 61%
4.9
11.6 7.8
60% 40%
9.2
7.1
2007
20.0 39%
2008
39%
2009
Local Exports
2010
Jan-Sep 11
43%
50.0% 40.0% 30.0% 20.0%
Operating
(USD bn)
15.0 10.0
29%
36%
4.2
6.5
3.8
7.0
9.4
10.0% 0.0%
2007
2008
2009
2010
Operating margin
Jan-Sep 11
Operating income
87
Financial results driven by rising production, higher prices and cost saving initiatives (2/2)
5.0
1.5
2006
2.2
2007 2008 Net income
2.4
2009 Net margin
4.3
2010
6.0
Jan-Sep 11
3.5
2006
4.5
2007
6.4
2008 Ebitda
8.6 4.8
2009 Ebitda Margin 2010
11.2
Jan-Sep 11
88
Higher weighted equity capital structure, low indebtedness and growing asset base
34,0% 31,0% 16,0% 24,2% 10,0% 20,0% 19,0%
Return on Equity
Return on Assets
19,0%
10,8%
13,0%
Balance Sheet
(Usd$ billion)
Assets Liabilities
Equity
Fin. liabilities/ Total liabilities Fin. Liabilities / Assets
21.9 12.4
24.4
16.6
6.8
2007
2008
2009
2010
2011 (Sep)
0% 0%
0% 0%
27% 10%
28% 10%
21% 8%
0%
0%
0%
0%
17%
60%
16%
47%
14%
44%
89
Initial
14.9
Sources
2.4
0.5 23.4 10.6
Uses
3.5
Ending
2009
5.6
Initial cash Operations Debt Other Cash available Operations CAPEX
2.4
4.1
Dividends
0.3
2.5
Acquisitions
18.9
0.5
0.8
22.7
13.1 4.0
2010
2.5
Initial cash Operations Debt Other Cash available Operations
0.6
Acquisitions
1.9
Dividends
0.1
FX difference
3.0
Ending cash
CAPEX
20.8
0.0
0.6
24.4
13.4 3.9
Jan-Sep 2011
3.0
Initial Cash Operations Debt Other Cash available Operations
0.4
Acquisitions
2.2
Dividends
0.1
Fx Difference
4.4
Ending cash
Capex
90
2009
2010
2011 ( e )
2009-2011 ( e )
Financial obligations*
Local syndicated loan
Outstanding: COL$ 2.2 trillion Term: 7 yrs. (including 2yr. grace period) Interest rate: DTF + 4% T.A. Amortization: Semiannual Outstanding: US$1.5 billion Coupon 7.625% (Semiannual) Term: 10 yrs. (Jul. 23 / 2019) Amortization: bullet Ratings: Moodys Baa2 (positive) / S&P BBB- (stable) / Fitch BBB- (stable)
Local Bonds
Outstanding: COL$1 trillion Amortization: Bullet Ratings: Fitch AAA (local rating) Term: Coupon (inflation indexed) Outstanding (COL $mn)
5 years 7 years 10 years 30 years IPC + 2.80% IPC + 3.30% IPC + 3.94% IPC + 4.90% $97,100 $138,700 $479,900 $284,300
3.00
0.22 2012
0.44 2013
0.44 2014
0.44 2015
0.54 2016
0.22 2017
3.02 2020
0.28 2040
92
Credit
Ratings
S&P Fitch
MAX.
CURRENT
(Sep. 11)
Key
Ratios
Total Debt /EBITDA EBIT/ Interest expenses Total debt / Capital Debt / 1P bl. (USD/bl)
2x 5x 45% $4.5
* Source Ecopetrol
93
1%
Sources
9%
25%
US$80 billion
60%
US$80 billion
75%
* Source Ecopetrol
94
24%
US$8.5 billion
7% 17%
48%
Production
Refineries
Transport
Other
95
10.1%
* Source Ecopetrol
Trading
(USD million) 25.1 24.2 0.9 2008 2009 12.7 11.6 1.1 29.4 21.8 15.5 6.3 2010 15.5 Jan-Sep 2011 1.2% 13.9 ADRs Ordinary Shares
% ADRs
0.1% 2008 0.2% 2009
0.6%
2010
Jan-Sep 11
Institutional
Investors in ADR
* Source JP Morgan, Bloomberg
$0.10 $0.06
Extraordinary dividend
$0.08 $0.05 Ordinary dividend Payout ratio Dividend yield
$105
$115
2008 89.9%
2009 76.5%
2010 70.1%
2011 70.3%
5.0%
9.2%
2.9%
3.7%
98
Part of the index since Sep 2011 (four years ahead of schedule) 8th
One of the 12 O&G companies in the index (118 companies were assessed) Among the 10% best rated O&G companies worldwide
60
59 48 41
Economic
Environmental
Social
Ecopetrol
Average*
99
11%
7%
6%
2%
0% -4% -15%
Hess
Chevron
Exxon
Shell
BP
Conoco
Repsol
101
1.3 mmboed
1.0 mmboed by 2015
6.2 bn boe
1P Reserves addition
102
Best corporate governance practices to deliver transparency and trust. Corporate group to leverage our capabilities in all O&G business segments in Colombia.
Investment plan to make us one of the top 30 O&G companies worldwide by 2020, producing 1.3 million clean barrels per day.
103
Investor Relations
104
Sep
Ecopetrol S.A. All rights reserved. The re production of this presentation is forbidden without the written authorization of Ecopetrol S.A.
105