Ecopetrol (EC) Q4 2024 earnings summary

Executive summary

• Achieved highest production in 9 years at 746 kboed, surpassing 2024 targets, with record reserve replacement of 260 MBOE (104% RRR) and strong operational resilience.

• Revenues reached COP 133.3 trillion, EBITDA COP 54.1 trillion (41% margin), and net income COP 14.9 trillion; adjusted net income would be COP 21 trillion, up 10% year-over-year.

• Over $6 billion in CapEx invested, mainly in Colombia and the US, with 67% in hydrocarbons and 13% in energy transition.

• Significant progress in energy transition, including 610–611 MW of renewables, Coral green hydrogen project approval, and 68% progress toward 900 MW goal by 2025.

• Notable sustainability achievements: 2nd highest Dow Jones Sustainability Index rating, 462,074 tCO2e emissions reduced, 81% water reuse, and 87,683 jobs created.

Financial highlights

• Revenues reached COP 133.3 trillion, EBITDA COP 54.1 trillion (41% margin), and net income COP 14.9 trillion for 2024.

• Adjusted net income, excluding external factors, would be COP 21 trillion, a 10% increase from 2023.

• Free cash flow at a historical high, supported by operational performance and collection from the Fuel Price Stabilization Fund; final cash and equivalents at COP 18.2 trillion.

• Dividend proposal of COP 214 per share, with a payout ratio of 58.9%.

• Gross debt to EBITDA ratio at 2.2x, average debt life extended to 9.3 years.

Outlook and guidance

• 2025 production guidance: 740,000–750,000 barrels of oil equivalent per day, including new CPO-09 output.

• Investment plan for 2025: COP 24–28 trillion, with 60% for energy security and 40% for energy transition and infrastructure.

• Targeting a 39% EBITDA margin for 2025, based on a Brent price of $73 per barrel.

• Lifting cost target set at $12–$13 per barrel, aiming for the lower end.

• Continued focus on cost efficiencies, decarbonization, and energy transition projects.