Guilherme Costa Martins

Guilherme Costa asked about Ecopetrol's asset portfolio strategy, seeking insights on potential divestments for the next year and which assets the company might consider acquiring stakes in, referencing recent rumors and acquisitions. He also requested clarification on the main drivers for the upstream segment's EBITDA enhancement, given stable oil prices and flat production in the quarter.

Answer

Corporate VP of Hydrocarbons Rafael Guzmán explained that capital allocation prioritizes assets with higher profitability, and Ecopetrol seeks partnerships to provide capital for non-prioritized assets, citing an alliance with Parex in Putumayo. VP of Strategy and New Businesses Julián Lemos added that Ecopetrol is exploring multiple partnerships in Colombia to maximize profit and production in fields with potential but without assigned capital. CFO Camilo Barco attributed the upstream segment's margin maintenance to three factors: efficiency and cost control (e.g., lifting costs), maximization of infrastructure utilization (e.g., refinery and midstream reversals), and optimization of the upstream portfolio.

Guilherme Costa asked about Ecopetrol's capital allocation strategy, noting discussions around Permian divestment versus solar plant acquisitions. He sought insights on main assets for divestment next year and potential acquisition targets. He also asked for clarification on the main drivers for the upstream segment's EBITDA enhancement, given stable oil prices and flat production quarter-over-quarter.

Answer

Rafael Guzmán, Corporate VP of Hydrocarbons, stated that capital is allocated to assets with higher profitability, and Ecopetrol explores partnerships to provide capital to non-prioritized assets, citing the Parex alliance in Putumayo. Julián Lemos, VP of Strategy and New Businesses, added that Ecopetrol is analyzing options for joint activities with partners in potential fields where Ecopetrol lacks capital, aiming to maximize profit and production. Camilo Barco, CFO, attributed margin maintenance to three factors: efficiency and cost control (e.g., lifting costs), maximization of infrastructure utilization (refineries, midstream reversals), and upstream portfolio optimization (disinvestments, increasing production, partners).

Guilherme Costa Martins asked for a potential projection for the interest coverage ratio by the end of the year, assuming no further divestments are completed, to better understand the baseline financial health.

Answer

Executive Rodrigo Alves acknowledged that the interest coverage ratio is expected to decline throughout the year from its Q1 level. However, he did not provide a specific guidance figure, stating that the company is not working with a scenario where a deleveraging transaction is not executed this year.