Ecopetrol announces the creation of Ecopetrol US Trading LLC, a new subsidiary that will join its Business Group

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) has established a new subsidiary, Ecopetrol US Trading LLC, in Delaware. This entity will focus on the international marketing of refined products, crude oil, and natural gas. Fully owned by Ecopetrol through its subsidiary, Ecopetrol USA Inc., the initiative aims to enhance the company's sales and marketing within North America and Europe. The creation of this subsidiary complements the existing Ecopetrol Trading Asia, reinforcing the company's international commercial strategy and fostering growth opportunities during the energy transition.

Positive

• Establishment of Ecopetrol US Trading LLC enhances international marketing efforts.
• 100% ownership through Ecopetrol USA Inc. indicates strong control over new subsidiary.
• Expansion into North American and European markets is expected to boost sales.

Negative

• None.

BOGOTÁ, Colombia, Nov. 16, 2022 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has completed the formal process for establishing a new subsidiary, Ecopetrol US Trading LLC, domiciled in Delaware, USA.  The main focus of the new subsidiary is the international marketing of refined, petrochemical and industrial products as well as crude oil and natural gas from the Ecopetrol Group and third parties. Ecopetrol S.A. indirectly owns 100% of the share capital of Ecopetrol US Trading LLC through its subsidiary Ecopetrol USA Inc.  

This new subsidiary is expected to strengthen Ecopetrol's sales and marketing presence in the North American and European markets and establish new synergies and businesses opportunities that would enable its continued growth through the energy transition and generate greater benefits and welfare to its stakeholders.

Ecopetrol US Trading LLC, together with Ecopetrol Trading Asia established in 2021, will enhance and strengthen the internationalization of the Ecopetrol Group's commercial strategy.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 18,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA's shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector. This press release contains business prospect statements, operating and financial result estimates, and statements related to Ecopetrol's growth prospects. These are all projections and, as such, they are based solely on the expectations of the managers regarding the future of the company and their continued access to capital to finance the company's business plan. The realization of said estimates in the future depends on the behavior of market conditions, regulations, competition, and the performance of the Colombian economy and the industry, among other factors, and are consequently subject to change without prior notice.

This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.

For more information, please contact:

Head of Capital Markets
Maria Catalina Escobar Hoyos
Email: investors@ecopetrol.com.co

Head of Corporate Communications
Mauricio Téllez
Email: mauricio.tellez@ecopetrol.com.co

 

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SOURCE Ecopetrol S.A.

FAQ

What is the purpose of Ecopetrol US Trading LLC established by Ecopetrol?

Ecopetrol US Trading LLC focuses on international marketing of refined products, crude oil, and natural gas.

When was Ecopetrol US Trading LLC established?

Ecopetrol US Trading LLC was established on November 16, 2022.

How does Ecopetrol US Trading LLC benefit Ecopetrol (EC)?

The subsidiary enhances Ecopetrol's sales and marketing presence in North America and Europe, creating growth opportunities.

What is the relationship between Ecopetrol and Ecopetrol US Trading LLC?

Ecopetrol owns 100% of Ecopetrol US Trading LLC through its subsidiary, Ecopetrol USA Inc.

What are the strategic goals of Ecopetrol US Trading LLC?

The strategic goals include strengthening international sales and marketing and fostering new business opportunities.