Ecopetrol Informs of Ongoing Negotiations with Occidental Petroleum Corp.

Rhea-AI Summary

Ecopetrol S.A. (NYSE: EC) is in negotiations with Occidental Petroleum Corp. (OXY) to potentially acquire a percentage of assets owned by CrownRock, a U.S.-based company. The exact percentage and price are still under assessment and subject to ongoing negotiations. Any final agreements, financing, and closing procedures will require statutory and regulatory approvals.

Ecopetrol, Colombia's largest company and a major integrated energy player in the Americas, operates across various sectors including hydrocarbon production, transportation, refining, petrochemicals, and gas distribution. The company also holds a 51.4% stake in ISA, expanding its presence in energy transmission and infrastructure.

This potential acquisition aligns with Ecopetrol's international expansion strategy, complementing its existing operations in strategic basins across the American continent, including the Permian basin and Gulf of Mexico in the United States.

Positive

• Potential expansion of Ecopetrol's U.S. asset portfolio through CrownRock acquisition
• Strengthening of Ecopetrol's position in strategic American basins
• Diversification of operations across energy and infrastructure sectors

Negative

• Uncertainty regarding the final terms and price of the potential acquisition
• Pending regulatory and statutory approvals for the transaction
• Potential financial implications of the acquisition on Ecopetrol's balance sheet

BOGOTÁ, Colombia, July 19, 2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that it is engaged in conversations with Occidental Petroleum Corp. (OXY) oriented to consider the potential acquisition by Ecopetrol of a certain percentage of assets owned by CrownRock, a company located in the United States. The percentage of the assets and the price that Ecopetrol would pay are under analysis and assessment by Ecopetrol, and are subject to ongoing negotiations and terms that may be defined with OXY.

The execution of any final agreements, potential financing, and other procedures leading to the eventual closing of this transaction are subject to statutory and regulatory approvals applicable to Ecopetrol.

Ecopetrol plans to report on the outcome of the negotiations. 

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 (a)
Lina Maria Contreras Mora
Email: investors@ecopetrol.com.co

Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co

 

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SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol (EC) negotiating with Occidental Petroleum Corp?

Ecopetrol is negotiating with Occidental Petroleum Corp. to potentially acquire a percentage of assets owned by CrownRock, a U.S.-based company.

Has Ecopetrol (EC) finalized the terms of the CrownRock asset acquisition?

No, the percentage of assets and the price are still under analysis and assessment, subject to ongoing negotiations with Occidental Petroleum Corp.

What approvals does Ecopetrol (EC) need for the CrownRock asset acquisition?

The execution of final agreements, potential financing, and closing procedures are subject to statutory and regulatory approvals applicable to Ecopetrol.

How does the potential CrownRock asset acquisition align with Ecopetrol's (EC) strategy?

The acquisition aligns with Ecopetrol's international expansion strategy, complementing its existing operations in strategic basins across the American continent.