Ecopetrol reports on the ordinary meetings of bondholders of domestic public debt

Rhea-AI Summary

Ecopetrol announced the ordinary meetings for bondholders of its 2010 and 2013 local bonds held on May 20, 2024. The meetings were organized by Alianza Valores Fiduciaria S.A. and Itaú Fiduciaria Colombia S.A, but both failed to meet the 80% quorum needed to approve a statutory reform. A second meeting will be scheduled and announced on May 21, 2024. Ecopetrol, Colombia's largest company, operates extensively in the energy sector, including hydrocarbon production, refining, petrochemicals, and energy transmission. The company's international operations extend to the US, Brazil, and Mexico, with significant stakes in power transmission across several South American countries. The press release also contains forward-looking statements about Ecopetrol's business and financial prospects, which are subject to market conditions and regulatory changes.

Positive

• Ecopetrol is the largest company in Colombia, responsible for over 60% of the nation's hydrocarbon production.
• The company has diversified operations including energy transmission and road concessions, providing revenue stability.
• International expansion into the US, Brazil, Mexico, and other South American countries enhances growth prospects.
• The acquisition of 51.4% of ISA's shares adds significant value to Ecopetrol's energy and telecommunications portfolio.

Negative

• The meetings for bondholders of the 2010 and 2013 bonds failed to meet the 80% quorum required for statutory reform approval.
• A second bondholders' meeting is necessary, which may delay the implementation of important statutory reforms.

BOGOTA, Colombia, May 20, 2024 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol") reports that on May 20, 2024, the ordinary meetings for bondholders of Ecopetrol's 2010 and 2013 local bonds were held, in accordance with the notices published on May 9, 2024 by Alianza Valores Fiduciaria S.A. and Itaú Fiduciaria Colombia S.A., as representatives of the 2010 bonds and the 2013 bonds, respectively, in a widely circulated newspaper.

Itaú Fiduciaria Colombia S.A. held the meeting for bondholders of the 2013 bonds, today at 8:00 a.m., and registered a quorum corresponding to 0.16% of the outstanding 2013 bonds.

Alianza Valores Fiduciaria S.A. held the meeting for bondholders of the 2010 bonds, today at 10:00 a.m., and registered a quorum corresponding to 5.28% of the outstanding 2010 bonds.

In accordance with article 6.4.1.1.22 of Decree 2555 of 2010, a decision to approve a statutory reform must be taken by the favorable vote of the majority of bondholders present at the meeting who also represent eighty percent (80%) of the outstanding bonds. Therefore, given that such eighty percent (80%) was not present at the meetings, a second call to approve the statutory reform approved by Ecopetrol's shareholders on March 22, 2024, will be published tomorrow on May 21, 2024 by Alianza Valores Fiduciaria S.A. and Itaú Fiduciaria Colombia S.A. in a widely circulated newspaper.

For more information about the general conditions to attend the bondholders assemblies, please visit the following link: https://www.ecopetrol.com.co/wps/portal/Home/es/Inversionistas/asamblea-de-tenedores-de-bonos

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
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co

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

View original content:https://www.prnewswire.com/news-releases/ecopetrol-reports-on-the-ordinary-meetings-of-bondholders-of-domestic-public-debt-302150718.html

SOURCE Ecopetrol S.A.

FAQ

What did Ecopetrol announce on May 20, 2024?

Ecopetrol announced the ordinary meetings for bondholders of its 2010 and 2013 local bonds, which did not meet the required quorum for statutory reform approval.

Why is a second meeting for Ecopetrol bondholders necessary?

A second meeting is needed because the initial meetings failed to achieve the 80% quorum required to approve the statutory reforms.

What percentage of quorum was registered for the 2013 bonds meeting?

A quorum of 0.16% was registered for the 2013 bonds meeting.

What percentage of quorum was registered for the 2010 bonds meeting?

A quorum of 5.28% was registered for the 2010 bonds meeting.

What are Ecopetrol's primary business operations?

Ecopetrol's primary operations include hydrocarbon production, refining, petrochemicals, energy transmission, and road concessions.

Where does Ecopetrol have international operations?

Ecopetrol has international operations in the United States, Brazil, and Mexico, among other countries.

What is the importance of Ecopetrol's acquisition of ISA shares?

The acquisition of 51.4% of ISA shares strengthens Ecopetrol's position in energy transmission and the telecommunications sector.

What are the risks mentioned in Ecopetrol's press release?

The risks include dependency on market conditions, regulatory changes, competition, and the performance of the Colombian economy.