Establishment of a Special Committee for ISA's valuation

Rhea-AI Summary

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) announced the formation of a Special Committee by its Board of Directors to evaluate the potential acquisition of a 51.4% stake in ISA, currently held by the Ministry of Finance and Public Credit. The committee will assess the valuation and price range of the potential transaction and provide recommendations to the Board. It comprises independent board members, including Santiago Perdomo as chair. Ecopetrol is Colombia's largest firm and a major player in the global oil industry.

Positive

• Formation of a Special Committee to assess valuable asset acquisition.
• Independent members enhance credibility of valuation process.

Negative

• None.

BOGOTA, Colombia, March 26, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that its Board of Directors, within the context of the potential acquisition of the 51.4% of the outstanding shares currently owned by the Ministry of Finance and Public Credit in ISA, approved today the establishment of a Special Committee that will act as a temporary mechanism to evaluate the valuation of ISA, the price range and/or the price of the potential transaction and make the necessary recommendations to the Board of Directors. The committee will be comprised of the following independent members of Ecopetrol's Board of Directors:

• Carlos Gustavo Cano
• Sergio Restrepo
• Esteban Piedrahita
• Santiago Perdomo, who will chair the committee

Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in the United States (Permian basin and Gulf of Mexico), Brazil and Mexico. Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance its sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, the performance of the Colombian economy and industry, and other factors; therefore, they are subject to change without prior notice.

For further details, please contact:

Head of Capital Markets
Tatiana Uribe Benninghoff
Phone: +571-234-5190
Email: investors@ecopetrol.com.co

Media Engagement (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co

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SOURCE Ecopetrol S.A.

FAQ

What is the purpose of the Special Committee established by Ecopetrol?

The Special Committee is tasked with evaluating the valuation and price range for the potential acquisition of a 51.4% stake in ISA.

Who are the members of Ecopetrol's Special Committee?

The committee includes independent board members Carlos Gustavo Cano, Sergio Restrepo, Esteban Piedrahita, and Santiago Perdomo as chair.

How much of ISA does Ecopetrol aim to acquire?

Ecopetrol plans to acquire 51.4% of the outstanding shares of ISA currently owned by the Ministry of Finance and Public Credit.

What is Ecopetrol's stock symbol?

Ecopetrol's stock symbol is EC on the NYSE.

When was the Special Committee established?

The Special Committee was established on March 26, 2021.