Ecopetrol S.A - EC STOCK NEWS

Ecopetrol S.A. has filed its annual report under Form 20-F for the fiscal year ended December 31, 2022, with the U.S. Securities and Exchange Commission. This filing fulfills its obligations to the SEC, NYSE, bondholders, and investors. The report includes audited financial statements compliant with International Financial Reporting Standards (IFRS) for 2020, 2021, and 2022. Investors can request a hard copy of the financial statements. The 2022 Form 20-F is available online at the SEC website. Ecopetrol is Colombia's largest company, responsible for over 60% of the nation's hydrocarbon production, and is involved in various sectors across the Americas.

Ecopetrol S.A. announced on March 24, 2023, the appointment of Alberto Consuegra Granger as interim CEO, effective April 1, 2023. He brings over 30 years of experience in the energy sector, having joined the company in 2016 as VP of Supply and Services. The Board continues to seek a permanent CEO with assistance from an international headhunter. Ecopetrol is the largest company in Colombia, handling over 60% of hydrocarbon production and involved in multiple sectors including energy transmission and petrochemicals. The company has significant operations in the Americas and is subject to various market risks affecting future growth.

Ecopetrol S.A. (NYSE: EC) announced on March 24, 2023, that it is not pursuing an acquisition of Monómeros Colombo Venezolanos S.A. despite recent media speculation. This clarification aligns with its 2040 strategy and business plan. As the largest company in Colombia, Ecopetrol plays a crucial role in the energy sector, accounting for over 60% of the country’s hydrocarbon production. The press release also contained forward-looking statements about the company's growth prospects and investment plans, highlighting potential risks related to market conditions, oil prices, and the performance of the Colombian economy.

Ecopetrol S.A. announced on March 17, 2023, that it has received authorization from the Ministry of Finance and Public Credit to secure a one trillion Colombian pesos (COP) line of credit from Bancolombia. This five-year credit line will refinance debt maturing in 2023, ensuring that funds will be used solely for existing credit obligations. The successful arrangement demonstrates strong confidence from the financial sector in Ecopetrol's debt management strategy, which is pivotal for the company’s sustainability. The credit line will be available until December 16, 2024, with capital repayment due at maturity, under a variable interest rate agreement.

Ecopetrol has proposed a 2022 earnings distribution for its upcoming General Shareholders' Meeting on March 30, 2023. The proposal includes a total net income of COP 33.41 trillion and an allocation of COP 32.05 trillion available to shareholders. The ordinary dividend payout is COP 487 per share (60% of net income), complemented by an extraordinary dividend of COP 106 per share (13% of net income), totaling COP 593 per share, the highest in the company's history. Payments will be made in three installments from April to December 2023.

Ecopetrol reported impressive financial results for Q4 and full year 2022, showing significant growth in sales, net income, and EBITDA. Total sales surged by 24.9% in Q4 and 73.8% for the year, reaching COP 39.7 trillion and COP 159.5 trillion, respectively. Net income attributable to owners increased by 12.7% in Q4 and 100.1% annually, totaling COP 33.4 trillion. Key metrics also included a 104% Reserve Replacement Ratio and a production rate of 709.5 mboed. The company invested COP 23.4 trillion in 2022, while contributing COP 42.4 trillion to Colombia's economy through dividends, royalties, and taxes. Ecopetrol continues expanding in low-emission energy and hydrogen production, reinforcing its commitment to sustainability.

The CEO of Ecopetrol has called for a General Shareholders' Meeting on March 30, 2023, in Bogotá. The agenda includes key topics such as the presentation of the 2022 Integrated Management Report, approval of the audited financial statements for December 31, 2022, and the election of Board Members for the 2021-2025 period. Shareholders can attend in person or via streaming, with electronic voting options available. The right to inspect company documents starts on March 8, 2023. Detailed instructions for attendance and representation are specified in the announcement.

Ecopetrol S.A. (NYSE: EC) announced on February 24, 2023, measures to ensure proper representation of shareholders at the upcoming Ordinary General Shareholder's Meeting on March 30, 2023. The Board of Directors mandated management to inform shareholders about proxy rights, validate proxy assignments, and ensure no conflicts of interest arise from management or employees. Key actions include abstaining from influencing proxy selections and validating the proxies' legal requirements. These steps aim to uphold transparency and integrity during the meeting, ensuring fair shareholder engagement in decision-making processes.

The Ecopetrol Group reported an increase in proven hydrocarbon reserves to 2,011 million barrels of oil equivalent (MBOE) by the end of 2022, marking the highest level in eight years. The Reserve-Replacement Ratio (RRR) was 104%, indicating that production was fully replaced with an additional 4%. Key developments include the incorporation of 249 MBOE of proven reserves, with 215 MBOE attributed to the management of development fields, and 89% of reserves originating from Colombia. The reserves were valued based on a Brent price of 97.9 USD per barrel, significantly higher than 69.2 USD in 2021.