Ecopetrol S.A - EC STOCK NEWS

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has been fined by CORMACARENA for contaminating Caño Cacayal due to wastewater discharge from Campo Castilla. The fine amounts to twenty monthly minimum wages. Although the company acknowledges the decision, it plans to challenge the penalty as it was issued beyond the regulatory timeframe. Ecopetrol is Colombia's largest company, responsible for over 60% of the country's hydrocarbon production, and also holds significant interests across the Americas, including operations in the U.S. and Brazil.

Ecopetrol Group's 2022 investment plan, approved by its Board, allocates USD 4.8 to 5.8 billion towards sustainable growth and energy transition goals. The target production is set at 700-705 thousand barrels of hydrocarbons per day, with 63% of investments in exploration and production, focusing on enhanced recovery technologies. Significant funds, over USD 200 million, are earmarked for water management and decarbonization projects, while USD 1.1 billion is directed to energy transmission and toll roads. The plan aims for a Gross Debt/EBITDA ratio below 2.5 times, enhancing shareholder value.

Ecopetrol S.A. (NYSE: EC) reported that Fitch Ratings affirmed its credit rating at BB+ with a stable outlook, recognizing its strong financial position and liquidity. Fitch noted Ecopetrol's linkage to the Colombian government, which holds 88.5% of voting shares, highlighting the company's strategic importance to the country. Additionally, Fitch emphasized Ecopetrol's solid cash generation and access to capital markets as key strengths.

Ecopetrol announced strong Q3 2021 results, showcasing total sales of COP 23.3 trillion, a net income of COP 3.8 trillion, and an EBITDA of COP 10.4 trillion. Notable growth in sales was 89.3% year-over-year. The company cites favorable crude oil prices, rising to USD 68.0 per barrel, and expanded production, notably reaching 683.6 mboed. With the acquisition of a controlling stake in ISA, the integrated energy company is well-positioned for future growth. Positive cash flow and advancements in exploration and production bolster the optimistic outlook.

Ecopetrol S.A. (NYSE: EC) will release its financial and operating results for Q3 2021 on November 9, 2021, after market close. Following this, senior management will host conference calls on November 10, 2021, with sessions in both Spanish and English. Participants can access these sessions via specified US and Colombian dial-in numbers. The earnings release and related materials will be available on Ecopetrol's official website, ensuring stakeholders have access to key financial information and future growth projections.

Ecopetrol S.A. (EC) announces the appointment of Nicolás Azcuénaga Ramírez as Corporate Vice President of Strategy and New Businesses, effective November 1, 2021. He replaces Juan Manuel Rojas and brings over 20 years of experience, particularly in the Oil & Gas sector. Azcuénaga has held key roles in financial management across multiple countries and was CFO for the Upstream Subsidiaries at Ecopetrol. His background includes significant transactions, enhancing the company’s strategic positioning in the market.

Ecopetrol S.A. (BVC: EC; NYSE: EC) announced a fine of COP $3,667,409,150 imposed by the National Environmental Licensing Authority (ANLA) on September 10, 2021. The fine resulted from the CPO09 Exploratory Drilling Area project in Acacías, Meta Department, where a bridge was built without proper environmental licensing. Ecopetrol respects ANLA's decision but will appeal for revocation, asserting compliance with legal regulations. The company, a leader in Colombia's energy sector, is involved in extensive hydrocarbon production and has international operations across various American basins.

Ecopetrol S.A. (NYSE: EC) has had its credit rating affirmed at Baa3 by Moody's, though the outlook has shifted from Stable to Negative. This change is attributed to increased leverage and refinancing risks related to a credit loan maturing in 2023. Despite these concerns, Moody's views Ecopetrol's recent acquisition of 51.4% in Interconexión Eléctrica S.A. ESP (ISA) as positive, expecting it to stabilize EBITDA and reduce carbon emissions relative to EBITDA moving forward.

Ecopetrol has successfully closed the acquisition of 51.4% of Interconexión Eléctrica S.A. (ISA) shares from the Colombian Ministry of Finance, fulfilling the conditions set in the August 11, 2021 contract. The total payment of COP 14,236,814,025,000 (about USD 3.67 billion) was executed at a price of COP 25,000 per share. This strategic move strengthens Ecopetrol's position in energy transmission and aligns with its commitment to energy transition, emphasizing decarbonization and diversification into low-emission sectors.