Ecopetrol Stock Price, News & Analysis

Ecopetrol (NYSE: EC) has received a downgrade in its global credit rating from BB+ to BB by S&P Global Ratings, while maintaining a negative outlook. The downgrade follows Colombia's sovereign rating reduction on June 26, 2025. However, S&P affirmed Ecopetrol's Stand-Alone Credit Profile (SACP) at bb+.

The rating agency expects Ecopetrol to maintain a leverage ratio between 2.0x and 2.5x, with an EBITDA margin near 40%. S&P positively acknowledged the company's 2040 strategy, focusing on growth prospects, reserve replacement, operational efficiency, and business diversification.

Ecopetrol (NYSE: EC), Colombia's largest integrated energy company, received confirmation of its Ba1 global credit rating with a stable outlook from Moody's. The agency also affirmed the company's standalone rating at b1.

The Ba1 rating, which sits three notches above the standalone rating, reflects Ecopetrol's dominant position as Colombia's leading oil and gas producer and its significant power transmission business. The rating is supported by the Colombian government's backing through fuel subsidy phase-outs and reduced accounts receivable from the Fuel Price Stabilization Fund (FEPC). Notably, the company's power transmission subsidiary (ISA) and midstream affiliates contributed 18% to EBITDA in 2024.

Ecopetrol (NYSE:EC) has announced the extension of its agreement with JPMorgan Chase Bank N.A. to maintain a 50% reduction in ADR conversion fees for both issuance and cancellation in the United States. The fee reduction, initially implemented on January 15, 2025, will now continue through December 31, 2025, extending beyond its original July 10, 2025 end date.

Ecopetrol, Colombia's largest company and a major integrated energy player in the Americas, made this decision following positive market reception. The company maintains dominant positions in Colombia's hydrocarbon sector and has significant international presence in strategic basins across the Americas, including operations in the United States, Brazil, and Mexico.

Ecopetrol (NYSE: EC) announced that Colombia's Tax Authority has notified its subsidiary, Refinería de Cartagena, regarding customs import declarations for gasoline. The Tax Authority claims the Refinery owes approximately COP 1.0 trillion, plus COP 2.1 trillion in estimated interests for gasoline imports between 2022-2024.

The Refinery has filed motions for reconsideration against these assessments. Since January 2025, Ecopetrol and the Refinery have been making VAT payments at 19% on gasoline and diesel imports, while maintaining their right to challenge the Tax Authority's interpretation.

S&P Global Ratings has maintained Ecopetrol's (NYSE: EC) global credit rating at BB+ with a negative outlook, while downgrading its Stand Alone Credit Profile (SACP) from bbb- to bb+. The rating agency cited lower oil prices and exchange rate volatility as factors impacting the company's financial performance, with debt/EBITDA ratio expected to remain above 2.0. Despite these challenges, S&P positively acknowledged Ecopetrol's strategy focused on growth, reserve replenishment, and portfolio diversification. Ecopetrol, Colombia's largest company, maintains dominant positions in hydrocarbon production, logistics, and refining, controlling over 60% of these operations in Colombia. The company has expanded internationally through its 51.4% stake in ISA and operations in strategic basins across the Americas.

Ecopetrol (NYSE: EC) has appointed Rodolfo Mario García Paredes as Acting Corporate Compliance Director and Interim Anti-Money Laundering Compliance Officer, effective June 4, 2025. García Paredes, a public management and institutions attorney, brings over 25 years of experience within Ecopetrol's Corporate Legal Vice Presidency. He previously served as Legal Manager of Hydrocarbons and held various senior positions including Legal Advisory Manager for Exploration and Acting Corporate Legal Vice President. Ecopetrol, Colombia's largest company, controls over 60% of the country's hydrocarbon production and holds significant positions in petrochemicals and gas distribution. The company has expanded internationally through its 51.4% stake in ISA and operations in the US Permian basin, Gulf of Mexico, Brazil, and Mexico.

Ecopetrol S.A. (NYSE: EC) has signed an asset purchase agreement with Statkraft to acquire a renewable energy portfolio in Colombia totaling up to 1.3 GW of capacity. The portfolio includes one development company and nine special purpose entities, comprising 614 MW of solar projects and 750 MW of wind projects located across five departments: La Guajira, Sucre, Córdoba, Caldas, and Magdalena.

The acquisition, subject to conditions precedent and legal requirements, aligns with Ecopetrol's 2040 Strategy and its goal to incorporate 900 MW of renewable self-generation capacity by 2025. This move aims to reduce the company's exposure to spot market purchases and diversify its energy matrix while advancing its decarbonization and energy transition objectives.

Ecopetrol has secured authorization from Colombia's Ministry of Finance to execute a $500 million loan agreement with Banco Santander. The five-year loan, governed by New York law, will be indexed to the SOFR rate and is payable at maturity.

The funds will support non-investment expenses and help achieve the company's Gross Debt/EBITDA target for 2025. As Colombia's largest company, Ecopetrol controls over 60% of national hydrocarbon production and holds key positions in petrochemicals and gas distribution.

The company's international presence includes operations in the US Permian Basin, Gulf of Mexico, Brazil, and Mexico. Through its 51.4% stake in ISA, Ecopetrol has expanded into power transmission across Brazil, Chile, Peru, and Bolivia, along with Chilean road concessions and telecommunications.

Ecopetrol (NYSE: EC) has initiated a joint plan to maintain continuity of gas projects in the Southern Caribbean following Shell's withdrawal from offshore assets in the region. The affected areas include Col 5, Purple Angel, and Fuerte Sur blocks, containing gas discoveries Kronos-1, Purple Angel 1, Gorgon 1 and 2, and Glaucus 1.

The company aims to complete the Gorgon development project's maturation and socio-environmental viability by first half of 2029, with production expected to start between 2031 and 2032. Ecopetrol is exploring connection options with the National Transportation System to commercialize Gorgon's gas for national demand.

Despite Shell's exit from these Caribbean projects, both companies remain partners with Total Energies in Brazil's Gato Do Mato field development, with significant resource allocation planned for 2025.