Juan Carlos Hurtado Parra Welcome to the first quarter 2026 earnings call. It's an honor to address you as acting president of the Ecopetrol Group. 2026 began in a volatile international environment marked by an intensification of geopolitical tensions, with direct impacts on energy markets and global logistics. Within this context, our operational capabilities were key to sustaining the Group's performance. Let me highlight the main milestones of the quarter. In exploration, we underscore the successful result of the Copoazú-1 well in the Caribbean offshore. This confirms new gas accumulations independently from Sirius and expands the block's potential, contributing to the country's energy security. In production, we reached 725,000 barrels of oil equivalent per day. The strength of domestic crude production at 527,000 barrels per day, partially offset lower gas production, a structural challenge that we continue to address.  In addition, we advanced with the optimization of our upstream portfolio through agreements with Parex and Gran Tierra in the Magdalena Medio region. In transportation, we moved 1,122,000 barrels per day, close to a 2% increase compared to the same period of the prior year, driven by integrated management aimed at maximizing infrastructure utilization. The reversal of the Coveñas Ayacucho system was key to incorporating crude oil and mitigating lower domestic production. In refining, we achieved a consolidated throughput of 417,000 barrels per day, a 5% increase versus the first quarter of 2025. The Barrancabermeja Refinery reached one of the highest throughput levels in its history, while Cartagena maintained solid performance despite operational events in March.  As a result, the refining margin reached $17.3 per barrel, a 60% increase versus the first quarter 2025, reflecting favorable market conditions and consistent operational execution. Consistent with our diversification and international expansion strategy, we advanced since the agreement to acquire majority stake in Brava Energia in Brazil. Upon closing, this investment is expected to strengthen our presence in a strategic geography, add reserves, and incorporate high-quality assets to our portfolio. On the commercial front, we managed increases in freight rates by implementing strategies to strengthen logistics reliability and supply continuity, including the contracting of time-chartered vessels for products and crude. That aims to secure transportation capacity in a volatile environment, improve supply timing, and reduce logistics costs.  In gas, we advanced in structuring import and regasification solutions in the Caribbean, leveraging infrastructure for the receipt, storage, and delivery between 126,000,000 and 370,000,000 cu ft per day of imported natural gas into the national transportation system in 2026. Finally, ISA received the award of new transmission projects in Brazil, while in Colombia, we advanced power transmission expansion initiatives aligned with the country's needs. Please move now to financial results. During the first quarter of 2026, Ecopetrol Group recorded revenues of COP 28.6 trillion, an EBITDA of COP 13.5 trillion, and a net income of COP 2.9 trillion. We highlight the expansion of the EBITDA margin to 47%, driven by disciplined cost execution and a stronger contribution from the refining business. The price environment showed mixed dynamics. Brent strengthened toward the end of the quarter.  However, the appreciation of the Colombian peso put pressure on revenues, while differentials widened versus the previous year. Additionally, higher logistics costs, particularly freight, generated significant pressures across the value chain. Amid this environment, the Group captured value supported by a robust commercial strategy, market diversification, and positioning of our crude in international markets. On the corporate front, the general shareholders' meeting approved the merger with Parque Portón del Sol, a relevant milestone in our energy transition and operational efficiency strategy. It also reaffirms our commitment to shareholder value creation, reflected in the dividends paid at the end of April. The investment plan is progressing as planned, with approximately 23% executed to date, including key projects in sustainability and ESG initiatives.  We closed the quarter with a balance of COP 4.2 trillion in the Fuel Price Stabilization Fund in a context of higher international fuel prices and the accumulated balance from 2025. We highlight the filing of the 2025 Form 20-F with the U.S. Securities and Exchange Commission, reflecting our commitment to transparency and rigorous market disclosure. Let's move to the next slide. Consistent with our growth and sustainability strategy, we are progressing in the potential acquisition of a stake in Brava Energia S.A. in Brazil. Brazil is a geography where the Ecopetrol Group has operated for over 20 years. Through this transaction, we would expand our position, diversifying our asset base, and strengthening our international portfolio. We expect to implement a relationship model with Brava that enables operational and financial synergies, including human capital, offshore and onshore expertise, enhanced recovery and onshore assets, and others.  The transaction contemplates a private acquisition of approximately 26% of the company's equity and the launch of a volunteered tender offer with the objective of reaching a controlling stake of up to 51%. Based on 2025 figures, this represents a company with 459 million barrels of oil equivalent in 1P reserves, production of approximately 81,000 barrels per day, and an EBITDA of around $806 million, positioning it as a relevant asset in the region. This transaction would allow us to increase our reserves and strengthen group production. Closing remains subject to the fulfillment of precedent conditions, particularly the success of the tender offer and the corresponding regulatory approvals. Let's move to the next slide. In line with our strategy, the agreements with Parex and Gran Tierra allows us to accelerate the development of mature assets by incorporating strategic partners that bring capital and capabilities.  With Parex, we are enabling an investment of about $250 million, fully funded by the partner to execute activities, with a potential to add approximately 94 million barrels of oil equivalent gross, while extending the economic life of the Casabe and Llanito assets. With Gran Tierra, we are progressing in Tisquirama and San Roque with an investment of about $92 million, also fully funded by the partner, to execute activities with the potential to add about 30 million barrels of oil equivalent gross, strengthening recovery and the sustainability of these fields. While in the short term we share production, we do so with the clear objective on enabling higher production, additional reserves, and lower unit costs in the medium term, unlocking greater value from our assets. Now I hand over to Carlos Ávila to provide further detail on hydrocarbon segment results.  Carlos Ávila Saldarriaga Thank you, Juan Carlos. On the exploration front, we continue to strengthen a high-potential portfolio in Colombia. At the close of the first quarter, we drilled five wells, achieving our first success with the Copoazú-1 well, located at the GUA-OFF-0 block, about 9 km from the Sirius-1 and Sirius-2 wells. This well confirmed the presence of gas in two accumulations separate from Sirius, expanding the block's discovered potential. Initial testing is currently underway, with the aim of obtaining the first estimate of its potential by year's end. In the same block, we're making progress with planning an exploratory wells on [BL-1], which drilling is expected in the second half of the year. Regarding Sirius, we are moving forward with the prior consultation process in coordination with the National Prior Consultation Authority, with the goal of completing this phase by year's end and filing the environmental impact assessment the first quarter of 2027.  Let's move on to the next slide, please. Let's talk about production. On the production front, in the first quarter, production reached 725,000 barrels of oil equivalent per day, reflecting the following dynamics. First, domestic oil production increased by 6,000 barrels per day compared to the fourth quarter of 2025, driven by growth at CPO-09, the commissioning of new wells in Capachos, the strong performance in the Castilla field, and the addition of a development well in Putumayo under our agreement with Parex. Second, gas sales decreased by around 5,000 barrels of oil equivalent per day, mainly in line with seasonal sales patterns. Third, international production declined by approximately 5,000 barrels of oil equivalent per day associated with the investment plan that we have in Permian and scheduled maintenance at Ecopetrol America.  It should be noted that we are maintaining our full year production target between 730,000 and 740,000 barrels of oil equivalent per day. We have the several key operational enablers. To continue our drilling campaign, focusing on CPO-09 and Caño Sur, advance the in-situ combustion pilot in Chichimene as part of our enhanced oil recovery plan, expand processing facilities in Rubiales, and ensure that Permian's contribution to the plan by adding 4,000 barrels of oil equivalent per day. In addition, to further enhance our asset in Colombia and optimize capital allocation, we signed two farm-in agreements, one with Gran Tierra in the Tisquirama, San Roque fields, and another with Parex in the Casabe and Llanito assets, both located in the Middle Magdalena region.  Our plans also incorporate external challenges that may affect production during the remainder of the year, such as El Niño weather phenomenon. Finally, the financial performance of the hydrocarbon segment reflects improved profitability with the EBITDA per barrel reaching $27 and a margin of 40%. This represents a material improvement compared to the previous quarter's trend, despite a lower realized basket price versus the first quarter of 2025 driven by heavier crude market conditions. This performance is supported by disciplined capital allocation and efficient cost management. Let's move on to the next slide, please. Let's talk about refining and transportation. On the refining front, strong operational execution and timely commercial decisions allowed us to capture better international market crack spreads.  During the quarter, we highlight first, consolidated throughput of 417,000 barrels per day, 5% higher compared to the first quarter of 2025, which was less. Second, we improved our valuable product yield by 2 percentage points, reaching 73% during the quarter. Third, we optimized our crude slate by prioritizing higher-value barrels, enhancing overall refinery economics. Finally, refining gross margin increased 60% year-over-year to $17.3 per barrel. As a result, the segment delivered a strong performance with EBITDA reaching COP 1.9 trillion, nearly 2.9x higher than the first quarter in 2025. This was supported by operational and energy efficiencies that allowed us to maintain refining cash costs under control and strengthen competitiveness in the current pricing environment.  Focusing on the transportation segment, it reached 1.1 million barrels per day transported, a 3% increase compared to the same period of the previous year. This improvement was due to the capture of third-party volumes of about 27,000 barrels per day, as well as the implementation of the bidirectional flow of the Coveñas Ayacucho pipeline, enabling the import of 18,000 barrels per day of crude into the Barrancabermeja Refinery. Lastly, we began the Naphtha Cusiana project with shipments of about 42,600 barrels per month from Monterrey, replacing land transportation, optimizing production dilution costs, and generating revenue of about $3.15 per barrel. On a financial perspective, EBITDA improved sequentially versus the previous quarter, while declining year-over-year, mainly due to external factors such as FX. Let's move to the next slide.  During the first quarter of 2026, our efficiency program continued to be a key enabler for cost optimization and control. The idea is to help mitigate pressures from inflation and FX. Hydrocarbon segment EBITDA reached COP 11.2 trillion, COP 3.4 trillion higher than in the fourth quarter of 2025, and COP 0.4 trillion versus the first quarter of 2025. That is 44.4% growth respectively, confirming a strong sequential recovery. In terms of unit costs we have, the total unit costs in the hydrocarbon segment was at COP 166,601 per barrel, a reduction of 9% quarter-over-quarter and 13% year-over-year.  Lifting costs in pesos decreased to COP 45,916 per barrel, down 4% versus the fourth quarter of 2025, and 11% versus the first quarter of 2025. In USD terms, lifting costs closed at $12.2 per barrel, and excluding FX, we would have reached $10.8 per barrel. This performance reflects a clear improvement in cost trends in local currency and demonstrates progress in operational discipline and cost management driven by contract optimization, maintenance efficiencies, digital solutions and infrastructure, and energy efficiency and flexibility. While FX dynamics continue to exert pressure on dollar-denominated metrics, you can say that the company's commitment to structural key cost indicators. Now Bayron will cover the main milestones in our energy transition segment.  Bayron Triana Arias In 2026, at Ecopetrol, we remain committed to contributing to the country's natural gas supply in the short and long term. To this end, regarding current contracts, we reached a volume of 296 GBTUDs in the first quarter, equivalent to 52% of the market's contract and volume share, with Ecopetrol being the only player to have offered firm long-term gas supplies. Similarly, our operational efforts enabled us to reduce our own consumption by nearly 8% and increase energy substitution by 10% compared to the same period in 2025. In addition, with the aim of increasing our response to demand, in the first quarter, we offered monthly volumes ranging from 23-72 GBTUDs, including both firm and interruptible gas, and we project to market between 18 and 67 GBTUDs monthly from June to November 2026.  As to the market of gas imported from the Caribbean, in February and March 2026, we offered volumes from 226 to 370 GBTUDs in the market for up to seven years. Turning to LPG, we offered the market 30,500 tons a month for the period from March to August 2026, up 2,500 tons a month compared to the previous marketing period. Next slide, please. At Ecopetrol, we are strengthening the supply and diversification of natural gas through regasification import alternatives in Colombian Pacific and the Caribbean regions. In the Pacific, we launched an open and competitive tender for the procurement of liquefied natural gas under the delivery ex-ship modality for Buenaventura.  The volumes to be contracted will be allocated to the receiving, storage, and regasification infrastructure with a capacity of 60 GBTUDs to meet the natural gas sales commitments in Buga. We estimate that contract signing and the first LNG cargo will take place during the second semester of 2026. In the Colombian Caribbean, we signed the comprehensive logistics and regasification services contract, which will enable the development of the infrastructure required for the receipt, storage, and delivery of between 126 and 307 giga GBTUDs of imported natural gas into the national transportation system. This aligns with Puerto Wilches key since it shortens time-to-time operation mitigates execution risks. On a complementary basis, we continue to explore alternatives that optimize the Group's assets and allow the delivery of natural gas from both imported sources and offshore production into the interior of the country.  Next slide, please. During the first quarter of 2026, the Group's energy demand reached 2,185 GWh, equivalent to 10.9% of Colombia's total demand, growing up to 6% versus comparable quarters of 2025. Therefore, we continue to strengthen the Ecopetrol Group's energy coverage focused on cost efficiency and on mitigating spot market price volatility, particularly given the risk of a potential El Niño phenomenon. During the same period, 88% of demand was met through the combination of conventional and renewable self-generation, as well as energy contracts in the wholesale energy market. Furthermore, the demand met through this market benefited from tariffs that were on average 14% and 3% lower than the benchmark rates in the regulated and unregulated markets, respectively.  This has also resulted in tariff reductions for existing contracts and efficiencies of more than COP 4 billion. In parallel, we continue to consolidate our renewable energy portfolio for self-supply. In 2026, we expect to add 347 MW of capacity for a total of 1,298 MW, of which 432 will be in operation by year-end, pointed to sustained planned growth and competitive low-emission energy. During the first quarter of 2026, the combined operation of the Group's renewable generation assets delivered savings of close to COP 2 billion through tariff reductions. The general shareholders' meeting approved the merger by absorption of the subsidiary Portón del Sol into Ecopetrol, with the objective to materialize and maximize the tax benefits under Law 1715.  Besides, the construction activities at the Quifa Solar Farm were successfully completed with a total capacity of 50 MWp, and we have begun energization of the asset. In addition, we signed the trust agreement with AES Colombia, which sets the framework for the execution of JK1 and JK2 wind projects in the Jemeiwaa cluster in La Guajira, with a combined capacity of 259 MW. Likewise, in the Windpeshi project, the contract was awarded for the construction of the transmission line. In parallel, we have fostered ongoing dialogue with local communities, reaffirming our commitment to a responsible and socially responsible sustainable energy transition. Finally, at the end of the first quarter, we reached energy optimization of 0.7 PJ, with savings of close to COP 24 billion across the Group's operations, which also reduces our spot market exposure and lowers gas demand.  Camilo Barco will cover the financial highlights of the quarter.  Camilo Barco Muñoz The first quarter 2026 results reflect our focus on three priorities

Ticker	Company
VG	Venture Global
FTI	TechnipFMC
CTRA	Coterra Energy
PBA	Pembina Pipeline
HAL	Halliburton
TS	Tenaris
YPF	YPF Sociedad Anónima
TPL	Texas Pacific Land
WES	Western Midstream Partners, LP
DVN	Devon Energy

Ecopetrol Q1, 2026 Earnings Call Transcript (EC)

Ecopetrol Peer Transcripts