Detailed Narrative
Record Production and Strategic Discoveries
Ecopetrol achieved its highest semester production in a decade at 751,000 boe/d, driven by strong performance in Colombian fields and the Permian Basin. The commercial viability of the Lorito discovery (CPO-09 block) was declared, representing the most significant discovery in the past decade with approximately 250 million barrels of recoverable resources. This milestone enables the development of 13,584 acres and incorporates two wells with a combined production potential of 1,450 bbl/d.
Efficiency and Cost Optimization
The company achieved COP 2.2 trillion in efficiencies during H1 2025, surpassing its target by 27%. These savings primarily impacted OpEx and revenues, with COP 684 billion in OpEx reductions and COP 668 billion in additional income. Key initiatives included tariff optimizations, energy efficiency projects, and synergies in transportation. Lifting costs decreased to $11.59/bbl in H1, maintaining the target below $12/bbl.
Midstream Resilience and Infrastructure Enhancements
The midstream segment demonstrated resilience with a 9% EBITDA increase in H1 2025, despite a 6% decrease in domestic transported volumes due to external events and maintenance. Strategic projects included storage expansion at Pozos Colorados terminal to 1.5 million barrels, increased crude pipeline capacity by 7%, and enhanced evacuation capacity from 50,000 to 80,000 bbl/d. The operationalization of the Caño Limón pipeline saved COP 77 billion.
Downstream Recovery and Margin Improvement
The downstream segment showed a strong recovery in Q2 2025, with EBITDA increasing 53% YoY, supported by 95.8% operational availability. Consolidated throughput reached 43,000 bbl/d, and the integrated gross refining margin improved to $12.5/bbl, up 37% YoY. Progress on the Cartagena refinery's electrical reliability plan and maximization of high-value products contributed to these results.
Energy Transition and Renewable Energy
Ecopetrol is on track to exceed its goal of 900 MW in renewable energy for self-generation by 2025, with 630 MW accumulated in its portfolio (208 MW operational, 228 MW under construction, 99 MW in execution). The group's electricity demand met by renewable sources increased to 5.6% from 0.6% five years ago. Energy efficiency measures resulted in 2.42 petajoules of optimization, saving over COP 53 billion and reducing 171,000 tons of CO2e.
Financial Performance and Debt Management
Net income for H1 2025 was COP 4.9 trillion, a decline of COP 2.5 trillion YoY, mainly due to market factors (22% Brent price drop). EBITDA was COP 24.4 trillion, with a strong margin of 40%. The company maintained a healthy cash position of COP 13.1 trillion and a positive free cash flow of COP 3.1 trillion. Gross debt-to-EBITDA stood at 2.4x, within the long-term target of below 2.5x.
Tax and Regulatory Challenges
Ecopetrol faces a potential VAT claim of COP 11 trillion for gasoline and diesel imports from 2022-2024, with an estimated COP 3.6 trillion for 2025. While the company does not recognize payment obligations for previous years and is pursuing legal defense, it expects to recover 93% (COP 3.3 trillion) of the 2025 payments through refunds. The RBSE adjustment also impacted ISA's financial results.