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Ecopetrol S.A. (EC)

  • Yesterday, 11:47 AM
    • Ecopetrol (EC -3.5%) unveils a new strategic plan targeting an average annual production increase of 1%-2% to reach ~870K boe/day by 2020, focusing on preserving margins and boosting reserves instead of high growth.
    • EC says it will focus production on major profitable fields as it expects EBITDA of more than $30/bbl, and seeks to boost proved reserves by 1.7B barrels by 2020.
    • As part of the new plan, EC says it will continue to divest non-strategic assets including stakes in Empresa de Energia de Bogota and Interconexion Electrica SA, as well as non-strategic E&P assets.
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  • Wed, May 13, 5:59 PM
    • Ecopetrol (NYSE:EC): Q1 Net income of COP$355B
    • Revenue of COP$12.3T (-31.6% Y/Y)
    • Press Release
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  • Thu, Apr. 23, 4:59 PM
    • Ecopetrol (NYSE:EC) shares rose 2.5% today after the Supreme Court of the Netherlands sided with the company in its legal fight with Llanos Oil Exploration.
    • EC says the Dutch high court dismissed Llanos' cassation appeal of lower court decisions ruling the Dutch courts had no jurisdiction in Llano's bid for €7B in damages from EC following termination of the companies' Guatapur association contract.
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  • Wed, Apr. 8, 2:49 PM
    • Ecopetrol (EC -2.1%) plans to cope with falling oil prices by bolstering exploration offshore, as well as focusing on production of high-yield wells, new President Juan Carlos Echeverry says.
    • EC will focus on ~20 oilfields that produce 80% of its onshore crude and have output costs of $7-$17/bbl, leaving wells with higher extraction expenses to other companies, Echeverry says one day after taking the helm at the company owned 88% by Colombia's government.
    • The new boss also says EC is prepared to take over operating duties at Colombia's largest oilfield, Campo Rubiales, after deciding not to renew the contract Pacific Rubiales had to run it.
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  • Tue, Mar. 31, 7:22 PM
    • More than 40 oil companies including Chevron (NYSE:CVX), BP and Ecopetrol (NYSE:EC) have sought access to geological data under Mexico’s first oil auction in 76 years, as interest in the process is holding up despite low oil prices, says the country’s hydrocarbons regulator.
    • The tally comes as Mexico prepares for the third tender in the auction in April, which will include mature fields onshore that already have been producing but where new technology is needed to recover the remaining oil and gas.
    • Tenders are planned later in the year for discovered offshore fields with extra-heavy oil, for deep waters where global oil majors seek to participate, and for unconventional resources such as those in shale rock formations.
  • Fri, Mar. 13, 6:33 PM
    • Ecopetrol (NYSE:EC) reportedly will not extend the contract with Pacific Rubiales (OTCPK:PEGFF) to operate Campo Rubiales, Colombia's highest-producing oilfield, indicating that the state-run company will assume complete control of the field from July 2016.
    • Under the contract, set to expire in H1 2016, EC has rights to 60% of the production at the oilfield, while Pacific Rubiales takes the remaining 40%.
    • Production at the field was just above 160K bbl/day in January.
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  • Thu, Mar. 12, 8:32 PM
    • Colombian state oil firm Ecopetrol (NYSE:EC) was up 7.2% after hours, adding to gains of 1.9% today, in the wake of news that Colombia arrested seven suspects on charges of a kickback scheme between EC and services contractor PetroTiger.
    • The suspects include four current Ecopetrol employees.
    • The charges follow the U.S. indictment last May of PetroTiger's former CEO Joseph Sigelman on charges of paying a former Ecopetrol employee $335K in order to win a $39M conttact.
    • Ecopetrol says it has suspended the four current employees.
    • Previously: Ecopetrol names former finance minister Echeverry as CEO (Mar. 06 2015)
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  • Fri, Mar. 6, 7:52 AM
    • Ecopetrol (NYSE:EC) names Juan Carlos Echeverry, a former Colombian finance minister with close ties to the government, as its new CEO.
    • Echeverry, who served as finance minister during 2010-12 under the current government of Pres. Santos, will take the post April 6.
    • He succeeds current CEO Javier Gutiérrez, who is credited for turning the company into a major world player during his eight-year tenure.
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  • Tue, Mar. 3, 11:58 AM
    • Ecopetrol (EC -5.6%) is sharply lower after unexpectedly recording its first quarterly loss since shares began trading in 2007 on rising costs and a decline in crude output and prices.
    • The Colombian state-owned oil producer posted a Q4 net loss of 844B pesos ($333M), far below analyst forecasts for a profit of 1.35T pesos and a profit of 2.43T pesos in the year-ago quarter.
    • EC's oil and gas production fell 1.8% Y/Y to 765.1K boe/day, while production for the full year fell 4.2% Y/Y to 755.4K boe/day; exploration costs rose 18 % in the quarter.
    • EC says the average price of crude, gas and other products was $10.6B less in 2014 than in the prior year.
    • ‘EC's "high leverage to oil price movements has contributed to its being one of the weakest performers,” BofA analysts say.
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  • Tue, Mar. 3, 6:11 AM
    • Ecopetrol (NYSE:EC): Q4 net income of -COP$844B
    • Revenue of COP$14.82T (-17.5% Y/Y)
    • Press Release
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  • Mon, Feb. 23, 6:49 PM
    • Ecopetrol (NYSE:EC) slipped in today's trade despite reporting a 5.7% Y/Y increase in proved reserves to 2.08B boe at the end of 2014, with 70% coming from oil and the remaining 30% from natural gas.
    • Colombia's largest energy company added 355M barrels to its proven reserves and added 1.46 barrels for each of 243M barrels it produced last year, increasing its reserves/production ratio to 8.6 years.
    • But investors were not cheered, as the bulk of the increase came from revisions to existing reserves rather than new discoveries.
    • Separately, EC reportedly is close to choosing between two candidates for its new CEO; one of the two is Colombia's former Finance Minister Juan Carlos Echeverry.
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  • Wed, Feb. 11, 11:45 AM
    • Colombia wants to stop a decline in oil production by making its royalties system more favorable to large drillers, the head of the country’s planning department says.
    • A proposal in the government's new four-year development plan would give oil companies a major incentive to invest in increasing output at existing fields by treating the extra crude as though it were from a new discovery, making it eligible for lower levies.
    • Colombia’s crude output fell last year for the first time since 2005, while plunging oil prices has prompted Ecopetrol (NYSE:EC) and Pacific Rubiales (OTCPK:PEGFF) to cut investment.
    • Exxon (NYSE:XOM), Shell (RDS.A, RDS.B) and ConocoPhillips (NYSE:COP) reportedly have deferred shale exploration plans in the country.
  • Wed, Feb. 4, 3:59 PM
    • Ecopetrol (EC -7.4%) is finding considerable interest in acquiring its 43% stake in the Invercolsa energy investment company for as much as $450M, 4x its book value, Bloomberg reports.
    • EC stake sales in Invercolsa, EEB and Interconexion Electrica may raise as much as $1.1B this year as the Colombian state-run oil producer focuses on its core business amid the slump in global crude prices, according to the report.
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  • Fri, Jan. 30, 6:22 PM
    • Colombia's government reportedly is discussing several measures to aid the country's battered oil industry, including a reduction of the country’s stake in oil company projects, allowing more revenue to flow back to companies, reducing the time it takes to get environmental approvals, and giving companies more time to discover oil before exploration and production blocks must be handed back to the state.
    • Colombia’s two main producers have suffered in the global oil downturn, with shares of state-controlled Ecopetrol (NYSE:EC) falling more than 50% since mid-July and those of independent Pacific Rubiales (OTCPK:PEGFF) down 85% in the same period and tumbling Thursday to a record low C$2.79 on the Toronto Stock Exchange.
    • Colombia's government receives ~20% of its revenues from oil.
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  • Tue, Jan. 20, 10:59 AM
    • Despite the plunge in oil prices, a top Mexican energy official says global oil majors are showing interest in the initial phase of Mexico's bidding round for exploratory oil and gas blocks in the shallow waters of the Gulf of Mexico that will be assigned by the government mid-year.
    • The official says the shallow water round is in an area of the Gulf where there is already significant oil production and where costs are less than $20/bbl, making them attractive even in the current environment of depressed prices; a later phase involving more costly production in shale-rock formations will be cut back to offer only the most attractive of the unconventional resources.
    • Among the seven companies that have been authorized into the data rooms are Exxon (NYSE:XOM), Shell (RDS.A, RDS.B), Chevron (NYSE:CVX), Ecopetrol (NYSE:EC) and BG Group (OTCPK:BRGXF, OTCQX:BRGYY).
  • Thu, Jan. 8, 2:23 PM
    • Ecopetrol (EC +3.1%) is exploring a sale of its stake in gas investment company Invercolsa, Bloomberg reports, following a multiyear legal battle over part of the holding.
    • EC's 43% stake in Invercolsa, which invests in natural gas transportation and distribution in Colombia, had a book value of ~$112M at year-end 2013.
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Company Description
Ecopetrol SA is a vertically integrated oil company. The Company operates in three business segments: exploration and production; transportation and logistics; and refining and petrochemicals.