Ecopetrol (EC) 25 Feb 212020 Q4 Earnings call transcript

Good morning. My name is Hilda and I will be your operator for today. Welcome to the Ecopetrol’s Earnings Conference Call in which we will discuss the main financial and operations results for the Fourth Quarter and Full Year 2020 and the 2021 through 2023 Business Plan. All lines have been muted. There will be a Q&A session at the end of the presentation.

is by mention projections Ecopetrol’s company’s performance. it in the of begin, future call this senior we important that to comments the Before management include results, constitute or risks that could as These into uncertainties any do they take not to projections future nor materialize. do account commitment

of event Felipe will projections attention. Alberto a this shared you Ecopetrol; As the conference Ecopetrol Bayón, be are Jaime results call. Thank may no assumes future result, call led Mr. begin in Mr. by different CEO in The and CFO. COO; responsibility that from you Consuegra, conference. Bayón, the your Caballero, your for

joining like welcome everyone us I'd to today.

for company emergencies of We manner. the transformation innovation as COPXX for prioritized set by one transition the to in accelerated consolidation to and within to results the gradually required reached and committed of digital reactivate resources. in the the contain a updated business thanks designed We we years; technology, We will social and world the the Puerto operations unconventional the with Piloto year will faced down protection pandemic. in in as and our of with comprehensive the Special Shell crisis committees for Colombian to is in protocols. history CEPI, fourth stage under go providing a progressed to development pilot pandemic. the advances the for for our people, strict an supply to implementation in work to the up Kalé, our our plan the investment increasing our demand gas place action named the with Research benefit minimum province. implemented and agenda. a the by fellow as This the timely the XXXX-XXXX. research Colombians operations the of our and We gas production. on fuels of licensing offshore supply the in Caribbean attention project, previous in together biosecurity Investigación XXXX agreement We the signed more energy responding in securing work quarter years in well the and brought number and billion set operations the the an we of the business efforts by We enlisting TESG our Montenegro take strategy. Integral most lever country. start of the of Contract and for rapidly maintained We project, crisis in the agency the to hydrocarbons de next In has Ecopetrol, reserves health and We We update a plan Proyectos their social XXXX-XXXX with an midst of first Project, enabling key national present three with plan and financial Santander. for decades. for as operational We Wilches, difficult last of struggled than the a the XXXX crisis

in displaying next to our of and operational Let's able employees. resilience gas positive out for XXXX, challenges, to adverse industry. oil trillion was operations. a environment, We its across in safety reached prioritizing COPXX.X In commitment our slide, profit move financial responsible in by of EBITDA COPX.X on results the thanks Ecopetrol trillion, a of to gradual to our while to year the and the losses of face standing a commitment please. financial distinguished flexibility net terms, and the an and all to significant volatile and an proved these Ecopetrol adapt recovery

move next the Now, to please. slide on let's

price XX% of per a decrease $XX The in the barrel year. part average conditions, market the as basket XXXX to per and prior of below as average compared barrel In worst terms Brent Ecopetrol characterized barrel of the XXXX compared for $XX XXXX, per volatility; to decreased the during $XX.X was crisis. high traded by was

still XXXX, persists. commercial of and the achievements by and of supported to of who observed environment the around first tell of will now in However, crude XX.X% year our in second an diversification open the where recovery we economic a in strategy the In recovery solid gradual floor global better Alberto quarter I main a about in destinations sustained of the year. recovery volumes the Consuegra, prices. of expect of half operational will for us the demand for the balance supply allowed uncertainty

Thank you, will be were completed successful, during XX during and six At drilled are which wells the Felipe. of three additional being On December, in dry, exploration, declared four wells appraisal and of XXXX, end were phase. were we nine drilled XXXX.

allowed remains in as The cumulative contributed production volumes. XX% commercial quarter. crude above sales the to of increased the a the the of equivalent by XXXX EBITDA the contributing achieve XXXX at the as transported demand in [Indiscernible] oil the million established the and December. transported us country In barrels in levels the the activities to increased volume production an with the volumes day Given The users level continue well, with the result compared versus reduction production XX% of equivalent per the upstream XXX,XXX maximize refined than of viability sales contraction oil per as XXXX XXXX XQ those reduction assets was XXXX. commercial of strategies demonstrating viability the [Indiscernible] XXXX [Indiscernible] over of and reserves with out group's with the business previous XXXX, be consumption and XXX,XXX highlight day a limitation segment refined of products was according carried gas of the will the compared declaration gas previous of of to by barrels flaring in contributed barrels of is the a to in the in to Similarly, The case of as barrels prior year XX,XXX reaching in X.X exploratory day. XX% gas oil higher equivalent We December program of Natural as of by XX% feet the XX.X margin of during gas reduction. production XQ recovery previous accumulated oil [ph] of equivalent a to EBITDA which the per of cubic of Gato of is XXXX, XXX,XXX as line reduction X the and to incorporation that commitment production goal. per and were COX Sidetrack country. day, the The exploration Ecopetrol tests of production of to equivalent products, exhibiting increase year. to annual Q OCR end emissions in added of connected commercial per well levels, year, sales the that to production the annual production production appraisal in produced the the even to its in case per of higher same that in XXXX the rate an day thousand achieved X% through of success of year Mato will the well, XX% enable XXX tonnes start and for expected the first lower volume pandemic, XXXX. than do and by wells, estimated volume

in amidst the stands successful effect. of reversal Bicentenario scenario the years, many a - will been segment production achieving the all has their no at to set operational strategy focus year operational because first come of in on this need lower it not units pipeline of the into anticipating This In which strict sulfur Refining its a performance the value. worst competitive the fuel cycles business path the quality to average commissioning XXXX. gasoline content to under regulations is Caño contingent due out stability used with Limón sector pipeline. since of the in Progress the XXXX, in implemented for During alternative turn Coveñas

During fourth and XXXX, the early segment of the refinery was highest the refineries This in that the the to year. challenges XXXX. since consolidated gasoline start day, an per of during per barrels continued reached maintaining results quarter less XXX,XXX million parts the gasoline its the million a of the XX face Cartagena sulfur we're a below brought load The our by refinery improve shows operations with set of to parts [Indiscernible] about of of reliability per produced November. than XX quality production

proven equivalent. XX at registered to X.X% the reserves were end positive and continuation in equivalent barrels next reserve equivalent Ecopetrol's oil Let's talk reserves contribution the barrels are equivalent X,XXX technical debooking At of the million first the proven from balance. Andina enhanced P were in million was field reserves injection oil oil reserves the reviews in The end XX% feedstocks Similarly, of XX was result recovery XXXX, a about barrels equivalent gas. impact direct XXXX. of and results the million revealing in of thanks barrels XX% the incorporation equivalent meant the and the classified barrels discoveries, the fields. versus [Indiscernible] to added. good as reserves XXXX Mexican of a commercial of performance of by with This of partially continue of of projects to barrels in viability reserves. mainly of prices These of slide fields in water approximately phenomena was production of in oil drilling XXX million Guajira increase of proven XXX economical reduction different and optimization the processes, variables offset close the of by at and oil Gulf Colombia new initiatives adding fields The XXX of oil lower million of the million to liquids, of the

path recovery the ratio XXX% reserves for optimization assets the assets, of aims investment Corporation recover [Indiscernible]. reserves, replacement We thanks reserve of such and As different for company. years. investment a the ratio a closed of revert XXXX, to management, by The planned or reserve to to financial the gas were the activities with XXXX replacement as growth the of and EUR life replacement, achieving X.X that average projects reserve technical by plan of an and to contributed XX% injection,

QX project were Project Research a XXXX, slide. a of to platform drilled. comprises on CEPI Spanish in urban we where well next circa area pilot In from project. awarded the move Puerto kilometers acronym the Contract, Kalé Special a for X.X Wilches for be of X.X hectare Let's will its construction the located the This

communities the drilling necessary technologies the impact processes. and of minimal the of hydraulic monitoring the it's development project The in baselines issues, of the environmental phase, responsible methodologies program and plan as community and also the techniques first up the the as the institutions ensure the monitoring involved health a communities. environment We and consists on of protection a relationship will before in advancing use the be its regional rigorous horizontal will the follow of to obtaining monitoring country, health, in licensing apply and of multistage with well fracturing and the with in activities for area entities complete The influence. with the local environmental, which of seismic through on in the and

Regarding July, thousands with we an Ecopetrol completed barrels wells to wells, in block up XX reactivating $XXX XX Basin, net XXXX. annual with royalties in first production investment production our Q wrapped per in Permian expected and activities of X.X an XXXX day to equivalent and of for of million. be XXXX the operations prior Likewise, oil are in which additional after ended we

Permian to XX%. and days, With average stages the days drilling equivalent, The fastest and generated $XX.X investment approximately approximately XXXX, and depths time XX per production would margin XX EBITDA an of highlight in execution XX million, the one operational EBITDA of of of I performance X.X and with production well wells estimated levels like role day for in of of channel XX,XXX $XXX and oil obtained wells following accumulated an in to efficiencies average between net records. million. feet, an average royalties and we for barrels XX,XXX day. after Ecopetrol of drilling the fracturing XX,XXX of XXXX, of By Similarly,

Let's to next slide. the move on

We operation ensuring The most moments guaranteeing recovery. reactivation the overcome availability a increasing the have estimate our grow, around observing its of as in face and to the operation the During achieving the of of total safe that Brent operating wells the barrel savings reopening while in year. of cost, XXXX, a of XXXX, for a the and of by resources with This significant compared costs unit permanent beginning company that of reduction the price we the to maintained XXXX. was critical the since of associated COPX XXXX, given XX% is year, the of profitable of will costs. per $XX.X trillion monitoring been the cost in flexibility price

financial cost efficiencies allow and our barrel $XX you $XX per by control extending around who will will costs next the our maintain for Brent will floor Ecopetrol trillion and now COPX.X us COPX.X between of and However, about unit trillion we focus per total to a results Group. open to level in of the This ratify Caballero savings years. barrel. goal the at main I three tell the Jaime

compared resulted when net in historic stand to contraction gas also out The COPXX.X a the XX% environment combined returns Alberto. trillion price negative and EBITDA positive sales of Ecopetrol companies results of in last prices generated lower period. and Group trillion, effect challenging XXXX. reduction the that the against COPX.X XXXX-XXXX with oil worldwide. crisis related compare a These Thanks favorably revenues income of admits the oil for an a volumes demand of Lower to

the result, obtaining underpinning volumes production the of value In the return we lower long-term. group positive capacity and research, generation growing the conditions, addition a in to market demonstrating its among financial different highlight resilience

to net the the billion. was into on fourth move slide Let's Group's results. to net COPXXX Ecopetrol next deepen income income quarter

lower to increase the EBITDA market Although Likewise, billion measures. of activity, restricted COPXXX of the quarter even oil as margins in the gasoline in to and to events. year related foreign by improvement indicators, the lower an of operational fourth lower due operational better it generation sales imported includes non-recurring food quarter and the effect third and compared lockdown is previously in

a mainly NAFTA the the provision of exploration the for recognition X higher activity of in COPXXX billion, and of higher due expenses First, non-commercial to wells. dismantling exploration well

completion were as of projects studies ongoing the considered COPXXX the given Second, feasibility write-off of billion. assets certain for that economic

labor into admission plan provisions positive FX billion, COPX.X voluntary the and Fourth, represent higher mainly rate by of and persons future. employees for impact the for cash partially during COPXXX the approximately extraordinary items of other were expenses financial COPXXX year. exchange This into billion. trillion billion, Third, of a tax the the due contingencies effect will related reflecting of to positive offset accounting XXX of a total XXX of environmental impacts aforementioned a to the effect The COPXX differences result hedges. retirement

by we the of in and the Finally, XXXX company that of On was closed better income first recognized XXXX, of period, given taxes during expectations positive trillion, annual at fourth basis resulting recovery COPX.X amount COPX.X quarter, billion and an updated of the impairment in net in a for recognized total variables. net the calculation quarter market the trillion. COPXXX

Likewise, by generated, lower the plan other the tax items income the financial provision. higher a a As to COPX.X events with lower recognition of highlight were important COPX.X compared retirement to mainly affected associated under COPX.X offset prices, as trillion of and XXXX lower demand trillion XXXX is It of that non-recurring results. end of of and there of of XXXX, trillion, drastic trillion occurred lower three voluntary COPXX.X impact a by follows. EBITDA effect falling expenses net is the during between with

XXXX to the tax of COPX.X historical States. expectation of the future the recovery United of of quarter extraordinary an revenue in in First, fourth trillion related losses

partially stake acquisition in Second, for of the of gas business the control. given increase fourth trillion associated gain The of market COPX to XQ above and change assets combination extraordinary XXXX offshore in an the recognized with revenue the the [Indiscernible]. the recognition of quarter was offset from in valuation of XXXX

of was of an Sandino Caño impairment to upstream, units COPXXX Cartagena COPXXX the the decrease recognized, long-term when and The an that recognized includes margins cash during volumes mainly first net after-taxes Finally, pipeline highlight assets XXXX. of book to [ph] projections. of refining refinery compared an in was result higher for In to recovery associated the COPXXX the COPXXX compared the It's recognized, segment to impairment across of COPXXX billion of a a a XXXX, to the recovery impairment the was the generating midstream, impairment by value this modernization price business the in recognized in downstream, in as of estimate. billion lower likelihood lower the assets related pipeline. to follows; within the billion previously [Indiscernible] and mentioned the the lower as of quarter future utilization. plan is billion amount billion due In was Limón considering important breakdown

to the of indicators, performance COPX.X the our the for main Let's on XX.X%. stood the With while at trillion, EBITDA move was to regards as quarter slide. margin next financial fourth

was the X.X income quarter product performance operational and mainly As The to a EBITDA the net lower effect The volume crude spread. activity and and imported X.X $XX.X price. affected improved basket target. XXXX barrel oil significantly lower some due margins and times, due was sales EBITDA fourth crude gross previously and stood events. to to sales lower by mentioned, lower reached mainly stated debt the revenues, affected of times in main gasoline at and as versus per non-recurring lower and throughput the leverage crude breakeven by ratio increase

$X.X in in and billion billion the Colombia amounted $X CapEx Finally, previously invested States target United XX% XX% to the and range within internationally, XXXX announced. of mainly execution the to billion was $X.X Brazil.

focused was on production investment, In activities. and important remaining to remaining the and option XX% highlight addition, segment. opportunities It's the the operational XX% continuity the research XX% the downstream and to to midstream investment growth segment corresponds total of of XX% that and

cash robust a discuss maintained end trillion. position. the of the Ecopetrol Let's COPX.X move XXXX, cash to next slide By on position of the to

term of During year, policy honoring give Felipe We Bayón, the floor the President, the half the and sources on of allowed dividend were XXXX-XXXX crisis, of maintaining who now towards the business service. during the prepayment total which present plan, of trend short the main disbursements activity despite obligations preserving cash operating second finance, the investment value free highlight XXXX, cash allowed the to debt will flow I and trillion. the the disciplined a plan. the a which COPX.X for change

reestablishes and of prices, and terms in reflects growth focusing Jaime. priority. main The transition. the us that and investments and the exploration focus show allow Organic remains integrated on to path growth portfolio an with It organic the oriented our perspectives on sustainability and path $XX flow our to Thank with resilient plan increasing commitment also accelerates XXXX-XXXX to you. updated mainly as and $XX company a for trend. Operating energy our cash production reserves. growth business around assets billion highlights production segment that restore will be will billion, a an strategic will as

In evacuation into XXXX. plan increasing XXX,XXX to the Cartagena of billion Colombia. achieve refineries assets. between refinery, to the mainly addition, $XXX be includes ambition, mainly in of by day the expect throughput $X.X pipeline ratio the heavy and Refining, growth midstream million in In total the business, and to the ensure to the and crudes XXXX. the project the times and we of $X.X The of our segment, debt the operation be around the of by lower in barrels connect investments plants and reliability integrity entry billion, of our competitiveness to the than and per million efficiency $XXX between EBITDA a will In to two the crude gross infrastructure, priorities integrity product the located we'll

to of production [Indiscernible] expected in reaching to development, the to production restores XX,XXX path water day levels on of With recovery, and total in next plan barrels [Indiscernible] expansion injection an barrels please. The XX,XXX the primary with enhanced at in of continue terms production between the Castilla close the with XXXX. in XXX,XXX per growth day contribution and oil Let's will slide fields to XXXX. move regards per we are

fields and of pre-salt in do is the to future of the exploration we program, fields, international our development as growth Flamencos resulting Amongst investments priority the Middle Brazilian the Piemonte includes Mato the in Permian to recovery operations such our leveraging the of Valley highlight, the factor Gato recent and Field Ecopetrol. strategy the from wells strengthen the and in increasing continue both field the acquisitions gas Guajira. Basin discovery Near and projects development of Rodeo the in in current Magdalena U.S. of the reserves in Our the main of Texas It can

generates to financed. the our and plan please. a non-operational in achieve finance be around next Let's growth, Ecopetrol price surplus billion The and of million cash that investment debt period. and could are be incremental flexibility have $XX the inorganic would operating move sufficient and discounting on debt Brent At a the $X the of billion providing expected price ranging shareholders. added require and robust available billion this plan depth XXXX-XXXX prepayment of between returns to Other organic generate Group dividends. $XX to cash slide, optionality the generation additional barrel, thus, per liquidity to to not It does and is between service $XXX above $XX potential and current income noteworthy

in to the progress go the TESG see us next to slide our Let front.

to achieving energy will fuels energy year capacity agenda, develop For in new best others. as amongst adopt advances Economic Ecopetrol referred disclosure practices. target energy information COPX.X to few international six remain In the which Stakeholder of $XXX improving Ecopetrol social around In by front, we gaps this farms, oriented XXXX. of of to will the Capitalism allocate Forum, great following well-being in over will and social an solar the next decarbonization, to will World development Metrics. of XXXX, sustainability installed addition recommended by Fernando and environmental we efficiency, San standards million XXX megawatts which we to governance, to trillion projects quality the maintain sense, of and by Castilla by TESG also contemplates plan, our committed bridging investments in the In begin our renewable the operate. transition in boosting reaching mainly environmental metrics We an this XXXX, and communities years, non-conventional solar

addition, TCFD, of want the the to as its the main reports year. will end considerations behind will strategic announced energy last our slide of interest Ecopetrol and XX.X% the next needs. share of outstanding In frameworks I in incorporate with of to you the go as Interconexion source at some acquisition and to mobility SASB into of reference SA, the to Please Hydrocarbons the most affordable secure, of energy Electrica ISA. abundant, continue shares be world's and meet the of

Although expected in the and accelerated hydrocarbons decarbonization is transitions estimated recent time years. to change. over the market lose forward, going amount hydrocarbons is of response towards process electrification world as This been it climate that has share in will

to companies We coupled this with increased the The or in options to the sector in this speed from enable to generation of along types and indispensable of electrification. business value in expected as hydrocarbon and hydrogen, carbon the have prices generation, the aligned through decarbonization themselves points of with investment In context, multiple and the to storage, use evaluating of services an reinforce commercialization, electrification, of the The and oil country exempt and appetite the level growth role renewable seen not wind utilization need Colombia. less of are end connect sector. slower chain factor and chain to segments also for in trend. global strengths customers. of are energy volatility transmission will such required be is capture solar an the change as this integrate new reposition All and is energy the

to not unique transition. path there convinced are We is one energy

to see four defined factors next to to transition. Ecopetrol respond Let's energy face has transition. Ecopetrol move to to the the on how slide plans this

continue gas one, value guarantee to resilience our first will current the business oil of of we well the The strengthening portfolio the competitiveness opportunities. new capture the as as of and

venture businesses. new energy into we'll Second,

efficiency activities, to prioritizing fourth, gas governance. but two storage, Third new these By company's technology accelerating while portfolio focused be is our increasing resilience energy portfolio, of oil in opportunities continue environmental, resilient expect in decarbonization energy our Based on carbon growth, group's progressively latter for be protection, to on envision will axis solutions, footprint. will be they incorporated Ecopetrol business such all we social, exposure central factors and still and we businesses. the The as amongst and and to around green carbon criteria. reduction and growing, discipline the to which hydrogen, oil and meet plans as transition an TESG XXXX, gas the and nature-based and capture the to options other cash utilization, gain capital

prospects risk energy be with benefits other sector great more is characteristics group's diversified This returns its economic to as strategic invest associated energy towards a remuneration opportunity its of the already Let's prospects addition on operators Ecopetrol's businesses acquisition is a would generating of of shares transmission profile. structures in would with attractive with it represent the talk a transaction exceptional derived resilience in the for most power with in advantage and portfolio option stable. significantly businesses by about a where improve ISA us the slide the portfolio allowing the above achieve the to can this group to that next XX% Ecopetrol are asset more electric transaction. are operates, the enter the markets and different Alongside both for increasing would is the geography future. single methods the transmissions of synergies profitability in could governance, emissions management businesses The which infrastructure low and The the around businesses income from and volatility relevant the in class a wherein type transmission Group the oil ISA, America. take to in of from the material extent with linear please. this and crude ISA the cycles. than regulated ISA sector to one allow margins that transition Latin group investment in position company and corporate growth robust team all to similar leading

we to that us Additionally, would options. single build this take otherwise with transaction, reach a diversification of with years other scale would

us shareholders and generates Let proceed to holders. potential slide. transaction next debt value The for the our

hand, a increasing prices, offset the would than assuming dilution current be be the On the one public to equity earnings per share. higher available market shareholders offering generated that by would more profit by

Additionally, secondary and increase it, the liquidity with the would the stock float in group's market.

other and more geographic obtain Ecopetrol's operation credit have concentration. flows would would hand, stable reduce the this agencies improve since stated several cash On of rating profile, the that the it risk

Exclusivity of signed to terms XXth, and company Exclusivity Finance This on an the non-binding on Agreement to with move the the you, February reported initially XXXX. a on end June of conditions on to forward the Agreement transaction. offer is the potential XXth As Ministry expected

time, the financing due will in carried Ecopetrol on third the of the of be equity liquidity for the of quarter, complete parallel the of the work inter-administrative to the out authorizations and which perfected of on quarter be year fourth offering surplus end equity in subject structuring planned transaction. XXXX. the obtaining end could required. will closing offering and executed results the depending the is If the potential In options all offering adept issuance before to this remaining other diligence funds second year process equity the available, During the the obtain by contract is leading closing would this and transaction, the the to of or parallel and the

obtained presence slide Ecopetrol of that where as next while EBITDA, move figures potential throughout a this region. will The acquisition, this the XX% ISA ISA would we forma of the strength the Group. transition operating decreasing consolidation positioning volatility shows diversifying now itself sources its and the see of EBITDA of energy analysis figures the American be with XX% continent of would to of reference the the and please, the will With their income group's Ecopetrol income, a business. around pro us cash of financial of contribute Let generation, and Group in in Ecopetrol expand the

its and its the that emissions practices. the to improve Company Groupa as In addition, sustainability to internationally and environmental metrics locally ratio best bringing been would such the has for upon COX recognized environment both commitment to EBITDA

on competitiveness, on the a XXXX-XXXX of resilience results profitable Let's the a environmental with start XXXX the us ISA. to growth group The allow a financial fronts meet on seize the acquisition group, business value clear allowing now transformational demonstrate conclusion in sustainability adds business a of ensure with plan aspirations a the to move and Ecopetrol's controlling and us strategy business. be focus and of year and solid country. Last would to that position to will to a all challenges with and slide. sustainable year's our stake for as With said the opportunity to the expectations to

ambitions. Ecopetrol's announce of and of TESG Group metrics during will year. will strategy We a our main present the view comprehensive half the first It

In the thanks strategy. all of I'll and addition, Again are half updated second ahead go will to the Q&A of the you session. long-term that during we year, open present today. the participating

you. Thank

begin question-and-answer We [Operator now question have JPMorgan. session. will from Instructions] Barbara Halberstadt We the a from

reduction generation expansion next Is will leverage debt only also cash of regarding that That question taking the could consideration is it first Hi, reduction? you about management first the provide the or goal would everyone. acquisition? ISA and for for good funding bit thinking the year if the on on the potential question. company little be morning the into also in year this liability of is driving this be this color what a for My

for in who following questions, then and hi, the Barbara part first call addresses on ask the And we'll of your today. this going depending thanks to I'm see Jaime one. nature to them. taking take

leverage you these going us So, see give our levels views some Jaime, around how we if forward. and color share can and

and for Felipe Barbara. question, thanks Thanks your Sure.

place, and position we with ratio closed we debt you it's industry. And mind. business, if compared a case will, a So, to our is we a when business, with expected and when in you current business, where our we ISA, is which right? we we closed which scenarios the two a of a are there's than of lower great healthy the organic significantly today, the is of oil peers in times speak with planned say, standalone rest There's I we is look what originally. the gas and acquisition in metric, X.X at a see to leverage, think success ourselves very EBITDA about the starting the there So, if then year how that

the right starting As we leverage low this contribution is debt range year, plan, tap believe that we we fund we ratio function ratio. the organic EBITDA markets you that stated, have that underpinning that here of component our immediately will opportunistically X.X expect that more reduce it? hand, the we have combination our under And that we It's the years, of any X to cost visibility a be the to see rates feel other see times, towards two effect and in is one On caveat coming debt -- of we as to now. times. that. our low What's be need going of over There's one that choose to for right? in that of the this to And a to new going to don't We see we plan things. X.X our affect comfortable -- growing right? the a goals advantage taking now, of might a in right of

give segment, like company, our about So, things, markets I've mind. efforts that do you a the on that choose that of some instance. within of Or past the structure putting tap the to to context example, the might instance, is an into capital spoken for to we the choose midstream the for which you might something depth to optimize we to in

will we of to So, do things, continue that. those sorts

So -- don't but need we them. do to

debt. to itself is right? largely size Ecopetrol, with and of As combination shared we is it plan of of we XXXX, Now, we XXXX, then of transaction, with this actually a second two the the with transaction be we see to the the case What's of for to -- going likely what with business. with X.X, scenario, contingent EBITDA, this? market, X.X around things. debt to we to be around to That going that on X their to this be It's see we equity reducing over approach which assuming the is that the go X.X XXXX, times gearing if And that, EBITDA. for that ratio of are be debt Again, ISA possible have assets when a times. could the going by success make. this in time; consolidated you behind $X.X are probably if continuity right? consolidate we to debt we the sheet, transaction, we end are than you see offering range of we equity will view And the of balance what the combination of add between we to directional see When is we purposes, the billion with -- a the

We are their of the debt. assuming continuity

So, hope simply sort. question we the And context, any what your of prepayments this assuming run full. you flows that's are business, the Thank of expecting. we in not when addresses that cash you. in are I

absolutely. know there on no, if that's question second how Yes, these ESG little all wanted more color in the stakeholders. is terms And what is account is interests Thank of advances from just CapEx local that are for be front. get really updates company, actions very could of where this tensions so dealing can with on implemented This very going the We more helpful. you how important would communities, my with this a you. bit the company the taking on, different front situation? very, and color you to into in if be more Yes, areas any give had

April bit Alberto would we've a during XX fundamental, is some I'll Thanks ask close that need country. one color. is Today, thing communities. before have pandemic the in through and take But I working trust seen fronts, rebuilding this say in we COVID-XX the to with the we the months to have gone last the Barbara. sort year, having work XX fronts of had last And XXX something of to And that and its work number crisis work and month provide I'll to more XX which of one hit. the and then we that's March

well. with So, rebuild national and level as That's at number been we've regional and with sortie that had communities, we've doing a communities the been with level, authorities one. actually it's trust collectively local point at to and the

Second don't to talking Santander I XX communities, thing been the to Puerto and of Wilches the management. apprehensions, and around unresolved management -- communities and spent, know, exercise listening we days was in day many projects around that of decades for their are their the was pilot are around some in there water fracing. worries and water use and of most things themes And for around ago opportunities. big, But big have employment the that these needs water I were

get establishing sense, communities, of proactive, in and we terms of how that trust. dialogue being So, in very can again, ahead actually with the game, rebuilding

finalize Barbara working and what we've that's thing we important that the we our with fulfilling communities, things those of ensure project or is other And a something, we've to The our on day-in that promises with If if we're a actually and to close project need that we one activities. day-out. commitments. We started. need promised do

of So, eventually, social in -- the the those we've we activities communities. that increased environmental approach significantly actually there will we've feel our the -- both more of taken, your the of this vital other be thing, issues doing aspects program And it's I in sort and we're And is with some [Indiscernible]. is or something But And which investment that operations. the something which parts is activity in taxes, less. north of a million. have in probably is work we lieu that paying called very conducting of $XXX a

source one it mother of for the desks, kids having me the violence it's $X.X of be the have example. -- the we Mum lot but infrastructure I was conflict. roads. school And you a So, imagine [ph] very instead products, of part Rian desks; those you providing schooling the the I -- And In of of said, don't just I'm relevant. XX where been tax said, know which With factors highest where schools a And million, of in provided the to what's is probably over look, going country desks violence. Tumaco, a in authorities, I or region. think color, I the one there's of kids. difficult or of I understand. XXX or not aqueducts water to XX,XXX was paying or give to water And one to either a and kids in telling I'll those And construct look, we

about know but businesses capitalism it things So, with that we are helps, anything context. of means other worth that announced of thing that. quicker trust, Hope if is think a those can signatories more maybe it is Alberto reporting direct the commitments, But and it reach terms couple we communities stakeholder was one people having you Barbara. dialogue enabling fulfilling WEF, and those in fundamental of that to how a transparency -- weeks color, is a I I metrics bit providing bit lengthy, and we know a there's data that to to think And overall, a I the add? that to ago, one committed don't XX we're the of And you we creating those. need. faster, bit have system. and your providing was with companies, conduct want our we're of matter of in that a context

steam we've morning And full we ahead it's deployment. successful like Good previous in CapEx in and those we been which actually about areas been then Rubiales, also have have problems the resolved. some go Felipe. that successfully areas Barbara. Yes, can with And

especially regions, participation environmental potential we regions, plan that's support was trillion, and executing Middle government year, production, for are in involving Magdalena that blockades Felipe central entrepreneurs these increasing the in which COPX.X segment are Basin mentioned prompt the putting and and also in opportunities reason why present. of another but to And increasing goods the local aggressive additional social together the deploying closer investment, Resolution we exploration mentioning, plans, and the see such the plan. we with Felipe and governors production terms Janos, employment, of in investment and are local an is the when social our election in that to a mayors As services plan for capital as get includes and the green creating social unrest, we in

helpful. Thank a very That's you.

you. Thank

Montanari from comes from Morgan question next Bruno Our Stanley.

Thank you my very questions. much for taking

on is now, the one production both could and with curve. of for on production It year, months about Permian. give First us an the in much for And what's question then how The the plan going the of to if forward, get a first the Colombia we the is second target barrels look you do those at upside well? Permian I business February, XXXX, going plan conservative? bit perhaps the in we're So day oil about doing price relevant a as and $XX, XXX,XXX barrel, even XXXX-XXXX, $XX? week too Another range, provided production using prices could still assumption. know but what isn't at you thinking here, returns see $XX per we $X to between is right, there or If range. billion one, towards metrics? goes complex oil just the stay looking at other update a

shale range? Colombia are Thank much. more or the accelerating top in Is very you the U.S. driven? those driven? price or it is inflation the So what in my explains be So, questions. it may Higher of drilling oil

Bruno. thoughts us give go and in I'm So, split give that terms progressing? Alberto to Jaime the some margins the to then color on and how ranges and one take what see on more do Colombia on ask between Thanks. the CapEx us around to questions, we ahead. Permian And of forward? And first are please I'll Alberta, a going particular production the bit going

Bruno, thanks for your question. morning. Good

depending we barrels Castilla of be disposal because structure. closer water in that XXX,XXX. believe XXX,XXX about in expansion was is Colombia to of we're can in first we're this is But of year, past tackle disposal going which whether rates exit of the the this on to the we terms field, In and quarter, one getting seeing impact what

wells barrels So, was resolve the of get case and XX track once Permian, wells in can range in But on the rate over start we the back net the we completing production completion, that that XX,XXX Ecopetrol. And year. get end last and we net drilling phase that per thousand year at going barrels. and into drilled of get exit range a X,XXX we Ecopetrol, of XXX,XXX XX,XXX as -- we day the to around of day at new barrels barrels of to year, with a per last then we're the X.X will end

period. Permian. of of a onshore to such Colombian So, that then you growth account expected [Indiscernible], XXXX as situation in that's production And Permian, terms of the for Llanito, see XX,XXX [Indiscernible] in about XXX,XXX, the kind to barrels get in projects Basin, Middle course, with during will gas growth will to which production Caribbean and and Magdalena the XXXX the

comment to going address Hi price Bruno, ranges for to I'm first conversation. going back going CapEx I'm link we're questions. to to and address or them the then thanks question on your your --

conservative, between three the may that the a believe is like fiscal still over pace the risk fundamental it in to that is that look months. plus pathway that drives we evolution opal of XX coming of view a market? to the -- is terms with vaccines in price and is sound part right? the we XX. admittedly operate [ph], we of the particularly pandemic. to around we philosophy a framework they capital the for remaining today conservative demand we that light in. current financial is It's look remain, but over it gradual drives discipline, supply the of and think remain have where of recovery and the XXXX, there group. a COVID risk which there from a risks efficiencies is believe several what prefer it a planning price, There I coming the prices, that's continue said risk XXXX the the risks And might a at are also our countries at a create in that the of that There's And risks. XXXX What we company the that and you have risks the see and right, XX, we effectiveness deployed, are around and that therefore and when when still balance years, is stability in you make around of see There

it. how at we're that's looking So

and between short term agree do to XX nowadays with range planning at is it you agree And that at significantly XX. and of we that Now for we and XXXX, I'll when low-end the do brand sensitivities is we it do the have around the range of look some high-end that. understanding a XX price very if it, more agree, scenarios, likely our is you give broad look the XX we today,

So represent ROIC between X%. could $X.X that and view of see increase between billion for and could margins we margins, for X% incremental $X instance this X% billion X%, between EBITDA, EBITDA, could price EBITDA increase and

are So to you. those ranges I directly connected price that gave the range

factor a billion CapEx we've factors, price thought whether range billion into by right. The key that on understanding CapEx. $XX its is this influenced to Going about four and way $XX is

some And with factor previous there there The want Alberto ability and it's do first in on. are in the where context something a right. addressed that actually it capability. to a going projects And challenges execution that is has around deliver is And the in at that certain the question. pandemic still Felipe we social our to areas, pace

So think a I that's factor.

of lower is in cost would And All pace Our where $XX very of a there deliver at second fourth that the but at projects ready some projects below, context we and we're XXXX on factor around XXXX we're range of about weather XQ, within the boundary works of some optionality. feel the our set. continue been maturity we around is the XXXX, that of and this projects the uncertainty factor capital What Three, to a of projects, in underpinned, anticipate. prices factor around of thinking way efficiencies, continue is you in showtime. is saw range the kind component is totality the attractive it's not. more guideline, I has range. those the pursuing key for activity than give activity still of set you being this And these or become some we or And around the that the condition. there's this capital much that at efficiencies, as come to in optionality,

our have opportunities that reason need And kind are not in activities set sufficient of breakevens is that portfolio, above because into optional the are We our competitive. bringing we for that more that.

they say XX Now XXX,XXX think XX% about Particularly that to beyond look is there's barrel target give are right to that that and that because specifically the more infrastructure. thinking XX about XXX. billion They are way above that billion range, to is by to it upside billion is a is continue XX, billion, connected that XX.X optional. that are underpin XX% right, barrel that fully X target. And of that CapEx, I'd of will firm, growth related the other when directly that at to XX% the firm, XXX,XXX continuity would projects us That keeping are X the of bit the be our growth you to -- CapEx, operational XXXX.

addresses your Thank I So you, question. hope this Bruno.

clear. very Thank you, Alberto. I'm

the range oil range? of was Just number, the sure What you and X%. can make the I royalty you -- you discussing when EBITDA mentioned right price, to were between got X% the

Yeah.

baseline shared the all These be incremental all incremental. of would what this part to we've So plan. is as

all So of X%. EBITDA numbers we've today. baseline margins, royalty incremental X% EBITDA $X billion X%, top on to the this to that Again, shared to $X.X billion, incremental is X%

Thank you.

Our McCann Bank from next of Frank question America. comes from

to Thank last you follow that wanted little bit -- on up question. much. I little very more just a a

which the kind how mentioned, in some -- areas just to the will a wondering of then going you how to as of you're where production you disappointing with difficult get a in in at would And areas Thank of secondly, would cost of the look I versus just potentially contributor question that major on quarter, seems of And might high on XXXX, in And went range get the is of is In what production costs, of where is you that both XXX? be -- you're variable you be levels, fairly the feeling third or anyways It clear it your it's what up that concerned drive it's expecting close just be or overall terms and can I wide. terms XXXX? in was Permian already which briefly, the as to you. year-over-year, the terms go. lifting those, sustain terms the for where you declines?

ensure then of point we cost in to and then And in talk mean, it's Alberto under I'll the Frank. you, on that talk is, bit more the first to to sort I need some Thank we a you that context transfer keep our one, lifting fundamental control belts. a I'll detail give and which ask about costs, and

areas In in couple terms very of become are said a can company want we production, ensuring and increase of continue there's in strategic to One, two to a terms that things. that very, gas, that one, gasier sense, we've production we in the levels gas able or COVID we've react and after of terms react of be will gas very but during quickly XXXX. have seen, to gas the appraising during volumes additional been we able were that that also available to COVID,

volumes appraising increasing and XXXX So on forward. it's a going matter securing to options of then

activity the Permian other Casanare is of in we where Perrie one, mentioned. Monte the focused. gas is lots you And one So is have which that

quickly. demonstrated the we and year, be producing in in will ended in that we wells, massive in last have And stopped so stop as don't very year. impact purely, of more XX of were day. of wells that savings terms profitable. I lot excellence tied delivering, know, per we production this year, year You operational the is roughly Permian terms in XXX years, Oxy the think XQ additional well, has Rodeo wells This is drilling costs fracs more able alluding with in June. in terms XX and in operator Alberto faster he next know our wells ensuring doing and operation and and the will up and opportunity. delivering I partner who's a three that a XX was growth March, to And wells of as restart restarted We to through in of the And

to else I go in just to and lifting you you to want bit costs. Alberto, of go So add Please the ahead. anything terms on wanted then if production, a give of and context trend

two guess I And things. Frank. Yes,

we in declining The especially declining, per is the fields, X% manage to Cusiana, is have one Rubiales such where will Kalé first as over that and rate month.

then such going others as and the the So the And then are we But [Indiscernible], those of challenge. steam become so. as do at to their saying, develop barrel, breakevens Jaime terms injection, that's to have as how per $XX are fields. get quite projects have plans a where was both we they uncertain in we

terms that are to lifting the on I costs, of to generation will we a zero kind But capturing on additional we're plant, that's energy budget curve is implementation production maintain see efficiencies services in areas last subsurface then in base last one we we initiative challenges energy where for over and year. $X.X which putting the to Kalé increases, this as part opportunity respect and leasing opportunities that of plan also So be together from have costs With well efficiency, auto see since that we power with of the part increase will months is the such we'll base to the that Also, next years. our great the have around our the we decline. more dollars and plan have solar Then more barrel, in needed interventions we have megawatts. per what the saying is that of focus need as consumption. of that more EUR XXX

Okay. very Thank much. you

next Capital. from question [Operator comes you. Credicorp Nicolás Erazo The Instruction] Thank from

Good results, results everyone. for the morning, Yeah. for side. recycling my actually. Congratulations two the having doubts from I'm just

from The transaction, first perceive ISA one administrative back are there signing for second transaction, trickle is this associated turning we not bring first hurdles a the the in control, these regarding that to regulatory of the the one, laws as to And especially utilities consider be the sign some regulation also, transaction? XXX front, ISA on XXX the timeline regarding and Colombia? understood Could ISA contract.

with Thank important what for account designed exit think I that you, ramps. Nicolás. And called process we've it's with take respect a ISA, to the transaction into the to several we've

to with case. the process be that as continue should in have move basically not So the ability process, we the the forward we

So a initially we've process may pricing will of into that into probably we offer. offer that Finance. the conditions that we of due end if non-binding binding June of signed offer, on with happening with at that the turn now the the diligence the non-binding be presented agree at we've Ministry the the we're exclusivity process end and said, And

number the close shares. of So We've transaction. the -- issuing float said, And a that's one. equity that of important. shares of the that's And additional process necessary is the Nicolás to launches a the also that shares, issuing basically, point to want sense, and condition that the have issuance shares, the I successful in the also we process think

a So Alberto front, means say way take I'd that does a it's that in that point, continue mentioning want we company when Being the able that. of of efficient large fundamental production, XX you terms in that no, long-term. Colombia, sustainability the in mentioned basically aspect that was and of the We're no And And designed for energy prior energy. question, way alley for to is be we the and entering you we in process are strategic there's do of to second does we've to use in operations. that the guys in then user fields regulatory self as generates have back? that you're we we the exit or these a into, energy distribution two-thirds of a are, terms ramps. just very

we an So, in currently, there you we for consumption and and not indeed in be sale, or both will are be of a regulation autogeneradora production continue terms self-power some are transmission. as to generation if company. autogeneradora, And as a can self-regulating public limitations, --

as where But outside generating as self-power does autogeneradora not remain current bear we this legislation Colombia. that the apply Colombia, an we a into of necessarily in with are transmission. in given So mind, Nikolas will and we will company, go

Nikolas. Thanks, assess other to You will know, going continue forward. there opportunities may be we that some

much. clear, Very Felipe. clear. That's very you Thank very

you. Thank

comes The Yang HSBC. Lilyanna Thank [Operator next you. question from Instructions] from

Hi. stronger, actually is that any third other for to you indicated the dispute we you if should results reason to a this that the going opportunity. this upstream. a address. mainstream here. in upstream part versus the simple was continue be the quarter, settle I you pressure because question, me But quarter, the forward? with But wonder and they costs strong, Thank have any second cost this question the there September, and are business Frontera. than leads quarter I results are Well, that lifting changes you of I think weaker expect for fourth

based color and the it? bit new have it could I on you business changed versus also under how in And may, other small assets revenues $X.X that that could a question you You of dividends, dollar I And more COP one us linkage you be have So centralizing would in if indicated think of that capacity little the your level the give the kind this terms billion reserves. Cenit, for on a segment? you're of model? you mentioned occasional right? in

that flexibility and would to resources you you today. elaborate for have working You otherwise that the maybe more can you. So Thank of distribute give use investments future towards in the you it? on capital

Thanks, and for today. thanks call being Lily, the in

the that then other quarter we and that And in questions, in in she to it a I the the more López, to fourth you. quarter. there's terms context address distributions the showing Milena of terms the hand our we're but color, to So can in midstream for [Indiscernible], Jaime that think how relevant and the weak to And give or ask of with of in start answer. I'm dividends. because reserves project actually some it's midstream, bit to upstream, both going I'm CFO our with I'm going us then then a had to And going two share one-offs impacted

something the during stable. an prices, you last So in conducted that call lot we be company. a two year, terms that one, point out against is provided with it operating has the different we way companies means even hedge It in rightly integrated been the Language], performing has it of other very the are and And a optimize that amongst things, aspects that to Ecopetrol model. assets And we Lily, we can or to operate. what mentioning, have midstream we us that transform operate which worth of midstream better than work [Foreign it's continues the the how in around been as has very, midstream, fundamental volatility several how is Remember today. ensure it performs infrastructure. that to the with basically that we can -- is in which group And going forward has do different it and

ensuring was So infrastructure, and that the a effort lot synergies second of even the was we can the of access one of by owner Cenit companies. operation in those there's realize that the the though is conducted And Ecopetrol.

XXX in in people we a of Cenit this terms what work XXXX. north manage very to important with a to a in unions, the basically lot bring provide with Ecopetrol we is going good forward. And did of some And will from of focus, reliability So we savings actually is move. earlier terms of

that So we've now we've for some change and working that it's complete. been to managed a years, structural

Milena forward? bit segment control to Colombia. is approval we ahead, operate, And the for I'm point, say it forward. the this Procuraduría, and results I ask Milena, we the that it's, go two in terms may on then point please. And the going provide that see aspects. So Frontera. in in both second waiting from which And Frontera one agencies with going do dispute? the are of mentioned even some color still a to of we that done, producers. segment, we was even one will you upside settled of there in though dispute the stable Midstream with the going other though be more And is How the how around see settlement And

you Thank for your Hi, Thank Felipe. you, question. Lily.

which Frontera. So we as the Procuraduría, to call. of in give we saw of have outcome the all which arrangements basically well the reviewing settlement. the What binding. provide you then the two involves this does eliminates agreement approvals by this the I'm the Once for with reached of agreement many which press in the approvals, for going agreement charge enterprises court that year, The bit of Basically basically half filing on is is we Frontera the second approval you these aspects agreement state-owned to we local are Colombia. competent of require, uncertainties $XX to an the It the detailing agreement joint Ship is take parts, of background are published claims a for the certain a contract. everyone release on place as or being held to disputes existing Tribunal of Administrative the subject provides a office, It cash currently terminate of Colombian General's the no a and escrow approval basically and in related agreement that a And petition of Attorney appeals of the is related two last as for for? is that settlement in that between It the claims is Pay that to million for part would contracts. as the except are disputed. Cundinamarca,

Bicentenario set the of of it debt. dividends, it And the the this result would subsidiaries. the syndicated XX% portions would Bicentenario transfer off a outstanding Bicentenario Ecopetrol’s by currently in to line stake be owned Frontera transfers approval, pipeline and result in its a fully holds involves all certain Cenit, As of

focal - route. out one that that aspect that important pipeline, relevant is Bicentenario, provides to Limón the ship volumes which dispute. in another is a to it this has in for one not transportation structured I agreements, ensures does of is via the in alternate [indiscernible] an think It's it Coveñas and such that second in Frontera and The way new the route, point Caño it other pay is points two one if contract, it in the

financials terms when Ship in include well that you important what XXXX as dispute. affect to look at segment, for as this of you revenues the contracts terms Pay next recognition, XXXX out financial what can Midstream from And that our don't mandates the point how or in year. expect for it's IFRS statements see In currently to does accordance in you on revenue are of

in this So item. that see agreement the you terms until a important that's is in our the reduction to this expect in There's of because related today, you is numbers all are year incorporated should the impact we that's revenues agreement. required. one the of on no financials not approvals already not item binding see obtain second on A contract, back

of You should expect on year closing see of agreement. next the the the impact back an to

revenue up one-time will and that only. to probably one-time have million be a could $XXX We

that will the think a from at Bicentenario relevant shareholders once approvals Bicentenario And in this as flexibility we the standpoint, via second own reversions closing, which Ecopetrol year, is the next additional Bicentenario look actually once both year. an trapped the is reduction operational And is for reaches we required. a for we you control directions also full revenues the opposed levels. approximately in very currently discuss so the to you I approval be release be subsidiaries, of we pipeline, And upside have at closing is is in $XXX benefit have million pipeline statements aspect order XXX%. at without at the that transaction that the we the of Once that able the will cash. this if pipeline. an Ecopetrol, that is need operate the the control most Bicentenario company, to agreement have have financial to to operate able from will how the we in important level of Currently, to its of the

terminate obtaining either the is transaction. not think in at I January, also approvals. this And this aspect approvals we these these So the we before an bear important thing of the the received, mind in these process may of approvals is party XXth of that to time require agreement; are another are

Another two approval the two relevant from they we the that [indiscernible], on which an is point out have claims think I same the remittance thing approved, office. that And these agreement. processes have Attorney to is settled already that for those are General's had other pipelines, the already received

operating think February actually with I that on new the where think And our that this of is important. X scheme the moving different to operation, a this as to transaction. model, very year, regard and will we fully as relevant employed this operating contracts have happened things of for to pipelines, people also opposed two service we this for So when are seeing begin I that are be Cenit, we operating

secondly, for First, perspective, as basically think operators as much VAT be cost are when directly to operating easier pay, terms a certain when and service the on it from are to having us of there the we in tax employees operating I opposed we And to directly of will subcontractors, obtain that we operate, the required Cenit, taxes pipelines. longer arrangements. no tax efficiencies of our

costs so to people efficient believe in at we Cenit full operation a is fact both environment, speak. local we this more Cenit So have inside allow pipelines the going to reduce the as over the have On that simply the us level. we are the have operation and that of to with top control

comprehensive. Very Thank you.

In terms much, does stream it the like capacity, doesn't change of it? revenue dollarized

No.

oil split Midstream of proportion which of revenues approximately XX% have the you those the the next which of same refined segment, revenues that of or an of similar have the EBITDA. may altered. pipelines, business. pretty And XX% that EBITDA, composition are to revenues the look should be pipelines, So based, compromise magnitude, then and basically the tariffs all effects order the you product have are much which peso obviously, of revenues, movements are all from look actually dollar in to when revenues One, lines denominated two which at which revenues And fairly in you just pesos. give in we have the when to at extent large be is year,

you Thank much. so Sure.

You’re welcome. Lily. Thank you,

reserve I'm Lily, the Milena. and going questions Thanks, cover upstream performance that to around constituted. your we occasional

each performance that million and an see question, with particular, XQ the that that one say XX% -- year total, that look of factors reflects a But close I margin last XQ. conditions amount, expect It's did to a what that material had amounted to that actually $XXX underlying you roughly speak particularly challenging had I'm that the segment. a three at when speaking, are captures margin. going In the factors we roughly third of effect I think there key these the to EBITDA a upstream would XQ that and So, your of about going right. as would factors on in you to over

$XX one-off, had So unsuccessful projects to the were associated that first million with straight particularly one a up area. results, in and write-offs the tune project about we Putumayo undertaken is right, the the of in to

that one-off We about also that million. annual basis. had a an abandonment of and above on costs we abandonment our That amounted cadence go beyond to $XX normal should have

in a that a COVID number environmental to these million. our -- contingency expect had in minor offs. light mentioned some the some of are that the is extraordinary authorities the you time. say events And you wouldn't million million I the the recurring non-repeatable about, amount or add these with associated $XXX of up, all had to those of about, expect before. when are the make also provisions million, we to that We And $XX I'd judiciary we've context. be one -- events But that dealing million, to a to rulings $XXX had this $XX special and over we are from These also decided see of costs $XXX or

would already ordinary million. our future. the of uptick, call But $XX with does we and in program the because I cash accelerate effect. it accounting the The them end and implementation plan. of We the to have expecting second of having items, retirement but the -- that probably tune were efforts component and obviously value benefit. the we choice not it have have at was a an the I conscious a streamlining of was extra XQ upstream material into in adds benefit. choice them it the a uptick to program will consistent cash accounting It the a it's a the have accounting the But it did effect does business, an voluntary is non-recurring, call to it And back increase is wouldn't about, the for made scope

what what your expectation We extraordinary. of also saw there's an course, you be is call DD&A -- of can what involved normal increase versus normally judgment in segment, should and some the the in

auditor runs you of back it's as the that are process, loaded a that As XXX% have, external our part as the to actually know, a that in in year, and XQ linked Ecopetrol certified a in reserves know, over process in of by external, of that, which process on increased is research external we these the is the you result movement fields, as see did actually impact level. research over companies. Again, on of had something an $XX that depreciation some shouldn't We and having time. specific We we million. and a about have some adjustments by is repeating

is, we combination capacity which of is to million. for third two the factor combination perform something have to a And of catch these was expected execute on did then $XXX one you ramp takes XQ up bit learned XQ, of which in hand of a that our operation. So was of that to increased factors to time, Alberto that the in a the we and was addressed, our up up performing we the activities And pandemic as a same there being to the ended effects mitigate do at XQ. of activity

that XQ and associated it reflect So these is cost things $XXX some roughly two seasonality that million. occurred. that trend, accounts average reflects doesn't our reflects for And to it

that's $XXX million. of all in -- that So

to should expect operating the better that should that -- Going upstream to in below we and dollar conditions, to that market represents incremental forward, right? cash should the between about have to over we significant in in -- a We for cash we what XXX And, breakeven we've this at $XX margins roughly pack EBITDA to be shared you see see every expect barrel. should XX%, associated range see a in million plan upside the expect, a breakevens $XXX expect is plan period. that Brent price something in of again, dollar segment prices, to

to million basis. $XXX you're million annualize an annual So you know, on that talking about you if $XXX

we Ecopetrol of We Lastly, the consideration always in segment a those seeing take looked upstream results to segment I do it's results, segment the you're in are not that at important the pure that operating option value the that incremental standalone think and that basis. question very addresses incremental other into you're the there clearly, capture on way the those it. seeing hope the downstream, into the a directly statement is beyond the associated in to into is I value a of segments. these midstream the what financial But barrels in captured value going results.

And than And less years. the it Lastly, that's English, the doing been non-cash a it reserve. accounting very research cash. research, company's it from occasional Lily. It's accounting pay can it what be That's translation protects to or it's reserve. called direction, the a an allows. the in totality from -- does, reserve, could, It's made, a provision -- standpoint, what the allows the Spanish afford basically to five your not it we over of it that effectively to is allows a something that board the we've number an a a with it company that regards dividends to little on we that is years. what for a does. last it much, That's you new the theory Thank figure, four if it us kept

very Thank all very clear, you Thank comprehensive. you.

you. Thank

We question Bruno from Stanley. from have Morgan a Montanari

Hi, everyone.

think call. XXX follow-ups. morning, of Mato prior do Just barrels contingent a about I resources. the that conference million believe you had on I quick This mentioned Gato

Just that is Ecopetrol Thank figures wanted or the to to double the was you. this for and correct area? check, entire if net

come to want you numbers, the do Alberto, please? to

Bruno, to that confirm Just net that's Ecopetrol.

you. Thank

we questions more anyone? any from Do have we do

I your answers, was Montanari, --. question am Mr.

Yes, Thank you. that's perfect.

further We final for will at turn call to Instructions] no Thank Mr. questions. Bayón don't the I moment, back this questions. see And other [Operator you. I have remarks.

appreciate need and the in need Well, call, how we you and in today do, do over Last we've again, that insights, thanks for lots participating the year do way with tough, of complicated, seen so. and value things of we this and uncertainty. to was us which some the everyone, company that and and was provide some was actually actually, being of explain we conference in address the challenging, to follow challenge us those, to or last the issues how need we year

world. quickly quickly as think can thrown I in spades. show at it the to nimble, proactive think it able react be can I was I be that that see and that respond, was And demonstrated resilient, it everybody with around Ecopetrol and vary the saying and, it's very results that we

at integrated all I year. of think of we with benefits we're the the well some of sense. most being conversation dealt end company the And, year, and the how very we've one-offs in in of during the positioned close saw we've think terms the an that we had QA I that a or

news. potential start of think the progress. laid for also on -- in this core would think And a to we've our that terms that finance growth, our We think allow EBITDA solid to out. back do to we've that's plan some budgeting, cash. in that year reserves And I of with and need are, we program, see us production, the those. and of XXXX. very in the our everything go start we we've can good program things I a view a set very protects risks, obviously, business, you how a were the we're of they monitor to talked in how and I transaction We've views to And as space we're about quite forward, of So potential of $XX you But year, given ISA going things terms There's our to about a Brent, presented the addressing we XXXX schedule, asking date. the to XXXX, the plan. with the our with will some we've Brent terms continue good that where had good prices bit organically

to We for work we bigger, do transformational terms and of that having is are also terms profile, broader, more that provide of a will against presence likes. on continue in some And fully risk volatility company the regional transaction a its some hedge in not efficient around and, only the additional company. convinced will

Very to and We through very And helpful there's helpful, progress please out, ISA. value our questions. in as We your how as saying. I your will terms on us we're insights. your in questions always, participating Bye-bye. safe. again follow open keep stay And on was posted you please reach value for to If we you So participation. call. things teams, today's thanks of

thank ladies concludes gentlemen, this you We conference. today's you, Thank and for participating.

You may disconnect. now