#Ecopetrol #Colombia #Bogota #Brazil #Brava Energia

Ecopetrol Achieves a Significant Milestone in Brazilian Market

On August 5, 2026, Ecopetrol S.A., Colombia’s premier energy company, announced a major achievement through its Brazilian subsidiary, Ecopetrol Investimentos do Brasil Ltda. During an auction held on the B3 S.A. – Brasil, Bolsa, Balcão stock exchange, Ecopetrol successfully completed the acquisition of 116,110,717 common shares of Brava Energia S.A. This acquisition, representing about 25% of Brava’s total share capital, was finalized at a price of R$23.00 per share. This strategic investment is poised to enhance Ecopetrol's foothold in the competitive Brazilian energy sector.

The completion of the auction signifies not only a successful bidding process but also reflects robust demand in the market. The favorable outcome aligns with Ecopetrol's objectives set forth during the announcement of the voluntary tender offer (known in Brazil as Oferta Pública de Aquisição Voluntária, or OPAV) earlier in the year. With all regulatory requirements met, the company is set to consummate this purchase by August 17, 2026.

Ecopetrol’s strategy regarding this acquisition is twofold. Firstly, it aims to fulfill the necessary financial obligations related to the purchase of OPAV shares. Secondly, the company plans to cement its control over Brava Energia by subsequently acquiring an additional stake, bringing its total ownership interest to an estimated 51%. This pivotal move is anticipated to solidify Ecopetrol's position and influence within the Brazilian market.

To finance this acquisition, Ecopetrol intends to utilize a short-term credit facility aimed at managing the transaction’s immediate financial needs. This financing will be established under the laws of New York, reflecting a global dimension to Ecopetrol’s operations as it leverages international financial structures. As part of its long-term financial strategy, Ecopetrol is considering refinancing the initial loan through a mix of long-term debt and equity contributions. This approach will help the company sustain a balanced capital structure that aligns with its leverage targets and desired credit ratings.

Ecopetrol holds a dominant position in Colombia, where it contributes over 60% of the national hydrocarbon production. The company is characterized by extensive operations in transportation, logistics, and refining across the nation. With more than 19,000 employees, Ecopetrol also commands a significant presence in the petrochemical and gas distribution markets.

The company’s endeavors extend beyond Colombia’s borders, encompassing drilling and exploration activities in strategic basins throughout the Americas, including the United States, Brazil, and Mexico. Moreover, Ecopetrol has made substantial investments in power transmission through its acquisition of shares in ISA, placing it at the forefront of energy transmission operations in Brazil, Chile, Peru, and Bolivia.

This latest acquisition reinforces Ecopetrol's commitment to expanding its geographic and operational footprint in the rapidly evolving energy sector. However, the company acknowledges potential challenges and uncertainties that could affect its growth. These may include fluctuating oil prices, regulatory hurdles, and the competitive landscape of the energy industry.

In conclusion, Ecopetrol's successful acquisition of a 25% stake in Brava Energia signals a strategic enhancement of its portfolio, demonstrating its long-term vision for robust growth in both local and international markets. Investors and stakeholders alike will be watching closely as Ecopetrol navigates this significant transaction while aiming for sustainable success in the dynamic energy sector.