Ecopetrol S.A. Successfully Completes Redemption of 5.375% Notes, Strengthening Financial Position

Ecopetrol S.A. Completes Redemption of Its 5.375% Notes Due 2026

BOGOTA, Colombia, November 21, 2024 – In a significant move to solidify its financial position, Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has announced the successful redemption of its 5.375% notes due in 2026. This strategic financial maneuver aims to mitigate refinancing risks ahead of the upcoming maturities.

Originally issued in 2015, the outstanding bonds were repurchased at a price of USD 1,007.63 per USD 1,000 principal, totaling approximately USD 450.5 million, including accrued interest. With this early payment, Ecopetrol has eliminated its obligation for these notes, easing concerns around refinancing until 2028.

The decision to redeem these notes aligns with the company’s financial strategy and reinforces its proactive approach to managing upcoming debt maturities. This was previously communicated in October 2024 as part of a broader financial plan to ensure a sustainable and stable operating environment for the company.

Ecopetrol stands as Colombia's largest enterprise and one of the foremost integrated energy corporations across the Americas, employing over 19,000 individuals. It plays a pivotal role in Colombia’s energy sector, directly accounting for more than 60% of the country’s hydrocarbon production and maintaining a strong presence in transportation, logistics, and refining.

The company holds a significant stake in the petrochemicals and gas distribution markets and has recently expanded its operations through the acquisition of a 51.4% interest in Interconexión Eléctrica S.A. (ISA). This strategic move positions Ecopetrol to take part in energy transmission, the management of real-time systems (XM), and concessions for the Barranquilla-Cartagena highway.

Ecopetrol’s international footprint includes drilling and exploration activities in key strategic areas across the Americas, such as the Permian Basin and the Gulf of Mexico in the United States and additional operations in Brazil. Through ISA and its subsidiaries, the company maintains leading roles in energy transmission across Brazil, Chile, Peru, and Bolivia, while also engaging in road concessions in Chile and various telecommunications ventures.

As part of its ongoing commitment to financial prudence and operational efficiency, Ecopetrol’s leadership continues to emphasize the importance of prudent debt management. This redemption not only reflects their financial diligence but also positions the company favorably within the competitive landscape of the energy sector.

For investors and stakeholders, this successful redemption highlights Ecopetrol's sound financial strategy and its determination to cultivate an adaptable and resilient corporate framework. Looking forward, the company remains focused on optimizing its operations and growth trajectories in domestic and international markets.

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