Page 14 - LatAmOil Week 19 2022

LatAmOil NEWS IN BRIEF LatAmOil

“The current international crude oil price envi- and public order circumstances, situations that “In the Downstream segment, the consoli-
ronment (average Q1-2022 Brent price was have been gradually restored. As of March, we dated throughput reached 325,000 bpd during
$98 per barrel) is being driven primarily by the achieved an average production of 705,000 a quarter characterised by scheduled mainte-
uncertainty that the Russia-Ukraine conflict has boepd. nance activities in both refineries; as a result of
generated on global hydrocarbon supply, and “During this quarter, the contribution to comprehensive planning in the logistics chain,
the recent Chinese lockdown implications on production of gas was 19.8% (136,700 boepd) we were able to fully supply the domestic market.
demand. The Ecopetrol Group and the coun- and whites was 3.8% (26,200 boepd) for a total In addition, we celebrated the 100-year anniver-
tries where we operate are not exempt from the increase of natural gas of 6.1% compared to sary of the Barrancabermeja Refinery, a leading
consequences of this situation nor to its impact Q1-2021, driven by domestic demand recovery. force of the country’s development.
on economic recovery. “In Unconventional Reservoirs, with 31 “On the commercial front, we highlight the
“Although the increase in prices has benefit- new wells in Permian entering into production, improvement of the realization price of our
ted our revenues, it has also created challenges we completed a total of 135 producing wells, crude oil basket, which increased from $57.8 per
in terms of inflation, where high energy costs reaching an average JV production in March barrel in Q1-2021 to $88.3 per barrel in Q1-2022
and an international logistics crisis are begin- of 61,400 boepd (net for JV before royalties), as a consequence of the Brent increase and the
ning to pressure our operating costs and project corresponding to 30,100 boepd net for Eco- ongoing commercial strategy to diversify to
execution timelines. The Ecopetrol Group has petrol before royalties. For the quarter, average other export destinations, which mitigated the
been constantly monitoring the direct and indi- production was 26,700 boepd (net for Ecopet- effect of a more competitive market. Further-
rect impacts of inflation and has implemented rol before royalties). On March 25, the ANLA more, Ecopetrol Trading Asia completed its first
actions to mitigate its effects. issued a resolution granting the environmental sale for 1.09mn barrels of crude, which we expect
“During the quarter, in our Grow with the license for the Kalé Integral Exploratory Pilot to deliver during the second quarter of this year.”
Energy Transition strategic pillar, we achieved Project in Colombia, which we expect will be Ecopetrol, May 10 2022
positive results across all segments. In explora- confirmed as final during the next few months.
tion, I would like to highlight the results of the We are also expecting the public audience for GeoPark reports
3rd Permanent Offer Cycle of the ANP in Brazil, the environmental impact study for the Platero
where, in conjunction with Shell, we obtained project, which was filed in February of this year. Q1-2022 results
6 offshore blocks, located in the Santos basin, At the Ecopetrol Group we are convinced of the
increasing our presence now to 12 offshore Bra- importance that unconventionals represent for GeoPark, a leading independent Latin American
zilian blocks, as we continue consolidating our the country’s energy security; and as such, we oil and gas explorer, operator and consolidator,
exploration efforts in high potential basins. will continue pursuing activities related to the reports its consolidated financial results for the
“In production we reached this quarter an pilots, including multiple discussions with local three-month period ended March 31, 2022.
average of 692,000 boepd, an increase of 16,300 communities and other stakeholders to provide Q1-2022 Highlights: Accelerated Profitable
boepd as compared to the same quarter of 2021, details about the projects progress and clarify Production. Consolidated oil and gas produc-
primarily explained by: i) our outstanding oper- their concerns. tion of 38,626 boepd, up 6% adjusting for divest-
ating performance of unconventionals in the “The Midstream segment reported a strong ments in Argentina. Production in Colombia of
Permian (USA); ii) positive results in the Liria performance this quarter, with total volumes 33,738 boepd, up 6% vs Q4-2021. CPO-5 block
YW12 and Flamencos exploratory wells; and, transported through our multipurpose and oil (GeoPark non-operated, 30% WI) in Colom-
iii) production recovery in the Castilla field. pipelines increasing by 3.3% as compared to the bia is producing over 20,000 bpd gross, a 150%
Compared to Q4-2021, production decreased same period last year, leveraged on an increase in increase over pre-acquisition production (Janu-
due to maintenance and operational activities, production as a result of the economic recovery. ary 2020). Perico block (GeoPark non-operated,
50% WI) in Ecuador added new production
from two exploration wells.
Generated Record High Revenue, Adjusted
EBITDA and Cash Flow from Operations. Rev-
enue up 70% to $249.2mn. Adjusted EBITDA up
84% to $122.6mn (including $30.5mn of realised
cash hedge losses). Cash flow from operations up
147% to $89.7mn. Free cash flow of $50.3mn1.
Net profit of $31.0mn. Improved Capital and
Cost Efficiencies. Capital expenditures of
$39.4mn. Adjusted EBITDA to capital expendi-
tures ratio of 3.1x (3.9x excluding realised cash
hedge losses). G&G and G&A costs reduced by
12% to $12.7mn (26% lower vs Q1-2020).
Reduced Debt and Strengthened the Balance
Sheet. Cash in hand of $114.1mn ($100.6mn in
December 2021). Net leverage of 1.5x (1.9x in
December 2021). Repurchased $32.9mn of the
2024 Notes2, reducing gross debt and provid-
ing financial cost savings. Sent notice to bond-
holders to redeem $45mn principal of the 2024
Notes, to be completed in May 2022, with more
deleveraging expected in H2-2022.

P14 www. NEWSBASE .com Week 19 12•May•2022