Ecopetrol (NYSE:EC) reported first-quarter 2026 revenue of COP 28.6 trillion, EBITDA of COP 13.5 trillion and net income of COP 2.9 trillion, as management said stronger refining results and cost controls helped offset currency, logistics and market pressures.
Juan Carlos Hurtado Parra, Ecopetrol’s acting president, said the quarter unfolded in “a volatile international environment” shaped by geopolitical tensions that affected energy markets and global logistics. He said the group’s operational capabilities were central to sustaining performance during the period.
Ecopetrol’s EBITDA margin expanded to 47%, which CFO Camilo Barco Muñoz described as comparable to some of the company’s stronger historical quarters. Net income was down COP 0.2 trillion from the first quarter of 2025, reflecting tax effects, financial costs tied to liquidity management and other factors, though Barco said the company showed a “strong recovery versus previous quarters.”
Production Holds Near Target Range as Gas Remains a Challenge
The company produced 725,000 barrels of oil equivalent per day in the first quarter. Hurtado said domestic crude production reached 527,000 barrels per day, partly offsetting lower gas production, which he called a “structural challenge” the company continues to address.
Carlos Ávila Saldarriaga, acting executive vice president of hydrocarbons, said domestic oil production rose by 6,000 barrels per day compared with the fourth quarter of 2025, supported by growth at CPO-09, new wells in Capachos, performance at Castilla and a development well in Putumayo under the company’s agreement with Parex. Gas sales declined by about 5,000 barrels of oil equivalent per day, mainly due to seasonal sales patterns, while international production fell by roughly 5,000 barrels of oil equivalent per day due to Permian investment activity and scheduled maintenance at Ecopetrol America.
Ávila said Ecopetrol is maintaining its full-year production target of 730,000 to 740,000 barrels of oil equivalent per day. Operational priorities include continued drilling at CPO-09 and Caño Sur, an in-situ combustion pilot at Chichimene, processing facility expansion at Rubiales and an expected 4,000 barrels of oil equivalent per day contribution from the Permian.
Exploration and Portfolio Deals Add to Growth Plans
In exploration, management highlighted the Copoazú-1 well in the Caribbean offshore GUA-OFF-0 block, about 9 kilometers from the Sirius-1 and Sirius-2 wells. Ávila said the well confirmed gas in two accumulations separate from Sirius and expanded the discovered potential of the block. Initial testing is underway, with a first estimate of potential expected by year-end.
For Sirius, Ávila said the company is advancing a prior consultation process with the National Prior Consultation Authority, aiming to complete that phase by year-end and file the environmental impact assessment in the first quarter of 2027.
Ecopetrol also advanced upstream portfolio optimization through agreements with Parex and Gran Tierra in the Magdalena Medio region. Hurtado said the Parex agreement involves about $250 million of partner-funded investment in the Casabe and Llanito assets, with the potential to add about 94 million barrels of oil equivalent gross. The Gran Tierra agreement covers Tisquirama and San Roque, with about $92 million of partner-funded investment and potential additions of about 30 million barrels of oil equivalent gross.
Refining Performance Lifts Downstream Contribution
Refining was a key driver of first-quarter results. Ecopetrol reported consolidated throughput of 417,000 barrels per day, up 5% from the first quarter of 2025. Hurtado said the Barrancabermeja Refinery reached one of the highest throughput levels in its history, while Cartagena maintained solid performance despite operational events in March.
Ávila said the company improved its valuable product yield by 2 percentage points to 73% and optimized its crude slate by prioritizing higher-value barrels. The refining gross margin increased 60% year-over-year to $17.3 per barrel. Refining EBITDA reached COP 1.9 trillion, nearly 2.9 times the first-quarter 2025 level.
In transportation, Ecopetrol moved about 1.1 million barrels per day. Ávila said the segment benefited from third-party volumes of about 27,000 barrels per day and the bidirectional flow of the Coveñas-Ayacucho pipeline, which enabled imports of 18,000 barrels per day of crude into the Barrancabermeja Refinery. The company also began the Naphtha Cusiana project, shipping about 42,600 barrels per month from Monterrey to replace land transportation and reduce dilution costs.
Brava Energia Deal Remains Subject to Conditions
Hurtado said Ecopetrol is progressing on the potential acquisition of a stake in Brava Energia S.A. in Brazil, where the group has operated for more than 20 years. The transaction contemplates a private acquisition of about 26% of Brava’s equity and a voluntary tender offer intended to reach a controlling stake of up to 51%.
Based on 2025 figures cited by management, Brava had 459 million barrels of oil equivalent in 1P reserves, production of about 81,000 barrels per day and EBITDA of about $806 million. Hurtado said the deal is expected to diversify Ecopetrol’s asset base and strengthen its international portfolio, but closing remains subject to precedent conditions, including the success of the tender offer and regulatory approvals.
During the question-and-answer session, Hurtado said the tender offer is projected to launch in the second quarter. He said Ecopetrol’s purpose is to acquire at least 51%, and if it cannot reach that level, “we will not be part of the business.” He also said the company is not seeking more than 51%.
Asked about Brava’s reserves, Hurtado said Ecopetrol uses SEC methodology while Brava uses IFRS, and the company would validate reserve volumes under its own regulatory framework after closing.
Cash Flow, Debt and Gas Supply Initiatives in Focus
Barco said Ecopetrol ended the quarter with COP 14 trillion in cash, including COP 12.9 trillion in cash and equivalents and COP 1.1 trillion in investment portfolios. Operating cash flow reached COP 7.2 trillion, and free cash flow was positive at COP 4 trillion. Organic capital expenditures totaled $1.4 billion, with 73% directed to growth opportunities and 27% to maintenance and reliability.
The company maintained its full-year investment range of $5.4 billion to $6.7 billion, with execution trending toward the upper end under a base case of $83 per barrel Brent. Barco said gross debt to EBITDA remained at 2.3 times at the group level and 1.6 times excluding ISA.
Ecopetrol recorded COP 702 billion in efficiencies during the quarter. In hydrocarbons, Ávila said EBITDA reached COP 11.2 trillion, up COP 3.4 trillion from the fourth quarter of 2025 and COP 0.4 trillion from the first quarter of 2025. Total unit costs in the hydrocarbons segment declined 9% quarter-over-quarter and 13% year-over-year to COP 166,601 per barrel.
The company also emphasized efforts to address Colombia’s natural gas needs. Management said Ecopetrol advanced import and regasification solutions in the Caribbean and the Pacific. In the Caribbean, the company signed a comprehensive logistics and regasification services contract to support receipt, storage and delivery of imported natural gas into the national transportation system. In the Pacific, it launched a tender for liquefied natural gas under a delivery ex-ship structure for Buenaventura.
In response to an analyst question, management said the Puerto Bahía arrangement places investment, development and construction risks with Puerto Bahía, while Ecopetrol commercializes the gas and pays for regasification services. The company said most of a baseline volume has been commercialized and that scenarios could allow higher volumes once infrastructure is built.
Hurtado closed the call by saying Ecopetrol’s priorities are to deepen structural efficiencies, pursue value-accretive growth, strengthen the core business and accelerate gas development as part of the energy transition.
About Ecopetrol (NYSE:EC)
Ecopetrol SA (NYSE: EC) is Colombia's state-controlled integrated oil and gas company and the country's largest oil producer. The company's operations span the upstream, midstream and downstream segments of the hydrocarbon value chain, including exploration and production of crude oil and natural gas, refining of petroleum products, transportation and storage via pipeline networks, and the marketing and sale of fuels and petrochemical feedstocks. Ecopetrol serves domestic demand in Colombia and maintains a portfolio of international investments and partnerships across the Americas.
In upstream activities, Ecopetrol focuses on exploration and development of onshore and offshore fields to sustain and grow hydrocarbon production.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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