Ecopetrol S.A. (NYSE:EC), based in Colombia, on Friday disclosed that its board targets investments of COP 22 trillion ($5.9 billion) and COP 27 trillion ($7.2 billion) for 2026.
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The plan maintains investment broadly in line with projected 2025 year-end levels, following disciplined capital allocation across all business lines.
Details
Of the 2026 investment plan, the company expects to use roughly COP 17.2 trillion (about 70% of the total) to fund production of 730–740 thousand barrels of oil equivalent per day.
Ecopetrol plans to maintain an average refinery throughput of 410–420 thousand barrels per day and transport 1,110–1,120 thousand barrels per day.
Apart from this, the company expects to invest around COP 7.1 trillion (30% of the budget) for Energy Transition and Power Transmission projects, roads, and other corporate initiatives.
The projections assume a Brent price of $60 per barrel and an average annual exchange rate near COP 4,050.
Cost Reduction
Ecopetrol expects to focus on cost reductions, targeting an EBITDA margin of roughly 40%, consistent with 2025, while transfers to the nation are projected at about COP 28 trillion.
The Profitability and Efficiency Program is expected to contribute approximately COP 5.7 trillion, improving EBITDA, investments, and working capital, while helping maintain refining, transportation, and lifting costs below $12 per barrel.
Investment in Business Line
Ecopetrol plans COP 14 trillion for exploration and production, with 89% for crude oil and 11% for gas, targeting organic output of 730–740 thousand barrels of oil equivalent per day using recovery technologies. The company anticipates crude production in Colombia to rise, offsetting natural gas declines.
Ecopetrol plans to drill 380–430 development wells (95% Colombia, 5% U.S.) and eight–10 exploratory wells in Colombia.
Also, the company projects refining investments of ~COP 1.7 trillion (7%), with throughput of 410–420k barrels per day.
Recent Earnings Snapshot
This month, Ecopetrol reported third-quarter sales of $7.46 billion, surpassing the $7.35 billion estimate, with net income of $700 million.
EC Price Action: Ecopetrol shares are down 0.66% at $9.80 at publication on Friday.
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