Ecopetrol S.A. (EC): History, Ownership, Mission, How It Works & Makes Money

Ecopetrol S.A. (EC) is the colossal, state-controlled energy backbone of Colombia, but how does a traditional oil and gas giant, with the government holding a massive 88.49% stake, plan to navigate the global energy transition? Through the first nine months of 2025, the company proved it's still a cash-flow machine, generating an impressive COP 36.7 trillion in EBITDA and a net income of COP 7.5 trillion, even with lower prices. You need to understand the complex, four-segment business model-from the Permian Basin to its new 234 MW of installed renewable capacity-to defintely map the risk of a 13.8% Q3 revenue decline against its aggressive COP 24 to 28 trillion investment budget for the year.

Ecopetrol S.A. (EC) History

You need to understand Ecopetrol S.A. not just as an oil company, but as a direct extension of Colombian national policy, which is why its history is so tied to sovereign control over its resources. The company's origin isn't a startup story; it's a nationalization story, and its pivot toward energy transition is the biggest shift since its 2007 IPO.

Given Company's Founding Timeline

Year established

While the precursor entity, Empresa Colombiana de Petróleos, was established by Law 165 of 1948, the company officially began operations in 1951, taking over the core assets of the expired De Mares Concession.

Original location

The operational heart was originally in Barrancabermeja, Colombia, a city that housed the country's main oil refinery-the primary asset inherited by the new state entity.

Founding team members

The founder was the Colombian State itself, acting through a government decree. This wasn't a group of entrepreneurs; it was a strategic move to assert national control over hydrocarbon resources previously managed by foreign entities like the Tropical Oil Company.

Initial capital/funding

The initial capital was not a cash injection but the reverted assets of the De Mares Concession. This included significant infrastructure, existing wells, and the vital Barrancabermeja refinery, which were handed back to the Colombian government.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by three major, defintely transformative decisions that moved it beyond being a simple state-run oil operator.

• The 2003 Restructuring and IPO: This was the pivot from a government administrator to a global energy company. The creation of Ecopetrol S.A. separated the company from the state's administrative functions, giving it the autonomy to accelerate exploration and adopt a commercial, business-first vision.
• The ISA Acquisition: Buying a majority stake in ISA in 2021 was a massive strategic leap. It wasn't just about diversification; it was a clear signal of the company's commitment to the energy transition, instantly making it a major player in electricity transmission.
• The Low-Carbon Push: Ecopetrol is now aggressively moving into green energy. The 2025 investment budget, projected between COP 24 and 28 trillion, heavily funds this shift. The company is targeting 900 MW of renewable power generation by the end of 2025 and has the Coral hydrogen project-a key component of its low-carbon strategy-at 55% completion as of September 2025.

To be fair, this current focus on low-carbon energy is the biggest strategic shift since the IPO, and it's what will define the next two decades for the company. You can read more about what drives this shift in the Mission Statement, Vision, & Core Values of Ecopetrol S.A. (EC).

Ecopetrol S.A. (EC) Ownership Structure

Ecopetrol S.A. operates under a unique structure where the Colombian government maintains decisive control, but a significant portion of shares are publicly traded, giving you, the investor, direct access to the company's performance.

This dual nature-a mixed economy company (Sociedad Anónima de Economía Mixta) that is majority state-owned but listed on the NYSE and BVC-means its strategy must balance national energy security mandates with the fiduciary duty to all shareholders.

Ecopetrol S.A.'s Current Status

Ecopetrol S.A. is a publicly traded, integrated energy company and the largest company in Colombia, responsible for over 60% of the nation's hydrocarbon production.

It is a mixed economy company, meaning it has both public and private capital, but the Republic of Colombia is the controlling shareholder. This status links the company to the Ministry of Mines and Energy, ensuring its operations align with national policy, particularly regarding energy transition and security.

Its shares trade on the New York Stock Exchange (NYSE: EC) via American Depositary Receipts (ADRs) and on the Colombian Stock Exchange (BVC: ECOPETROL). This public listing provides liquidity and subjects the company to rigorous international financial reporting standards, which is defintely a plus for transparency.

You can see how their strategic priorities, like the recent acquisition of a solar project portfolio in November 2025, directly reflect their Mission Statement, Vision, & Core Values of Ecopetrol S.A. (EC).

Ecopetrol S.A.'s Ownership Breakdown

The ownership structure is heavily weighted toward the Colombian state, which dictates the company's long-term direction, but the remaining percentage is held by a diverse group of institutional and individual investors.

As of the most recent filings, the Republic of Colombia holds nearly nine out of every ten shares. Here's the quick math on who owns Ecopetrol S.A.'s shares, based on 2025 fiscal year data:

Ecopetrol S.A.'s Leadership

The company's direction is steered by a seasoned leadership team that must navigate the complex intersection of state mandates, market demands, and the global energy transition.

The most senior executive is the President and CEO, who reports to the Board of Directors. In November 2025, the company announced key executive changes, reflecting a strategic focus on both core hydrocarbons and the energy transition.

• Ricardo Roa Barragan: President and Chief Executive Officer (CEO).
• Juan Carlos Hurtado Parra: Executive Vice President of Hydrocarbons, effective November 16, 2025, bringing over 25 years of sector experience.
• Bayron Triana Arias: Executive Vice President of Energies for the Transition, a role that underscores the company's commitment to diversification.
• Rodolfo Mario García Paredes: Chief Compliance Officer and Compliance Officer, appointed in November 2025, ensuring adherence to corporate governance standards.

The leadership team is tasked with meeting the 2025 operational objectives, which include an accumulated EBITDA of approximately $691 million from international operations in the Permian Basin, a crucial growth area.

Ecopetrol S.A. (EC) Mission and Values

Ecopetrol S.A.'s core purpose transcends simply extracting oil; it centers on securing Colombia's energy future through a disciplined, integrated energy strategy while aggressively pursuing a transition to low-carbon sources. The company's cultural DNA is anchored in a commitment to life, ethics, and sustainable excellence, which guides its COP 24 to 28 trillion investment plan for 2025.

Given Company's Core Purpose

You're looking for what truly drives Ecopetrol S.A. beyond the quarterly earnings call, and it boils down to a dual mandate: financial strength in the traditional business and a profitable, responsible shift toward new energy. This balancing act is key to understanding their long-term value creation model. For the first nine months of 2025, the Group's Net Income stood at COP 7.5 trillion, showing that this dual focus is delivering solid results even amid market volatility.

Official mission statement

The company's mission is to be an integrated energy group that reinforces its core hydrocarbon business with strict financial discipline while advancing profitable and strategic projects driven by energy transition and security for the country. Honestly, this means they're using today's oil and gas revenue to fund tomorrow's cleaner energy portfolio.

• Reinforce the core hydrocarbon business to ensure energy security and financial stability.
• Maintain strict financial discipline, aiming for a competitive EBITDA margin of approximately 39% in 2025.
• Advance profitable, strategic projects focused on energy transition and decarbonization.

Vision statement

Ecopetrol S.A.'s long-term vision is encapsulated in its Strategy 2040, which positions it as an integrated energy group that generates sustainable value for all stakeholders. The goal is to be a leader in the region's energy transition, not just a follower. This is a massive undertaking, and it requires a defintely clear roadmap.

• Position Ecopetrol as an integrated energy group participating across the entire value chain, including energy transmission and road concessions.
• Achieve a goal of being a company with zero net carbon emissions by 2050 (Scopes 1 and 2).
• Aim to increase unconventional renewable energy capacity to 900 MW by the end of 2025.

To be fair, the commitment to sustainability is backed by action: approximately COP 2.3 trillion of the 2025 budget is allocated to SosTECnibilidad® projects, focusing on climate change and biodiversity. You can dive deeper into the ownership structure and market sentiment by Exploring Ecopetrol S.A. (EC) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

The company's strategic vision is often summarized by its long-term brand promise, which clearly signals its direction away from being a pure-play oil company.

• Energy that Transforms.

This tagline perfectly captures the shift in their business model. They are transforming their operations-for example, aiming to reduce CO2 equivalent emissions by approximately 300,000 tons in 2025 alone-and transforming the energy matrix of the region. That's a measurable impact.

Ecopetrol S.A. (EC) How It Works

Ecopetrol S.A. operates as a fully integrated energy company, controlling the entire hydrocarbon value chain in Colombia-from exploration and production to refining, transport, and commercialization-plus a significant and growing non-hydrocarbon portfolio via its subsidiary, ISA. It makes money by efficiently extracting and processing crude oil and gas, then leveraging its massive infrastructure network to deliver refined products and energy transmission services to domestic and international markets.

Ecopetrol S.A.'s Product/Service Portfolio

The company's value delivery is structured across four primary business segments, with the Refining and Petrochemical segment contributing the majority of revenue as of the third quarter of 2025. This integrated model helps Ecopetrol manage price volatility across the global energy market.

Ecopetrol S.A.'s Operational Framework

You're seeing Ecopetrol focus its 2025 capital deployment on sustaining production and building out its non-hydrocarbon assets. The total capital expenditure plan is budgeted at approximately $6.3 billion for the year, with a projected execution rate of about 90%. This shows a commitment to growth while maintaining capital discipline.

• Upstream Production Maintenance: The Hydrocarbons segment received the largest share of CapEx, absorbing 62% of the total capital investment through September 2025. This is critical for sustaining the 740,000-745,000 boe/d production target.
• Drilling and Exploration: The 2025 strategy involves drilling 455-465 development wells, mostly in Colombia, plus at least 10 exploratory wells, primarily in the Llanos Basin and offshore Caribbean. This is how they replace reserves and secure future production.
• Infrastructure Expansion: A substantial 25% of capital investment is dedicated to Transmission and Toll Roads, with over $1 billion invested through Q3 2025. This investment, largely in energy transmission in Brazil, Peru, and Colombia, is a defintely strategic move to diversify revenue away from oil price fluctuations.
• Cost Efficiency Program: The company is rigorous on cost control, achieving COP 4.1 trillion in efficiency gains by the end of the third quarter of 2025. Here's the quick math: this efficiency program is essential for maintaining an EBITDA margin of around 40.4%, even with revenue pressures.

Ecopetrol S.A.'s Strategic Advantages

Ecopetrol's market success isn't just about oil volume; it's about its unique structural position and its aggressive diversification strategy. The company is a trend-aware realist, mapping near-term risks to clear actions, which is why it's investing heavily in non-hydrocarbon assets.

• Integrated Monopoly in Colombia: As the majority state-owned oil company, Ecopetrol controls the essential infrastructure-the pipelines, the refineries-giving it a dominant, low-cost position in the Colombian domestic market. This integration across the entire value chain minimizes third-party costs and maximizes operational synergy.
• Non-Hydrocarbon Diversification: The acquisition of ISA significantly transformed the company, adding a stable, regulated revenue stream from electric power transmission and toll roads. This segment acts as a financial cushion against volatile crude prices, plus it aligns with global energy transition (ESG) goals.
• Strong Shareholder Return: For income investors, the company has offered an outsized payout, with a dividend yield of 16.91% as of April 2025. This high yield, fueled by strong cash flows, makes the stock a compelling draw, especially compared to peers like Petrobras (PBR) or Pemex (PXM).
• Global Reach and Trading Acumen: The company uses its subsidiaries in Houston and Singapore to capture market opportunities, achieving a highly competitive crude trading differential in 2025. This commercial strategy allows them to maximize value even in a low-price environment. If you want to dive deeper into the investor base, check out Exploring Ecopetrol S.A. (EC) Investor Profile: Who's Buying and Why?

Ecopetrol S.A. (EC) How It Makes Money

Ecopetrol S.A. primarily makes money as a vertically integrated energy company, generating revenue from the exploration, production, refining, and sale of crude oil and refined products like gasoline and diesel. Plus, a significant and growing portion of their income comes from transporting hydrocarbons and operating electric power transmission and toll road infrastructure through their subsidiary, Interconexión Eléctrica S.A. (ISA).

The company's financial resilience, despite a challenging market, is clear in its nine-month 2025 (9M 2025) results, reporting total revenues of COP 90.9 trillion and a net income of COP 7.5 trillion.

Ecopetrol S.A.'s Revenue Breakdown

While the company's Exploration and Production (E&P) segment is the largest driver of operating profit (EBITDA), the Refining and Petrochemical segment typically accounts for the largest share of gross revenue, reflecting the high sales value of refined products. The overall revenue trend for 9M 2025 is a decrease of 7.8% compared to 9M 2024, largely due to lower weighted average selling prices for crude oil and products.

Business Economics

Ecopetrol's profitability hinges on two critical external factors: the international price of crude oil and the local exchange rate (Colombian Peso to US Dollar). Their pricing strategy is directly tied to global benchmarks, mainly Brent crude, but they capture additional value by securing favorable differentials for their specific crude oil basket.

Here's the quick math on their cost structure and market exposure:

• Price Exposure: The weighted average sales price for crude oil and products fell by $6.9/bbl in 9M 2025 compared to the prior year, directly impacting the top line.
• Hedging Strategy: To mitigate this volatility, Ecopetrol uses hedging strategies, covering approximately 15% of its total production against price drops.
• Cost Efficiencies: Variable costs decreased in 9M 2025, largely because the lower Brent reference price also reduced the weighted average purchase price of crude and products by $7.7/bbl.
• Regulated Risk: The company manages a significant receivable balance with the Colombian government's Fuel Price Stabilization Fund (FEPC), which stood at COP 7 trillion as of March 2025. This fund acts as a buffer between international fuel prices and domestic consumer prices.

Ecopetrol S.A.'s Financial Performance

The company's financial health is best understood by looking at its operational efficiency and diversification, particularly the stable, regulated income from its non-hydrocarbon businesses. You can get a deeper dive into these numbers in Breaking Down Ecopetrol S.A. (EC) Financial Health: Key Insights for Investors.

• EBITDA Generation: The Ecopetrol Group generated a cumulative EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of COP 36.7 trillion for the first nine months of 2025, maintaining a strong EBITDA margin of 40.4%.
• Segment Profitability: The Exploration and Production segment is the largest profit engine, contributing 53% of the total EBITDA, while the Transport, Transmission, and Toll Road segment (primarily ISA) provides a massive 42% of EBITDA, acting as a natural hedge against oil price volatility.
• Capital Discipline: Ecopetrol has a robust capital expenditure (CapEx) plan for 2025 totaling $6.3 billion, with an anticipated execution rate of approximately 90% by year-end, focusing on both hydrocarbons (62% of CapEx) and transmission infrastructure (25% of CapEx).
• Refining Recovery: The Refining segment's EBITDA contribution is small at 5% for 9M 2025, but it is on a recovery path, with the integrated gross refining margin growing by 22% compared to 2024 due to increased throughput and a focus on high-value products.

Ecopetrol S.A. (EC) Market Position & Future Outlook

Ecopetrol S.A. is positioned as the dominant integrated energy company in Colombia, leveraging its near-monopoly on domestic hydrocarbon production and transportation while aggressively pivoting to become a major player in the regional energy transition. This dual focus on core oil and gas profitability and strategic diversification into renewables defines its near-term trajectory.

Competitive Landscape

In the broader Latin American and global integrated oil and gas (O&G) space, Ecopetrol competes on its domestic scale and its growing transmission and renewables portfolio, a factor that differentiates it from pure-play exploration and production (E&P) companies.

Opportunities & Challenges

The company's strategy for the near term is a clear balance: maximize the value of its hydrocarbon base while accelerating the energy transition, but this path is not without significant headwinds.

Industry Position

Ecopetrol's standing is defined by its integrated model and financial resilience, even when facing market pressures. For the first nine months of 2025, the Ecopetrol Group reported revenues of COP 90.9 trillion and an EBITDA of COP 36.7 trillion, maintaining a strong 40.4% EBITDA margin.

The core business remains robust, with accumulated production reaching 751,000 barrels of oil equivalent per day (boed) through September 2025, hitting the high end of its target range. That's a strong operational showing.

The company is defintely pushing its energy transition goals, reaching 234 megawatts of installed renewable energy capacity as of September 2025, which is a key part of its Mission Statement, Vision, & Core Values of Ecopetrol S.A. (EC). This focus on both the traditional business and the future energy mix is what makes it a complex, but compelling, investment case right now.

• Capital Deployment: 62% of the total capital investment through September 2025 was directed to the hydrocarbons segment, while 13% went to energy transition projects, showing the current investment split.
• International Footprint: International production, primarily from the Permian basin in the U.S., contributed 106,000 boed, or 14% of the Group's total production, providing crucial geographic and price diversification.
• Credit Rating: S&P Global Ratings affirmed the company's 'BB+' credit rating but revised the outlook from stable to negative, signaling that while the financial foundation is solid, macro-level and country-specific risks are rising.