Ecopetrol S.A. (EC): Business Model Canvas [Dec-2025 Updated]

You're digging into the strategy of Ecopetrol S.A. (EC) right now, trying to see past the headlines, and honestly, what you'll find is a massive state-controlled oil company making a serious run at being an integrated energy player by 2025. They posted a solid 9M 2025 EBITDA of COP 36.7 trillion while simultaneously pouring capital-budgeted at COP 24-28 trillion for the year-into electric transmission via ISA and building out nearly 900 MW of renewable capacity. This isn't just about maintaining legacy hydrocarbon production; it's a full-cycle pivot, balancing energy security for Colombia with a concrete push into low-carbon assets. You need to see the mechanics behind that shift, so check out the full Business Model Canvas below to map out exactly how they plan to fund and execute this transformation.

Ecopetrol S.A. (EC) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Ecopetrol S.A. relies on to execute its strategy as of late 2025. These aren't just handshake agreements; they involve significant capital commitments and regulatory alignment.

Colombian Government: Majority shareholder, key regulator, and primary tax/royalty recipient.

• Ecopetrol Group's approved 2025 investment budget is between 24 and 28 trillion pesos.
• For the nine months ending September 30, 2025, Ecopetrol S.A. generated a Net Income of COP 7.5 trillion.
• In 2024, Ecopetrol contributed total transfers to its shareholders amounting to COP 42 trillion.

Parex Resources: 50/50 strategic alliance for Llanos Foothills gas exploration.

This partnership structure is quite specific: Parex funds the exploration wells at 100% of the capital cost in exchange for a 50% participation in future production. This de-risks the capital outlay for Ecopetrol while securing future gas supply. Ecopetrol's Q3 2025 EBITDA margin was 41%, showing the financial strength supporting these ventures.

International Oil & Gas Majors: Joint ventures in the Permian Basin and Gulf of Mexico.

Ecopetrol Permian's operations in the U.S. are a major part of its international diversification. The focus in 2025 has been on executing development plans with partners like Occidental Petroleum (OXY).

Technology Providers: For enhanced oil recovery and digital operations.

While specific technology providers aren't named here, the investment allocation shows where the focus is for operational improvement. Ecopetrol is looking to implement recovery technologies to maintain output.

• Investment allocated to Exploration & Production (E&P) in 2025 is approximately 17.2 trillion pesos.
• This E&P allocation represents about 52% of the total 2025 annual budget.
• The company aims to implement recovery technologies to optimize available resources.

Grenergy Renovables S.A.: Acquisition of solar project companies to boost renewable capacity.

Ecopetrol is actively building its self-generation capacity through acquisitions, moving toward its 2040 strategy goals. This is a clear shift in the partnership landscape.

Finance: review the 2026 CAPEX allocation for E&P versus Renewables by end of Q1 2026.

Ecopetrol S.A. (EC) - Canvas Business Model: Key Activities

Ecopetrol S.A. focuses its Key Activities on maximizing value from its integrated hydrocarbon chain while aggressively pursuing energy transition goals, supported by its subsidiary ISA's infrastructure strength.

• Hydrocarbon Exploration and Production: Maintain production near 751 mboed (9M 2025 average).
• Refining and Petrochemicals: Process crude at 415,000-420,000 bpd refinery load.
• Oil and Gas Transportation: Manage over 1,130,000 bpd transported volumes.
• Energy Transition Investment: Develop 900 MW renewable energy capacity by 2025.
• Electric Transmission: Expand the ISA electric power grid to 50,400 km by 2025.

The 2025 Annual Investment Budget, approved by the Board of Directors, is set between COP 24 and COP 28 trillion, with a significant portion dedicated to these core activities.

The hydrocarbon focus includes drilling between 455 and 465 development wells, with 79% in Colombia and 21% in the United States.

For the Energy Transition, Ecopetrol is also targeting an additional energy optimization of 2.6 Peta Joules (PJ) in 2025, reaching an accumulated saving of around 21 PJ by the end of the year.

The company's strategy for 2025 balances this core output with the transition, aiming for an approximate EBITDA margin close to 39% under an estimated Brent price of US$73 per barrel.

Ecopetrol S.A. (EC) - Canvas Business Model: Key Resources

When we look at Ecopetrol S.A.'s core assets, you see a vertically integrated giant whose physical and intellectual property forms the bedrock of its operations. These aren't just assets; they are the capacity to produce, process, and transmit energy across the region.

Hydrocarbon Reserves and Production Capacity

The proven reserves base is critical for long-term planning. As of year-end 2024, Ecopetrol S.A. reported net proven crude oil, natural gas, and condensates reserves totaling 1,893 million barrels of oil equivalent (MMboe). This inventory supported an average reserve life of 7.6 years at that time. Breaking that down, the liquids reserve life was 7.8 years, while gas stood at 6.7 years. The company achieved a reserve replacement ratio of 104% in 2024, meaning they replaced more than they extracted that year. It's important to note that 89% of these reserves originated from fields in Colombia, with the remaining 11% in the US.

Here's a quick look at the key operational metrics that define their resource base:

They are definitely focused on optimizing what they have.

Integrated Infrastructure: Refining and Transportation

Ecopetrol S.A.'s downstream and midstream assets are crucial for monetizing the upstream production. The company operates major refineries, including those in Barrancabermeja and Cartagena. While the historical capacity was around 400 kbd (as of 2021), the operational performance in 2024 saw a refining throughput of 414,000 b/d. For 2025, the planned joint load is set between 415,000 and 420,000 barrels per day. This is supported by an extensive network of pipelines and terminals that moved 1,119,000 b/d in 2024.

ISA Electric Transmission Network

The ownership of Interconexión Eléctrica S.A. (ISA) provides Ecopetrol S.A. with a significant, lower-carbon-intensity asset base. ISA is a leader in power and road infrastructure across Latin America. For 2025, the budgeted investment for ISA is substantial, expected to be between COP 5.7 trillion and COP 6.5 trillion of the total group budget. This investment is targeted to expand the electric power grid to approximately 50,400 km in operation by 2025. For context, the transmission network stood at 49,426 km as of the third quarter of 2023.

Capital Investment for 2025

The commitment to maintaining and growing these resources is reflected in the approved 2025 budget. The Ecopetrol Group's annual investment budget for 2025 is set between COP 24 trillion and COP 28 trillion. This represents an increase compared to 2024 levels. The allocation shows a clear priority:

• Approximately COP 20.3 trillion (about 76% of the budget) is earmarked for profitable production activities.
• Around COP 6.5 trillion (about 24% of the budget) is directed toward Energy Transition, Power Transmission, and Roads businesses.
• Specifically, about COP 2.3 trillion in 2025 is expected for SosTECnibilidad® projects, focusing on innovation and climate change initiatives.

Intellectual Property and Expertise

Ecopetrol S.A. maintains a competitive edge through specialized knowledge, particularly in challenging areas of the upstream sector. The company has developed a Competitive Advantage in Heavy Crude Oils, covering expertise in recovery, treatment, transportation, and processing. This is supported by the Colombian Petroleum Institute (ICP), which conducts research and develops technological products. Ecopetrol S.A. has consolidated itself as a leader in technology development in Colombia, holding 124 valid patents as of December 2022. Furthermore, the company actively uses technology for Enhanced Oil Recovery (EOR), including the use of CO2 as an EOR method to capture carbon and boost extraction.

You should track the execution against that COP 24-28 trillion budget closely; that's where the future resource base gets built or maintained.

Ecopetrol S.A. (EC) - Canvas Business Model: Value Propositions

You're looking at the core value Ecopetrol S.A. delivers across its operations, which is a mix of national necessity and integrated energy ambition. Honestly, for a company this size, the value proposition has to cover everything from keeping the lights on to future-proofing the business.

Energy Security for Colombia: Reliable supply of domestic fuels and natural gas.

Ecopetrol S.A. positions itself as the guarantor of the nation's energy supply. This is a non-negotiable value for the Colombian state and its consumers. While specific domestic fuel supply volumes for late 2025 aren't explicitly detailed in the latest reports, the focus on maintaining operations under challenging market conditions underscores this commitment. The company's operational stability directly translates to national security of supply.

Integrated Value Chain: Full-cycle production from wellhead to final product sale.

The value here is the control Ecopetrol S.A. maintains over the entire process, which helps manage costs and ensure product availability. For the first nine months of 2025 (9M 2025), the company demonstrated this integration:

This integration is key; you see the results in the margin control, even when Brent prices are moving against them.

Competitive Financial Returns: Achieved COP 36.7 trillion EBITDA in 9M 2025.

Delivering strong financial performance is a core value proposition to shareholders, especially given the capital intensity of the sector. For the nine months ending September 2025, Ecopetrol S.A. delivered significant numbers:

• EBITDA: COP 36.7 trillion.
• EBITDA Margin: 40.4%.
• Net Income: COP 7.5 trillion.

The quick math shows that even with lower Brent prices, cost discipline and operational efficiency kept the margin above 40%.

Low-Carbon Energy: Development of green hydrogen and non-conventional renewables.

This proposition speaks to future relevance and ESG alignment. Ecopetrol S.A. is actively building out its non-conventional capacity. As of the 9M 2025 report, the company highlighted progress in this area:

• Installed Renewables Capacity: Reached 234 MW, a +77% year-over-year increase.
• La Iguana Solar Plant: Began operations with 26 MW capacity.

Also, the Coral green hydrogen project was reported at 55% completion in early 2025, aiming for up to 880 tons per day capacity at the Cartagena Refinery.

Regional Infrastructure Leadership: Electric transmission and road concessions via ISA.

Through its subsidiary ISA, Ecopetrol S.A. captures value from regulated infrastructure assets, which offers stable, long-term cash flows. ISA's contribution is material to the overall group results. You saw improved results from ISA in 3Q 2025. Specifically, ISA secured the first tender of the Transmission Mission Plan from UPME to guarantee the electrical system reliability for the Colombian Caribbean coast. This reinforces their leadership in transmission assets, which is a different, less volatile revenue stream than hydrocarbons.

Ecopetrol S.A. (EC) - Canvas Business Model: Customer Relationships

When you look at how Ecopetrol S.A. manages its customer relationships, it's clear they operate on multiple fronts, balancing state obligations with global commercial agility. It's not just one type of customer; it's a spectrum from the government itself to international traders.

Dedicated Account Management

For your major international buyers, Ecopetrol S.A. definitely employs a high-touch approach, largely channeled through its key trading hubs. The subsidiaries in Houston and Singapore are critical here, actively working to capture market opportunities and maximize financial results for the Group. This focus on international sales is substantial; in the second quarter of 2025 (2Q25), international sales accounted for 58% of the total volume sold, marking an increase of 3.7% (or 20.5 mboed) compared to 2Q24. To manage price volatility on these large export volumes, Ecopetrol S.A. continued tactical hedging operations, covering volumes of 1.5 million barrels during 2Q25 based on crude export indicators. The success of this focused management is reflected in the 2Q25 crude trading differential, which was the best in the past four years at -USD 3.7/Bl.

Strategic Government Relations

The relationship with the Colombian government is foundational, given that the government, through the Ministry of Finance, owns 88.5% of Ecopetrol S.A. This translates into long-term commitments, particularly around domestic energy security. While domestic sales in 2Q25 represented 42% of the total volume sold, Ecopetrol S.A. is actively securing future supply. For instance, the company highlighted the long-term commercialization of imported gas at 60 GBTUD (starting 2Q26 for five years), a first in the Company's history, aimed at addressing the country's gas supply deficit. Furthermore, the commitment to the nation is quantified in the expected transfers; for the 2026 fiscal year, transfers to the Nation are estimated at around COP 28 trillion. You saw this relationship in action earlier in 2025 when the dividend payment to the majority shareholder (the Nation) was approximately COP 4.5 trillion in April 2025.

Transactional Sales

The bulk of Ecopetrol S.A.'s daily business is transactional, moving crude oil and refined products globally. The total volume sold during 2Q25 amounted to 987 mboed. This segment relies on efficient logistics, with transported volumes reaching 1,088 mbd in the first half of 2025, supported by various strategies to mitigate third-party disruptions. The company's subsidiaries in Houston and Singapore are key players in executing these spot and short-term market sales, ensuring that production, which reached 751 mboed in the first half of 2025, is monetized effectively across international benchmarks.

Here's a quick look at the sales volume split for 2Q25:

Community Engagement

Ecopetrol S.A. frames its community interactions as 'Social investment' contributing to sustainable development, which is integrated into its overall investment plan under the SosTECnibilidad® goals. For the 2025 fiscal year, the Board approved an annual investment budget between COP 24 trillion and COP 28 trillion. A specific portion of this is earmarked for sustainability initiatives. In 2025, approximately COP 2.3 trillion is expected to be allocated to SosTECnibilidad® projects. Within that, 18% is projected to focus on sustainable territories. That means the planned financial commitment to territorial development for 2025 is around COP 414,000,000,000 (or COP 414 billion). This investment is deployed across structured lines to boost local growth and reduce unsatisfied basic needs. The key focus areas for this type of investment include:

• Education, Sports, and Health (Ecopetrol Educa)
• Inclusive Rural Development (Ecopetrol al Campo)
• Entrepreneurship and Business Development (Ecopetrol Emprende)
• Public and Community Infrastructure (Ecopetrol Construye)
• Utilities (Ecopetrol Agua y Vida and Ecopetrol Conecta)

This is a defintely more robust figure than the initial one you mentioned.

Ecopetrol S.A. (EC) - Canvas Business Model: Channels

You're looking at how Ecopetrol S.A. gets its products and services to the customer, which is a complex web given its integrated nature. Here's the quick math on the physical and commercial arteries they use.

Crude Oil and Product Pipelines: Managed by subsidiary Cenit

Cenit, Ecopetrol S.A.'s transportation and logistics unit, runs a massive network. They are actively looking to repurpose this infrastructure for new services, like a pilot transport of imported light crude in October 2025, moving 220,000 barrels through a 16-inch pipeline to the Barrancabermeja refinery. That pilot helps decide future volumes, so it's definitely a key channel test.

Here are some key figures for the pipeline system:

The company is also studying using part of this network for future products, like hydrogen. If onboarding takes 14+ days for new transport solutions, operational flexibility might be tested.

International Commercial Subsidiaries: Trading desks in Houston and Singapore

The desks in Houston (Ecopetrol US Trading, EUST) and Singapore (Ecopetrol Trading Asia, ECPTA) are crucial for maximizing financial results by capturing market opportunities. They manage price risk through active hedging, which helps offset the impact of international price movements.

The trading performance for 3Q 2025 was significant:

• Traded Volume (Crude/Products): 33.5 million barrels
• Volume as % of Total Sales: 38%
• 3Q 2025 EBITDA from Trading: USD 63 million
• 2025 YTD Accumulated EBITDA: USD 156 million
• 2Q 2025 Crude Trading Differential: -USD 3.7/Bl

These offices help secure better differentials, so they definitely change the decision on where to sell.

Domestic Distribution Network: Wholesale sales to fuel distributors and industrial clients

Ecopetrol S.A. remains the largest wholesale marketer in Colombia, though the data shows local sales volumes fluctuate based on refinery output and local demand. They don't do retail marketing, focusing instead on bulk sales to other distributors and large industrial users.

Local sales volumes for 2Q 2025 were:

• Total Local Volumes: 414.4 mboed
• Middle Distillates: 186.9 mboed
• Gasoline: 126.9 mboed
• Natural Gas: 68.0 mboed

The total volume sold in 2Q 2025 was 987 mboed, with local sales accounting for a portion of that total. Lower availability from refineries, like the maintenance at Barrancabermeja, directly impacts what's available for this channel.

Refineries: Barrancabermeja and Cartagena for refined products

The two main refineries are the primary source of refined products distributed domestically and for export. Their operational status directly feeds the distribution channel.

Here's a look at recent throughput figures:

The Barrancabermeja refinery throughput reached 233 thousand bpd at one point, thanks to maintenance success, while Cartagena hit 226 thousand bpd following its interconnection project start-up. These facilities are definitely key to supply reliability.

ISA Transmission Lines: For electricity and telecommunications services

ISA, Ecopetrol S.A.'s subsidiary, moves electricity and provides telecommunications services, representing a non-hydrocarbon revenue stream. ISA operates across several Latin American countries, not just Colombia.

For context on ISA's scale and recent activity:

• 2023 Annual Revenues: COP 14.2 trillion
• 2023 EBITDA: COP 9.1 trillion
• Northwest Interconnection Annual Revenue: Close to USD 42 million per year
• ISA is commissioning a project in Brazil in November 2025

Also, ISA VÍAS announced in November 2025 the implementation of electric vehicle charging stations along the Cartagena - Barranquilla corridor. That's a concrete new service channel.

Ecopetrol S.A. (EC) - Canvas Business Model: Customer Segments

You're looking at the key groups Ecopetrol S.A. serves and extracts value from as of late 2025. It's a mix of direct buyers, the nation itself, and infrastructure clients, which is typical for a company of this scale and national importance.

The customer base is quite segmented, reflecting Ecopetrol S.A.'s integrated nature, spanning from upstream oil and gas to downstream refining and electricity transmission via its ISA subsidiary. We can map the H1 2025 revenue figures to these groups to get a sense of scale.

The International Crude Oil Buyers segment drives a significant portion of the top line. For the first half of 2025 (ended June 30), the Exploration and Production segment, which feeds these international sales, generated revenue of COP 11,576,712 million. Remember, this segment also includes inter-segment sales, so the pure external buyer number is slightly less, but it shows where the bulk of the commodity sales value originates.

For the Colombian Domestic Market, you see the downstream and logistics arms serving local needs. The Refining and Petrochemicals segment brought in COP 13,792,639 million in H1 2025, indicating strong demand for fuels and related products within the country. Also, the Transportation and Logistics segment, which moves product for domestic and international customers, recorded COP 624,338 million in revenue for the same period.

The Colombian Government/Nation is a critical stakeholder, not a buyer in the traditional sense, but a primary recipient of value. The 2025 financial plan estimates total transfers to the Nation-covering taxes, dividends, and payments to the ANH (National Hydrocarbons Agency)-to be approximately COP 35 trillion. This is a massive flow of capital back to the state.

The Electricity Transmission Clients are served through the ISA subsidiary. This segment is clearly a growing focus, with H1 2025 revenue from electric power transmission and toll roads concessions hitting COP 3,342,122 million. ISA is investing heavily to maintain its regional leadership, with a budgeted investment between COP 5.7 trillion and COP 6.5 trillion for 2025, about 90% of which is earmarked for electric transmission.

Finally, the Minority Shareholders are interested in the profitability that underpins their returns. For the first nine months of 2025, Ecopetrol Group generated a net profit of COP 7.5 trillion. This profit pool supports the dividend policy, which for context, saw a total dividend payment to shareholders of COP 8.8 trillion in the first half of 2025.

Here's a quick breakdown of the H1 2025 segment revenue for context:

• Total Revenue from contracts with customers (H1 2025): COP 29,669,445 million.
• Inter-segment sales (H1 2025): COP 11,646,036 million.
• ISA's budgeted 2025 investment in transmission: Approx. 80% of its total 2025 budget.

Finance: draft 13-week cash view by Friday.

Ecopetrol S.A. (EC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Ecopetrol S.A.'s operational engine for 2025. Honestly, the cost structure is dominated by massive capital deployment and the mandatory fiscal contributions to the Colombian government. Here's the quick math on where the money is going.

Capital Expenditures (CAPEX)

The board approved a significant investment envelope for 2025, showing a clear commitment to maintaining and growing output. This isn't just maintenance spending; it's growth capital.

• Budgeted CAPEX for Ecopetrol Group in 2025 is between COP 24 trillion and COP 28 trillion.
• One projection for the annual capex in 2025 was set at COP 26.4 trillion.
• Approximately 76% of this annual budget, or about COP 20.3 trillion, is expected to be allocated to profitable production activities.

Exploration and Production Costs

The lion's share of the capital budget is directed straight into the ground to secure future barrels. This focus is critical for offsetting natural field declines.

The investment earmarked specifically for the Exploration and Production (E&P) segment in 2025 is approximately COP 17.2 trillion. This figure represents about 52% of the total approved annual budget.

The E&P spend is designed to support organic production levels between 740,000 and 745,000 barrels of oil equivalent per day.

Operating Expenses

Cost efficiency remains a major focus, especially given market volatility. Ecopetrol is actively working to drive down the cost per barrel.

The company reported significant success in its efficiency drive through the third quarter of 2025.

• Efficiency Program Savings achieved by the end of Q3 2025 totaled COP 4.1 trillion.
• This Q3 achievement was 40% above the target set for that period.
• Variable costs in Q3 2025 decreased by COP -3.1 trillion compared to Q3 2024.

These efforts are aimed at improving key indicators like lifting cost and total refining cost. If onboarding takes 14+ days, churn risk rises-similarly, if operational costs aren't tightly managed, margins suffer.

Debt Servicing

Managing the balance sheet means keeping an eye on financing costs, which are sensitive to interest rate movements and foreign exchange fluctuations.

As of March 31, 2025, the reported adjusted debt to EBITDA ratio stood at 2.4x. Furthermore, the company executed a proactive move to reduce future interest exposure.

• Ecopetrol announced an early repayment of USD 500 million on a loan contracted in 2023.
• The net financial result (expense) for the first nine months of 2025 increased by COP 0.4 trillion due to higher interest rates on debt.

Royalties and Taxes

Payments to the Colombian government, in the form of royalties and taxes, represent a substantial, non-discretionary cost component for Ecopetrol S.A.

For the 2025 fiscal year, the financial plan estimates total transfers to the Nation to be approximately COP 35 trillion.

Finance: draft 13-week cash view by Friday.

Ecopetrol S.A. (EC) - Canvas Business Model: Revenue Streams

You're looking at Ecopetrol S.A.'s revenue generation as of late 2025, and the numbers tell a story of scale, even with market headwinds. The core of the business remains the sale of hydrocarbons, but the diversification through ISA is clearly contributing to the top line.

Crude Oil and Refined Product Sales

The bulk of Ecopetrol S.A.'s income comes from moving crude oil and its derivatives. For the first nine months of 2025, the cumulative sales revenue hit COP 90.9 trillion. This figure represented a 7.8% decrease, or COP -7.7 trillion, compared to the same period in 2024. That drop was mainly driven by a lower weighted average selling price for crude oil and products, coming in at -6.9 USD/bbl lower than 9M 2024. Still, the company managed to post COP 90.9 trillion in total revenue for the nine-month period. The third quarter alone saw sales revenue of COP 29.8 trillion. That's a lot of barrels moving through the system.

Natural Gas Sales

Domestic and international gas commercialization is another key stream, though it faced some pressure. The decrease in overall sales volume for 9M 2025 was partly attributed to lower domestic gas sales volume. Ecopetrol S.A. is still investing in its gas potential, with investments planned for 2026 targeting gas production around 105-110 thousand barrels of oil equivalent per day.

Oil and Gas Transportation Fees

Revenue from pipeline and terminal services is critical for stable cash flow. This segment includes operations managed by subsidiaries like Cenit, Ocensa, ODC, and ODL. While a specific 9M 2025 revenue figure for transportation fees alone isn't explicitly itemized in the top-line breakdown, the segment's importance is underscored by the planned 2026 investment of about COP 1.5 trillion for integrity and reliability projects. Transported volumes are expected to range between 1,110 and 1,120 thousand barrels per day in 2026, showing the scale of this fee-generating activity.

Electricity Transmission and Toll Road Services

The ISA subsidiary provides a significant, diversified revenue stream. For the 9M 2025 period, this segment contributed positively, showing higher revenues of COP +0.1 trillion compared to the previous year, even as the overall revenue picture softened. However, in the third quarter of 2025 specifically, there was a reported lower income from energy and road transmission services amounting to COP -0.2 trillion. Ecopetrol S.A. continues to back this segment, with ISA expected to invest between COP 5.7 and 6.5 trillion pesos in 2025, with about 90% going to electric transmission.

Fuel Price Stabilization Fund (FEPC) Collection

This is less about ongoing sales and more about recovering past government-mandated support costs. The financial and investment plan for 2025 explicitly assumes the collection of the account receivable from the Fuel Price Stabilization Fund (FEPC) that corresponds to the 2024 fiscal year. This assumed collection is a key component supporting the financing of the 2025 investment plan alongside operational resources and transfers to the Nation.

Here's a quick look at the known revenue scale for the first nine months of 2025:

The company is definitely navigating a complex pricing environment. The revenue streams are clearly segmented, but the core oil and gas sales still dictate the overall performance. Finance: draft 13-week cash view by Friday.