Ecopetrol S.A. EC, the Colombian majority state-owned energy firm, has announced plans to take on $2 billion of additional debt this year to finance inorganic investments. The company is exploring options to seek funding through banks and capital markets. Its board has approved the additional debt funding, which includes $1 billion in structural debt. Further, $1 billion has been authorizedas a temporary measure, as mentioned by a company spokesperson.
The debt would be used for inorganic projects, such as the acquisition of new assets or starting over new ventures. EC’s VP of Finance, Camilo Barco, mentioned that the investment plan is anticipated to pick up pace in the second half of the year.
As part of the inorganic investment plan, EC is eyeing the Windpeshi wind project in the northern part of La Guajira, Colombia. The company was engaged in discussions to acquire the 205-megawatt wind project, developed by Enel SpA. Ecopetrol’s chief executive has confirmed that both companies are working together to figure out a potential deal.
The Colombian energy company has outlined an investment plan ranging between $5.9 billion and $6.8 billion for 2025. A major portion of this investment is expected to come from its own cash reserves, which totaled $4.4 billion at the end of 2024. In 2024, EC reported an average production of 745,800 barrels of oil equivalent per day (boepd).
However, the company’s net profit dropped 22% in 2024. The decline was mainly attributed to lower international oil prices and the strengthening value of the U.S. dollar. In 2025, EC projects average production to be in the range of 740,000-750,000 boepd. This also takes into account the contribution from its recent acquisition of a 45% stake in the CPO-09 field. Earlier this year, Ecopetrol had reached an agreement with Repsol S.A. to acquire the latter’s stake in the exploration and production contract (E&P contract) for Block CPO-09 in Colombia.
EC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Matador Resources Corporation MTDR and Cheniere Energy LNG. Archrock currently sports a Zacks Rank #1 (Strong Buy), while Matador Resources and Cheniere Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Matador Resources is a leading U.S.-based exploration and production firm. The company has consistently exceeded production expectations, demonstrating operational efficiency and robust growth. MTDR’s production efficiency, combined with the favorable oil price environment, is expected to positively impact its bottom line.
Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG, both in the United States and internationally.
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Ecopetrol S.A. (EC) : Free Stock Analysis Report
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