Ecopetrol S.A. Price & Performance (EC)

Welcome to the operational and financial results call of the CoPetrol Group. We met our operational and financial targets, consolidating a growth path, which set the foundations for a solid beginning for 2025 and enabled new possibilities to progress in the energy transition. I want to highlight our reserves replacement results. The reserve replacement ratio was 104% with the addition of two sixty million barrels of oil equivalent of proven reserves maintaining an average reserve life of seven point six years. This doubles the addition of proven reserves when compared to 2023, which reflects our commitment to the country's energy security. Around 89% of these results responds to organic management and was complemented by the acquisition of Repsol's forty five percent stake in the CPO-nine block, which added 32,000,000 barrels of oil equivalent to our results. We renewed the agreement with OBSI to extend the development plan in the Permian Basin with an estimated investment of $85,008,000 in 2025, including the drilling of 91 development wells. We achieved an average production of 746,000 barrels of oil equivalent per day, exceeding our annual goal on the highest level of the last nine years. In exploration, we surpassed our 15 wells target by drilling 16 wells with a three year exploratory success rate of 43%, where the Series two well in the Colombian Caribbean offshore stands out as it is a key to expand the country's gas potential.

In midstream, we exceeded our annual goal by transporting an average of 1,119,000 barrels per day. This achievement proves our resilience and operational feasibility, ensuring the supply of crude to the refineries and products to our customers. Regarding downstraints, we faced electrical reliability challenges while successfully completing the annual plan of shutdowns and major maintenance, achieving an average operational availability of 94.5% and reaching an average throughput of 414,000 barrels per day. In the commercial front, our trading subsidiaries in Singapore and Houston continued their support in markets and customer diversification, improving the crude margins when compared to 2023. Let's move to the next slide, please. We accomplished a year of strong economic performance that generates value for our shareholders despite external factors such as chain rates and inflation, which affect us recurrently. In 2024, we record total revenues of ARS133.3 trillion and EBITDA of ARS54.1 trillion with an EBITDA margin of 41% and a net income of ARS14.9 trillion. Excluding external factors, net income would be ARS21 trillion, an increase of nearly 10% compared to 2023. We invested over $6,000,000,000 of CapEx, including the acquisition of CPO9 in line with our annual plan. Additionally, we collected the entire account receivable from the fuel stabilization price fund of 2023 and celebrate the 63% reduction of the twenty twenty four's balance.

Efficiencies, which have been important to mitigate cost increase, reached ARS5.3 trillion, surpassing in 43% the year's ambition. Meanwhile, consolidate payments to all our shareholders reached ARS42 trillion. In line with the above, we just announced the proposal for a dividend distribution of MXN $2.14 per share, which will be submitted for approval in the coming general shareholders meeting on March 28. Let's move to the next slide. Intelligence of TESG, Ecopetrolo client, the second best global rating on the oil and gas industry in the Dow Jones Sustainability Index. On the environmental front, I would like to highlight three achievements. First, the reduction of greenhouse gas emissions by more than 462,000 tonnes of CO2 equivalent since 2020, which represents the CO2 emitted by over 840,000 cars second, an 81% of water reuse in our operations, increasing 7% in terms of volume when compared to 2023. And third, in biodiversity, the storage and avoided emission through natural climate solutions projects. On the social side, we invested over ARS686 billion in the sustainable transformation of the territories, our leadership in the national allocation of works in lieu of taxes with a 45% share and the various projects we promoted to the benefit hundreds of Colombians.

In Innovation and Technology, we became the first Latin American country to join the international energy agency's greenhouse gas research and development program, which we aim boost through the Colombian Petroleum and Energy Transition Institute. In governance, we were recognized as the best company in Colombia for attracting and retaining talent by Merco. We also transport our organizational structure to become more agile and efficient according to the needs of each business line. Finally, I would like to highlight Ecopetrol's contribution to the regional GDP within Colombia of over ARS1.3 trillion, proving that sustainability investment generates financial benefits and promote economic development. I now hand over to Rafael Guzman, who will talk about the results in the hydrocarbons business line.

Thank you, Ricardo. In the hydrocarbon business, we are focused on profitability and sustainable cash generation. This is demonstrated by the Ecopetrol Group's successful incorporation of proven reserves in 2024, achieving a reserve replacement ratio of 104% and maintaining an average reserve life of seven point six years. We added two sixty million barrels of oil equivalent in proven reserves, doubling the 2023 addition. In this regard, I would like to highlight the following: improved reserves, revisions, the contributions of Rubiales and Canasur fields stands out, thanks to the outstanding results of the drilling campaign and the maturation of new projects. Management efforts were focused on economic factors, mitigating the impact of a lower price of Brent, which decreased by $3 per barrel compared to 2023. This was possible thanks to the implementation of initiatives such as cost optimization measures, the strengthening of the crude oil basket and agreements reached with the ANH regarding their economic rights. These actions not only mitigated the impact but also resulted in the incorporation of over 6,000,000 barrels of oil equivalent in reserves. Now the primary contribution derives from the expansion of improved recovery projects in Colombia amounting to 97,000,000 barrels of oil equivalent, representing 37% of the total incorporation.

Extensions and discoveries include the commercialization of Resife, Saltador and Toritos. On inorganic incorporation, the main contribution relates to the acquisition of Repsol's forty five percent stake in the CPO9 block located in the Department of Mid. This purchase added 32,000,000 barrels of oil equivalent to 1P reserves and enabled nearly 8,000,000 barrels of oil equivalent of organic incorporation through synergies with the Gitchemeni field. Additionally, we executed divestments, resulting in a net addition of 29,000,000 barrels of oil equivalent. It is noteworthy that 89% of the total proven reserves are from fields in Colombia, where we achieved a 109 reserve replacement ratio. Lastly, on the gas front, in 2024, we incorporated 15,000,000 barrels of oil equivalent, following two years without adding proven reserves of this hydrocarbon. In addition, as part of our effort to strengthen the gas portfolio, we increased contingent resources by 1,300,000,000,000 cubic feet, mainly from the Sidious discovery. Let's move to the next slide, please. As part of our active and efficient portfolio management, we successfully completed important deals in 2024 to ensure the profitable sustainability of the hydrocarbon business. Regarding acquisitions and as previously mentioned, the purchase of Repsol's stake in the CPO9 block. This transaction strengthens Ecopetrol's position in the Genas Orientalis Basin, providing benefits in reserves, production and potential volumes to be developed of over two fifty million barrels of oil.

This also enhances decision making agility and creates synergies in the development and operational cost as Ecopetrol now holds 100% interest in the cluster that includes the Chichimeni, Castilla and CPO9 assets. Furthermore, we extended the joint venture between Ecopetrol and Oxy in the Midland area of the Permian Basin until June 2026 with the possibility of signing a new extension of the development plan in the future. The contract for the development of the Delaware sub basin will remain in force until 2027. Likewise, we implemented a dilution strategy, resulting in the signing of 10 agreements with Tadex, aimed at reactivating areas with high exploration and development potential. Under these agreements, Tadex plans to carry out investment exploration activities in Piramonte and Parajones. Likewise, in Putumayo, Parex will invest $350,000,000 as carry in exploration and development with the expectation that both companies will incorporate resources in 2025 as projects mature. Simultaneously, we continue to advance our agenda with the National Hydrocarbons Agency, ANH, and the Ministry of Mines and Energy to maximize activities within the areas of existing contracts and agreements. This effort has resulted in the extension of 15 exploration contracts across various regions of Colombia as illustrated on the map.

All these milestones will serve as future sources for reserves incorporation. Let's move to the next slide, please. In exploration, we progressed with a drilling of 16 wells compared to the 15 initially planned with an investment of $454,000,000 As a result, seven wells were successful, including Cariteto one, which confirmed the presence of hydrocarbons during the initial test in January 2025. Two wells are currently under evaluation and seven wells had no commercial hydrocarbon volumes. In addition, we highlight the progression of resources to proven reserves with the commerciality of Arecife, which contributed to a total of 6,800,000 barrels of oil equivalent. Lastly, in 2024, Ecopetrol acquired interest in four additional blocks in the Santo Sur project in Brazil with a 30% stake for a total of 11 blocks. Let's move to the next slide, please. In 2024, the Ecopetrol group achieved a production of 746,000 barrels of oil equivalent per day, exceeding the target for the year. These results were primarily supported by the performance of the Permian and Canyosur fields. Additionally, the continuous contribution of assets in Colombia such as Castilla, Rugares, Chichimeno and Piedmont, which generated 42% of the Ecopetrol group's production. Fields with improved recovery technology contributed with nearly 41% of Ecopetrol group's total production.

Regarding the production levels in the fourth quarter of twenty twenty four, it is important to note that the lower levels were anticipated within the projections and are mainly attributed to the anticipation of permanent activity in the first nine months of the year environmental events due to the rainy season causing electrical disruptions mainly in Rubiales, Jardui, Chichime and Castilla hurricanes affecting Ecovidrol America regular low oil gas sales during the end of the year. In 2025, we estimate a production between 1,490,000 barrels of oil equivalent per day, which incorporates production from the acquisition of 45% of CPO9, but also consider social and risks. Let's move to the next slide, please. In 2024, transported volumes increased by more than 5,800 barrels per day compared to the previous year, primarily driven by graded deliveries of Castilla Norte crude oil from the Barrancabermeja refinery and the implementation of commercial strategies that facilitated the addition of barrels outside the transportation network. Thanks to our mitigation strategies, enhanced operational control and coordination with government entities, more than 7,000,000 barrels were evacuated from the Canyon 1 field through the Bicentenario pipeline, following the suspension of the Banaria Ayacucho section of the Calle De Mon Correnas pipeline.

In 2024, this segment achieved the highest net income amounting to ARS5.2 trillion and recorded the second highest EBITDA reaching ARS11 trillion and contributing to 20% of the total EBITDA of the Ecopetrol group. Let's move to the next slide. In 2024, the refineries achieved a throughput of 414,000 barrels per day with an average annual operational availability of 94.5% despite a challenging market and operational environment. The gross refining margin decreased by $7.7 per barrel compared to 2023. In 2024, it stands at $9.9 per barrel. 78% of this impact is due to the decline in international fuel prices, mainly affecting diesel, gasoline and jet fuel. 11%, primarily due to the effect of the lower availability of segregated light crude oil at the Barranco Vermeja refinery as a result of the attacks on the Cano Limon Covenas pipeline. And the remaining 11% was the result of operational events such as the limitation of the coke compressor and the power shutdown at the Cartagena refinery. Regarding the latter, we continue advancing in the comprehensive plan to restore refineries' electrical reliability, having completed four of the 16 planned milestones. By 2025, we aim to advance 10 milestones. As a result of the aforementioned factors, the segment's EBITDA stood at ARS2.2 trillion in 2024, '60 '9 percent less than previous year.

When normalizing for exogenous factors, the EBITDA would have been ARS 6,900,000,000,000.0 with an EBITDA margin of 9.9%. In 2025, the segment's efforts are concentrated on levers to enhance business profitability and mitigate exogenous effects such as cost and expenses, optimization, focus on operational and logistical efficiency initiatives to maximize business profitability to the production of higher value products, including petrochemical, asphalt and chemical recycling and the execution of energy transition projects aimed at sustainability and diversification of refining products into new markets such as renewable jet and diesel production, automatic petrochemistry, low emissions hydrogen production and improvements in air quality. Let's go to the next slide. In 2024, the Ecovetrol group continued materializing its efficiencies strategy with a contribution of ARS5.3 trillion, exceeding the target proposed for the year. As shown in the lower left figure, the efficiencies were able to offset the increase in total unit cost by $0.97 per barrel, resulting in a total unit cost of $47.71 per barrel in 2024. Lifting, transportation and refining costs were impacted by exogenous factors such as exchange rate, inflation and gas price. This year, we will continue to execute our efficiencies program with new initiatives aimed at increasing the profitability of our operations and investments, maximizing asset value, enhancing synergies within the integrated hydrocarbon chain and identifying optimizations in our supply chain.

The program aims to achieve efficiencies by MXN 4,600,000,000,000.0. Now I'll turn it over to David, who will discuss the main milestones of the energies for the transition business line.

Thank you, Rafael. In Ecopetrol, we acknowledge the importance of natural gas as a transition mechanism to cleaner energies. For this reason, we remain committed to the incorporation of our portfolio of options that allow us to contribute to the reliable supply of national demand in the coming years. To achieve this, we are implementing all actions and investments necessary to support the country's NFT security. In 2024, we successfully delivered the gas committed under contracts with third parties with an average of five zero six giga Btu per day of natural gas and 15,000 barrels of oil equivalent per day of LPG. This led to a production of MXN 172,000 barrels of oil equivalent per day of natural gas and LPG with an EBITDA generation of nearly MXN 2,900,000,000,000.0. This EBITDA is 70% lower than in 2023, mainly due to a lower availability of domestic natural gas and FPGE and exchange rate variations. However, we continue our efforts to ensure that this business line makes a significant contribution to the achievement of our long term goals. Throughout most of 2024, we assessed various alternatives for important natural gas through market information requests and internal analysis. These evaluations, both technical and financial, exploded options that could forecast demand until offshore projects come live.

In this context, we highlight progress in two important areas: the start up of the Vazena NNG project, which allow identify its benefits from the technical and commercial point of view, forming medium term natural gas demand and the approval to continue the studies during 2025 The binding process for Regasification Services, the first of its kind that seeks private companies to offer Regasification Service to Ecopetor. In regulatory matters, we highlight the company's efforts to promote the updating of gas marketing rules in key areas such as commercialization mechanism for the volumes coming for new gas projects endorsement to develop the transportation infrastructure required to connect new projects with users and the need for regulatory certainty related to the development of new gas projects and the possibility of developing natural gas imports. In this line, relevant advances have materialized for the market, such as the CREKLA solutions that are strictly modified and made more flexible produce for natural gas commercialization and promote the use of all the volumes available in the market. The Act fourteen sixty seven of 2024 that makes imports and offshore natural gas sources viable and finally, the supply plan that includes a strategic transportation infrastructures for the development of new supply.

Let's move on to the next slide. In terms of energy efficiency, between 2018 and 2024, we reached a cumulative energy optimization of 19.9 petajoules, equivalent to the annual gas and power consumption of more than 1,000,000 tons, contributing to decarbonize close to 1,200,000 tons of CO2 equivalent and generating savings of MXN389 billion. These results have a major impact on the goals of Colombia's Tragedy and Efficient Energy Program, which promote an efficient use of energy in different sectors and activities of the economy, representing 72% of the national goal for the oil and gas sector. Regarding the integration of renewable energies into our Energy Markets, by the end of twenty twenty four, the Ecopetel Group accumulated six eleven megawatts of capacity from non conventional renewable energy sources in operation, execution and construction, with a potential contribution of 1.6 terawatt hour per year, which corresponds to a 19% share in the group's energy metrics and 52% lower tariff when compared to non regulated energy purchases. The combined effect of these efforts in transition energies, including the final investment decision and the start of construction of the Coral project at the Katahinafi finaly, a plan for green hydrogen production using PEM technology with an electrolysis capacity of five megawatts, a better our position to achieve our goals.

In summary, 2024 ends with 68% progress towards our goal of incorporating 900 megawatts of non conventional renewable energy sources by 2025, '80 percent progress towards our target of 25 petajoules in energy efficiency by 02/1930 and a clear path in 2025 to escalate up green hydrogen production at an industrial level. As part of our commitment to promote a fair energy transition and contribute to sustainable territorial transformation, by the end of 2024, the Ecopetrol group impacted more than 13,000 people with renewable energy solution, supporting the consolidation of the largest energy community in the country located in Manawre, La Guajira and connecting communities with renewable energy solution for biodiversity and peace. Additionally, we connected more than 25,000 families to Natural Gas Service for a total amount of 69,000 since 2019. In 2025, we aim to execute 16 additional projects, connecting 30,000 new families in more than 10 departments around the country. I will now pass the floor to Camilo, who will present our transmission and road business line and the main financial milestones.

Thank you, David. In 2024, ESA achieved the highest net profit of its history, driven by the entry into operation of new projects and by the recognition of the periodic tariff review for transmission companies in Brazil during the third quarter of the year. The 12% increase in revenues, a 8% rise in EBITDA and 43% growth in net income compared to 2023 highlight our strong performance. Net income results were partially due to impairment figures of the year compared to 2023. In line with our strategic diversification goals, by the year end, ESA's individual results enhanced its contribution to Ecopetrol Group, accounting for 12% of consolidated revenues, 18% of EBITDA and 6% of net income. Consequently, the average return on equity measured by the ROI indicator reached 16.9 in 2024, up from 14.4% in 2023. ESA accelerated its investment execution in 2024, reaching ARS 4,800,000,000,000.0 with a robust investment plan committed to achieve February target of ARS 26,100,000,000,000.0. The year's execution included the launch of 15 projects across various regions, such as the Minuano project in Brazil, connection service to the substation Ecopay in Colombia and Ruta Del Loa project in Chile. By 02/1930, '5 thousand '6 hundred kilometers of circuit to the grid and two ninety six kilometers of toll roads will be added through the development of 38 projects that are currently under construction.

With investments of ARS3.8 trillion, this has secured 10 tenders in power transmission, including notable projects such as the Eruto or Vital Sur in Chile and the East Pan American Road in Panama. Finally, we will launch our ESA two thousand and forty investment strategy on March 12, which will continue to strengthen our original growth. Let's go to the next slide to detail the financial performance of the group. The strong financial results for 2024 were driven by our sustained efforts to achieve structural efficiencies, maintain profitability, uphold a strong cash position, exercise continued capital discipline and mitigate external impacts. Key financial achievements for 2024 include ROCE of 10.2% and EBITDA margin of 41% above annual targets and with a significant contribution coming from the Transmission and Tow Road segment optimization of our debt structure through strategic financing operations for around ARS22 trillion, pursuing an early refinancing plan and lowering interest expenses. In addition, the company kept its gross debt to EBITDA ratio under control in 2.2 times and extended the average life of debt from eight point five years in 2023 to nine point three years in 2024. The highest free cash flow of our history underpinned by a strong operational performance and the collection of the account receivable from the fuel price stabilization fund, the TEC, accrued in 2023.

Given these positive results, we propose an attractive dividend payout of 58.9% with a dividend per share of ARS two fourteen. This proposal is aligned to our dividend policy and will be coordinated with our majority shareholder to achieve a parallel payment of the FETEC balance accumulated in 2024. Let's now look at our cash position and results. In 2024, the significant decline in the PEPEK receivable favor our cash position, which was adversely affected in 2023 in terms of working capital. The PEPEK balance closed at ARS 7,600,000,000,000.0, the lowest level since 2021, thanks to the collection of MXN 20,500,000,000,000.0 during 2024 in addition to the increase of gasoline prices and a slight rise in diesel prices. For 2025, we anticipate the FETEK balance to range between ARS 4,000,000,000,000 and ARS 6,000,000,000,000, assuming current price scenario remains unchanged. The robust ARS 18,200,000,000,000.0 cash position for the year end on a consolidated basis will be primarily allocated to the 2025 investment plan as well as to operational and financial applications. Our EBITDA reached ARS54.1 trillion in 2024 with an EBITDA margin of 41%, setting out one of the highest profitability levels of our history. It's important to mention that our EBITDA decreased in approximately ARS6.6 trillion compared to the previous year, mainly due to the external factors impacting ARS7.8 trillion, including a 45% impact from price decreases, consolidating the Brent reference price and product and crude oil differentials, a 37% impact from the lower average FX rate of the year and an 18% of effect from inflation.

Excluding these externalities, the adjusted EBITDA would have been approximately Ps. 62,000,000,000,000, representing 43% EBITDA mark. Please go to the next slide. In 2024, we executed an ambitious and challenging investment plan, achieving US6.1 billion dollars in both organic and inorganic investments. Investments were primarily allocated in Colombia, Sixty Five Percent and internationally, 35%, mainly in The U. S. Permian Basin and Brazil. Organic investments in the hydrocarbon segments accounted for 68% of the group's total investments with significant projects in Canozur, Chichimeni, Acacias and the Permian drilling campaign. 20% of the investments were allocated to ESA, which enhanced progress made in 38 projects under construction by itself and its subsidiaries. Additionally, commercial operations commenced in 15 power transmission projects. Improvements were made to the ESA energy grid in Brazil and the Ruta Del Loa project in Chile was initiated. The Energy Transition business segment executed 13% of the group's total investments, focusing on the gas supply chain in basins such as Permian, Offshore Tairona Block and Piedmont as well as renewable energy projects like the Iwanza Solar Eco Park and the Kipa Solar Farm. Finally, $239,000,000 were allocated to inorganic investments to acquire 45% of Revsol's estate in the CPO-nine block and for the acquisition of Oladupta, Colombia's known control like interest Biosense.

Now let's comment our 2025 investment plan. For 2025, the investment plan aims at sustained growth, control costs and ensure profitability for our shareholders while strengthening our traditional business. We plan to invest between ARS24 trillion and ARS28 trillion with 60% allocated to energy security. This includes enhancing our crude oil production, securing refining throughput and meeting domestic fuel demand with our own products. The remainder 40% of our investments will be allocated towards the energy transition, including sustainability, innovation and electricity transmission and toll roads. The investment plan is based on an average Brent pricing area of USD73 per barrel. It aims to preserve competitive returns with 39% EBITDA margin and achieved efficiencies exceeding ARS 4,000,000,000,000. Such plan does not account for the export taxes and the stamp tax introduced by Colombia's internal promotion decree in February 2025. Nevertheless, we do not anticipate significant impacts on its execution. Finally, I would like to discuss the main challenges we identified for this year and outline how our finance team plans to address them. Like our peers, we will remain focused on reversing the trend at costs. For this, we set a lift in cost target ranging from $12 to $13 per barrel for the whole year, aiming to reach the lower end of the range.

Additionally, our debt management strategy will focus on addressing cash needs that may arise from inorganic opportunities and continuing to reduce financial costs. To optimize our return on capital employee and profitability, we will focus on managing our assets and the turnover of our portfolio. Finally, we continue taking action to support the dynamism of our stock and create value for our shareholders. Recently, we announced two key initiatives: a temporary decrease in ADR conversion cost and the appointment of a market maker for our local stock. I now turn the floor over the President for his closing remarks.

Thank you, Camilo. The satisfactory results of 2024 allow us to continue generating value and profitability in 2025 basis on strict capital discipline and cash protection criteria. For the year, the operational and financial goals we had set respond to the need to: keep enhancing organic production of hydrocarbons reserve integrity, availability and reliability across our infrastructure increase our efforts related to efficiencies and decarbonization while consolidating the energy transition business line, maintain our leadership in energy transmission in the region. We recognize the challenges ahead, so our efforts will focus mainly on enhancing flexible operations to address contingencies and preserve continuity, enabling cost efficiency alternatives that allow us to maintain our competitiveness. I thank all the employees of the CoPetrol group for their hard work in 2024 and encourage them to keep moving forward in 2025. Thank you all for participating in this conference call. I now open the floor to the question and answer session.

We'll now start the question and answer session. We're asking to please have a maximum of three questions to give time for all the participants. Please select in the interpretation icon the language of your question. Otherwise, we will not be able to listen to you. Good morning. Thank you for the opportunity. Very quickly, three questions. The first is I'd like to understand a little bit of the impairment in terms of the Refining segment because one of the reasons to do that reversal is that the difference between prices and margins were adjusted to the upper side. So I'd like to understand those assumptions that you're using so that you could have that value of these operations. The first question is that. The second is, has to do with the profitability that you're estimating an EBITDA margin for 2025 or 39%. That doesn't mean that you're expecting a reduction in the mid-twenty margin because this year we had 2024, we should be decreasing. So I'd like to understand a little bit why do you see that reduction in the profits? And that should be a margin that we should hope to be stable in the medium term. And I'm surprised because this year, we do have lower, because we have lower prices in terms of the point of oil and rate of exchange.

So I'd like to understand why they are still expecting a, an impairment in this market. And lastly, that question has to do with that. Recently, at the end of last year, you enabled the self report generation through a regulation. I'd like to know whether that is real, that how likely is it that the payments of the balance will be made using the assets from OURA. And in addition, whether it is true that this, that they made an offer for the project where the CapEx that you are mentioning are also including these the purchases in the case of Budapest. Those are my three questions. One Uh-huh. Good morning, Kathleen. This is Camilo Barco. Thank you for your questions. My microphone was also you couldn't hear us. So I'd like to start by the question about the impairment, which is shown in the last quarter of twenty twenty four. And this is something that we do according to generally accepted methodology, which is Fairbank Retali, which is based on the valuation through these accounted cash flows for the short, medium and long terms. In that respect, there's really perhaps three or four factors that affect this adjustment that we can or this recovery that we can see in the statement of results for the previous year.

First of all, I'd like to mention the curves that we use to project the prices. They are companies, international companies, long standing companies that produce the sign of information. And we use that information to do our impairment exercise basically with the kissing plants and the HS. And these are curves scenarios and projections, the ones that we use in our valuation. In those curves, we see that there will be a recovery of the price, differential prices for the products which are used for the medium and the long term. That would be one of the factors. The second one has to do with the local crude availability for our refineries, which allows us to optimize the cost of the input and the crews that our process therein. Thirdly, there's a component that has to do with the discount rate. And the discount rates that we used had some small adjustments in terms of including some risk factors. And when we add the price projections, the local component, the adjustments for the rates, we have positive repair, which reflects a recovery of approximately BRL0.9 billion in the last quarter for 2024. I hope that this has answered your question about Iberovit.

The second question about the EBITDA margin, we are projecting for the next year and EBIT margin for around 29%, percent, 39%. That EBITDA margin, as you could see, is the result of applying a price projection for this year and which was less than we had for 2024. This year, we're working with Brent price of $73 per barrel. It's lower than what we used for the previous year, which was around $80 per barrel. This is an important fact. However, it's a good time to repeat our firmest commitments to the efficiencies for this year. We have an efficiency plan, which is greater than $4,000,000,000,000 close to $4,500,000,000,000 which will enable us to offset a good measure of the behavior of external variables. This is the immediate margin predicted based on prices and behavior of what we expect for the price of Brent and our refined products for this year, 2025. I'll take the floor now to the President to answer the issue about remote cell generation and the possible acquisition of renewable generation assets. Catherine, good morning. This is Ricardo Oron. And third question has to do with whether we could we are speaking about the possibility of buying assets such as Oron to compensate the cross from the Ecopetrol to the government to, at the end of twenty twenty four.

Those alternatives have been assessed in conversations with the Treasury. We have not with the appropriate regulations to allow Ecopetrol to acquire these type of assets after any valuation of the assets, it is not so relevant about the balance of this 7,600,000,000,000.0 pesos that we ended up the balance at the end of twenty twenty five. However, looking at the regulations, if there were the appropriate measures to apply that remote generation to assess them like that, we will continue to assess them right now in talks with the technical groups and the financial finance, we have an agenda for the repayment of Pacific as we get the repayment of the dividends to the nation. But the Apache project, the parties, that's in Ecopetrol and Enel, who have been working to perfect an agreement for this transaction, purchasing purchase of the project in Guajira. If we make the agreement under a confidential basis. We'll carry out the appropriate procedure, your procedures. And after we close the process, we would publish the details about your communication, also the communication channels. We'll continue with the question in Spanish. Thank you, and good morning, everybody. I'd like to mention two issues, the operations of Ecopetrolol de Permian in The U. S. And I don't know whether I can give you more details about the extension agreement signed with OXY in the Midland Basin, especially because the day after that President Petro has to cancel that contract.

Are you thinking about canceling the contract that has already been signed, first of all? The second thing is, what does extension include? How many acres? And what is the potential that you see for these acres that are in the Midland in terms of total locations for drilling to understand what is the potential that you might look at in the Midland especially. That would be about my turn. And my second and last is to have your opinion about the potential of non conventional oil and gas in Colombia. Is that an opportunity? Or is that something that you're not considering right now? And if you're not, I'd like to know what are the reasons why not go after these opportunities in Colombia? These are my two questions. Thank you, Daniel Ricardo Roy. First of all, I'd like to tell you that about the Permian project. I'll give the floor to Guldia, the Vice President of new business to tell you about the details of this extension of the agreement with ASEAN for extending the implementation of the assets in the Midland Basin. Now let me talk about the second part, which is after the day of the second, the day after the signature was signed, the personal report of directors, I asked the board of directors to make a technical and economic analysis required to get out of that.

That's what we do constantly. We do valuation and assessment, which is the assets not only in The U. S. But also in our geographies around the world where we have agreements. So we are very respectful of the times, the terms the times and the agreements that we signed with our allies. And in that respect, we continue to make our decisions with the capital discipline criteria that you know, according to which we decided to extend that agreement with the actually, I was actually in the Permian Basin. The second question about the nonconventionals. It is clear that intercountry, the current government policy is rigorous with respect to demanding that we stop for the time the activity of these explorations and the contracts that we had as finance have been suspended or closed properly without leaving any environmental economic liability spending with the contractors that we're doing our regulations as long as we still have regulations or legislation scenarios that prohibit this activity in the country. Very good with petroleum is focusing his attention to exploring and looking for petroleum and gas with the contracts that we have and in the areas where we also and it's going to be able to place molecules and crudes in the system.

That's what we are doing. And within that framework, we are carrying out these projects and we're making significant investments. I give the floor to Julia to tell you about the details of the station, the joint venture for Oxy. Thank you, President. Good morning, I'm Ian Guillaume Demos, Vice President of Strategy and New Business. We with us, as Benjamin mentioned, we had an agreement to extend the activity plan. And I want to emphasize that point because the ownership of the acreage doesn't change, the ownership of production doesn't change. Quad, we extended for the activity by Oxley as an operator within the contract of the joint venture. We must remember that with our entry in 2019, we purchased 49% of a new year close to 95,000 acres in Midland and then an area close to 20,000 acres in Delaware. And that area is, which is being under development right now. So this is that doesn't include the additional area, only includes an extension of the plan in which Oxy agrees to develop around 90 wells during 2025, a similar figure to what we had for 2024. This is somewhat I can tell you about the agreement. There are some months which are confidential between the parties, but this made it a beneficial scenario for Oxygen and for Ecopetrol in which both parties were able to extend that activity and in the door open to future extensions if either of the parties have been accepted and we will discuss it as appropriate.

As a property. But as we have said, we've cleaned in our reserves last year 22,000,000 barrels that will enable us to believe that we have it now. Hybris is best in the period. The future investments, which is the agreement, we're going to be reviewing on this all the time. It is possible that we might have constant extensions to this agreement. The next question is in English. Mr. Mechanics? Good morning. Let me talk to the first question. Unfortunately, I do not agree with the fact that the reason why our shares performance in Ecopetrol and the stock market are reacting due to the expectation of a new administration. The reality is that the figures, the numbers of the results that we've seen and been mentioning the close, the expansion of the contract with Oxy in Permian acquisition of 45% of the Equatorial Group that we have in Repsol in CPO09, the replacement of reserves that had 104%, those are advancements. So all advances in the actual material transition that we're going to have in the middle of next year. We have the largest and highest technology plant in Latin America for green hydrogen and the exception of the include the incorporation of new energies or renewable fuel uses.

This is being read properly by the market and the stockholders and that is the explanation for the improved performance of the shares in the stock market. About the expectations for the new administrations, for the second, well, we'll have to wait until the next administration might alter to this, in this administration. Accordsville has been very deeply articulated with the understanding and the issue of standards of regulations that allow us to make our role more flexible in supplying the energy for fuels from the country. In gas, there's a flexibilization that allows us to commercialize volumes at any time. We can import as a crude oil gas and sell it to the market. We don't have a restriction. We're working on the rates for conventional conversion to assets for transportation of crude organs. These have been advances we had in the CREG with the administration and with the institution. Good morning, Leonardo. Thank you for your question. This is Julio Cesar Rivera, our Vice President of Commercial and Marketing in Charge. About the prices of gas and diesel, I can tell you with the stage, but first of all, let me tell you that the prices are regulated and defined in Colombia by the national government.

Anchor Patel, we have the responsibility of implementing them. About the prices with a parity, international prices, I can tell you that we are indexed to the international indicators. We maintain the strategy of diversifying origins and destinations. Specifically, I can tell you that right now the regulated price of the ethylene is higher than the import parity, this is below because that we continue that at the end, we got to the $76 of income and the parity price was $99 per barrel. The next question comes from Victor Bolanes. You can ask your question.

Good morning. Victor Modanese from UBS. I have two questions on my side.

You think our revenues lifting costs in 2024 remain above levels seen in previous years despite the cost efficiencies achieved. What's your expectation for the company's lifting cost going forward? The industrial revolution. The industrial revolution. The industrial revolution. The industrial revolution. The industrial revolution. The industrial revolution. The industrial revolution.

The industrial revolution. The industrial revolution.

The industrial Good morning. Thank you for your question. For 2025, when you're looking at the inception point in terms of out of world cost, you've seen an increase in the cost for 2025. We expect to be close to what we saw in 2024. We're working on the efficiencies to be able to, in the future, to be able to lower the costs. But for 2021 specifically, we do not expect any increases compared to 2024. About, for me, as occasion, I can talk to David. While David answers talking about the regasification of gas projects, I'd like to add to the, from my question about this. So you mentioned in the presentation, our, one of our objectives was to contain the increase in the cost reduction there. In that respect, for this year, we could have between $12 and $13 per barrel on the other well ton. With the implementation of the efficiency growth with more than 4.3 failure basis inefficiencies, we hope that the total cost will be in the lower cost of $12 not only by controlling the cost but also improving somewhat what we saw compared to 2024. Good morning. This is Ed Daviziano, Vice President of Transition Energy.

During the past year, we assessed several alternatives to import gas into the country, both in the Atlantic and the Pacific Coast. And as a result of that process, we identified the best alternatives for the Ecopetrol group, which meets the capital criteria, which would allow us to put some cash into the market to meet the demand that we expect for the next few years. Specifically, these are two projects that we've identified, one in the Pacific Coast with a capacity of re gasification of 60,000,000 cubic feet per day. This is a project in which projects, acquire the grant education service and therefore, the third party does all the investment, next, all the logistics activities for receivable storage, I mean, regransitification. We are processing a reconciliation plan. And this is going to be through OpEx and the competition doesn't need any CapEx investments. The other project is our own project, in the north part of the country, in The Caribbean, in the Venture Shuba platform, which is an asset owned by the group, using existing infrastructure that allows to take gas to the transportation system for LPG and the one that leads to the gas or The Caribbean.

We can bring approximately 200,000,000 cubic feet per day of reclassified gas. In this case, Ecopetrol would make some facilities, the Chitubhava platform and the retrotransification service would be through a floating, retrotransification service would be carried out by a third party. This is under analysis, especially in terms of the environmental issues. As soon as we have more information, we'll be publishing it. This is Cardona with Citibank. Good morning, everybody. Thank you for my time. Two questions. What can we expect after the acquisition of CTO nine in terms of development, now that you have 100% of the working interest with respect and acceleration in the development planning or the field. And the second one is whether the payout that you define for 2025 is somewhat limited by the M and A expectations of the company. You mentioned or you mentioned the assets there. So Hassalka, I think, is rolled out. But are you considering any other potential acquisitions and could all be in the generation sector? The acquisition of the participation we had, ZAPO-nine is one of the major landmarks for Equitso last year because in addition to the results we have, they want to know what to include. 32,000,000 with the acquisition will really begin to see what we can with this additional block with the Chiquita and Castillo.

So we're going to be able to have another 8,000,000 barrels a day with these fields. And I want to expand on this. The ECHA system, which is the main field in the industry of 0.9 is a continuation of the TGNM field where Ecopetrol had made major investments and developments. We're getting high recoveries, thanks to air and water injection. Those lessons that we learned will be used for the CTO-nine. In addition, we have two productions, it was in production, which are in addition to blocks in C0.09. This is an extension of the Castiglian's field and all the investment made by the recognition of Ecopital in Castilla has moved, moving over to this block. We have major synergies in development and operation costs by having 100% interest in this entire field. An example is the development of T And M, which is we see that as a connection of these two wells. They're interconnected to the Castillo, we see that through a floor line. This would be another increase in, decreasing development cost. This acquisition in the future will have the potential to buy an additional 50,000,000 barrels in this block, which represents a large number of barrels for EcoPatrol.

Thank you. So the record question is surely mailed, which we've made for the distribution of dividends as approved by yesterday. So to talk about the panel, I have to talk to three different factors in which the proposal is just a dividend distribution that is put to the assembly. The first is a dividend policy that has been adopted by the Board of Directors, which we've declared in the, in document 20 F. And it says that the policy is part of the distribution of between 40%, sixty % of available promise for the share for the stock. This is the first framework for conversation. The second one has to obviously, with the availability of cash and the gross liquidity. As we saw last year, we had a solid position close of greater than ARS8 billion. And the third has to do with the investment plan for 2025 as part of the three year plan for investments is an ambitious plan, which is over $6,700,000,000,000 By combining these factors, we find that the dividend payout is framed with the three elements. And for investments, 70% of the total will be used for hydrocarbons, including gas as a transition fuel, the 30% remaining for transitional energies, transmission and roads.

And in general, about the acquisitions or inorganic binds, As part of our ongoing job, we're constantly evaluating different business opportunities in different sectors. And in addition to the opportunity that we mentioned and that the market is aware of in terms of renewable energy, we also explore in significant number of opportunities in different segments and guidelines of business. One last question. Could we expect that the payment of the stabilization front payments will continue with the same dynamics that we saw in 2024, which is a monetization over twelve months of the balance, remaining balance, which is decreasing, but it's done a reasonable assumption for our months. Yes, Andres, yes, I'd like to point out the effort that national government has made even in the midst of this, the difficult situation that we have. The national government has been complying with the dates and the amounts that were established for paying the obligations. We had some payments for over 300 basis and the balance for 2024 is $7,600,000,000 and to be included in your respective months this year, we forecast also regular payments, I recorded four payments over the year. These are being reviewed the way payments might change according to some requests from the Ministry of Finance, but working based on regular quarterly payments of similar amount, maybe higher than the first quarter.

We're talking about $2,300,000,000,000 basis and in the second one, would be a similar amount and for the second semester, one or two additional payments for the remaining balance of $3,500,000,000 approximately. So yes, we can foresee that the payments will be continue, will continue. They've committed, the government has committed to making their payments on time and we are reviewing and agreeing the way manner of payments which best fits the Ministry of the Treasury according to the cash flow inflows and our own requirements in Ecobetrol. Mr. Dwarte, may I ask your question? Thank you. Good morning. I have three questions. The first one is about the gas facility breakers, gasifying in Pacific. How are you going to transport that gas from the port to the nearest Gasline, LPG or some of those companies that are in the West also? Is that through overlanders that you have, you or somebody else intended to direct connection between the port as the guidelines in the interior? The second question is, can you tell us how much were the contributions or the payments for the company or to the nation in in 2024? What is expected for 2025? And please, can you optimize the taxes, how much is for income tax and what is the others?

And the last question is what the President mentioned earlier about the green hydrogen plant. I'd like to know whether you have identified the sources of generation and water that you would start, or that we use to produce that hydrogen, whether that's 800 tons in total per year, whether that production is all going to refinement or is it simply a surplus that are going to be sold somewhere else? That will be annual fluctuating device based off of Transitional Energies. As far as the reclassification that's right in The Pacific, as we mentioned earlier, this is at which EcoPensil requires the right to the service of reclassification, which will be provided by a third party. And that third party is going to receive the materials storage, transport it over land through as their energy state and regasify it and deliver it to the National Transportation System in Buga. This would be the gas line for Maliquita Gari, which is the RPG. In fact, the reservation plan in Boga is next to current line for the transportation line. About the second question about the contribution to the country, to the nation, In 'eighty four, we had more than 40,000,000,000 pesos, of which from dividends we paid $11 For 2025, we expect to pay expectations on the primary behavior and total revenue, unfortunately, MXN 35,000,000,000,000.

We proposed MXN 7,800,000,000,000.0 for the nation. And royalties and taxes more than 19,000,000,000,000 pesos. I'm sorry, the microphone has an echo and it's coming and going. Xavier Villania, a large potential of energy transition. About your third question about the green hydrogen plant that we are building, the Cartagena refinery, we must say that that production that we expect at 800 tons per year of green hydrogen will be totally used by your refinery. So to give you that amount of hydrogen is 1% of the total hydrogen needed by the refinement process right now. This is based on the natural current. This is gray hydrogen. So this green hydrogen will be part of the meeting those requirements for the current refinery. Therefore, we don't have any service. Thank you. Thank you for the call. I have some questions. The question has to do with the margin that you're going to go 29% over 2025. You explained it there before. I had a bad connection. I'd like to know the main reason why we see the decrease in those margins because of the long term margin that we usually when working with, at least 40%. The second question has to do with what is the probability of distribution of the occasional reserves?

Credit issue now, we have applied part of the occasional reserves and they distributed without the need to acquire any new debt. And the last question is about the Nissan and the Chile event. Recently, there was a blackout in Chile where ESA is part of that, research process. And I'd like to know whether you can tell us a little bit about possible lines or economic consequences that will lag out and whether can you see that as a need to make additional investments in Chile and even as an opportunity to improve emancipation in this country. Thank you very much. This is CFO. I'll start by the EBITDA margin. We mentioned that in answer to a previous question. It has to do what we're looking at, basically, you have a hedge to move the price on which we work our financial platform for 2025. The major difference here is up to the $73 per barrel rent, which I can do this year. And in addition to that, we see that there has been a significant increase in the prices of electronic pilots. And for 2023, we're just talking about $19 in margin for 2024, where we had in margins closer to $9 for there.

So this difference and this increase or in the good basket and the refined product differentials, they used to project some lower prices for this 2025, which have a relative impact in terms of generating the EBITDA, which is a margin of about $79,000,000 margin, we get a margin of 39% through this 2025%. About the distribution of the business from the acquisition of reserve, as we saw in previous question, these are various factors that we evaluated to submit the subject to the order of directors. The liquidity and availability of cash and the investment plans that we've seen for the 2025 is a challenging time, both because of the organic investments and due to the inorganic investments. Not that we have completed this part of the year or we can see that would be completed in the near future. I'd like to say that this original reserve is an accounting reserve. It doesn't have a real cash reward to make any sort of distribution of the time. We would have to use financing. We're not posting any extraordinary dividends or distribution of allocation with reserves for the available cash and the investment tax that we have been posting for 2025 that is already ambitious and which it will require some sort of financing associated to the inorganic component.

The financial plan for 2025 is organic component and without additional debt for the new purchases. We will be needing some additional more refinancing and that limits the possibility of distributing more dividends. The ESA business in Chile, our platform for our transmission through ESA into Chile. This is 1,900 kilometers in Chile. This is 4% of the EBITDA, unfortunately, the EBITDA of the company, 2% of our province. Circuit cloud transmission line came in from, upon upon the circuit, this is the ones that we have. This is a line which is over 22,000 volts, and that, we were transporting for 1,200 megawatts in total. When that light came out, it went out of the circuit. It was unavailable of the country of the circuit. Now from the time immediately we mobilized all the capabilities for coordination, all the teams to include the availability of that line, which was done at 4PM. That was about forty four minutes after the blackout and the it was also available to we stated the service. We're still investigating the reasons for that. It was the the protections went off unscheduled, and that, cut off several circuits we've been investigating. We've been looking at the investigations, the authorities providing all the information they require to complete this investigation successfully only.

When we complete the investigation, we can define the level of responsibility and the consequences for what we had. With respect to the fines, right now, it doesn't risk the financial viability of the company. There was another comment about the wealth opportunities. We have two projects under development. The one with the connection project, they call it Arrige, which was very energy transmission in that country. And that situation is going to lead us to require more support and more governments so that those lines can start operating at Chile, unlike Colombia and Peru, which are very highly connected countries. Chile is very long and very radial. It needs more and more lines to install more lines.

So I just have one question here for myself.

Thank you, Nicolas.

I just wanted to ask about the developments regarding regards to the project with Shell. Do we expect any sort of final investment decision in the coming months? And if so, what can we expect in terms of sizing for the project in timing as well? Thank you.

We've been working with our partner Shell to complete this development. We expect to have a final decision of investment during the first quarter of this year. Will give you some updates on the expectations in the future. This is something that we see very hopeful. About e's economy, what are your growth expectations in organic for the company? And I just happy with the participations. Would we have more investment, more assets due to the profits? Thank you for the question. We have an organic growth plan, which is significant for the twenty twenty five, two thousand and thirty of approximately twenty seven billion dollars in various countries where we have presence in energy and roads, especially in energy, is the most significant with 80%, eighty four % of these investments, which are 50% in Brazil and the rest is in Colombia, Peru, and Chile. This enables us to keep our growth strategy for our business. In terms of operations growth in Brazil, we have not defined any operations in terms of of merging these two businesses. We have a share control with Pfizer, of which they are excellent project with an appropriate profit levels and keep their growth paths with growth projects in both.

Thank you. For the time being, there are no more questions. We'll then read the questions from the chat. What metrics can you use to measure the downstream advances in 2025? We have already structured plan for improve our downstream segment profitability to maintain a high operating availability. We do some maintenance plans and we intend to put the, throughput of the refinery with Colombian crude. And that was we continue with our investments in the downstream. Another one of our purposes is to have a larger amount of fuel. We have modifications in the, sources in Barrington. For the future, we also have to improve the the quality and improve the margin in areas such as fuels and aromatics and petrochemicals. And another factor we're monitoring is also cost reduction. This is part of our efficiency program and also reducing the cost of the refining box would be another target. About the second question about the regasification project in The Pacific, as we said earlier, in a commercial purchases of the rectification rights and the third party makes the investments, the operation and maintenance of the infrastructure to provide the re gasification service. That is why we don't have an investment or a CapEx to be implemented by Ecobetrol.

As far as the re gasification project in Guajira, in the Chishupa platform. In that case, Ecopetrol leads the project because it's going to be in its facilities. The investments that we would have to make would be in the pumping system of the CRU, which is not very high with the information we have available, should be between $50,000,000 and $100,000,000 because the service provided by the the CRU agent is a floating unit for storage and classification, would be enough to pay back to the third party, which would fly the third party. As is usual in this type of activity, we pay that through OPEC's rate. That's five times the gasification in The Pacific would be expected to be operative in the second quarter of twenty twenty six. And reclassified vacation in The Caribbean in the Chishupavi platform would depends on some clarifications that we're consulting with the environmental authorities. Optimistically would start operation in 2027. What are the financing needs? And what do we need to enter, capital, international capital markets to get some debt in 2025? This goes to Alejandro. Basically, there are several points. First of all, we mentioned in the previous question the fact that our the financing plan for organic financing will not require any additional financing.

We should also say that during the first part of the year, we were certain that for the rest of the year, we will accelerate our inorganic investment plan. About this inorganic investments, we should clarify that it will be needed necessary to get some financing operations. For this year, we'll have some need and some authorizations that we have been, gotten from the Board of Directors for financing during 2025, which allows to have, $1,000,000,000 in structuring and a temporary debt for another billion dollars In addition to the financing operations to support our inorganic investment plant, you should keep in mind that we are constantly monitoring the market. And as we see the volatility of this period, we'll find better funding of any financing conditions and we'll be able to use them when we find them. So the capital market, local capital market and international capital market will always be very interesting financing alternative for the group. We might have a longer term maturities and at certain times or what does get some advantages that are convenient for our financing costs. So both in the market, capital markets and the banks are alternatives that we're constantly evaluating and analyzing.

How big is the impact to the tax on crude exports? And how much is the impact of the deterioration and the differential to the sale of group. Uh-huh. And mentioned that our estimate is that we can have a total impact of approximately $50,000,000 per month, which will be a total of six no, no, he's making a mistake, Ps. 50,000 billion a month. Our total impact for the year is approximately of MXN 6,000,000,000. And we're also paying ahead with the, and as of the tax, the stamp tax, which is also foreseeing that decree. About that tax, we have an estimate of about 500,000 pesos, which is 1,200,000,000.0 pesos total impact on the results for 2025. Well, this is Eva, vice president of commercial and marketing. In 2024, we had a reference for Garcia approved of, like, 4848, a period of 09/9924. At for 2025, we started very strong. We distributed and look at the figures yesterday and the compensation for April of our cruise. I can report that we have a strengthening or improvement of 35% in the differential for Castilla, thirty six percent in Rafael, and Maris, nineteen percent are good for the timing. Geopolitical, geopolitical, and things in Venezuela and The US.

We are seeing our best moment. We're seeing that in our they are going to be moving apparently. I know that you might require might refer to the price of food in the fourth quarter of twenty twenty three compared to 2024. You see that there is the partial weakness, but part of what we see is that 2023, '20 '20 '4 where we improved by $2 on the average the differential. This is what I can tell you about it and the trend is totally the opposite. Thank you. And then, Arthur is live with a question.

Hello. Thank you for taking my question. This is a follow-up on the explanation. You gave with respect to impairment recovery on downstream. So what is the range of price differentials from the EBITDA margin you're expecting for this segment?

Uh-huh. The price outlook we've seen we have some differences for 2025 to 2026 are very similar to what we've seen in 2024. However, in the medium long term, We have some changes, for example, with stable demand or slightly lower, made that combination with the less availability and consistent demand for the medium and long term, and stabilize the prices of diesel gasoline and others. It's a question that I got out of the reply from the previous in The Pacific is, if Ecopetrol is not going to is hiring a third party for do the development, that third party must guarantee an appropriate return of its investment. So I'd like to understand what sort of contract are you riding with the Ecopetrol, especially because the outlook in terms of gas reserves for the country is not very positive for the short term, but we are supposed to have the development of all the fields is very positive. So understand a bit of what how can you make a contract that is going to be for a long term with the expectation that we're going to have a significant increase in the gas reserves after those fields are able to produce and make a contribution of the local reserves.

Can you tell me about that? What is the rationale and the type of contract that we, you'll be carrying out with a third party? Thank you for the question, the Executive Vice President of Energy for Transition. The two initiatives for regasification that we've mentioned are part of alternative options, which is make these sources of gas available to the government while we get the offshore at a commercial level. All these initiatives, Pacific and The Caribbean, plus others that we're personalizing are part of providing that gas while the offshore comes in. Based on that, all the contracts, in this case, with The Pacific, for example, for the regasification service, are set up so that it meets the time for the, offshore gas entry. As you said, it's it's it's in a in regasification of the gas services. This means that Ecopetrol should buy the molecule that is going to is coming from the international market. We use term contracts, which ensure the quantity of your gas that you need to regasify. Regasify all the private service and we as a group have to put the molecule at the regasification plant and then after that is regasified and placed in the transportation system.

We commercialize it through the national customers. Wouldn't that take which will be paying for availability only if they or are you going to pay some fixed amount for the availability of the regasification plant? The regasification service here and in any other market where energy is important, it's a fixed fee for the regasification service, which obviously has the obligation by provider to guarantee some reliabilities and some quality of the gasification service for the year, which is a other part with the what is efficient for this time, then you have to bring the gas for re gasification. Those are the term contracts that the group has to make to buy the molecule, which is a different type of transaction. We should mention that the highest cost of the imported gas is not the regratification service, it's the molecule put at the regratification plant that is a material component in a transaction of this type. The regratification services don't have so much weight in as a total cost of money when it is placed into the national market. No further questions. And now the president for a final message. Thank you all for your attendance. We wish you well, we hope that we have answered all your questions and concerns about the economic, financial and technical performance for this year.

We're committed to our country, our stakeholders and shareholders to continue to be the major company of all Colombians and the guarantee of the guarantee of fuel and security for the country. Thank you very much.