Ecopetrol clarifies the information published today in relation to the expected results for the first quarter of 2020 in the framework of a bond issue in the international capital market

This Ecopetrol release was published using machine translation.

Ecopetrol SA (BVC: ECOPETROL; NYSE: EC) is allowed to make the following clarifications regarding the statement published today at 08:30:17 am on the page of the Financial Superintendency of Colombia:

1. In the third paragraph when reference is made to consolidated net income, it must be understood that reference is made to consolidated net profit; when reference is made to consolidated operating income, it must be understood that reference is made to consolidated operating profit. The term impairment is changed to impairment and the figures contained therein are understood with respect to the first quarter of 2019. Therefore, the third paragraph of the statement is as follows:

"(...) In particular, Ecopetrol estimates that its consolidated gross profit, its consolidated operating profit and its consolidated net profit (before impairment) for the first quarter of 2020 will be lower in the range of 32% - 36%, 43% - 47% and 52% - 65%, respectively, compared to the first quarter of 2019. (…) ”.

2. In paragraph 4, when referring to a portfolio, it should be understood as investment portfolios in financial securities. Therefore, the fourth paragraph of the statement is as follows:

“(…) In addition to the drop in the price of crude oil, the Company's results were affected by (i) higher operating costs as a result of the increase in exploration and production activity, prior to the implementation of the optimization measures announced in March 2020, (ii) impact of the depreciation of the exchange rate of the Colombian peso to the US dollar on financial interest due to debt in foreign currency and (iii) volatility in the capital markets that reduces the valuation of market for investment portfolios in financial securities. It is currently estimated that the first quarter results will reflect an increase in the impairment of non-current assets in the range of COP $ 1,150 - COP $ 1,250 billion, before income tax, driven mainly by the expected decrease in the short term in the cash flow of such non-current assets given the environment of the price of oil (…) ”

For further illustration of the market, the text communicated with the aforementioned details is transcribed again:

Ecopetrol reports on expected results for the first quarter of 2020 in the framework of a bond issue in the international capital market

Ecopetrol SA (BVC: ECOPETROL; NYSE: EC) informs that today, based on the authorization granted by the Ministry of Finance and Public Credit, it will issue and place External Public Debt Bonds on the market international capital of up to USD $ 2,000 million, the results of which will be communicated by this same means. In developing the transaction, the company considers it relevant to disclose the estimated impact of recent global developments on oil supply, as well as the COVID-19 pandemic, on the Company's performance.

Disagreement over production cuts between the Organization of the Petroleum Exporting Countries (OPEC) and Russia since early March 2020, followed by Saudi Arabia's decision to reduce its oil sales prices and increase its production to date have Negatively impacted the international prices of crude oil and refined products in 2020. This, together with the COVID-19 pandemic and the measures implemented to curb its spread, have resulted in a significant drop in the prices of Brent crude oil, which will negatively affect Ecopetrol's results of operations and commercial prospects for the first quarter of 2020 in a material way compared to the first quarter of 2019.

In particular, Ecopetrol estimates that its consolidated gross profit, its consolidated operating profit and its consolidated net profit (before impairment) for the first quarter of 2020 will be lower in the range of 32% - 36%, 43% - 47% and 52 % - 65%, respectively, compared to the first quarter of 2019.

In addition to the drop in the price of crude oil, the Company's results were affected by (i) higher operating costs as a result of the increase in exploration and production activity, prior to the implementation of the optimization measures announced in March 2020, (ii) impact of the depreciation of the exchange rate of the Colombian peso to the US dollar on financial interest due to debt in foreign currency and (iii) the volatility in the capital markets that reduces the market valuation to the portfolios of investments in financial securities. It is currently estimated that the first quarter results will reflect an increase in the impairment of non-current assets in the range of COP $ 1,150 - COP $ 1,250 billion, before income tax, driven mainly by the expected decrease in the short term in the cash flow of such non-current assets given the environment of the price of oil.

As it is not possible to forecast the duration of the effects of COVID-19 on the business that Ecopetrol develops or when international prices for crude oil and refined products will stabilize, the company could make further downward adjustments in

our 2020 Investment Plan, as well as the 2020 production target of between 745 and 760 thousand barrels of oil equivalent per day.