Ecopetrol S.A.
Ecopetrol S.A. operates as an integrated energy company. It operates through four segments: Exploration and Production; Transport and Logistics; Refining and Petrochemicals; and Energy transmission and Toll Roads Concessions. The Exploration and Production segment engages in the exploration and production of oil and gas. The Transport and Logistics segment is involved in the transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels. The Refining and Petrochemicals segment refines and processes crude oil at the Barrancabermeja and Cartagena refineries; and distributes natural gas and LPG. The energy Transmission and Toll Roads Concessions segment supplies transmission and information technology and telecommunications services, as well as designs, develops, constructs, operates, and maintains road and energy infrastructure projects. The company operates in Colombia, the United States, China, Brazil, India, Singapore and other Asian countries, Peru, Chile, Other South America countries, Central America and the Caribbean, and Europe. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is based in Bogotá, Colombia.
What does it do?
Ecopetrol is Colombia's national oil company — think of it like the country's version of ExxonMobil, but government-controlled. It drills for oil and gas, moves fuel through pipelines across Colombia, and refines crude oil into gasoline and diesel that people actually use every day. Beyond oil, it also owns infrastructure like electricity transmission lines and toll roads. The Colombian government owns about 88% of the company, which means it operates with a very specific national purpose.
Ecopetrol is one of the largest oil producers in Latin America, producing around 700,000 barrels of oil equivalent per day, making it a meaningful player in global energy supply. With oil prices remaining volatile due to OPEC decisions and geopolitical tensions, Ecopetrol sits at the intersection of emerging market growth and energy security. Investors also watch it closely because Colombia's political direction — including how friendly the government is to fossil fuels — directly shapes how the company operates.
How does it make money?
Ecopetrol makes most of its money by pumping oil and gas out of the ground and selling it — this is its Exploration and Production segment, which is the core engine. It also earns fees for transporting oil through its vast pipeline network, essentially charging a toll every time fuel moves across Colombia. A third revenue stream comes from its refineries, which buy crude oil and convert it into higher-value products like gasoline and jet fuel for sale. In its most recent annual report, revenue came in at roughly $119.7 billion Colombian pesos (approximately $29–30 billion USD), down from $133.3 billion the prior year, reflecting softer oil prices.
Why do investors care?
The bull case for Ecopetrol starts with its dividend — it has historically paid out very high dividends, sometimes yielding 10% or more, which is extremely attractive for income-focused investors. If global oil prices recover or stabilize at higher levels, Ecopetrol's profits would surge since most of its costs are relatively fixed. The company is also investing in low-carbon energy and has an energy transmission business, giving it a small hedge against the long-term energy transition. What has to go right: oil prices need to stay above $60–70 per barrel, and Colombia's government must remain supportive of continued oil production.
Deep Dive
MemberA full investor briefing on Ecopetrol S.A. — history, leadership, risks, and outlook.