Ecopetrol SA Sponsored ADR (EC)

In April and May 2026, Ecopetrol experienced credit rating downgrades from Moody's and S&P Global Ratings due to reduced clarity on Colombian government support, governance concerns, fiscal risks, and economic vulnerabilities. In April 2026, Ecopetrol announced an agreement to acquire an equity stake in Brava Energia S.A. in Brazil, with plans to seek a controlling stake. Ecopetrol's shares tumbled following the Moody's downgrade and a plunge in oil prices, but also saw modest gains aided by a UBS price target increase and elevated crude oil prices.

The demand for Ecopetrol's products, particularly natural gas, does not follow a uniform seasonal pattern in Colombia, with each demand segment exhibiting distinct dynamics. However, there are clear seasonal trends related to energy generation, with Colombian power plants expected to increase liquefied natural gas (LNG) imports in anticipation of an El Niño phenomenon. LNG imports are likely to ramp up, with the country's sole import terminal expected to operate at full capacity starting around August and thermal generators likely running at full capacity between November and May.

Ecopetrol SA is Colombia's largest integrated energy company, operating across the hydrocarbon chain, including exploration, production, transportation, refining, and commercialization of crude oil, natural gas, and refined products. The company has diversified into electric power transmission and toll road concessions.

Ecopetrol's primary operations are in Colombia, responsible for over 60% of the country's hydrocarbon production, transportation, logistics, and refining systems. Internationally, Ecopetrol has a significant presence in the U.S. Gulf of Mexico and Permian Basin, Brazil, and Mexico for drilling and exploration. Through its subsidiary ISA, Ecopetrol maintains leading positions in power transmission in Brazil, Chile, Peru, and Bolivia, as well as road concessions in Chile and telecommunications. The company also has operations in other parts of South America, Central America and the Caribbean, Asia, and Europe.

Ecopetrol's brand reputation has been negatively affected by several events and controversies. In June 2025, the company faced scrutiny due to security breaches and a controversy over a legal contract signed without board consent. In May 2025, Ecopetrol's CEO, Ricardo Roa, became embroiled in a scandal concerning a helicopter transport contract, leading to formal charges and his removal from his position as CEO in April 2026.

The Colombian State is the primary owner of Ecopetrol S.A., holding a majority stake of approximately 88.49% to 88.5% of the company's shares. The remaining shares are publicly traded, with a mix of institutional, retail, and individual investors. Major institutional owners include JPMorgan Chase Bank NA FBO Holders of DR Ecopetrol, Fondo Pensiones Obligatorias Porvenir Mayor Riesgo, Fondo Bursatil ISHARES MSCI Colcap, Fondo de Pensiones Obligatorias Proteccion Mayor R, Vanguard Group Inc., Millennium Management LLC, Fundamenta Capital S.A., Blackrock Inc., Charles Schwab Investment Management Inc., Two Sigma Investments LP, Goldman Sachs Group Inc., D E Shaw Co Inc., Morgan Stanley, GQG Partners LLC, Oaktree Capital Management LP, Arrowstreet Capital Limited Partnership, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., Candriam S.C.A., Truffle Hound Capital LLC and Allianz Asset Management GmbH.