Ecopetrol continues its transformation process by optimizing the Business Group's capital structure

BOGOTÁ, Colombia, Dec. 7, 2017 /CNW/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that as part of its transformation process, it is continuing the strategy of optimizing its capital structure in the Business Group (GEE). The strategy's objectives include an efficient allocation of debt within the companies comprising the Business Group. This is in line with the company's commitment to encouraging savings and optimization with a view to generating financial efficiencies in the consolidated results.

The operating and financial results achieved by the group's companies are reflected in a solid cash position, allowing it to continue optimizing its capital structure. As part of its implementation of this strategy, in December the business group will execute the three transactions described below:

After the transactions mentioned above, which fulfilled all the procedures and approvals internal and external required, the business group's nominal debt will decline to USD$ 14.580 billion.

As a result of the capital structure optimization strategy that has been implemented since October 2016, the credit metrics continue to improve versus the figures reported at the September 30, 2017 cutoff, as shown below:

The Ecopetrol Business Group's improved results and capital structure optimization strategy have allowed the nominal value of its consolidated debt to decline by USD$ 2.664 billion from December 2016 to date. The transactions executed are in line with the goals of the 2020 business plan, confirming the company's commitment to its credit rating and to increasing its return to shareholders.

This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, the Company's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.

For further information contact:
Capital Markets Manager
María Catalina Escobar
Telephone: +571-234-5190 
Email: investors@ecopetrol.com.co

Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co

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SOURCE Ecopetrol S.A.