Refining margin surge cushions revenue drop amid leadership void

Ecopetrol S.A. (NYSE: EC, BVC: ECOPETROL) reported first-quarter 2026 consolidated revenues of 28.6 trillion COP, a decline of 8.7% from 31.4 trillion COP in the year-earlier period, as lower crude oil prices and reduced hydrocarbon production compressed the top line for Colombia’s state-controlled oil and gas company. Against that backdrop, a marked recovery in refining margins and disciplined cost management lifted EBITDA by 1.5% to 13.5 trillion COP, yielding a 47% EBITDA margin and partially offsetting the revenue headwind. At the Q1 2026 average exchange rate of approximately 3,700 COP per USD, the quarter’s revenues translate to roughly $7.73 billion USD and EBITDA to approximately $3.65 billion USD.

Embattled Ecopetrol CEO Ricardo Roa was appointed to the position by Colombian President Gustavo Petro after managing his political campaign. (photo: Ecopetrol)

Net income for the quarter reached 2.9 trillion COP (approximately $784 million USD), down 7.7% year-over-year, reflecting the combined drag of lower revenues, a sharply elevated effective tax rate of 37.1%, and a one-time charge of 1.2 trillion COP for the impuesto al patrimonio — Colombia’s government-mandated wealth levy on large corporations established to fund post-disaster reconstruction measures. The company is also subject to a 10% income tax surcharge applicable for fiscal year 2026, which is embedded in the reported effective rate. The aggregate tax burden absorbed a disproportionate share of operating improvement relative to prior periods, limiting the flow-through of refining gains to the net income line.

Total hydrocarbon production averaged 725.2 thousand barrels of oil equivalent per day (kboed) in Q1 2026, below the 745 kboed recorded in the 2025 annual average cited by management during the March 2026 general shareholders’ meeting. Domestic crude output represented the largest component at approximately 520 thousand barrels per day (kbd). Ecopetrol’s Permian Basin operations in the United States contributed 91.8 kbd, underscoring the continued strategic importance of the international segment. Gas production continued a multi-year declining trend that poses a medium-term domestic supply challenge; management has sought to address this partially through regasification capacity additions at Puerto Bahía and on the Pacific coast, expected to come online in the second half of 2026 with a combined contribution of up to 430 billion BTU per day.

The refining segment delivered the quarter’s most pronounced operational outperformance. Ecopetrol’s domestic refineries, led by Refinería de Cartagena, processed 417.5 kbd of crude throughput. The integrated refining margin rose to $17.3 USD per barrel, a 60% improvement over the same quarter of 2025, driven by favorable differential pricing between domestic crude benchmarks and refined product values alongside ongoing operational efficiency improvements. The Comisión de Regulación de Energía y Gas (CREG) and the Ministerio de Minas y Energía remain central to the regulatory framework governing downstream margins over the medium term.

The balance sheet carries significant structural and contingent risk items of direct relevance to institutional credit and equity holders. Gross debt stood at 108.1 trillion COP (approximately $29.2 billion USD), representing a leverage ratio of 2.3 times trailing EBITDA — a level that leaves limited room for further deterioration before debt covenants or rating agency thresholds become binding. Ecopetrol holds a receivable of 4.2 trillion COP (approximately $1.14 billion USD) from the Fondo de Estabilización de Precios de los Combustibles (FEPC), a government fuel price stabilization mechanism that represents a claim on the Colombian treasury with timing and recovery risk. A dispute with the Dirección de Impuestos y Aduanas Nacionales (DIAN) over value-added tax assessments totals 12.26 trillion COP (approximately $3.31 billion USD) in aggregate, of which 10.22 trillion COP relates to Ecopetrol’s consolidated operations and 2.04 trillion COP to Refinería de Cartagena. Both cases are under administrative and judicial review; no provisions have been recognized in the financial statements pending resolution, but the potential liability represents a material contingency relative to the company’s quarterly net income.

On the corporate development front, Ecopetrol disclosed three significant transactions during or following the quarter. The company agreed to acquire producing assets from Gran Tierra Energy (NYSE: GTE, TSX: GTE) for $92.4 million USD, adding Colombian upstream production inventory in basins where both companies have operated. In Brazil, Ecopetrol launched a tender offer for shares of Brava Energia (BVMF: BRAV3) at 23 BRL per share, seeking to expand its footprint in that country’s oil and gas sector. And in a transaction that would reshape the mid-size independent landscape in Colombia, the company reached an agreement to acquire Parex Resources (TSX: PXT) for $250 million USD; Parex is a Colombia-focused producer with a complementary asset base across the Llanos and other producing basins. Collectively, the three transactions signal that Ecopetrol’s capital allocation strategy under the current government continues to favor upstream consolidation despite the elevated leverage profile.

The exploration portfolio generated positive news announcements. The Copoazú-1 exploratory well, drilled in Colombia’s Llanos foothills region, was confirmed as a commercial discovery, adding to the domestic reserve base. The Sirius offshore project advanced through the Consulta Previa process — a legally mandated prior consultation with indigenous and Afro-Colombian communities required before development of projects in or near their territories — reaching a milestone in community engagement that brings the project closer to formal development sanction. The Agencia Nacional de Hidrocarburos (ANH) oversees the licensing framework within which both projects operate.

“Ecopetrol is listed on the New York Stock Exchange; we are governed by the strict regulations of US federal agencies. Agencies like OFAC and the SEC could intervene in the company and could even accelerate the payment of financial obligations, which would be extremely grave for Ecopetrol.” — Martín Ravelo, President, Unión Sindical Obrera (USO)

The ISA transmission segment, managed through Ecopetrol’s majority stake in ISA — Interconexión Eléctrica S.A., contributed stable regulated cash flows during the quarter. ISA completed 46 transmission reinforcement works across its Latin American concession portfolio. The segment also completed the acquisition of 100% of IE Madeira in Brazil, consolidating its position in that country’s power grid interconnection infrastructure. ISA further submitted a competitive bid for the Río Bueno–Puerto Montt high-voltage transmission line concession in Chile, demonstrating the group’s appetite for long-duration, inflation-linked infrastructure assets across the Andes region. For institutional investors evaluating Ecopetrol as a blended hydrocarbons-and-infrastructure holding, ISA’s consistent cash generation provides partial diversification from crude price volatility, though it does not insulate the consolidated entity from headline governance risk.

The most consequential variable for the investment thesis over the near term is Ecopetrol’s prolonged governance crisis. At the company’s general shareholders’ meeting on March 27, 2026, held at the Corferias convention center in Bogotá, minority shareholders loudly heckled president Ricardo Roa — with audible shouts of “¡Fuera, fuera!” reverberating through the hall — as debate over his leadership erupted into open confrontation. The meeting approved a dividend of 121 COP per share for minority holders and a 4 trillion COP distribution to the Colombian government as majority shareholder, payable in two installments by June 30, 2026. Despite the financial business conducted, governance overshadowed the proceedings.

Roa faces two separate judicial proceedings. The Fiscalía General de la Nación formally charged him in connection with alleged influence peddling related to the purchase of an apartment in northern Bogotá — charges he has denied. Separately, the Consejo Nacional Electoral (CNE) is examining whether campaign spending limits were violated during President Gustavo Petro’s 2022 presidential campaign, which Roa managed — an investigation that Finance Colombia has covered in detail. Angela Maria Robledo, Chair of the Board of Directors, defended the board’s decision to retain Roa at the March assembly, citing the constitutional presumption of innocence. However, four of the nine board members had already formally recorded their support for his removal at that point, exposing a divided governance structure at a time when strategic and operational decisions require unified leadership.

The Unión Sindical Obrera (USO), which represents approximately one-third of Ecopetrol’s workforce, issued a production strike ultimatum timed to a March 30 board meeting. Martín Ravelo, president of the USO, framed the leadership crisis explicitly in terms of US regulatory risk: “Ecopetrol is listed on the New York Stock Exchange; we are governed by the strict regulations of US federal agencies. Agencies like OFAC and the SEC could intervene in the company and could even accelerate the payment of financial obligations, which would be extremely grave for Ecopetrol.” Ravelo further warned that the company’s outstanding international debt — which he placed at approximately $30 billion USD and which is exacerbated by elevated interest rates — left Ecopetrol exposed to potential covenant triggers or early repayment demands in a scenario where the Securities and Exchange Commission (SEC) or the Office of Foreign Assets Control were to take enforcement action.

Following sustained pressure from the USO, minority shareholders, and opposition political figures, Ecopetrol’s board approved an extended leave of absence for Roa beginning April 7, 2026. Under the arrangement, Roa used accrued vacation through May 27, followed by 30 calendar days of unpaid leave beginning May 28, extending his absence through the end of June — a period encompassing Colombia’s presidential first round on May 31 and a potential runoff on June 21. Juan Carlos Hurtado Parra, the company’s executive vice president of hydrocarbons and designated first alternate to the presidency since November 2025, was appointed acting president. Hurtado Parra holds an MBA in International Oil and Gas and brings more than 28 years of energy sector experience to the acting role, having previously served as vice president of exploration, development, and production.

The political calendar creates a structural transition risk that sits above the operational and financial results as the primary concern for long-duration investors. Colombia’s incoming government, to be inaugurated August 7, 2026, is widely expected to appoint a new Ecopetrol board and select a new company president. That transition may bring material shifts in strategic priorities — including the pace of upstream investment, the approach to the FEPC receivable recovery, the trajectory of energy transition spending, and the capital allocation balance between the hydrocarbons segment and the ISA infrastructure platform. The Ministerio de Hacienda y Crédito Público and the Ministerio de Minas y Energía will both play key roles in establishing the post-election policy framework under which Ecopetrol operates. Institutional investors holding exposure to Ecopetrol via NYSE: EC or BVC: ECOPETROL must weigh Q1’s genuine operational improvement — most visibly in refining margins and EBITDA stability — against a governance and policy transition risk profile that is unlikely to be resolved before the August handover.

Ecopetrol’s Cartagena refinery (photo courtesy Ecopetrol)

Roa had already been administratively sanctioned by Colombia’s electoral authority over campaign spending violations, with the case now advancing in the Attorney General’s Office

Ricardo Roa Barragán, president of Colombia’s state-owned oil and energy company Ecopetrol, has been formally charged by the Attorney General’s Office (FGN) over his alleged responsibility in a case involving violations of campaign spending limits tied to President Gustavo Petro’s 2022 presidential campaign, which Roa managed.

The charging hearing took place Monday, May 11, during which Roa pleaded not guilty. The case will continue through the investigative stage, and no conviction has been issued against him.

This marks the second criminal case facing the executive. On March 11, 2026, prosecutors also charged Roa with alleged influence peddling involving a public official. Both investigations remain ongoing.

Read: The charge adds to a separate investigation over alleged violations of campaign finance limits during President Gustavo Petro’s 2022 presidential campaign.

The latest charges come weeks after Ecopetrol’s board authorized Roa to take vacation leave followed by unpaid leave through June 28, 2026, after Colombia’s presidential elections conclude.

The decision means Roa would return to the company only to participate in the transition process with the team designated by Colombia’s next president, who will take office on August 7, 2026.

Read: Ecopetrol Announces Temporary Leave for President Ricardo Roa Amid Investigations by Colombia’s Attorney General’s Office” by Finance Colombia.

Under Articles 396A and 396B of Colombia’s Criminal Law, individuals found responsible for receiving, administering or allowing prohibited campaign funds may face prison sentences ranging from four to eight years, in addition to fines and disqualification from holding public office if convicted.

Roa, however, retains the presumption of innocence while the judicial process continues.

Investigation into campaign financing

The case stems from the 2022 “Petro Presidente” campaign, which Roa Barragán managed. The matter had already resulted in administrative sanctions from Colombia’s National Electoral Council (CNE), which concluded that the campaign exceeded legal financing limits.

The Attorney General’s Office also said it identified alleged inconsistencies in the campaign’s financial reporting, claiming that first-round expenses were reported during the second round and vice versa.

As a result of that administrative investigation, the CNE referred the case to the Attorney General’s Office, which is responsible for conducting criminal investigations.

According to a statement from prosecutors, collected evidence suggests that campaign spending limits “were exceeded by $1.388 billion COP (around $370,000 USD) during the first presidential round and by $276 million COP ($73,000 USD) during the runoff.”

Prosecutors said the allegedly unreported or improperly reported expenses were linked to “hotel press conferences, breakfasts, loans, transportation, logistics, food services, financing for campaign-closing events, advertising materials and union contributions.

The investigation formally began in 2025 after the CNE determined there were possible irregularities involving campaign spending caps.

Petro defends Roa

President Gustavo Petro again defended Roa and questioned the basis of the judicial investigation.

“The Attorney General’s Office is repeating the same thing as the compromised CNE: that expenses incurred after the legal campaign period ended, such as the costs parties incur for election monitors to protect votes (…) are campaign expenses. Their so-called overspending is not overspending,” Petro wrote on X.

The president argued that several of the questioned expenditures took place after election day, when, according to his interpretation, the campaign had already formally concluded.

Ecopetrol’s board has approved a temporary leave for Ricardo Roa, keeping him out of office until Colombia’s presidential elections wrap up at the end of June 2026

Ecopetrol’s board of directors has approved an unpaid leave of absence for its president, Ricardo Roa Barragán, amid ongoing judicial investigations and growing pressure from unions, minority shareholders and political sectors.

In an official statement, the company said Roa “requested to use his accrued vacation days from April 7 to May 27, 2026,” and that the board also approved an unpaid leave requested by himself, “beginning on May 28 and lasting 30 calendar days.” This means he will be away from his duties for a continuous period extending through the end of June, after Colombia’s presidential elections scheduled for May 31 and June 21, if a runoff is required.

The decision comes in a context marked by two investigations led by the Attorney General’s Office. The first relates to an alleged case of influence peddling involving the purchase of an apartment in northern Bogotá, for which Roa has already been formally charged, although he has pleaded not guilty. The second concerns a possible breach of campaign finance limits during President Gustavo Petro’s 2022 presidential campaign, which Roa managed.

Both cases remain under review by judicial authorities, who will assess the evidence and issue a ruling (Colombia’s Top Prosecutor Charges Ecopetrol President in Alleged Influence-Peddling Case).

Roa’s temporary departure also follows pressure from some of the company’s main labor unions (Strike Threat Looms as Colombia Oil and Gas Union Calls for Ecopetrol President’s Removal), as well as minority shareholders (Ecopetrol Shareholders Loudly Heckle CEO Ricardo Roa at Annual Meeting as Leadership Dispute & Corruption Scandal Roils The Petroleum Company), and opposition political groups.

If this timeline holds, his potential return will coincide with the post-election period, ahead of the transition process with the new government set to take office on August 7, which is expected to appoint a new board and select a new president for the state-controlled oil and gas company.

Acting president appointed

Juan Carlos Hurtado Parra, Acting President of Ecopetrol. Photo by of Ecopetrol.

During Roa’s absence, the board appointed Juan Carlos Hurtado Parra as acting president of Ecopetrol. According to the statement, Hurtado currently serves as executive vice president of hydrocarbons and has been the first alternate to the presidency since November 16, 2025.

He has “more than 28 years of experience in the energy sector, including roles as vice president of exploration, development, and production at Ecopetrol and has held executive positions focused on resource management and coordination. He is an electrical engineer, holds a specialization in Project Evaluation and Development, and has a Master of Business Administration (MBA) in International Oil and Gas.”

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) has entered into a formal payment agreement with the Government of Colombia to settle outstanding balances from the Fuel Price Stabilization Fund, known in Spanish as the Fondo de Estabilización de Precios de los Combustibles (FEPC). The agreement, reached through the Ministerio de Hacienda y Crédito Público and the Ministerio de Minas y Energía, addresses $1.6 trillion COP owed for the first quarter of 2025.

Under the terms of Resolutions 00368 and 00369 issued by the Dirección de Hidrocarburos, the total amount is divided between Ecopetrol S.A., which is owed $1.2 trillion COP, and Refinería de Cartagena S.A.S. (Reficar), which is owed $0.4 trillion COP. The repayment schedule began with a cash transfer of $2.89 billion COP on April 1, 2026. The remaining balance of approximately $1.55 trillion COP is scheduled to be paid on December 15, 2026, through the issuance of Treasury Securities, or Títulos de Tesorería (TES). The Colombian state has acknowledged the financial costs associated with the time elapsed until the final December payment.

“The Ecopetrol Group continues to work in close coordination with the Ministries of Finance and Public Credit and of Mines and Energy — the authorities responsible for fuel pricing policy — in the implementation of payment mechanisms and the reduction of FEPC balances.” — Ecopetrol S.A.

Concurrent with the subsidy settlement, Ecopetrol received authorization from the Ministerio de Hacienda y Crédito Público via Resolution 0666 to execute an external public debt management transaction totaling $1.25 billion USD. The five-year loan was secured through a consortium of international lenders including BBVA (BME: BBVA; NYSE: BBVA), Bank of America (NYSE: BAC), JP Morgan Chase (NYSE: JPM), and Bank of China (HKG: 3988). The credit facility carries a floating interest rate indexed to the Secured Overnight Financing Rate (SOFR) and will be repaid in four equal installments.

The proceeds from the $1.25 billion USD loan are designated for the repayment of existing obligations. Specifically, $1.2 billion USD will be used to settle a 2024 loan previously authorized for the acquisition of the state’s interest in Interconexión Eléctrica S.A. E.S.P. (ISA), while the remaining $50 million USD will be applied to an outstanding balance from a 2025 credit agreement. The loan agreement is governed by the laws of the State of New York and includes standard covenants regarding the borrower’s payment capacity and financial integrity.

These financial maneuvers are intended to optimize the maturity profile of the Ecopetrol Group, which remains responsible for over 60% of hydrocarbon production in Colombia. The company continues to operate integrated systems in transportation, refining, and petrochemicals, with additional international operations in the US Permian basin, the Gulf of Mexico, Brazil, and Mexico.

Governance concerns and profit drops dominate shareholder assembly.

The Ecopetrol (NYSE: EC, BVC: ECOPETROL) General Shareholders’ Meeting concluded at the Corferias convention center in Bogotá, marked by a decline in annual profits and an intensifying debate regarding the continuity of the company’s president, Ricardo Roa. During the assembly, shareholders approved a dividend of $121 COP per share for minority holders and a total payment of $4 trillion COP to the Colombian government, which serves as the majority shareholder. The government’s payout is scheduled for distribution in two installments, to be completed by June 30, 2026.

Click on above image to view shareholder meeting

The financial results for the 2025 fiscal year revealed a significant contraction in net income, which fell to $9 trillion COP from the $14.9 trillion COP reported in 2024. Roa attributed this decline primarily to the volatility of international crude prices. He noted that the average price of Brent crude dropped from $80 USD per barrel to $68 USD per barrel over the period. According to company data, every $1 USD drop in the price of Brent corresponds to a reduction of approximately $500 billion COP in net profit and $700 billion COP in EBITDA. Despite the lower earnings, the company maintained a production level of 745,000 barrels per day and achieved a reserve replacement rate of 121%, the highest in five years.

Governance issues remained the primary focus of the assembly. Minority shareholders expressed concern over the legal challenges facing Roa, who is currently under investigation by the Fiscalía General de la Nación for alleged influence peddling. Additionally, the Consejo Nacional Electoral (CNE) has raised accusations regarding the alleged violation of spending caps during the presidential campaign of Gustavo Petro, which Roa managed. Angela Maria Robledo, Chair of the Board of Directors, defended the decision to retain Roa, stating that the board has activated a evaluation protocol while respecting the constitutional principle of the presumption of innocence.

Shareholders Erupt In Anger At CEO Ricardo Roa:

Abuchean a Ricardo Roa en asamblea de Ecopetrol

“¡Fuera, fuera!”: Este es el momento del tenso abucheo de los accionistas al presidente de la empresa

Videos: Néstor Gómez pic.twitter.com/uyjh4chpl2

— EL TIEMPO (@ELTIEMPO) March 27, 2026

“Ecopetrol is listed on the New York Stock Exchange; we are governed by the strict regulations of US federal agencies. Agencies like OFAC and the SEC could intervene in the company and could even accelerate the payment of financial obligations, which would be extremely grave for Ecopetrol,” stated Martín Ravelo, President of the USO.

The Unión Sindical Obrera (USO), the primary labor union representing nearly one-third of the company’s workforce, has issued an ultimatum for Roa’s removal. Martin Ravelo, president of the USO, warned that the union will initiate a national strike and affect crude production if Roa is not aparted from his position by Monday, March 30. Ravelo expressed concern that Ecopetrol, which is subject to the regulations of the Securities and Exchange Commission (SEC) and the Office of Foreign Assets Control (OFAC), could face federal intervention. He highlighted that Ecopetrol’s current debt has reached $30 billion USD, exacerbated by rising interest rates, and warned that the company lacks the cash flow to respond to potential demands for early repayment of international obligations.

President Gustavo Petro responded to the union’s concerns via social media, stating that the executive branch will take measures to shield the company’s financial future. Petro emphasized the importance of maintaining investment during periods of high oil prices to prepare for future market downturns. He also criticized past administrations for failing to invest sufficiently in clean energy during previous price cycles. In contrast, Ravelo called for the board to maintain its independence from political influence, noting that four of the nine board members have already left formal records supporting Roa’s departure.

Ecopetrol also addressed the national gas supply, with Roa announcing that new regasification alternatives at Puerto Bahía and on the Pacific coast are expected to begin operations in the second half of 2026. These projects are intended to contribute between 186 and 430 Gbtud to the national grid. A third regasification facility in Coveñas is projected to start operations in 2029 with a capacity of 400 Gbtud. Despite these operational plans, the immediate focus of the international investment community remains fixed on the board’s upcoming meeting on Monday, where the leadership deadlock must be resolved to avoid a potential halt in national production.

Headline photo: Former Senator Jorge Robledo admonishes the Ecopetrol board of directors at the March 2026 shareholders’ meeting.

The petroleum workers called for Ricardo Roa’s head following formal influence-peddling charges filed by Colombia’s Attorney General’s Office.

One of Colombia’s principal petroleum worker’s unions, the Unión Sindical Obrera (USO), has formally requested that Ecopetrol’s board of directors remove Ricardo Roa Barragán as president of the state-controlled oil company, amid ongoing investigations against him by the Attorney General’s Office. The union warned that it will call a nationwide strike if the request is not addressed.

The request was made in a letter dated March 24, sent after a meeting between union representatives and the company’s board. In the document, the USO stated that, “understanding the feelings of the Colombian people as reflected by the thousands of Ecopetrol workers, we immediately request that, within the framework of due diligence, the board of directors adopt the necessary measures to remove Dr. Ricardo Roa Barragán from his position as president of Ecopetrol.”

The union added that, if the request is not met, “this union will call for nationwide mobilization in defense of the most important asset of the Colombian people.”

On the same day, March 24, Ecopetrol’s board issued a public response, reported by outlets such as Caracol Radio, stating that it had reviewed requests from employees, the union and some minority shareholders.

In its statement, the board said it is “aware of its responsibilities within the framework of due diligence” and has been assessing the risks to the company stemming from reports related to Roa. However, it confirmed that Roa will remain in his position while the evaluation process continues.

The union’s request follows charges filed by the Attorney General’s Office on March 11 against Roa for alleged influence peddling. According to prosecutors, Roa is accused of favoring a third party in the allocation of a project in exchange for a reduction in the price of an apartment he purchased in 2023.

More details on the case can be found in the article “Colombia’s Top Prosecutor Charges Ecopetrol President in Alleged Influence-Peddling Case,” published by Finance Colombia.

At this stage, although the information has been publicly reported, judicial decisions remain under the authority of the Attorney General’s Office, which is leading the proceedings.

Roa’s legal situation is also linked to another investigation involving alleged irregularities in the financing of the Pacto Histórico presidential campaign in 2022, which he managed and which resulted in Gustavo Petro’s election as president.

In February, the Attorney General’s Office said investigators found indications that the campaign may have exceeded legal spending limits. A similar case had already been reviewed by Colombia’s elections authority, the National Electoral Council, which fined those responsible more than $5 billion Colombian pesos (over $1.4 million USD).

Photo by Ecopetrol.

Sale to Parex shifts company focus to midstream assets and LNG.

Frontera Energy Corporation (TSX: FEC) announced a net loss from continuing operations of $663 million USD for the fourth quarter of 2025. This figure includes a non-cash impairment of $603 million USD related to the divestment of the company’s Colombian exploration and production (E&P) portfolio and a $17 million USD impairment regarding its Guyana interest. The company has scheduled a special meeting of shareholders for April 30, 2026, to vote on the divestiture of these assets to Parex Resources Inc. (TSX: PXT).

The definitive agreement for the divestiture establishes a firm value of approximately $750 million USD. The transaction includes up to $525 million USD in equity consideration. Following the completion of the sale, Frontera Energy Corporation intends to distribute approximately $470 million USD to shareholders, which equates to approximately CAD $9.18 per share. This distribution includes a $25 million USD contingent payment.

The divestment marks a strategic shift for the Calgary-based company as it transitions into an infrastructure-focused business model. The new structure is anchored by interests in the Oleoducto de los Llanos Orientales S.A. (ODL) pipeline and the Sociedad Portuaria Regional Puerto Bahía S.A. maritime terminal. For the full year of 2025, the infrastructure segment reported an adjusted EBITDA of $116.6 million USD and a distributable cash flow of $76.7 million USD.

“Frontera now enters its next phase as a more focused, cash-generative infrastructure company, well positioned to deliver durable returns.” — Gabriel de Alba, Chairman of the Board of Directors, Frontera Energy Corporation

A central component of this new strategy is the development of a potential liquefied natural gas (LNG) regasification project in partnership with Ecopetrol S.A. (NYSE: EC, BVC: ECOPETROL). Puerto Bahía has secured a take-or-pay agreement with Ecopetrol S.A., subject to certain conditions, for the project. The initiative is planned in two phases, starting with an initial capacity of approximately 126 million cubic feet per day (MMcfd), with projections to reach at least 300 MMcfd by 2029.

In terms of operational metrics for 2025, Frontera reported an average production of 39,011 barrels of oil equivalent per day (boed). The company recorded an operating EBITDA of $308 million USD for the year. Production costs averaged $9.23/boe, while energy costs were $5.49/boe and transportation costs reached $12.00/boe.

The year-end independent reserves assessment, conducted by DeGolyer and MacNaughton Corp, placed the company’s gross reserves at 94.4 million Boe for the 1P category and 133.8 million Boe for the 2P category. All of the company’s booked reserves as of December 31, 2025, are located within Colombia.

On the environmental and social front, the company reported that 70,162 tons of CO2 equivalent were absorbed through environmental compensation areas in 2025. Additionally, 35% of operational water was reused during the same period. The company also noted a total of $95.1 million USD in purchases from local goods and services suppliers.

Upon the anticipated closing of the arrangement in the second quarter of 2026, Frontera Energy will retain its midstream assets in Colombia and certain non-Colombian interests, including those in Guyana. The company expects to allocate $25 million USD from the sale proceeds to further fund its infrastructure business and strategic growth projects.

Ricardo Roa was appointed CEO of Ecopetrol after serving as Colombian President Gustavo Petro’s campaign manager. The Presidential campaign is also under investigation for campaign finance violations.

The controversy surrounding the filing of charges against Ricardo Roa Barragán, president of Colombia´s oil and energy company, Ecopetrol, has taken a new turn following the leak of an internal report suggesting that more than $42 million USD may have been transferred to a private company based in the British Virgin Islands.

According to disclosed information, “the media outlet 6AM W obtained documents showing the link between the USD 42 million payment made by Ecopetrol and a company connected to Serafino Iácono,” as stated by the outlet itself.

It is important to recall that on March 11, Colombia’s Attorney General’s Office (Fiscalía General de la Nación – FGN) formally charged Ricardo Roa Barragán with the alleged crime of influence peddling by a public official. According to the accusation, the executive allegedly intervened to favor a third party (Serafino Iácono) in the assignment of a gasification project in exchange for personal benefits. The FGN stated that Roa “ordered that a specific person be assigned to a gasification project in exchange for a reduction in the price of an apartment” located in northern Bogotá. During the hearing, the executive did not accept the charges.

Regarding the leaked documents, 6AM W reports that the published material “is a memorandum produced following a communication between the lawyers of Miller & Chevallier, hired by Ecopetrol, and Charles Cain, head of the Anti-Corruption Unit for Foreign Operators at the US Securities Exchange Commission (SEC).” This suggests that the document is an internal Ecopetrol report produced in 2024.

Additionally, the report includes references to an “audit commissioned by Ecopetrol to Control Risks, which identifies Iácono as a possible beneficiary of the alleged irregular payment of $42 million USD made through a purchase option” of power generation plants linked to the company Genser, associated with the businessman.

The leaked documents can be accessed through the Caracol Radio website via “Las contradicciones de Ecopetrol y Serafino Iácono en el caso del apartamento de Roa y Termomorichal.”

For his part, Serafino Iácono issued a statement, published by La República via the social network X, in which he affirms that since April 7, 2017, he has had no relationship with the company and that the transaction in question took place in 2023, after his departure.

At this stage, although the information has been reported by the media, judicial decisions remain under the authority of Colombia’s Attorney General’s Office, which is leading the proceedings against Ricardo Roa. Iacono said that he would be filing suit against Control Risks, and hired well-known Colombian lawyer Jaime Lombana Villalba to begin the process.

For further context, readers are encouraged to consult the article “Colombia’s Top Prosecutor Charges Ecopetrol President in Alleged Influence-peddling Case,” published by Finance Colombia.

Beyond the communications previously issued and reported by Finance Colombia in the aforementioned article, no new official statements have been released by Ecopetrol’s board of directors since March 12, prior to the information leak. Finance Colombia has reached out to Iacono for comment and will report any additional information.

The charge adds to a separate investigation over alleged violations of campaign finance limits during President Gustavo Petro’s 2022 presidential campaign

Colombia’s Attorney General’s Office (Fiscalía General de la Nación – FGN) charged the president of the country’s state-controlled oil and energy company Ecopetrol (NYSE: EC’, BVC: ECOPETROL), Ricardo Roa Barragán, with the alleged crime of influence peddling by a public official. The charge was formally presented on March 11 during a public hearing.

According to the prosecutors press release, Roa “ordered that a specific person be assigned to a gasification project in exchange for a reduction in the price of an apartment” located in northern Bogotá. The Attorney General’s Office said the alleged intervention was related to the executive’s interest in acquiring the property below market value.

During the hearing, a prosecutor from the Specialized Anti-Corruption Directorate formally presented the charge. However, Roa did not accept the accusation.

The newspaper El Colombiano explained that “the filing of charges is a formal act within the criminal process through which the person under investigation is officially notified of their link to a judicial case and the facts attributed to them. However, this step does not imply a conviction or a final decision and maintains the presumption of innocence that protects the executive.”

After the judicial decision became public, Ecopetrol’s Board of Directors said Roa will remain in his position as president of the company. In a public statement, the company’s highest governing body said it respects “Ricardo Roa’s presumption of innocence and his right to due process.” It also said it will continue acting according to the company’s established protocols for evaluating this type of situation.

Roa pled innocent to the influence trafficking charges.

Context: political, legal, and corporate challenges

Ecopetrol is currently facing several political and economic challenges. These include judicial and disciplinary proceedings involving its president, as well as questions about the company’s institutional and financial stability.

For example, the company’s 2025 annual report sparked public debate after reporting the highest reserve replacement ratio in the last four years (121%). According to the document, “300 million barrels of oil equivalent (BOE) were added, guaranteeing an average reserve life of 7.8 years.”

The report also said, “net proven reserves reached 1.944 billion barrels of oil equivalent.” However, private firms such as the independent investment bank BTG Pactual questioned those figures due to a change in the methodology used to calculate them.

Another point of debate has been the presidency of the Board of Directors, currently headed by Ángela María Robledo Gómez, a psychologist and former member of Colombia’s House of Representatives for Bogotá. Robledo was a member of the Partido Alianza Verde between 2010 and 2018 and later ran as vice presidential candidate alongside Gustavo Petro in the 2018 elections.

Roa’s legal situation is also linked to another investigation related to alleged irregularities in the financing of the Pacto Histórico presidential campaign in 2022, which he managed and which resulted in Petro becoming president.

In February, the Attorney General’s Office said investigators had found evidence suggesting that the campaign exceeded the legal spending limits. A similar case had already been examined by Colombia’s elections regulator Consejo Nacional Electoral, which fined those responsible more than $5 billion Colombian pesos (over $1.4 million USD).

For his part, Colombian President Gustavo Petro has publicly defended Roa. During a public event broadcast by media outlets such as Blue Radio, the president said the accusations are politically motivated. “We did not exceed spending limits; I have reviewed that accounting up and down,” he said. He also argued that the opening of criminal proceedings could be interpreted as an attempt to politically target his government.

Headline photo: Colombian President Gustavo petro (left) with former campaign manager and current Ecopetrol CEO Ricardo Roa (photo courtesy Ecopetrol).