Ecopetrol’s 2021 Earnings Distribution Proposal

(Ecopetrol, 1.Mar.2022) — Ecopetrol S.A. (BVC: ECOPETROL;NYSE: EC) hereby informs of the company’s 2021 earnings distribution proposal, approved by the Board of Directors of Ecopetrol, which will be submitted for the consideration of the General Shareholders’ Meeting that will take place on 30 March 2022:

1 A 60% dividend payout ratio established in the policy was applied to net income, resulting in a dividend per share with decimals, which was rounded to the nearest number in COP/share resulting in a payout not surpassing 60%. The payout percentage shown is rounded to the first decimal place.

2 A 9% extraordinary dividend was applied to net income, resulting in a dividend per share with decimals, which was rounded to the nearest number in COP/share. The payout percentage shown is rounded to the first decimal place.

The earnings distribution proposal, consistent with the company’s current dividend policy, proposes an ordinary dividend distribution of 59.8%3 of Ecopetrol’s Net Income in 2021, equivalent to COP $243 per share.

Additionally, the Board of Directors of the company, taking into consideration the solid financial performance of all Ecopetrol´s segments, the price outlook for Brent for 2022, and its stability, is also proposing an extraordinary dividend of 9.1%3 of Ecopetrol’s Net Income in 2021, equivalent to COP $37 per share, for a cumulative total dividend of COP $280 per share. The total dividend payment is aligned with the targets set in the 2022-2024 Business Plan announced to the market by Ecopetrol on 8 February 2022.

Likewise, the Board of Directors proposes the allocation of COP $8,889,900,168,629 to an occasional reserve to support the company’s financial sustainability and flexibility in the execution of its strategy. 

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