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Ecopetrol Presents its Fourth Quarter and Full Year 2009 Results

BOGOTA, Feb. 15 /PRNewswire-FirstCall/ -- Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL; BVL: EC) announced today its non audited unconsolidated and consolidated financial results(3) for the fourth quarter and full year 2009 in Colombian pesos (COP$), prepared and filed in accordance with the Regimen de Contabilidad Publica (Regime of Public Accounting or RCP) of the National Accounting Office.

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-- Ecopetrol S.A. ("Ecopetrol" or the "Company") and its affiliated companies had gross proved reserves(1) of 1,878 MBOE and a reserves replacement rate of 359%(2).

-- Ecopetrol's group gross crude oil and natural gas production for 2009 increased by 17% from 447 KBPED to 520.6 KBPED. During the fourth quarter of 2009, production increased by 26.4%* from 455.7 KBPED to 575.9 KBPED.

-- Sales volumes in 2009 increased by 18.8% compared to 2008, and by 24%* in the fourth quarter of 2009.

-- Unconsolidated operating profit for 2009 was COP$8,083 billion for the full year 2009 and COP$2,706 billion during the fourth quarter.

-- Unconsolidated net profit was COP$5,256 billion, or COP$129.87 per share, for the full year 2009 and COP$1,691 billion during the fourth quarter.

-- Consolidated net profit was COP$5,132 billion for the full year 2009 and COP$1,721 billion during the fourth quarter.

* Results for the fourth quarter of 2009 as compared to results for the fourth quarter of 2008

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    Highlights of Ecopetrol's financial results

                              Unconsolidated              Unconsolidated
    (COP$ Billion)    4Q 2009    4Q 2008     %        2009      2008      %
    Total sales       8,505.7    6,135.9   38.6%  27,674.0  32,749.4   (15.5%)
    Operating profit  2,706.1      714.6  278.7%   8,083.5  12,883.3   (37.3%)
    Net Income        1,691.4    2,052.3  (17.6%)  5,256.2  11,630.7   (54.8%)
    Earnings per
     share (COP$)       41.79      50.71  (17.6%)   129.87    287.37   (54.8%)
    EBITDA            2,963.6    1,150.9  157.5%  10,438.0  14,758.9   (29.3%)
    EBITDA Margin         35%        19%               38%       45%

    (COP$ Billion)               2009       2008      %
    Total sales              30,404.4   33,896.7   (10.3%)
    Operating profit          7,873.3   12,657.4   (37.8%)
    Net Income                5,132.1   11,629.7   (55.9%)
    Earnings per
     share (COP$)
    EBITDA                   11,429.9   14,571.4   (21.6%)
    EBITDA Margin                 38%        43%

Javier Gutierrez, Chief Executive Officer of Ecopetrol, said, "I am very pleased with 2009's results. We ended the year with great achievements in the execution of our growth strategy: we strengthened our balance of reserves, ending the year with 1,878 mm BOE, a 35.5% increase when compared to 2008, we increased the Group's production by 17%, made advances in the development of key projects, including the expansion of our heavy crude transportation capacity and the fuel hydro-treatment project and started to deliver cleaner diesel, which shows our commitment to improving the quality of air and the environment."

Gutierrez added, "Our Group grew with the acquisition of four companies, the expansion of our international activity with 25 new exploration blocks outside Colombia, and our commercial operation was strengthened with the increase of crude and product exports to Europe, Africa and Asia.

"Additionally, the strength of our financial results allowed us to raise COP$ 5.4 trillion in the Colombian and international markets in order to finance our capex investments. Our company continues to have strong cash flow generation, as well as a solid capital structure. These strengths were one of the elements considered by Moody's when rating our international bonds as investment grade."

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(1) References to gross reserves and gross production include royalties.

(2) Reserves calculated according to the methodology set forth by the U.S. Securities and Exchange Commission.

(3) Under the RCP, companies are only required to consolidate their financial statements at the end of each fiscal year. Therefore, the interim consolidated figures presented in this report do not constitute a formal consolidation of the financial statements, neither of Ecopetrol nor of its subsidiaries, in such quarters, but are adjusted in accordance with the methodology defined for such purpose.

Ecopetrol is Colombia's largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides Colombia, where it accounts for 60% of total production, the Company is involved in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol has the principal refinery in Colombia, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.

This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.

    Contact us for any additional information:
    Investor Relations
    Alejandro Giraldo
    Phone: +571-234-5190

    Media Relations
    Mauricio Tellez
    Phone: + 571-234-5377
    Fax: +571-234-4480


SOURCE Ecopetrol S.A.

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