Ecopetrol (EC) Provides a Glimpse of Its 2022 Capital Budget

Ecopetrol SA EC has provided a glimpse of its capital spending plan for 2022.

EC announced approvals from the board of directors for investing $4.8 billion to $5.8 billion next year. Ecopetrol has laid out the organic capital spending program with the anticipation that the average Brent price will be $63 per barrel for next year.

Of the total budget, Ecopetrol is planning a 70% allocation toward projects in Colombia. The remaining 30% will get invested in the United States, Brazil, Peru and Chile.

Ecopetrol added that with the investment in upstream operations, organic production for 2022 is projected in the range of 700 to 705 thousand barrels of oil equivalent per day. EC said that oil will comprise 81% of the total production volume. Along with an intention to drill 24 exploratory wells next year, Ecopetrol also laid out a plan to drill around 1,800 development wells between 2022 and 2024.

To draw a clearer picture, Ecopetrol said that roughly 63% of the capital budget will get allocated for exploration and production activities. Almost 20% of the budget will be spent on Interconexion Electrica SA (ISA) projects at both national and international levels. Ecopetrol added that it plans to invest the remaining 17% of the budget in midstream, downstream, commercialization, and corporate projects.

Thus, banking on historic results this year, Ecopetrol expects the next year's capital spending program to help it maintain its growth trajectory while generating significant value for shareholders.

Ecopetrol S.A. Price

Ecopetrol S.A. Price

Ecopetrol S.A. price | Ecopetrol S.A. Quote

Currently, EC carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Devon Energy Corporation DVN. While Continental Resources carries a Zacks Rank #2 (Buy), Whiting Petroleum and Devon Energy sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil price improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 155% year to date, outpacing the 99.5% rise of the composite stocks belonging to the industry.

Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.

Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Considering the price chart, CLR has gained 163.6% so far this year, outpacing the 99.4% improvement of the composite stocks belonging to the industry.

Devon Energy is also a leading exploration and production company with a strong presence in the prolific Delaware basin. It has a strong focus on returning capital to stockholders. Devon Energy recently announced approvals from the board of directors to hike fixed-plus-variable dividend payout, based on its third-quarter financial performance, by 71%.

Devon Energy has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, DVN has gained 155.2% year to date, outpacing the 99.4% improvement of the composite stocks belonging to the industry.

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