Ecopetrol completes $1.2 billion Brava control deal

• Ecopetrol completed its acquisition of approximately 51% of Brava Energia’s voting capital for about $1.2 billion.
• Ecopetrol shares last closed up 2.9% at $17.67 on August 17.
• Ecopetrol said Brava adds approximately 459 mmboe of 1P reserves, 605 mmboe of 2P reserves and 78.8 kboed of first-half production.

Ecopetrol (NYSE:EC) completed its approximately $1.2 billion acquisition of a controlling 51% stake in Brava Energia, expanding its oil and gas operations in Brazil.

The stake combines 116,110,717 shares acquired through a B3 tender offer with 120,813,490 shares purchased under an April 23 agreement, representing approximately 25% and 26%, respectively.

Ecopetrol said Brava contributes approximately 459 mmboe of proved reserves, 605 mmboe of proved-plus-probable reserves and average first-half production of 78.8 kboed.

Brava reported unaudited trailing-12-month revenue of $2.341 billion, EBITDA of $1.050 billion and net income of $122.2 million through June 30.

Ecopetrol plans an August 25 transaction call.

The $1.2 billion purchase was funded through an intercompany loan from Ecopetrol Capital AG after the tender auction was completed on August 5.

Ecopetrol previously said the Brava acquisition would broaden its Brazilian production and reserves portfolio, with Brava remaining publicly listed after Ecopetrol takes control.