Ecopetrol (EC) 6-K Current report (foreign)

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

July 2012

Commission File Number: 333-153452

ECOPETROL S.A.

(Exact name of registrant as specified in its Charter)

Carrera 7 No. 37 – 69

BOGOTA – COLOMBIA

(Address of registrant’s principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes        o No x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes        o No x

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes        o No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  82-   N/A  

Ecopetrol Announces Its Results for the Second Quarter and First Half of 2012

· The consolidated average production (Ecopetrol S.A. plus interests in affiliates and subsidiaries) in the second quarter of 2012 increased by 4.8% compared to the second quarter of 2011.

· Revenues, operating income, EBITDA¹and net income of Ecopetrol S.A. in the second quarter of 2012 increased by 6.7%, 7.0%, 2.6% and 7.6%, respectively, compared to the second quarter of 2011.

· Ecopetrol S.A.’s net income for the second quarter was COP$3,675.3 billion, equivalent to COP$89.39 per share.

· Revenues, operating income, EBITDA¹and net income of Ecopetrol S.A. in the first semester of 2012 increased by 15.0%, 17.3%, 13.2% and 17.6%, respectively, compared to the first semester of 2011.

BOGOTA, July 24, 2012. Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) announced today its unaudited financial results, both consolidated and unconsolidated, for the second quarter and first half of 2012, prepared and filed in Colombian pesos (COP$) in accordance with the Public Accountancy Legal Framework (Régimen de Contabilidad Pública - RCP) of Colombia’s General Accounting Office.

Some figures in this report are presented in U.S. dollars (US$) where indicated. The tables shown in the body of the report have been rounded to one digit. Figures presented in COP$ billion are equivalent to COP$ one thousand million.

Ecopetrol S.A. Financial Results Highlights

Unconsolidated
(COP$ Billion)	2Q 2012 *			2Q 2011 *			Var. %			1H 2012*			1H 2011*			Var. %
Total sales		14,796.0			13,868.4			6.7	%		30,241.5			26,304.7			15.0	%
Operating profit		6,001.1			5,609.2			7.0	%		12,905.6			10,999.9			17.3	%
Net Income		3,675.3			3,414.3			7.6	%		8,018.7			6,818.9			17.6	%
Earnings per share (COP$)		89.39			84.36			6.0	%		195.02			168.48			15.8	%
EBITDA		7,056.6			6,880.9			2.6	%		15,175.9			13,407.1			13.2	%
EBITDA Margin		48	%		50	%					50	%		51	%

Consolidated
(COP$ Billion)	2Q 2012 *			2Q 2011 *			Var. %			1H 2012*			1H 2011*			Var. %
Total sales		16,509.2			16,264.8			1.5	%		34,537.2			30,689.5			12.5	%
Operating profit		6,185.0			6,059.8			2.1	%		13,699.2			11,756.8			16.5	%
Net Income		3,657.1			3,751.4			(2.5	)%		7,931.2			6,861.6			15.6	%
EBITDA		7,456.3			7,617.5			(2.1	)%		16,235.5			14,525.1			11.8	%
EBITDA Margin		45	%		47	%					47	%		47	%

* Not audited, for illustration purposes only

¹Earnings before taxes, interest, depreciation and amortizations

1

Ecopetrol S.A.’s CEO, Javier Gutiérrez stated:

“In the second quarter of 2012, Ecopetrol S.A., including its subsidiaries and affiliates, achieved key milestones in its strategic goals despite certain operational restrictions and lower international hydrocarbon prices. With specific reference to this quarter, I highlight the following results:

First, the growth in sales, net income and EBITDA compared to the second quarter of 2011. These results are the product of strong operations that helped sustain growth in volumes produced and sold. Production growth was complemented by some effective cost control initiatives that allowed net margins and EBITDA to remain almost unchanged despite the drop in sales prices of crude and products in the past twelve months.

The second major milestone is the continued improvement in Health, Safety and Environment (HSE), as a result of permanent quality and safety initiatives throughout our operations.

Finally, the third major milestone is the incorporation of Cenit S.A.S., a wholly owned subsidiary specialized in hydrocarbon transport and logistics in Colombia, that will allow the country to expand and strengthen its network of oil and product lines as well as storage facilities, meeting the challenge of rising production of the oil and gas companies operating in our country, including Ecopetrol.

In summary, during this second quarter, Ecopetrol, its subsidiaries and affiliates, maintained the growing trend of its operations despite some difficulties in the business environment, both locally and internationally. This is a clear evidence of the decision and effort of our companies to achieve the goals set in our strategic plan.”

2

Ecopetrol Announces Its Results for the Second Quarter and First Half of 2012

Table of contents

I. Financial and operating results		4
a.	Availability of crude and products	4
b.	Ecopetrol S.A. sales volume	5
c.	Crude and product prices	7
d.	Financial results	7
e.	Ecopetrol S.A.’s cash flow *	9
f.	Ecopetrol S.A. segment results	9
g.	Ecopetrol S.A. balance sheet	11
II. Business aspects		12
a.	Investment plan	12
b.	Exploration	12
c.	Production	14
d.	Refining	16
e.	Transportation	17
f.	Biofuels	19
III. Organizational Consolidation, Social Corporate Responsibility and Corporate Government		20
a.	Organizational consolidation	20
b.	Corporate Responsibility	20
IV. Consolidated financial results2		21
V.  Conference calls		23
VI. Exhibits		25
VII. Subsidiaries results		31

3

I. Financial and operating results

a. Availability of crude and products

The availability of Ecopetrol S.A.’s crude oil and products is summarized in the following exhibit:

Ecopetrol S.A. (unconsolidated)

Gross oil and gas production

(MBOED)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		597.5		577.7		3.4	%		588.4		557.4		5.6	%
Natural Gas		111.9		96.7		15.7	%		110.3		97.7		12.9	%
Total		709.4		674.4		5.2	%		698.7		655.1		6.7	%

(-) Royalties
(MBOED)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		90.0		88.6		1.6	%		87.7		85.7		2.3	%
Natural Gas		21.7		20.5		5.9	%		21.5		20.6		4.4	%
Total		111.7		109.1		2.4	%		109.2		106.3		2.7	%

(=) Net oil and gas production
(MBOED)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crudo		507.5		489.1		3.8	%		500.7		471.7		6.1	%
Gas natural		90.2		76.2		18.4	%		88.8		77.1		15.2	%
Total		597.7		565.3		5.7	%		589.5		548.8		7.4	%

Local Purchase volume (MBOED)*	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		196.5		192.0		2.3	%		196.5		181.8		8.1	%
Products		14.0		5.6		150.0	%		10.4		6.3		65.1	%
Natural Gas		27.1		37.2		(27.2	)%		27.5		36.3		(24.2	)%
Total		237.6		234.8		1.2	%		234.4		224.4		4.5	%

Imports volume (MBD)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Products		99.3		72.1		37.7	%		98.0		71.2		37.6	%

* Purchase volume includes royalties from Ecopetrol and other companies

The following were the highlights of the second quarter of the year:

· Higher purchases of: 1) crude oil diluent and naphtha for transporting heavy crudes, 2) jet and diesel for recovering inventories and meeting increased national demand due to lower production at the Barrancabermeja Refinery during turnaround schedules in the months of January and April.

· Lower purchases of gas given that, starting in January 2012, other gas producers were authorized to sign commercialization agreements to sell royalties (Decree 2100 of 2011).

4

b. Ecopetrol S.A. sales volume

The following exhibit summarizes sales volumes:

Ecopetrol S.A. (unconsolidated)

Sales volume

Local sales volume (MBOED)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		10.3		4.2		145.2	%		9.3		3.2		190.6	%
Natural Gas		63.6		68.3		(6.9	)%		60.5		70.4		(14.1	)%
Gasoline		69.7		63.0		10.6	%		68.0		65.8		3.3	%
Medium Distillates		113.1		108.8		4.0	%		110.6		107.1		3.3	%
LPG and Propane		15.6		14.8		5.4	%		15.9		15.9		0.0	%
Fuel Oil		1.6		0.5		220.0	%		1.9		0.6		216.7	%
Industrial and Petrochemical		12.9		16.1		(19.9	)%		13.8		16.4		(15.9	)%
Total Local Sales		286.8		275.7		4.0	%		280.0		279.4		0.2	%

Export sales volume (MBOED)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		456.1		385.1		18.4	%		448.8		385.4		16.5	%
Products		51.9		60.1		(13.6	)%		52.8		55.8		(5.4	)%
Natural Gas		26.7		24.0		11.3	%		27.9		22.5		24.0	%
Total Export Sales		534.7		469.2		14.0	%		529.5		463.7		14.2	%

Sales to free trade zone (MBOED)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		71.6		76.0		(5.8	)%		70.1		77.2		(9.2	)%
Products		3.3		2.3		43.5	%		3.1		2.4		29.2	%
Natural Gas		6.2		2.4		158.3	%		4.1		2.4		70.8	%
Total sales to free trade zone		81.1		80.7		0.5	%		77.3		82.0		(5.7	)%
Total sales volume		902.6		825.6		9.3	%		886.8		825.1		7.5	%

International market (59% of the second quarter of 2012 sales, 68% including sales to Free Trade Zone: Reficar S.A. and Celsia.):

The increase in volume exported by Ecopetrol was primarily the result of:

· Crude: greater volume available and exported of Vasconia and Magdalena crude.

· Natural gas:

o Higher sales to PDVSA.

o Higher availability of volumes for sale due to lower requirements from the Caribbean Coast thermal sector.

o Increases in Free Zone sales due to the conversion of the Celsia thermal plant into a Free Trade Zone in April 2012 (for accounting purposes in 2011, the plant fell under local sales).

o Greater purchases from Reficar due to turnaround schedules at the Cartagena Refinery cracking unit which decreased the internal gas production.

5

The following is a summary of the main destinations of crude and product exports (not including natural gas). Among the most important trends were the increase in crude sales to the United States and Europe, and the increase in product sales to the Caribbean and the Far East.

Export destinations: Crudes
Destination	2Q12			2Q11			1H12			1H11
U.S. Gulf Coast		51.8	%		44.7	%		50.0	%		47.1	%
Far East		20.0	%		24.1	%		20.6	%		27.2	%
Caribbean		4.1	%		7.0	%		2.5	%		2.8	%
U.S. West Coast		8.2	%		11.4	%		10.2	%		11.5	%
South America		4.4	%		9.6	%		5.2	%		6.8	%
Europe		7.2	%		1.4	%		7.2	%		2.2	%
Central America		1.9	%		1.8	%		1.0	%		1.7	%
Canada		1.3	%		0.0	%		0.6	%		0.7	%
U.S. Atlantic Coast		1.1	%		0.0	%		2.7	%		0.0	%
		100.0	%		100.0	%		100.0	%		100.0	%

Export destinations: Products
Destination	2Q12			2Q11			1H12			1H11
U.S. Gulf Coast		11.2	%		32.3	%		21.4	%		35.9	%
Caribbean		39.9	%		20.2	%		40.5	%		36.2	%
U.S. Atlantic Coast		6.7	%		7.5	%		8.6	%		17.1	%
South America		0.0	%		0.0	%		0.0	%		2.0	%
Central America		1.2	%		1.2	%		1.0	%		1.9	%
Far East		41.0	%		32.5	%		28.4	%		3.5	%
Europe		0.0	%		6.3	%		0.0	%		3.4	%
U.S. West Coast		0.0	%		0.0	%		0.1	%		0.0	%
		100.0	%		100.0	%		100.0	%		100.0	%

Market in Colombia (41% of sales in the second quarter of 2012, 32% excluding sales to Free Trade Zone: Reficar S.A. and Celsia):

The increase in local sales volume in the second quarter of 2012 was primarily the net result of:

1) Higher sales volumes of the following products:

· Crude oil: higher demand in the marine fuel market.

· Gasoline: higher demand and client inventory recovery during the months of May and June of 2012.

· Medium distillates: increase of jet fuel and diesel sales due to a greater demand driven by Colombia’s economic growth (mainly mining and air travel).

· Fuel oil: higher volumes produced and available for sale.

2) Lower sales volumes of the following products:

· Natural gas: Ecopetrol is no longer selling royalties from fields of other producers.

· Petrochemicals and industrial products: lower production of: 1) polyethylene as a result of the reduced supply of ethylene (raw material) due to turnaround schedules at the cracking units; 2) aromatics, due to turnaround schedules at the process units; and 3) IFO’s for marine fuels due to the priority of crude dilution.

6

c. Crude and product prices

Prices	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
WTI (average) (US$/Bl)		93.5		102.5		(8.8	)%		98.2		98.4		(0.2	)%
Brent (average) (US$/Bl)		108.9		117.1		(7.0	)%		113.6		111.2		2.2	%
Export crude oil basket (US$/Bl)		100.7		104.2		(3.4	)%		106.2		96.7		9.8	%
Crudes sold to free trade zone* (US$/Bl)		105.0		111.3		(5.7	)%		110.0		102.7		7.1	%
Export products basket (US$/Bl)		96.8		99.6		(2.8	)%		101.7		94.5		7.6	%
Products sold to free trade zone* (US$/Bl)		75.2		123.4		(39.1	)%		80.6		115.1		(30.0	)%
Natural gas basket (US$/MMBTU)		5.8		4.3		34.9	%		5.8		4.2		38.1	%
Gas sold to free trade zone* (US$/MMBTU)		5.6		4.2		33.3	%		5.6		4.2		33.3	%

* Free trade zone = Reficar S.A.

Crude Oil:

During the second quarter of the year, the price of the export basket decreased in line with the fall of the international crude benchmarks for Colombia.

During the second quarter of the year, the export basket of crudes was indexed to Brent (77%), Maya (21%) and Platts No. 6 of 3% USGC (2%).

Products:

Product sales prices to Free Trade Zones decreased as a result of the lower propylene price index, which was caused by a decline in world demand for derivatives of this product.

d. Financial results

Unconsolidated Income Statement
(COP$ Billion)	2Q 2012 *			2Q 2011 *			∆ (%)			1H 2012*			1H 2011*			∆ (%)
Local Sales		4,630.1			4,459.4			3.8	%		9,226.9			8,586.0			7.5	%
Export Sales		8,463.5			7,617.6			11.1	%		17,595.7			14,274.9			23.3	%
Sales to free trade zone		1,295.3			1,440.5			(10.1	)%		2,643.0			2,743.0			(3.6	)%
Sales of services		407.1			350.9			16.0	%		775.9			700.8			10.7	%
Total Sales		14,796.0			13,868.4			6.7	%		30,241.5			26,304.7			15.0	%
Variable Costs		6,517.2			6,190.9			5.3	%		12,953.5			11,164.6			16.0	%
Fixed Costs		1,790.7			1,619.5			10.6	%		3,321.1			2,897.3			14.6	%
Cost of Sales		8,307.9			7,810.4			6.4	%		16,274.6			14,061.9			15.7	%
Gross profit		6,488.1			6,058.0			7.1	%		13,966.9			12,242.8			14.1	%
Operating Expenses		487.0			448.8			8.5	%		1,061.3			1,242.9			(14.6	)%
Operating Profit		6,001.1			5,609.2			7.0	%		12,905.6			10,999.9			17.3	%
Non Operating Loss		(470.0	)		(629.1	)		(25.3	)%		(960.0	)		(927.6	)		3.5	%
Income tax		1,855.8			1,565.8			18.5	%		3,926.9			3,253.4			20.7	%
Net Income		3,675.3			3,414.3			7.6	%		8,018.7			6,818.9			17.6	%
Earnings per share (COP$)		89.4			84.4			6.0	%		195.0			168.5			15.8	%
EBITDA		7,056.6			6,880.9			2.6	%		15,175.9			13,407.1			13.2	%
EBITDA Margin		48	%		50	%					50	%		51	%

* Not audited, for illustration purposes only

7

Operating revenuefor the second quarter of 2012 increased 6.7% compared to the same period in 2011, due primarily to a 14.0 % growth in export volumes (not including Free Trade Zones) and a 4.0% increase in local sales volumes. Higher volumes helped offset the drop in prices of the export crude and the product basket during the second quarter of 2012, when compared to the same period of 2011.

Sales to Free Trade Zones fell in the second quarter of 2012, from lower deliveries of Caño Limón crude. .

Cost of sales in the second quarter of 2012 increased by 6.4% compared to the same quarter of 2011, owing mainly to a 10.6% in fixed costs compared to the same quarter of 2011. This rise infixed costs, was due primarily to greater operating activity reflected in the higher use of contracted services, both in direct operations as well as through partnership contracts, higher labor costs and infrastructure maintenance.

Variable costs rose by 5.3% given the increase in imported volumes, primarily diluent naphtha for transporting heavy crude, as well as low sulfur diesel at higher reference prices, off set by higher capitalized cost of inventories. The cost of transportation services also rose due to higher exported volumes.

In the second quarter of 2012,operating expenses rose 8.5% compared to the same period in 2011. The increase was primarily the result of the agreements with military forces for protection of transport systems and production infrastructure.

Theoperating margin for the second quarter of 2012 was 40.56% compared to 40.45% in the second quarter of 2011.

The lower non-operatinglossin the second quarter of 2012 is explained by a lower exchange rate difference loss and lower hedging expenses (during the second quarter of 2012 there were no operating hedges outstanding). The lower expenses offset the higher provision expenditure mainly from by the lower return of the portfolios that fund the company’s pension liability.

The increase in theincome tax provisionin 2012, compared to the second quarter of 2011, was mainly the result of an increase in pre-tax earnings.

The effect of better prices, higher production and the effectiveness of certain cost-control initiatives were the drivers of the 7.6% increase in Ecopetrol’snet income, compared to the second quarter of 2011.

EBITDA in the second quarter of 2012 was COP$7,057 billion, equivalent to anEBITDA margin of 48%.

8

e. Ecopetrol S.A.’s cash flow *

COP$ Billion	2Q 2012			2Q 2011			1H 2012			1H 2011
Initial Cash		17,402.9			8,504.2			9,238.0			5,479.4
Cash generated from operations (+)		14,832.5			13,609.5			31,346.8			24,734.1
Cash used in operations (-)		(16,291.2	)		(10,397.9	)		(23,499.0	)		(16,331.3	)
Capex (-)		(2,195.4	)		(1,946.7	)		(3,534.2	)		(3,503.1	)
Acquisitions (-)		-			-			-			(768.9	)
Dividend payments (-)		(4,919.3	)		(1,983.1	)		(4,919.3	)		(1,983.1	)
Equity offering (+)		45.8			-			166.8			-
New debt (+)		-			-			-			-
Other inflows (+/-)		312.7			406.5			916.6			585.5
Fx differences (+)		84.4			(275.8	)		(443.3	)		(295.9	)
Final Cash		9,272.4			7,916.7			9,272.4			7,916.7

*For report purposes, balances in dollars are converted monthly to pesos at the average exchange rate. The initial cash position for each quarter is calculated based on the average rate for the first month and the final position is calculated based on the average rate for the last month of the respective quarter.

As of June 30, 2012, Ecopetrol had COP$9,272 billion in cash and portfolio investments.

f. Ecopetrol S.A. segment results

COP$ Billion	E&P						Refining & Petrochem.						Transportation						Sales and Marketing
	2Q-12			2Q-11			2Q-12			2Q-11			2Q-12			2Q-11			2Q-12			2Q-11
Domestic Sales		3,674.9			3,902.4			4,265.5			4,213.6			621.5			573.9			253.4			338.0
International Sales		5,763.0			4,896.8			753.9			966.9			-			-			3,242.1			3,194.4
Total Sales		9,437.9			8,799.2			5,019.4			5,180.5			621.5			573.9			3,495.5			3,532.4
Operating Income/Loss		5,674.4			5,299.3			126.4			(59.1	)		124.5			149.9			76.0			107.0
Operating Margin		60.1	%		60.2	%		2.5	%		(1.1	)%		20.0	%		26.1	%		2.2	%		3.0	%
Net Income/Loss		3,773.1			3,404.1			(201.8	)		(105.0	)		99.2			152.2			5.0			(37.0	)
Net Margin		40.0	%		38.7	%		(4.0	)%		(2.0	)%		16.0	%		26.5	%		0.1	%		(1.0	)%
EBITDA		6,503.5			6,488.5			252.3			54.8			219.4			228.9			81.4			108.6
Ebitda Margin		68.9	%		73.7	%		5.0	%		1.1	%		35.3	%		39.9	%		2.3	%		3.1	%

COP$ Billion	E&P						Refining & Petrochem.						Transportation						Sales and Marketing
	1H 2012			1H 2011			1H 2012			1H 2011			1H 2012			1H 2011			1H 2012			1H 2011
Domestic Sales		7,565.3			7,292.7			8,554.6			8,042.9			1,258.6			1,106.6			551.2			607.3
International Sales		11,907.7			9,592.4			1,665.6			1,740.0			-			-			6,665.5			5,685.6
Total Sales		19,473.0			16,885.1			10,220.1			9,782.9			1,258.6			1,106.6			7,216.7			6,292.9
Operating Income/Loss		12,362.4			10,088.3			(38.1	)		142.0			396.2			381.1			184.8			299.6
Operating Margin		63.5	%		59.7	%		(0.4	)%		1.5	%		31.5	%		34.4	%		2.6	%		4.8	%
Net Income/Loss		8,143.6			6,636.3			(358.1	)		(152.2	)		186.9			262.5			46.2			72.4
Net Margin		41.8	%		39.3	%		(3.5	)%		(1.6	)%		14.8	%		23.7	%		0.6	%		1.1	%
EBITDA		14,197.0			12,197.4			209.4			370.3			576.9			536.6			192.6			302.8
Ebitda Margin		72.9	%		72.2	%		2.0	%		3.8	%		45.8	%		48.5	%		2.7	%		4.8	%

Note: The report by segment is based on transfer prices between business units, using as reference export parity prices. In line with the change in methodology, in 2011 a reclassification took place for the transportation segment, by which transportation services from third parties were allocated directly to the corresponding segment and were not booked as revenue for the transportation segment. Other figures of 2011 were also reclassified for report purposes.

9

Exploration and production:

Despite the lower sales prices achieved in the second quarter of 2012, the segment recorded higher net income and EBITDA due to greater volumes sold.

Refining:

The segment reported positive operating results inthesecond quarter of 2012dueto improved refining margins and greater reliability in refining throughput, raising the return from valuable products. The non-operating result was negative in the second quarter because of the loss obtained by the Cartagena Refinery and fluctuation in the COP/USD exchange rate.

Transportation:

In the second quarter of 2012 transported crude volumes fell mainly because of the limited availability of the Caño Limón-Coveñas and Trasandino transportation systems. Despite the limited availability of oil pipelines, revenues rose due to a higher volume of refined products transported and higher fees. The operating result decreased due to the increase in the cost of maintenance, projects and depreciation. Non-operating expenses were affected by the recording of the total cost of the equity tax.

Sales and Marketing:

The segment’s operating results in the second quarter of 2012 decreased compared to the same period last year given the reduction in income generated because of lower sales prices, and the higher costs of transportation of crude and diluents from third parties using tanker trucks. Despite this situation, the segment generated a positive net result compared to a net loss in the second quarter of 2011, which was attributed to the greater impact of the revaluation of the Colombian peso vs. the U.S. dollar in 2011 (revaluation of 0.42% in second quarter of 2012 compared to 5.28% in the same quarter of 2011), and to the hedging operations in 2011.

Equity Method: Net income per segment
(COP$ billion)
	2Q 2012			2Q 2011		1H 2012			1H 2011
Exploration and Production		63.80			69.00		353.93			349.59
Refining		(158.80	)		7.00		(39.67	)		17.54
Transportation		31.60			1.90		49.02			22.58
Corporate		30.00			24.20		47.33			49.12
Total		(33.40	)		102.10		410.62			438.84

10

g. Ecopetrol S.A. balance sheet

Unconsolidated Balance Sheet
(COP$ Billion)	June 30, 2012		March 31, 2012		∆ (%)
Current Assets		15,534.2		20,765.4		(25.2	)%
Long Term Assets		71,172.6		72,432.2		(1.7	)%
Total Assets		86,706.8		93,197.6		(7.0	)%
Current Liabilities		20,028.7		29,543.9		(32.2	)%
Long Term Liabilities		16,207.7		16,587.4		(2.3	)%
Total Liabilities		36,236.4		46,131.3		(21.4	)%
Equity		50,470.4		47,066.3		7.2	%
Total Liabilities and Shareholders´ Equity		86,706.8		93,197.6		(7.0	)%
Debit Memorandum accounts		127,360.7		121,666.8
Credit Memorandum accounts		111,986.0		101,153.8

The mainvariationsinassetswas due to the reduction in cash and cash equivalents and investments associated with cash used for: 1) payment of COP$4,919 billion in dividends, 2) payment of the second and third income tax installment of COP$ 7,282 billion in the months of April and June, which include a tax prepayment for 2012 of COP$3,064 billion, and 3) payment of surcharge and net worth tax of COP$238 billion.

As of the close of June 2012,liabilities decreased 21.4% in comparison with March of 2012, mainly due to1)the payment of dividends and, 2) an increase in the tax obligation provision (income tax) for 2011 as well as the first installment for 2012 on the surcharge, and 3) net worth tax in the amount of COP$238 billion.

Financial obligations accounted for 15.7% of total liabilities and include: 1) credit facility with Colombian banks with an outstanding balance of COP$1,822 billion; 2) US$1,500 million bond issue; 3) internal public debt bonds for COP$1,000 billion; 4) Gibraltar Gas Plant contract (BOMT) with a balance of COP$61.7 billion.

The variation of 7.2%inEquity is explained mainly by the net income of the second quarter.

11

II. Business aspects

a. Investment plan

Investments made by Ecopetrol:

Capex (US$ million)
Business Segment	1H 2012		Allocation by segment			1H 2011		Δ (%)
Exploration		126.9		5	%		402.7		-68	%
Production		1,479.4		63	%		1,530.4		-3	%
Refining and Petrochemicals		165.3		7	%		134.9		23	%
Transportation		304.1		13	%		347.4		-12	%
Subsidiaries		226.2		10	%		531.7		-57	%
Acquisitions		0.3		0	%		433.0		-100	%
Corporate		28.6		1	%		37.8		-24	%
Total		2,330.8		100	%		3,417.9		-32	%

The investments made during the second quarter of 2012 decreased as compared to the second quarter of 2011 due to the following events of 2011: 1) the acquisition and development of the Caño Sur field, 2) acquisition of the asset later named Equión, and 3) a loan to Reficar.

b. Exploration

Exploration in Colombia:

Ecopetrol S.A.

Drilling in Colombia (A3/A2 and Stratigraphic)

Ecopetrol S.A.

	2Q- 2012				1H-2012
Type of well	Number of wells	Hydrocarbon  Presence	In evaluation	Dry	Number of wells	Hydrocarbon  Presence	In evaluation	Dry
A3/A2	1	0	1	0	2	1	1	0
Stratigraphic	5	1	0	4	8	1	1	6
Total	6	1	1	4	10	2	2	6

During the second quarter 11 A1 wells were drilled, and a total of 18 A1 wells in the first half of 2012.

12

The following is a summary of wells drilled during the second quarter of 2012:

Drilling details (A3/A2 and Stratigraphic) - 2Q-2012
Ecopetrol S.A.

	Type of well	Basin	Block	Well	Result
1	A3/A2	VMM	Tisquirama	Caronte	In evaluation
2	Stratigraphic	LLA	CPO-9	Akacias EST-1	Hydrocarbon presence
3	Stratigraphic	LLA	CPE-2	CPE2 EST-6 ST2	Dry
4	Stratigraphic	LLA	CPE-2	CPE2 EST-5	Dry
5	Stratigraphic	LLA	CPE-8	Segua	Dry
6	Stratigraphic	LLA	Quifa	Quifa Este 1x	Dry

Hocol S.A.

Drilling in Colombia (A3/A2 and Stratigraphic)

Hocol S.A.

	2Q- 2012				1H-2012
Type of well	Number of wells	Hydrocarbon Presence	In evaluation	Dry	Number of wells	Hydrocarbon Presence	In evaluation	Dry
A3/A2	1	0	0	1	5	3	0	2
Stratigraphic	5	0	5	0	10	2	5	3
Total	6	0	5	1	15	5	5	5

The following is a summary of wells drilled during the second quarter of 2012:

Drilling details (A3/A2 and Stratigraphic) - 2Q-2012

Hocol S.A.

	Type of well	Basin	Block	Well	Result
1	A3/A2	LLA	Guarrojo	Felido	Dry
2	Stratigraphic	LLA	Coclí	ST2	In evaluation
3	Stratigraphic	LLA	Saltarín	ST1	In evaluation
4	Stratigraphic	LLA	Saltarín	ST2	In evaluation
5	Stratigraphic	LLA	Saltarín	ST4	In evaluation
6	Stratigraphic	LLA	CPO16	ST7	In evaluation

Equión S.A.

Drilling of the Mapale-1 exploratory well on the Colombian Atlantic coast was delayed until the third quarter due to bad weather conditions.

International exploration:

Ecopetroldo Brasil

During the second quarter of the year, an assessment of the Itauna 2 appraisal well in Brazil was finalized on block BM-C-29, and results were being integrated into the appraisal data of the discovery .

13

Ecopetrol América Inc

In June, the company placed the most competitive bids in six blocks in the "Central Planning Area Lease Sale 222" and the awarding of the blocks is expected to take place in the coming months. Exploration in these blocks (with water depth of more than 800 meters) will take place in 7 to 10 years. Additionally, the drilling of the exploratory well Parmer began in June.

Savia

In the second quarter of the year Savia Perú drilled the exploratory well Colan-1 which is under evaluation.

c. Production

Corporate Group Production:

Production

Ecopetrol S.A. gross oil and gas production (mboed)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		597.4		577.7		3.4	%		588.4		557.4		5.6	%
Natural Gas*		112.0		96.7		15.8	%		110.3		97.7		12.9	%
Total		709.4		674.4		5.2	%		698.7		655.1		6.7	%
Hocol (mboed)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		24.6		30.2		(18.5	)%		26.6		30.4		(12.5	)%
Natural Gas		0.4		0.0		100.0	%		0.4		0.4		0.0	%
Total		25.0		30.2		(17.2	)%		27.0		30.8		(12.3	)%
Savia (mboed)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		6.8		5.7		19.3	%		6.7		5.9		13.6	%
Natural Gas		0.7		1.1		(36.4	)%		0.7		1.0		(30.0	)%
Total		7.5		6.8		10.3	%		7.4		6.9		7.2	%
Equion (mboed)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		11.2		7.2		55.6	%		10.8		6.7		61.2	%
Natural Gas		7.2		6.6		9.1	%		7.0		5.8		20.7	%
Total		18.4		13.8		33.3	%		17.8		12.5		42.4	%
Ecopetrol America-K2 (mboed)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		1.8		1.8		0.0	%		1.9		1.8		5.6	%
Natural Gas		0.1		0.2		(50.0	)%		0.2		0.2		0.0	%
Total		1.9		2.0		(5.0	)%		2.1		2.0		5.0	%
Ecopetrol including affiliates and subsidiares	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude Oil		641.8		622.6		3.1	%		634.4		602.2		5.3	%
Natural Gas		120.4		104.6		15.1	%		118.6		105.1		12.8	%
Total Group's production		762.2		727.2		4.8	%		753.0		707.3		6.5	%

* Gas production includes white products

14

Production of Ecopetrol S.A.:

Production per type of crude*
	2Q 2012		2Q 2011		Δ (%)			1H 2012		1H 2011		Δ (%)
Light crudes		64.4		59.7		7.9	%		62.9		59.9		5.0	%
Medium crudes		231.9		238.4		(2.7	)%		226.9		234.3		(3.2	)%
Heavy crudes		301.1		279.6		7.7	%		298.6		263.2		13.4	%
Total		597.4		577.7		3.4	%		588.4		557.4		5.6	%

*Does not include subsidiary companies

The assets with higher production growth between the second quarter of 2011 and the same period of 2012 were: Chichimene field with 16 MBPOD growth, Piedemonte field with 6.5 MBOED growth, Gibraltar gas plant with 4 MBOED growth and Casabe field with 4 MBOED growth.

Development wells:

In line with drilling plans for the year, there was less drilling in the second quarter compared to the same period of 2011.

The following is a summary of development wells in Colombia:

Development wells - Ecopetrol S.A.
	2Q 2012				2Q 2011
Region		Direct	In partnership	Total		Direct	In partnership	Total	∆ (%)
Magdalena		17	58	75		29	101	130	-42.3	%
Central		35	56	91		43	58	101	-9.9	%
Nororiental		-	1	1		1	1	2	-50.0	%
Catatumbo Orinoquia		-	8	8		5	11	16	-50.0	%
South		-	7	7		-	7	7	0.0	%
Minor fields		-	-	-		-	-	-	0.0	%
Total		52	130	182		78	178	256	-28.9	%

Development wells - Ecopetrol S.A.
	1H 2012				1H 2011
Region		Direct	In partnership	Total		Direct	In partnership	Total	∆ (%)
Magdalena		37	99	136		62	201	263	(48.3	)%
Central		72	105	177		91	121	212	(16.5	)%
Nororiental		0	3	3		2	4	6	(50.0	)%
Catatumbo Orinoquia		1	20	21		6	24	30	(30.0	)%
South		1	12	13		1	15	16	(18.8	)%
Minor fields		0	2	2		0	0	0	0.0	%
Total		111	241	352		162	365	527	(33.2	)%

15

Lifting costs of Ecopetrol S.A.:

Lifting cost per barrel produced for Ecopetrol S.A. during the first half of 2012 was US$9.99 per barrel (based on the methodology approved by the U.S. Securities and Exchange Commission and employed by Ecopetrol, which does not include royalties in the calculation of cost per barrel), an increase of US$0.94 per barrel when compared to the same period of 2011, as a net result of:

· Higher costs: +US$1,38 per barrel.

o High-price clauses in joint venture agreements (windfall profit clause on prices of crude)

o Increase in water treatment volumes, logistical plans implemented to timely address unexpected events

o Higher industrial services due to initiatives to reactivate wells.

· Revaluation of the Colombian peso versus the U.S. dollar: +US$0.23 per barrel.

· Lower costs from higher production volumes: -US$0.67 per barrel.

d. Refining

Barrancabermeja Refinery:

Barrancabermeja Refinery	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Refinery runs* (mbod)		218.1		230.1		(5.2	)%		209.2		229.8		(9.0	)%
Utilization factor (%)		79.0		82.7		(4.5	)%		71.9		82.7		(13.1	)%

* Includes volumes used in the refinery, not total volumes received.

Both crude throughputs and the utilization factor at the refinery during the second quarter of the year decreased compared to the same period last year, because of turnaround schedules of the crude units.

With regard to the modernization project, a contract was granted to carry out modifications on the U-250 unit. This phase was 10.9% complete by the end of the second quarter of the year.

The progress of the master plan for industrial services was 45.8% as of the end of the second quarter of the year.

Costs and margins of the Barrancabermeja refinery:

The refinery’s operating cash cost for the first semester of 2012 was US$6.82 per barrel, US$1.54 per barrel higher than the same period of last year, which was the result of higher costs generated by:

· Lower throughput due to turnaround schedules: +US$0.58 per barrel.

· Higher costs due to turnaround schedules: +US$0.80 per barrel.

· Revaluation of the Colombian peso vs. the US dollar: +US$0.16 per barrel.

16

Barrancabermeja Refinery	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Refining Margin (USD/bl)		12.5		10.9		14.7	%		9.3		12.1		(23.1	)%

The gross refining margin in the second quarter of 2012 increased compared to the same period last year due to more favorable prices in the production of products, primarily fuel oil.

Reficar S.A. (Cartagena Refinery):

Cartagena Refinery	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Refinery runs* (mbod)		73.1		77.4		(5.6	)%		73.4		77.8		(5.7	)%
Utilization factor (%)		65.0		76.5		(15.0	)%		60.9		84.5		(27.9	)%

* Includes volumes used in the refinery, not total volumes received

In the second quarter of 2012, the throughput and the utilization factor decreased compared to the same period last year, due to lower availability of Caño Limón crude and turnaround schedules on the cracking unit.

Cartagena Refinery	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Refining Margin (USD/bl)		5.6		6.8		(17.6	)%		5.5		8.3		(33.7	)%

Gross refining margin in the second quarter of 2012 decreased compared to the second quarter of last year owing to lower production of gasoline while turnaround schedules were being carried out at the cracking unit. Also, the quality of the crude loaded during May and June affected the profitability of products

As of June, the expansion and modernization project at the refinery was 68% complete.

e. Transportation

Transported volumes:

Transported volumes (mbod)	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Crude		904.5		943.0		(4.1	)%		906.1		902.4		0.4	%
Refined Products		287.8		278.6		3.3	%		302.2		278.5		8.5	%
Total		1,192.3		1,221.6		(2.4	)%		1,208.3		1,180.9		2.3	%

During the second quarter of 2012, a lower volume was transported in comparison with the same period of 2011 as a result of: 1) reduction in pumping in the 20” Vasconia – GRB Oil Pipeline due to fewer crude requirements for loading the Barrancabermeja refinery, and 2) decreased use of the Caño Limón – Coveñas and Transandino oil pipelines.

17

The following are the highlights of the quarter:

Crude oil:

· Increased transport capacity through the 14” Galán – Ayacucho system (20 MBOD in the second quarter of 2012 compared to 0 MBOD in the second quarter of 2011).

· Start-up of conceptual engineering for the technological development of crude: blended with LPG and condensed in Cusiana, and crude heating pilot in the 14” Galán – Ayacucho system.

· Beginning of construction of the Apiay-Monterrey line as part of the San Fernando Monterrey with a capacity of 390 MBOD

Storage facilities:

· Commencement of operation of the refurbished 50 kbd capacity TP 403 tank at the Apiay plant.

· Commencement of operation of the Ayacucho II pumping and refined products storage station,

· Commencement of operation of a 21 kilometer section of the Galan – Chimita Multipurpose Pipeline, helping reduce the use of drag reducing agents.

· Commencement of operation of a new LPG relief system at the Cartago Plant.

Transportation costs:

The barrel/kilometer transport cost for the first semester of 2012 was COP$8.50/BKM, which represented an increase of COP$1.18/BKM compared to the same period of last year, due primarily to:

· Higher costs of COP$+1.85/BKM associated with: 1) an increase in processing raw materials for higher volumes of drag reducing agents required to handle higher transportation volumes; 2) maintenance to ensure that the systems are operating properly and to address geotechnical maintenance issues associated with the harsh rain season; 3) higher depreciation given the start of operations of revamped systems and new pipelines and multipurpose lines; and 4) an increase in air surveillance hours and physical safety activities to ensure access to the southern and northeastern regions so maintenance work could be carried out and operations would not be disrupted.

· Lower costs of COP$0.67/BKM associated with higher volumes transported.

Bicentenario Oil Pipeline:

During the second quarter of 2012, the financing requirements of phase I of the project were completed with the signing of a credit facility with Colombian banks totaling COP$2.1 trillion. The loan’s interest rate is DTF + 4.54% with a 12-year term and one-year grace period. In addition, construction continued on phase I (the Araguaney – Banadía line). The overall project was 55% completed.

18

Ecopetrol creates new affiliate CENIT:

In June, Ecopetrol’s Board of Directors approved the incorporation of a company specialized in hydrocarbon’s transport that will provide the following services: 1) transport, storage and logistical services for hydrocarbons and refined products in Colombia; 2) port services for international crude and refined product operations; and 3) multimodal transport services (pipelines, tanker trucks, rivers, maritime). This affiliate was named CENIT.

The drivers for incorporating this affiliate are: 1) meeting the transportation needs of the country’s producers in an integrated manner; 2) greater transparency to the market by separating the roles of owner, planner, operator and shipper within the transport systems; 3) ensure that the transport network is available for all of the more than 100 crude oil producers operating in the country today; 4) foster participation of non-producer investors in the transport business; 5) develop the country’s oil industry, capturing synergies for the growth of the Ecopetrol, including its subsidiaries and affiliates; and 6) maintain Ecopetrol’s value, offering alternatives for access by third parties to the transport systems.

The equity authorized and subscribed for Cenit amounts to one trillion three hundred thirty million pesos (COP$1,330,000,000.00) and ten million pesos (COP$10,000,000.00), respectively.

In July, Ecopetrol S.A.’s Board of Directors authorized the contribution into “Cenit” of all of Ecopetrol S.A.’s shares in the following companies: Oleoducto Central S.A. (Ocensa), Oleoducto de Colombia S.A. (ODC), Oleoducto Bicentenario S.A.S., ODL Finance S.A., Serviport S.A. and Ecopetrol Pipelines International Limited.

During the second half of 2012 CENIT will undergo a transition process in order to begin operations in 2013.

f. Biofuels

Ecodiesel Colombia S.A.:

Production	2Q 2012		2Q 2011		∆ (%)			1H 2012		1H 2011		∆ (%)
Biodiesel (thousand tons)		27.8		24.5		13.5	%		57.7		47.0		22.8	%

During the second quarter of 2012 biodiesel production increased as a result of stabilization of the acid esterification process, allowing fatty acids (a byproduct of the process) to be converted to biodiesel.

Bioenergy S.A.:

As of June 30, 2012, the Bioenergy project was 45.0% complete (42.5% on the industrial component and 50.9% on the agricultural component).

19

III. Organizational Consolidation, Social Corporate Responsibility and Corporate Government

a. Organizational consolidation

Health, Safety and Environment (HSE) performance:

HSE Index	1H  2012		1H 2011
Accident frequency index (accidents per million labor hours)		0.97		1.14
Environmental incidents*		20		17

* The number of incidents could change after the end of the quarter given that accidents and incidents may be reclassified depending on the final result of the investigations.

Science and technology:

The following are the highlights of the quarter:

· Patent granted to Ecopetrol S.A. in Colombia for invention of a “Method of residual sludge fluidization and hydrocarbon recovery in hydrocarbon storage tanks” technology.

· Patent invention for the technology: “Process for obtaining diesel from vegetable or animal oils by means of hydro treatment with reduced residency times and products achieved as a result.”

Savings and economic benefits:

As a result of the application of technological solutions between the ICP (Ecopetrol´s R&D center) and the company’s operating areas, a total of US$141 million in economic benefits were reported in the second quarter of 2012 mainly in initiatives such as: 1) development of geostatistical models of production fields, 2) catalyst reformulation, and 3) reliability, environmental and energy integration strategies, among others.

b. Corporate Responsibility

Social investments:

During the first half of 2012 Ecopetrol invested COP$46 billion in social projects.

Stakeholders:

The following are some of the key milestones achieved in interactions with stakeholders during the second quarter of 2012:

· A public Hearing was held in Tibu on June 26^th

· Eleven roundtables were held with stakeholders.

20

IV. Consolidated financial results²

The following are Ecopetrol’s consolidated financial statements:

Consolidated Income Statement 

(COP$ Billion)	2Q 2012 *			2Q 2011 *			∆ (%)			1H 2012*			1H 2011*			∆ (%)
Local Sales		5,590.0			5,561.6			0.5	%		10,948.0			10,299.4			6.3	%
Export Sales		10,406.6			10,219.9			1.8	%		22,595.1			19,491.9			15.9	%
Sales of services		512.6			483.3			6.1	%		994.1			898.2			10.7	%
Total Sales		16,509.2			16,264.8			1.5	%		34,537.2			30,689.5			12.5	%
Variable Costs		7,365.0			7,309.8			0.8	%		15,144.4			13,432.0			12.7	%
Fixed Costs		2,176.1			2,033.6			7.0	%		4,155.7			3,702.7			12.2	%
Cost of Sales		9,541.1			9,343.4			2.1	%		19,300.1			17,134.7			12.6	%
Gross profit		6,968.1			6,921.4			0.7	%		15,237.1			13,554.8			12.4	%
Operating Expenses		783.1			861.6			(9.1	)%		1,537.9			1,798.0			(14.5	)%
Operating Profit		6,185.0			6,059.8			2.1	%		13,699.2			11,756.8			16.5	%
Non Operating Loss		(419.3	)		(680.8	)		(38.4	)%		(1,300.4	)		(1,327.2	)		(2.0	)%
Income tax		2,009.9			1,700.1			18.2	%		4,255.1			3,524.3			20.7	%
Minority interest		98.7			(72.5	)		(236.1	)%		212.5			43.7			386.3	%
Net Income		3,657.1			3,751.4			(2.5	)%		7,931.2			6,861.6			15.6	%
EBITDA		7,456.3			7,617.5			(2.1	)%		16,235.5			14,525.1			11.8	%
EBITDA Margin		45	%		47	%					47	%		47	%

* Not audited, for illustration purposes only

The highest individual contributions tototal sales (before eliminations) among affiliates during the second quarter of 2012, came from the Cartagena Refinery, with COP$2,021.1 billion; Hocol, with COP$921.3 billion; Equión, with COP$510.7 billion; Propilco S.A., with COP$328.5 billion; and Ocensa S.A., with COP$252.8 billion.

The affiliates with thehighest net income were Equión, with COP$181.6 billion and Hocol, with COP$75.9 billion. The highest net loss was reported by Reficar S.A. with COP$168.7 billion, Ecopetrol Oleo e Gas Brasil, with COP$115.0 billion and Ecopetrol America Inc., with COP$19.7 billion.

Ecopetrol del Perú, Ecopetrol do Brasil, Ecopetrol America and Bioenergy have not yet reported earnings either because they are in the pre-operating stage or are carrying out exploratory activities that have not yielded production (except for Ecopetrol America). The affiliates in the crude and product transport business report generate earnings for the group by lowering transport costs.

² For purposes of consolidation of the first half of 2012, in addition to Ecopetrol’s results, those of the following subsidiaries have been included: Ecopetrol Oleo e Gas Do Brasil, Ecopetrol America Inc, Ecopetrol del Peru S.A., Hocol, Bioenergy S.A., Andean Chemicals Limited, ECP Global Energy, Propilco S.A., Comai, ODL Finance S.A., Black Gold Re Ltd., Ecopetrol Pipelines Limited, Oleoducto de Colombia, Ocensa S.A., Reficar S.A. , Oleoducto Bicentenario, Ecopetrol Capital A.G. , Equión Energía Limited, Ecopetrol Global Capital SLU, and Cenit Transport and Logistics of Hydrocarbons S.A.S (“Cenit”).

The consolidated financial statements for the first half of 2011 include the following subsidiaries: Ecopetrol Oleo e Gas Do Brasil, Ecopetrol America Inc, Ecopetrol del Peru S.A., Hocol, Bioenergy S.A., Andean Chemicals Limited, ECP Global Energy, Propilco S.A., Comai, ODL Finance S.A., Black Gold Re Ltd., Ecopetrol Transportation Company, Oleoducto de Colombia, Ocensa S.A., Reficar S.A. (as of February 2011), Oleoducto Bicentenario, Ecopetrol Capital A.G., Ecopetrol Transportation Investments Ltd., Equión Energía Limited (since January 24, 2011) and Ecopetrol Global Capital SLU.

21

Under the equity participation method, Offshore International Group (Savia Perú) contributed COP$31.0 billion, Ecodiesel COP$0.3 billion, Serviport COP$0.2 billion and Transgas de Occidente COP$0.1 billion.

EBITDAfor the second quarter of 2012 was COP$7,456.3 billion, similar to the EBITDA of the second quarter of 2011, and anEBITDA margin of 45%

Consolidated Balance Sheet 

(COP$ Billion)	June 30, 2012		March 31, 2012		Δ (%)
Current Assets		19,949.8		25,309.3		(21.2	)%
Long Term Assets		76,991.7		76,856.2		0.2	%
Total Assets		96,941.5		102,165.5		(5.1	)%
Current Liabilities		22,072.6		32,157.8		(31.4	)%
Long Term Liabilities		22,352.9		21,258.2		5.1	%
Total Liabilities		44,425.5		53,416.0		(16.8	)%
Equity		50,058.0		46,389.8		7.9	%
Minority interest		2,458.0		2,359.7		4.2	%
Total Liabilities and Shareholders´ Equity		96,941.5		102,165.5		(5.1	)%
Debit Memorandum accounts		133,394.9		127,798.3
Credit Memorandum accounts		116,494.6		105,619.5

22

V. Conference calls

Ecopetrol’s management will host two webcasts to review results for the second quarter of 2012:

Spanish	English
July 25, 2012	July 25, 2012
1:30 p.m. Bogota	3:00 p.m. Bogota
2:30 p.m. New York / Toronto	4:00 p.m. New York / Toronto

The webcast will be available on Ecopetrol’s websitewww.ecopetrol.com.co

Please access the site 10 minutes beforehand in order to download the necessary software. A copy of the webcast will remain available for one year following the live event.

About Ecopetrol S.A.

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) is the largest company in Colombia based on revenue, profits, assets and net equity. Ecopetrol is the only Colombian vertically integrated crude oil and natural gas company with operations in Colombia, Brazil, Peru and the U.S. Gulf Coast. Its affiliates include the following companies: Propilco, Black Gold Re Ltd., Ecopetrol Oleo e Gas do Brasil Ltda., Ecopetrol America Inc., Ecopetrol del Perú S.A., Hocol, Equión Energía Limited, Andean Chemicals Limited, COMAI, Bioenergy S.A., ODL Finance S.A., ECP Global Energy, Ecopetrol Transportation Company, Ocensa S.A., Oleoducto de Colombia, Refinería de Cartagena, Ecopetrol Transportation Investment, Ecopetrol Capital AG, Oleoducto Bicentenario de Colombia S.A.S., and Cenit Transport and Logistics of Hydrocarbons S.A.S . (“Cenit”).. Ecopetrol S.A. is one of the 40 largest oil companies in the world and one of the four main oil companies in Latin America. The company is majority owned by the Republic of Colombia (88.5%), and its shares trade on the Bolsa de Valores de Colombia S.A. (BVC) under the symbol ECOPETROL, the New York Stock Exchange (NYSE) under the symbol EC,and the Toronto Stock Exchange (TSX) under the symbol ECP. The company divides its operations into four business segments as follow: 1) exploration and production, 2) transport, 3) refining & petrochemicals, and 4) supply and marketing.

For more information on Ecopetrol, please visitwww.ecopetrol.com.co

23

Forward-looking statements

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

Contact information:

Investor Relations Director

Alejandro Giraldo

Telephone: +571-234-5190

E-mail:investors@ecopetrol.com.co

Media relations (Colombia)

Jorge Mauricio Tellez

Telephone: + 571-234-4329

E-mail:mauricio.tellez@ecopetrol.com.co

24

VI. Exhibits

Unaudited Income Statement

Ecopetrol S.A.

COP$ Million	2Q 2012*			2Q 2011*			∆ (%)			1Q 2012			1H 2012*			1H 2011*			∆ (%)
Income
Local Sales		4,630,116			4,459,357			3.8	%		4,596,784			9,226,900			8,586,025			7.5	%
Export Sales		8,463,542			7,617,575			11.1	%		9,132,191			17,595,733			14,274,908			23.3	%
Sales to free trade zone		1,295,342			1,440,546			(10.1	)%		1,347,609			2,642,951			2,743,034			(3.6	)%
Sale of Services		407,131			350,885			16.0	%		368,719			775,850			700,766			10.7	%
Total Income		14,796,131			13,868,363			6.7	%		15,445,303			30,241,434			26,304,733			15.0	%
Cost of Sales
Variable Costs
Purchase of Hydrocarbons		3,156,682			3,092,681			2.1	%		3,385,158			6,541,840			5,581,270			17.2	%
Amortization and Depletion		834,448			1,009,901			(17.4	)%		728,286			1,562,734			1,760,086			(11.2	)%
Imported products		1,887,354			1,475,373			27.9	%		1,854,002			3,741,356			2,810,960			33.1	%
Hydrocarbon Transportation Services (1) (2)		502,120			404,492			24.1	%		512,507			1,014,627			802,454			26.4	%
Inventories		(340,950	)		159,738			(313.4	)%		(319,656	)		(660,606	)		(253,223	)		160.9	%
Other		477,519			48,675			881.0	%		276,068			753,587			463,025			62.8	%
Fixed Costs
Depreciation		312,211			285,343			9.4	%		301,230			613,441			556,983			10.1	%
Contracted Services		711,373			658,773			8.0	%		612,128			1,323,501			1,052,705			25.7	%
Maintenance		319,843			256,472			24.7	%		220,495			540,338			456,992			18.2	%
Labor Costs		245,882			212,159			15.9	%		234,862			480,744			455,065			5.6	%
Other		201,387			206,721			(2.6	)%		161,698			363,085			375,578			(3.3	)%
Total Cost of Sales		8,307,869			7,810,328			6.4	%		7,966,778			16,274,648			14,061,895			15.7	%
Gross Profits		6,488,262			6,058,035			7.1	%		7,478,525			13,966,786			12,242,838			14.1	%
Operating Expenses
Administration		152,097			163,716			(7.1	)%		151,092			303,189			291,825			3.9	%
Selling expenses (3)		147,913			78,905			87.5	%		255,109			403,022			253,725			58.8	%
Exploration and Projects		186,996			206,131			(9.3	)%		168,142			355,138			697,302			(49.1	)%
Operating Income/Loss		6,001,256			5,609,283			7.0	%		6,904,182			12,905,437			10,999,986			17.3	%
Non Operating Income (expenses)
Financial Income		1,307,117			1,153,622			13.3	%		1,259,336			2,566,453			2,168,448			18.4	%
Financial Expenses		(1,212,166	)		(1,634,603	)		25.8	%		(1,434,474	)		(2,646,637	)		(2,719,840	)		2.7	%
Interest expenses		(122,802	)		(50,340	)		143.9	%		(55,608	)		(178,412	)		(69,315	)		157.4	%
Non Financial Income		204,290			134,241			52.2	%		168,889			373,179			362,707			2.9	%
Non Financial Expenses		(613,097	)		(334,202	)		83.5	%		(872,093	)		(1,485,192	)		(1,108,435	)		34.0	%
Results from Subsidiaries		(33,349	)		102,141			(132.6	)%		443,963			410,616			438,839			(6.4	)%
Income before income tax		5,531,249			4,980,142			11.1	%		6,414,195			11,945,444			10,072,390			18.6	%
Provision for Income Tax		1,855,770			1,565,811			18.5	%		2,071,143			3,926,913			3,253,382			20.7	%
Minority interest
Net Income		3,675,479			3,414,331			7.6	%		4,343,052			8,018,531			6,819,008			17.6	%
EBITDA		7,056,603			6,880,892			2.6	%		8,119,318			15,175,921			13,407,114			13.2	%
EBITDA MARGIN		48	%		50	%					53	%		50	%		51	%
EARNINGS PER SHARE		89.39			84.36			6.0	%		105.63			195.02			168.48			15.8	%

* Not audited, for illustration purposes only

(1) For comparisons, in 2Q-2011 COP$161.1 billion, in 1Q-2011 COP$156.2 billion and in 1H-2011 COP$317.3 billion of fees for the export of hydrocarbons were reclassified from commercial expenses.

(2) For comparisons, in 1Q-2012 COP$299.7 billion hydrocarbons were reclassified from commercial expenses

(3) For comparisons, in 2Q-2011 COP$112.0 billion, in 1Q-2011 -COP$23.0 billion and in 1H-2011 COP$88.9 billion of operating provisions are included. 1Q-2012 includes an operational provision of –COP$41.8 billion.

25

Balance Sheet

Unaudited

	Ecopetrol S.A.							Ecopetrol Consolidated
	June 30, 2012		March 31, 2012		∆ (%)			June 30, 2012		March 31, 2012		∆ (%)
COP$ Million
Assets
Current Assets
Cash and cash equivalents		4,063,131		8,211,902		(50.5	)%		5,958,773		10,391,302		(42.7	)%
Investments		600,592		2,748,141		(78.1	)%		620,557		2,968,814		(79.1	)%
Accounts and notes receivable		3,964,621		4,096,347		(3.2	)%		4,983,644		4,694,777		6.2	%
Inventories		2,723,353		2,628,883		3.6	%		3,165,111		3,028,405		4.5	%
Other		4,182,511		3,080,110		35.8	%		5,221,695		4,226,032		23.6	%
Total Current Assets		15,534,208		20,765,383		(25.2	)%		19,949,780		25,309,330		(21.2	)%
Non Current Assets
Investments		18,619,650		20,765,513		(10.3	)%		6,253,321		8,151,760		(23.3	)%
Accounts and notes receivable		1,597,526		1,600,080		(0.2	)%		440,354		489,924		(10.1	)%
Property, plant and equipment, net		20,422,903		19,902,700		2.6	%		32,216,830		30,586,262		5.3	%
Natural and environmental properties, Net		13,935,851		13,580,349		2.6	%		16,456,955		16,128,155		2.0	%
Resources delivered to administration		292,287		286,316		2.1	%		321,666		321,666		0.0	%
Other		16,304,410		16,297,238		0.0	%		21,302,575		21,178,403		0.6	%
Total Non Current Assets		71,172,627		72,432,196		(1.7	)%		76,991,701		76,856,170		0.2	%
Total Assets		86,706,835		93,197,579		(7.0	)%		96,941,481		102,165,500		(5.1	)%
Liabilities and Equity
Current Liabilities
Financial obligations		448,892		450,190		(0.3	)%		921,243		1,165,463		(21.0	)%
Accounts payable and related parties		13,752,469		18,926,625		(27.3	)%		13,888,744		19,139,843		(27.4	)%
Estimated liabilities and provisions		1,467,326		1,305,326		12.4	%		2,264,872		2,050,600		10.4	%
Other		4,360,013		8,861,735		(50.8	)%		4,997,754		9,801,864		(49.0	)%
Total Current Liabilities		20,028,700		29,543,876		(32.2	)%		22,072,613		32,157,770		(31.4	)%
Long Term Liabilities
Financial obligations		5,239,811		5,423,065		(3.4	)%		9,962,701		9,010,732		10.6	%
Labor and pension plan obligations		3,384,102		3,274,523		3.3	%		3,392,839		3,284,432		3.3	%
Estimated liabilities and provisions		3,998,027		3,966,518		0.8	%		4,110,787		4,076,182		0.8	%
Other		3,585,794		3,923,306		(8.6	)%		4,886,495		4,886,896		(0.0	)%
Total Long Term Liabilities		16,207,734		16,587,412		(2.3	)%		22,352,822		21,258,242		5.1	%
Total Liabilities		36,236,434		46,131,288		(21.4	)%		44,425,435		53,416,012		(16.8	)%
Minoritary Interest									2,458,035		2,359,728		4.2	%
Equity		50,470,401		47,066,291		7.2	%		50,058,011		46,389,760		7.9	%
Total Liabilities and Shareholders' Equity		86,706,835		93,197,579		(7.0	)%		96,941,481		102,165,500		(5.1	)%
Memorandum Debtor Accounts *		127,360,652		121,666,784					133,394,876		127,798,266
Memorandum Creditor Accounts *		111,986,030		101,153,803					116,494,600		105,619,534

Notes

* Under Colombian GAAP, these accounts represent facts or circumstances from which rights or obligations could derive and affect the Company, however, these accounts are not included in the Balance Sheet

26

Unaudited Income Statement

Ecopetrol Consolidated 

COP$ Million
	2Q-2012*			2Q-2011 *			∆ (%)			1Q-2012*			1H 2012*			1H 2011*			∆ (%)
Income
Local Sales		5,590,008			5,561,553			0.5	%		5,357,979			10,947,987			10,299,373			6.3	%
Export Sales		10,406,605			10,219,869			1.8	%		12,188,453			22,595,058			19,491,936			15.9	%
Sale of Services		512,607			483,278			6.1	%		481,491			994,098			898,248			10.7	%
Total Income		16,509,220			16,264,700			1.5	%		18,027,923			34,537,143			30,689,557			12.5	%
Cost of Sales
Variable Costs
Purchase of Hydrocarbons		3,452,230			3,679,313			(6.2	)%		4,513,195			7,965,425			7,149,942			11.4	%
Amortization and Depletion		976,666			1,137,885			(14.2	)%		899,870			1,876,536			2,017,612			(7.0	)%
Imported products		2,574,184			2,077,996			23.9	%		2,401,767			4,975,951			3,868,788			28.6	%
Hydrocarbon Transportation Services		377,385			285,546			32.2	%		247,760			625,145			478,071			30.8	%
Inventories		(447,303	)		169,587			(363.8	)%		(291,843	)		(739,146	)		(328,315	)		125.1	%
Other		431,830			(40,575	)		(1,164.3	)%		8,637			440,467			245,879			79.1	%
Fixed Costs
Depreciation		470,067			463,758			1.4	%		449,018			919,085			890,725			3.2	%
Contracted Services		723,556			620,204			16.7	%		619,483			1,343,039			1,049,224			28.0	%
Maintenance		391,739			377,131			3.9	%		318,431			710,170			667,306			6.4	%
Labor Costs		264,920			275,084			(3.7	)%		252,444			517,364			521,551			(0.8	)%
Other		325,768			297,460			9.5	%		340,313			666,081			573,933			16.1	%
Total Cost of Sales		9,541,042			9,343,389			2.1	%		9,759,075			19,300,117			17,134,716			12.6	%
Gross Profits		6,968,178			6,921,311			0.7	%		8,268,848			15,237,026			13,554,841			12.4	%
Operating Expenses
Administration		218,458			324,507			(32.7	)%		254,768			473,226			545,282			(13.2	)%
Selling expenses		197,996			200,998			(1.5	)%		269,847			467,843			399,801			17.0	%
Exploration and Projects		366,665			336,049			9.1	%		230,199			596,864			852,961			(30.0	)%
Operating Income/Loss		6,185,059			6,059,757			2.1	%		7,514,034			13,699,093			11,756,797			16.5	%
Non Operating Income (expenses)
Financial Income		2,012,010			1,334,302			50.8	%		1,936,070			3,948,080			2,477,549			59.4	%
Financial Expenses		(1,911,282	)		(1,766,418	)		8.2	%		(1,938,915	)		(3,850,197	)		(2,949,723	)		30.5	%
Interest expenses		(175,415	)		(90,628	)		93.6	%		(102,764	)		(278,179	)		(143,363	)		94.0	%
Non Financial Income		242,122			248,334			(2.5	)%		177,038			419,160			500,379			(16.2	)%
Non Financial Expenses		(586,685	)		(406,374	)		44.4	%		(952,622	)		(1,539,307	)		(1,212,023	)		27.0	%
Income before income tax		5,765,809			5,378,973			7.2	%		6,632,841			12,398,650			10,429,616			18.9	%
Provision for Income Tax		2,009,931			1,700,145			18.2	%		2,245,157			4,255,088			3,524,320			20.7	%
Minority interest		98,737			(72,471	)		(236.2	)%		113,742			212,479			43,679			386.5	%
Net Income		3,657,141			3,751,299			(2.5	)%		4,273,942			7,931,083			6,861,617			15.6	%
EBITDA		7,456,278			7,617,537			(2.1	)%		8,779,235			16,235,513			14,525,075			11.8	%
EBITDA MARGIN		45	%		47	%					49	%		47	%		47	%

Notes

* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements at the end of each fiscal year. Therefore, the quarterly figures in this report are not audited and they do not constitute a formal consolidation of Ecopetrol's financial statements though they do adjust to the methodology defined for this purpose.

This statement is not audited

For comparative purposes reclasifications were made in the first quarter of 2011 in financial income and expenses regarding OCENSA's fx difference

27

Unaudited Cash Flow Statement

Ecopetrol S.A.

COP$ million	2Q 2012 *			2Q 2011 *			∆ (%)			1Q 2012 *			1H 2012*			1H 2011*			∆ (%)
Cash flow provided by operating activities:
Net income		3,675,480			3,414,331			7.6	%		4,343,051			8,018,531			6,819,008			17.6	%
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization		1,456,323			1,412,863			3.1	%		1,216,158			2,672,481			2,578,284			3.6	%
Net provisions		109,310			(141,010	)		177.5	%		124,416			233,726			(93,270	)		350.6	%
Disposal of property, plant and equipment		(36	)		-			0.0	%		150			114			399			-71.4	%
Loss for disposal of property, plant and equipment		-			-			0.0	%		-			-			-			0.0	%
Loss for disposal of natural and environmental resources		-			-			0.0	%		3,490			3,490			-			0.0	%
Loss for disposal of other assets		-			209			-100.0	%		-			-			268			-100.0	%
Income (loss) from equity method on affiliated companies		33,348			(102,141	)		132.6	%		(443,964	)		(410,616	)		(438,839	)		6.4	%
Net changes in operating assets and liabilities:
Accounts and notes receivable		(959,449	)		(758,540	)		26.5	%		1,179,757			220,308			(2,060,486	)		110.7	%
Inventories		(84,014	)		145,495			-157.7	%		(232,729	)		(316,743	)		(248,193	)		27.6	%
Deferred and other assets		(89,003	)		(1,777	)		4908.6	%		484,146			395,143			(1,544,261	)		125.6	%
Accounts payable and related parties		(497,657	)		1,131,315			-144.0	%		2,193,884			1,696,227			2,513,138			-32.5	%
Taxes payable		(4,771,670	)		(1,537,495	)		210.4	%		1,384,168			(3,387,502	)		1,879,274			-280.3	%
Labor obligations		28,097			3,388			729.3	%		(42,360	)		(14,263	)		(11,138	)		28.1	%
Estimated liabilities and provisions		(68,270	)		45,545			-249.9	%		(115,274	)		(183,544	)		(47,903	)		283.2	%
Cash provided by operating activities		(1,167,541	)		3,612,183			-132.3	%		10,094,893			8,927,352			9,346,281			-4.5	%
Cash flows from investing activities:
Payment for purchase of Companies, net of cash acquired		-			-			0.0	%		-			-			(813,145	)		100.0	%
Purchase of investment securities		(444,395	)		(5,073,296	)		91.2	%		(6,871,316	)		(7,315,711	)		(9,585,929	)		23.7	%
Redemption of investment securities		4,400,585			5,334,833			-17.5	%		2,457,636			6,858,221			8,535,622			-19.7	%
Sale of property, plant and equipment		-			198			-100.0	%		-			-			1,620			0.0	%
Investment in natural and environmental resources		(1,009,181	)		(981,219	)		-2.8	%		(542,001	)		(1,551,182	)		(1,394,516	)		11.2	%
Additions to property, plant and equipment		(834,476	)		(1,408,428	)		40.8	%		(1,191,579	)		(2,026,055	)		(2,560,829	)		20.9	%
Net cash used in investing activities		2,112,533			(2,127,912	)		199.3	%		(6,147,260	)		(4,034,727	)		(5,817,177	)		30.6	%
Cash flows from financing activities:
Financial obligations		(173,986	)		(144,560	)		20.4	%		(71,316	)		(245,302	)		(204,842	)		19.8	%
Received from associates - capitalization		-			70			-100.0	%		-			-			27			-100.0	%
Dividends		(4,919,777	)		(1,983,151	)		148.1	%		32,542			(4,887,235	)		(1,921,254	)		154.4	%
Net cash used in financing activities		(5,093,763	)		(2,127,641	)		139.4	%		(38,774	)		(5,132,537	)		(2,126,069	)		141.4	%
Net increase (decrease) in cash and cash equivalents		(4,148,771	)		(643,370	)		544.8	%		3,908,859			(239,912	)		1,403,035			-117.1	%
Cash and cash equivalents at the beginnig of the year		8,211,902			3,638,488			125.7	%		4,303,043			4,303,043			1,592,083			170.3	%
Cash and cash equivalents at the end of the year		4,063,131			2,995,118			35.7	%		8,211,902			4,063,131			2,995,118			35.7	%

NOTES:

* Not audited, for illustration purposes only.

28

Unaudited Cash Flow Statement

Ecopetrol Consolidated

COP$ million	2Q 2012 *			2Q 2011 *			∆ (%)			1Q 2012  *			1H 2012			1H 2011			∆ (%)
Cash flow provided by operating activities:
Net income		3,657,140			3,751,302			(2.5	%)		4,273,943			7,931,083			6,861,619			15.6	%
Adjustments to reconcile net income to cash provided by operating activities:
Minority interest		98,737			116,150			-15	%		113,742			212,479			43,679			386	%
Depreciation, depletion and amortization		1,823,454			1,732,731			5.2	%		1,583,761			3,407,215			3,189,127			6.8	%
Net provisions		115,315			(138,193	)		183.4	%		128,594			243,909			(91,235	)		367.3	%
Disposal of property, plant and equipment		-			-			0.0	%		-			-			-			0.0	%
Loss for disposal of property, plant and equipment		(36	)		-			0.0	%		150			114			399			(71.4	%)
Loss for disposal of natural and environmental resources		-			-			0.0	%		3,490			3,490			-			0.0	%
Loss for disposal of other assets		-			209			(100.0	%)		-			-			268			(100.0	%)
Income (loss) from equity method on affiliated companies		(31,611	)		(36,021	)		12.2	%		(21,924	)		(53,535	)		(79,545	)		32.7	%
Net changes in operating assets and liabilities:
Accounts and notes receivable		(1,238,555	)		(642,710	)		(92.7	%)		(728,481	)		(1,967,036	)		(1,868,794	)		5.3	%
Inventories		(130,480	)		102,836			(226.9	%)		(267,871	)		(398,351	)		(382,537	)		4.1	%
Deferred and other assets		(167,193	)		(173,519	)		3.6	%		299,003			131,810			(607,266	)		121.7	%
Accounts payable and related parties		(16,347	)		1,607,185			(101.0	%)		2,365,608			2,349,261			2,618,416			(10.3	%)
Taxes payable		(4,673,081	)		(1,739,661	)		168.6	%		981,473			(3,691,608	)		441,226			(936.7	%)
Labor obligations		38,067			6,236			510.4	%		(67,771	)		(29,704	)		(6,725	)		341.7	%
Estimated liabilities and provisions		(654,436	)		195,085			(435.5	%)		601,262			(53,174	)		642,678			(108.3	%)
Cash provided by operating activities		(1,179,026	)		4,781,630			(124.7	%)		9,264,979			8,085,953			10,761,310			(24.9	%)
Cash flows from investing activities:
Payment for purchase of Companies, net of cash acquired		-			-			0.0	%		-			-			(813,145	)		100.0	%
Purchase of investment securities		(444,395	)		(5,073,296	)		(91.2	%)		(6,871,316	)		(7,315,711	)		(9,585,929	)		23.7	%
Redemption of investment securities		4,700,983			5,028,631			(6.5	%)		2,474,274			7,175,257			8,648,329			(17.0	%)
Sale of property, plant and equipment		-			909			(100.0	%)		-			-			1,620			(100.0	%)
Investment in natural and environmental resources		(1,171,691	)		(1,153,444	)		1.6	%		(1,541,153	)		(2,712,844	)		(2,332,837	)		16.3	%
Additions to property, plant and equipment		(2,136,508	)		(2,341,292	)		8.7	%		(1,148,214	)		(3,284,722	)		(4,255,862	)		22.8	%
Net cash used in investing activities		948,389			(3,538,492	)		(126.8	%)		(7,086,409	)		(6,138,020	)		(8,337,824	)		26.4	%
Cash flows financing activities:
Minority interest		(430	)		(253,418	)		99.8	%		(6,645	)		(7,075	)		562,299			(101.3	%)
Financial obligations		718,315			244,422			193.9	%		1,601,207			2,319,522			166,131			1,296.2	%
Received from associates - capitalization		-			70			(100.0	%)		-			-			27			(100.0	%)
Dividends		(4,919,777	)		(1,983,151	)		100.0	%		32,542			(4,887,235	)		(1,921,254	)		154.4	%
Net cash used in financing activities		(4,201,892	)		(1,992,077	)		110.9	%		1,627,104			(2,574,788	)		(1,192,797	)		115.9	%
Net increase (decrease) in cash and cash equivalents		(4,432,529	)		(748,939	)		491.8	%		3,805,674			(626,855	)		1,230,689			(150.9	%)
Cash and cash equivalents at the beginnig of the year		10,391,302			5,703,406			82.2	%		6,585,628			6,585,628			3,726,778			76.7	%
Cash and cash equivalents at the end of the year		5,958,773			4,954,467			20.3	%		10,391,302			5,958,773			4,957,467			20.2	%

Notes

* According to the Public Accounting Framework, Colombian companies only have the obligation to consolidate their financial statements at the end of each fiscal year, therefore the quarterly figures in this report are not audited and they do not constitute a formal consolidation of Ecopetrol’s financial statement, though they do adjust to the methodology defined for this purpose.

29

Calculation and Reconciliation of EBITDA

Ecopetrol S.A.

COP$ Millions	2Q 2012 *			2Q 2011 *			∆ (%)			1Q 2012*			1H 2012*			1H 2011*			∆ (%)
EBITDA CALCULATION
Operating income		6,001,256			5,609,283			7.0	%		6,904,182			12,905,437			10,999,986			17.3	%
Plus: Depreciations, depletions and amortizations		1,055,347			1,271,609			-17.0	%		1,215,136			2,270,484			2,407,128			-5.7	%
UNCONSOLIDATED EBITDA		7,056,603			6,880,892			2.6	%		8,119,318			15,175,921			13,407,114			13.2	%
RECONCILIATION NET INCOME TO EBITDA
Net Income		3,675,480			3,414,331			7.6	%		4,343,051			8,018,531			6,819,008			17.6	%
Depreciations, depletions and amortizations		1,055,347			1,271,609			-17.0	%		1,215,136			2,270,484			2,407,128			-5.7	%
Financial income		(1,307,117	)		(1,153,622	)		13.3	%		(1,259,336	)		(2,566,453	)		(2,168,448	)		18.4	%
Financial expenses		1,334,968			1,684,943			-20.8	%		1,490,081			2,825,049			2,789,155			1.3	%
Non financial income		(122,647	)		(119,220	)		2.9	%		(250,531	)		(373,179	)		(370,937	)		0.6	%
Non financial expenses		531,454			319,181			66.5	%		953,738			1,485,192			1,116,665			33.0	%
Results in subsidiaries		33,348			(102,141	)		-132.6	%		(443,964	)		(410,616	)		(438,839	)		-6.4	%
Provision for income tax		1,855,770			1,565,811			18.5	%		2,071,143			3,926,913			3,253,382			20.7	%
UNCONSOLIDATED EBITDA		7,056,603			6,880,892			2.6	%		8,119,318			15,175,921			13,407,114			13.2	%

Ecopetrol Consolidated

COP$ Millions	2Q 2012 *			2Q 2011 *			∆ (%)			1Q 2012*			1H 2012*			1H 2011*			∆ (%)
EBITDA CALCULATION
Operating income		6,185,059			6,059,757			2.1	%		7,514,034			13,699,093			11,756,797			16.5	%
Plus: Depreciations, depletions and amortizations		1,481,535			1,673,938			-11.5	%		1,499,788			2,981,323			3,102,983			-3.9	%
Minority interest		(210,316	)		(116,158	)		81.1	%		(234,587	)		(444,903	)		(328,778	)		35.3	%
CONSOLIDATED EBITDA		7,456,278			7,617,537			-2.1	%		8,779,235			16,235,513			14,531,002			11.7	%
RECONCILIATION NET INCOME TO EBITDA
Net income		3,657,141			3,751,300			-2.5	%		4,273,942			7,931,083			6,861,617			15.6	%
Depreciations, depletions and amortizations		1,505,722			1,673,938			-10.0	%		1,475,601			2,981,323			3,102,983			-3.9	%
Financial income		(1,980,444	)		(1,301,682	)		52.1	%		(1,912,702	)		(3,893,146	)		(2,386,231	)		63.2	%
Financial expenses		2,086,743			1,860,447			12.2	%		2,040,233			4,126,976			3,081,313			33.9	%
Non financial income		(267,950	)		(313,313	)		-14.5	%		(206,143	)		(474,093	)		(607,631	)		-22.0	%
Non financial expenses		556,714			435,332			27.9	%		983,992			1,540,706			1,233,803			24.9	%
Minority interest on net income		98,737			(72,472	)		-236.2	%		113,742			212,479			43,679			386.5	%
Provision for income taxes		2,009,931			1,700,145			18.2	%		2,245,157			4,255,088			3,524,320			20.7	%
Minority interest on Ebitda		(210,316	)		(116,158	)		81.1	%		(234,587	)		(444,903	)		(328,778	)		35.3	%
CONSOLIDATED EBITDA		7,456,278			7,617,537			-2.1	%		8,779,235			16,235,513			14,525,075			11.8	%

* Not audited, for illustration purposes only

30

VII. Subsidiaries results

Note: The financial statements of subsidiaries are not audited.

Exploration and Production

1. Hocol:

Income Statement
(COP$ Billion)	2Q 2012			2Q 2011			1H 2012			1H 2011
Local Sales		0.7			0.8			2.7			2.9
Export Sales		920.6			898.9			2,005.9			1,788.5
Total Sales		921.3			899.7			2,008.6			1,791.4
Variable Costs		644.8			570.6			1,351.5			1,095.9
Fixed Costs		111.9			114.5			212.9			204.9
Cost of Sales		756.7			685.1			1,564.4			1,300.8
Gross profit		164.6			214.6			444.2			490.6
Operating Expenses		76.1			46.7			114.1			55.7
Operating Profit		88.5			167.9			330.1			435.0
Profit/(Loss) before taxes		112.1			187.0			363.0			462.8
Income tax		36.2			60.2			100.2			150.0
Net Income/Loss		75.9			126.8			262.8			312.8
EBITDA margin		17	%		27	%		24	%		32	%
EBITDA to EC GROUP*		160.0			240.5			481.3			577.3

*EBITDA (COLGAAP) contribution to EC group

Balance Sheet
(COP$ Billion)	As of June 30, 2012		As of March 31, 2012
Current Assets		1,059.9		1,226.6
Long Term Assets		1,628.5		1,606.4
Total Assets		2,688.4		2,833.0
Current Liabilities		485.0		691.9
Long Term Liabilities		148.6		158.5
Deferred taxes		-		-
Total Liabilities		633.6		850.4
Equity		2,054.8		1,982.6
Total Liabilities and Shareholders´ Equity		2,688.4		2,833.0

31

2. Savia Perú

Income Statement
US$ million	2Q 2012			2Q 2011			As of June 30, 2012			As of June 30, 2011
Local Sales		162.1			102.1			240.2			200.8
Sales of services		-			3.1			-			5.6
Total Sales		162.1			105.2			240.2			206.4
Variable Costs		40.4			46.5			58.1			84.5
Fixed Costs		40.3			13.9			56.6			26.3
Cost of Sales		80.7			60.4			114.7			110.8
Gross profit		81.4			44.8			125.6			95.6
Operating Expenses		25.1			15.0			35.4			25.0
Operating Profit		56.3			29.8			90.2			70.6
Profit/(Loss) before taxes		57.2			29.8			90.2			70.6
Income tax		13.9			3.3			24.5			10.8
Deferred taxes		3.6			3.1			3.2			8.0
Net Income/Loss		39.7			23.4			62.4			51.8
EBITDA		96.9			41.9			145.8			93.5
EBITDA margin		60	%		40	%		61	%		47	%

* Total Ebitda of Savia in 2Q of 2012. In the report of 2Q 2011 Ebitda figure was prorated based on Ecopetrol´s interest in Savia.

Balance Sheet
US$ million	As of June 30, 2012		As of  February 29, 2012
Current Assets		233.6		251.3
Long Term Assets		604.5		582.6
Total Assets		838.1		833.9
Current Liabilities		173.9		196.1
Long Term Liabilities		156.0		169.4
Total Liabilities		329.9		365.5
Equity		508.2		468.4
Total Liabilities and Shareholders´ Equity		838.1		833.9

32

3. Equión

Income Statement
(COP$ Billion)	2Q 2012			2Q 2011			1H 2012			1H 2011
Local Sales		46.3			29.1			101.6			53.6
Export Sales		464.4			447.7			971.9			863.6
Sales of services		-			0.9			-			1.6
Total Sales		510.7			477.7			1,073.5			918.8
Variable Costs		176.9			280.2			389.3			448.4
Fixed Costs		41.5			29.0			73.0			53.3
Cost of Sales		218.4			309.2			462.3			501.7
Gross profit		292.3			168.5			611.2			417.1
Operating Expenses		20.0			119.6			32.6			125.2
Operating Profit		272.3			48.9			578.6			291.9
Profit/(Loss) before taxes		294.9			(76.1	)		618.5			183.4
Income tax		113.4			62.6			217.6			110.6
Net Income/Loss		181.5			(138.7	)		400.9			72.8
EBITDA margin		65	%		16	%		65	%		38	%
EBITDA to EC GROUP*		169.8			40.1			356.8			178.6

*EBITDA (COLGAAP) contribution to EC group

Balance Sheet
(COP$ Billion)	As of June 30, 2012		As of March 31, 2012
Current Assets		1,217.1		1,281.5
Long Term Assets		2,246.1		2,170.6
Total Assets		3,463.2		3,452.1
Current Liabilities		658.0		859.5
Long Term Liabilities		202.3		169.4
Deferred taxes		-		-
Total Liabilities		860.3		1,028.9
Equity		2,602.9		2,423.2
Total Liabilities and Shareholders´ Equity		3,463.2		3,452.1

33

Refining and Petrochemicals

1. Propilco

Sales volume (tons)	2Q 2012		2Q 2011		1H 2012		1H 2011
Polypropylene		91,568		91,955		192,660		187,470
Polypropylene marketing for COMAI		2,588		2,461		5,384		5,074
Polyethylene marketing		2,642		-		5,445		-
Total		96,798		94,416		203,490		192,543

Income Statement
(COP$ Billion)	2Q 2012			2Q 2011			1H 2012			1H 2011
Local Sales		151.4			189.0			320.7			362.0
Export Sales		177.1			200.6			362.6			401.1
Total Sales		328.5			389.7			683.3			763.1
Variable Costs		274.4			330.2			568.2			633.1
Fixed Costs		26.8			25.8			54.3			52.2
Cost of Sales		301.2			356.0			622.5			685.2
Gross profit		27.3			33.7			60.8			77.9
Operating Expenses		25.6			24.3			53.4			48.7
Operating Profit		1.7			9.4			7.4			29.2
Profit/(Loss) before taxes		8.5			12.0			14.1			26.9
Income tax		(2.9	)		1.3			(0.9	)		3.6
Minority interest		-			-			-			-
Net Income/Loss		11.4			10.7			15.0			23.3
EBITDA margin		4	%		6	%		5	%		7	%
EBITDA to EC GROUP*		14.2			22.2			32.6			54.8

*EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of June 30, 2012		As of March 31, 2012
Current Assets		663.7		646.4
Long Term Assets		508.0		506.7
Total Assets		1,171.7		1,153.1
Current Liabilities		401.5		383.5
Long Term Liabilities		126.6		137.2
Total Liabilities		528.1		520.7
Equity		643.6		632.4
Total Liabilities and Shareholders´ Equity		1,171.7		1,153.1

34

2. Reficar

Sales Volume (MBD)	2Q 2012		2Q 2011		1H 2012		1H 2011
Local		47.8		41.7		44.8		41.6
International		47.6		53.0		52.1		54.6
Total		95.4		94.7		96.9		96.2

Income Statement
(COP$ Billion)	2Q 2012*			2Q 2011*			As of May 31, 2012			As of May 31, 2011
Local Sales		972.4			909.8			1,565.4			1,421.0
Export Sales		1,048.7			1,099.2			1,732.9			1,699.0
Total Sales		2,021.1			2,009.0			3,298.3			3,120.0
Variable Costs		2,064.4			1,895.7			3,308.9			2,909.8
Fixed Costs		81.8			71.0			127.1			108.7
Cost of Sales		2,146.2			1,966.7			3,436.0			3,018.5
Gross profit		(125.1	)		42.3			(137.7	)		101.5
Operating Expenses		25.5			23.4			80.3			71.9
Operating Profit		(150.6	)		18.8			(218.0	)		29.6
Non Operating income		43.7			66.4			292.7			91.7
Non Operating expenses		(60.7	)		(75.7	)		(124.6	)		(104.7	)
Profit/(Loss) before taxes		(167.6	)		9.6			(49.9	)		16.6
Income tax		1.1			1.3			1.9			2.2
Minority interest		-			-			-			-
Net Income/Loss		(168.7	)		8.3			(51.8	)		14.4
EBITDA margin		-8	%		0	%		-2	%		0	%
EBITDA to EC GROUP**		(87.7	)		55.6			(139.5	)		86.3

* The quarter corresponds to March-May

**EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of May 31, 2012		As of February 29, 2012
Current Assets		1,528.9		1,507.0
Long Term Assets		7,308.5		6,309.0
Total Assets		8,837.4		7,816.0
Current Liabilities		1,472.0		1,532.9
Long Term Liabilities		4,856.6		3,605.6
Total Liabilities		6,328.6		5,138.5
Equity		2,508.8		2,677.5
Total Liabilities and Shareholders´ Equity		8,837.4		7,816.0

35

Transport

1. Ocensa

Transported  volumes (thousand barrels per day)	2Q 2012		2Q 2011		1H 2012		1H 2011
Cusiana-Porvenir		167,667.8		168,773.9		164,542.3		130,868.8
Porvenir-Vasconia		593,171.0		575,083.3		595,056.2		546,776.2
Vasconia-Coveñas		410,189.6		369,172.9		408,762.8		346,630.0
Coveñas-Export Port		405,381.3		336,204.5		421,500.1		325,892.9

Income Statement
(COP$ Billion)	2Q 2012			2Q 2011			1H 2012			1H 2011
Sales of services		252.8			258.6			509.7			492.6
Total Sales		252.8			258.6			509.7			492.6
Cost of Sales		134.8			184.9			319.7			340.8
Gross profit		118.0			73.6			190.0			151.8
Operating Expenses		14.5			11.8			37.1			31.4
Operating Profit		103.5			61.9			152.9			120.4
Profit/(Loss) before taxes		44.1			5.2			40.6			33.8
Income tax		1.3			1.3			2.7			2.7
Minority interest		-			-			-			-
Net Income/Loss		42.8			3.9			37.9			31.1
EBITDA margin		69	%		66	%		68	%		67	%
EBITDA to EC GROUP*		147.4			102.2			294.9			198.8

*EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of June 30, 2012		As of March 31, 2012
Current Assets		872.7		734.2
Long Term Assets		3,657.6		3,729.0
Total Assets		4,530.3		4,463.2
Current Liabilities		330.3		303.1
Long Term Liabilities		816.0		820.3
Total Liabilities		1,146.3		1,123.4
Equity		3,384.0		3,339.8
Total Liabilities and Shareholders´ Equity		4,530.3		4,463.2

36

2. ODL

	2Q 2012		2Q 2011		1H 2012		1H 2011
Transported  volumes (MBOD)		217		217		221		199

Income Statement
(COP$ Billion)	2Q 2012			2Q 2011			1H 2012			1H 2011
Sales of services		102.7			66.6			227.6			136.5
Total Sales		102.7			66.6			227.6			136.5
Variable Costs		21.1			17.6			33.9			24.0
Fixed Costs		55.7			38.3			111.7			67.6
Cost of Sales		76.8			55.9			145.6			91.6
Gross profit		25.9			10.7			82.0			44.9
Operating Expenses		4.8			3.5			9.5			6.5
Operating Profit		21.1			7.2			72.5			38.4
Profit/(Loss) before taxes		6.5			5.1			32.1			18.8
Income tax		3.3			2.2			3.5			2.2
Minority interest		-			-			-			-
Net Income/Loss		3.2			2.9			28.6			16.6
EBITDA margin		50	%		41	%		60	%		58	%
EBITDA to EC GROUP*		33.5			17.9			89.2			51.1

*EBITDA (COLGAAP) contribution to EC group

Balance Sheet
COP$ Billion	As of June 30, 2012		As of March 31, 2012
Current Assets		315.10		353.80
Long Term Assets		1,958.40		1,935.50
Total Assets		2,273.50		2,289.30
Current Liabilities		171.90		186.50
Long Term Liabilities		1,395.30		1,399.70
Total Liabilities		1,567.20		1,586.20
Equity		706.30		703.10
Total Liabilities and Shareholders´ Equity		2,273.5		2,289.30

37

Biofuels

1. Ecodiesel

Sales volume (thousand barrels per day)	2Q 2012		2Q 2011		1H 2012		1H 2011
Biodiesel		4		3		8		-
Glycerin		0		0		1		-
Total		4		4		9		-

Income Statement
(COP$ Billion)	2Q 2012			2Q 2011			As of May 31, 2012			As of June 30, 2011
Domestic sales		55.4			72.8			135.3			143.4
Total Sales		55.4			72.8			135.3			143.4
Variable Costs		47.5			67.6			116.5			132.1
Fixed Costs		-			-			-			-
Cost of Sales		47.5			67.6			116.5			132.1
Gross profit		7.9			5.2			18.8			11.3
Operating Expenses		5.7			3.0			14.5			7.0
Operating Profit		2.1			2.1			4.3			4.2
Profit/(Loss) before taxes		0.00			0.00			-			-
Net Income		0.00			0.00			0.00			0.00
EBITDA		5.8			4.0			16.2			4.2
EBITDA margin		10	%		5	%		12	%		3	%

Balance Sheet
COP$ Billion	As of May 31, 2012		As of March 31 de 2012
Current Assets		57.4		64.1
Long Term Assets		76.6		81.9
Total Assets		134.0		146.0
Current Liabilities		112.0		66.2
Long Term Liabilities		-		58.5
Total Liabilities		112.0		124.7
Equity		22.0		21.4
Total Liabilities and Shareholders´ Equity		134.0		146.0

38

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: July 24, 2012

Ecopetrol S.A.
By:	/s/ Adriana M. Echeverri
Name:	Adriana M. Echeverri
Title:	Chief Financial Officer