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Ecopetrol ADR Representing 20 Ord Shs V.EC


Primary Symbol: EC

Ecopetrol S.A. is an oil company. The Company operates in Colombia, Peru, Brazil and the United States Gulf Coast. The Company's segments include Exploration and Production, Transportation and Logistics, and Refining, Petrochemicals and Biofuels. The Company's Exploration and Production segment includes exploration, development and production activities in Colombia and abroad. The Company's Transportation and Logistics segment includes the transportation of crude oil, motor fuels, fuel oil and other refined products, including diesel and biofuels. The Company's main crude oil pipeline systems' operating capacity is approximately 1.34 million barrels per day (BPD). The Company's main refineries are the Barrancabermeja refinery, which it directly owns and operates, and a refinery in the Free Trade Zone in Cartagena that is operated by Reficar S.A., a subsidiary of the Company. The Company also owns and operates two other minor refineries: Orito and Apiay.


NYSE:EC - Post by User

Comment by fairfax1on Oct 03, 2011 7:19pm
389 Views
Post# 19114049

RE: Wow, anyone else getting excited?!

RE: Wow, anyone else getting excited?!It depends what the drilling implies regarding a potential resource estimate. Say IMO the very best case scenario, something gigantic like 10 million ounces of gold was inferred, that is worth about 15 billion of gold value. Then taking the present value of that possible revenue minus expenses, then a resource of that size may be worth 3 billion PV, give or take a billion, depending what "discount rate" is used. So if a huge resource of that size were proven, you would expect the market capitalization to reflect that present value number roughly.

Remember this is all speculation and IMO.

So what really is important is the market capitalization of a company. Check the market caps of those companies and compare them to EC. EC has a market capitalization of around 20 million so you can see how much room there is to move up. Remember though share dilution  directly changes/affects market caps.

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