Quarterly Results January March 2016

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1 Quarterly Results January March 2016

2 WELCOME

3 CORPORATE ASPECTS

4 Corporate Events Achievements and Recognitions The Promigas Foundation won in 2015 the prestigious Portafolio award in the category Contribution to Community, acknowledging its approach of projecting new forms of voluntary actions towards the country s education. The social investment of Promigas and its companies amounted to USD 4 million. Promigas and the United Nations Development Program (UNDP) conducted during 2015 a program focused on strengthening local capacities of Disaster Risk Management in the Departments of Magdalena and La Guajira. Promigas made the statement of its greenhouse gas inventory (GGI) corresponding to the year 2013, which was certified by ICONTEC. It is currently undergoing the certification process for 2014 and 2015 in order to set out reduction goals. Investments made by Promigas and its companies regarding environmental issues amounted to USD 2 million.

5 Corporate Events Distribution of Profit II Half of 2015 In the general meeting held on March 22, 2016, dividends were ordered for $155,474 million, allocated as follows: Cash dividends at $ per share over the outstanding shares as follows: Ordinary: $90.00 pesos per share ($102,136 million) (payable in 6 monthly installments of $15.00 pesos per share from April 2016). Extraordinary: $47.00 pesos per share ($53,338 million) (payable in a single installment in April 2016).

General Results: Relevant information by SBG (Figures as of March 2016) SBG Transportation SBG Distribution * Gas pipeline: 2,981 kilometers Compression Capacity: 55.8 khp Transport Capacity: 803.

52 MM (40% country) 61,138 connections (83% penetration) Communities served: 669-61% country Installed networks: 50,924 km Sale of gas : 2,178 MMm3 Total Users: 336,633 Energy Demand: 142 GWh Losses:

6 General Results: Relevant information by SBG (Figures as of March 2016) SBG Transportation SBG Distribution * Gas pipeline: 2,981 kilometers Compression Capacity: 55.8 khp Transport Capacity: MMSCFD Transported Volume: MMSCFD Users: 3.52 MM (40% country) 61,138 connections (83% penetration) Communities served: % country Installed networks: 50,924 km Sale of gas : 2,178 MMm3 Total Users: 336,633 Energy Demand: 142 GWh Losses: 15.4 % Installed networks: 25,328 km 30% 62% Brilla Users: 1.61 MM Portfolio: 456,250 MM 59% 11% 31% 7% CONSOLIDATED REVENUES 2016: $966,853 MM 52% CONSOLIDATED EBITDA 2016: $229,687 MM 22% NET INOCOME 2016: $156,201 MM 43% (18 companies; 2 countries; 2,801 employees** ) * Includes Gases del Caribe, Cálidda, Efigas and Gases de La Guajira / **Contractors not included.

7 PROMIGAS SPECIFIC RESULTS: SBG TRANSPORTATION

8 Promigas Relevant Results SBG Transportation: Regulatory Aspects In January, the CREG issued an expert opinion on the valuation of the new section Payoa Bucaramanga of 6 due to the expiry of the regulatory useful life. An update of the charges is expected in the first half-year Indicative Plan for Natural Gas Supply (PIAGN, for its Spanish abbreviation) On January 25, by MINMINAS Resolution 40052/2016, the ministry established the minimum required elements for the technical study that will prepare the UPME (Spanish acronym for the Mining and Energy Planning Unit) for the adoption of the PIAGN It was published on April 27 for comments. The Ministry of Mines published the Declaration of Natural Gas Production for the period. New relevant factors are considered in this front, such as the beginning of the operation of the SPEC regasification plant, the new production declarations of Canacol, Hocol and Gibraltar, and the situation of traditional fields such as Guajira and Cusiana.

9 Transportation of Natural Gas (Atlantic Coast Promigas) By the end of the first quarter, Promigas achieved: Pipeline Length: 2,448 Km Transport Capacity: MMSCFD (89% Contracted) Compression Capacity: 55.8 Khp Transported Volume by Industry (MMscfd) Jan - Mar Jan - Mar Var % Termoeléctrico % Industrial % Doméstico % GNCV % TOTAL % Thermoelectric Sector: Reduced consumption due to higher hydroelectric shipment during the first quarter of Industrial Sector: Increased due to the commissioning of Reficar. In addition, in the first quarter of 2015 the cement plants had decreased the allocated capacity in gas supply during the period of bilateral negotiation PROMIORIENTE Var % Jan - Mar Jan - Mar Transported Voume (MMscfd) % In 2016 Promioriente has to date an execution of 118% with respect to the budget (Vol. Budget: 53.5 MMSCFD). TRANSMETANO Jan - Mar Jan - Mar Var % Transported Voume (MMscfd) % Execution of 98% to date mainly due to the maintenance carried out by EPM in CKC Barbosa throughout March.

10 Promigas Relevant Results SBG Transportation: Relevant Events In the first quarter, Promigas reached an additional transportation capacity of 19,8 MMSCFD, which paved the way for new gas supply in the fields of Canacol, as a result of the expansion of the southern sections of our transportation system. Furthermore, the additional consumption of gas of the Reficar project reached relevant levels, reaching 45 MMSCFD in March, which are expected to be stabilized at 75 MMSCFD for the remainder of the year. Promioriente continues with the structuring of the agreement with Ecopetrol for the transportation of an additional production equal to 14 MMSCFD declared for 15 years, through the Gibraltar and Barranca systems. Transmetano, through the modification of the Barbosa Station, made viable the first Cogeneration project of the region: Papelsa. This type of demand concentrates the highest growth expectations for the contracted capacity and transported volumes of Transmetano. Execution of the Promioriente and Transmetano (Malena) compressor projects (Los Pinos), as scheduled. Estimated start date for the last quarter of 2016.

11 Promigas Relevant Results SBG Transportation: Relevant Events Promisol continues with satisfaction the construction of the Southern Loop and the Compressor Stations Filadelfia and Sahagun of Promigas, as well as the Hocol and Canacol treatment plants. Current Projects: Company Project Shedule CAPEX Promigas Construction of the San Mateo Mamonal Loop (Increase in transportation capacity by 115 MMSCFD) Phased begining of the operation between March and May 2016 US$ 134 MM (Approved by CREG: US$ 68 MM) SPEC LNG regasification terminal in Cartagena : Project Execution: 75% (Slightly ahead of scheduled) Pile Manufacturing: 72% Pile Driving: 36% Negotiation of Easements for Connection Pipeline SNT: 100% Arrangements to purchase LNG for commissioning phase. Phase I: FSRU (Dec 2016) Phase II: On shore Terminal (Subject to negotiation) Phase I: US$ 140 MM Promisol Dehydration and compressor station for Hocol (Treatment of 30 MMSCFD) and Canacol (Treatment of 60 MMSCFD) Hocol: Begins operation in June 2016 Canacol: Begins operation in May 2016 Hocol: US$ 48.8 MM Canacol: US$ 29 MM

12 PROMIGAS SPECIFIC RESULTS: SBG DISTRIBUTION

13 Promigas Relevant Results SBG Distribution: Regulatory Aspects XIX Naturgas Congress 2016 The Naturgas Congress was held on March 16, 17 and 18 in Cartagena, where important issues for the industry were discussed, such as the progress in the natural gas distribution fees, just to mention the most important. Internal Facilities According to MINMINAS Resolution 40120/2016, natural gas distribution companies may continue providing the inspection service of internal facilities until the Ministry of Mines and Energy determines that there are enough coverage conditions and logistics capacity by Inspection Bodies Type A. The new assessment of such conditions will be conducted on February Ministry of Mines and Energy On March 7 the Minister Tomas Gonzalez Estrada resigned. On April 19, President Juan Manuel Santos announced the appointment of German Arce as new Minister of Mines and Energy who officially took office on May 2.

14 Colombia As of March 2016, the distributors in which Promigas holds interests managed to connect 36,732 new users (123% execution), reaching a total of 3,147,135. The volume of gas sold amounted to 886 MM3 (147% execution). 14 new communities were serviced with natural gas, reaching a total of 662 served communities. Peru Promigas Relevant Results SBG Distribution: Natural Gas Relevant Events Cálidda Managed to connect 24,406 new users, reaching a total of 369,542 in Lima and El Callao, distributing MM3 of natural gas during Q1. The execution of stipulated connected users is 113% and the distributed volume, 99%. Gases del Pacifico: 21-year concession for the distribution of gas in northern Peru (USD $200 MM between 2014 and 2020) New commissioning date February 2017, due to delays in the construction of the LNG loading platform. Such delay does not affect any contractual commitments undertaken by Gases del Pacifico. The regasification stations of the 7 communities have a weighted overall progress of about 70%.

15 Promigas Relevant Results SBG Distribution: Relevant Events FNB - Brilla Placement of $91,890 million as at March 2016, for a historic total of $1,610,213 million and a portfolio of $456,250 million. 90,113 new served users between January and March 2016, and 1,714,849 since the start of the program, distributed as follows: Stratum 1: 33%, Stratum 2: 42%, Stratum 3: 20%, Others: 5%; thereby highlighting the program s significant social impact. The portfolio continues exhibiting a very good trend, ensuring the long-term sustainability of the program.

16 Promigas Relevant Results SBG Distribution: Regulatory Aspects Electric Power Distribution Methodology Publishing of the new methodology for comments in CREG Res. 024/2016, which includes quality investment incentives, loss reduction, coverage expansion, asset replacement and technological renewal thereof. El Niño Phenomenon High prices of energy traded since October Due to threats of energy rationing since March 6, a campaign of differential energy rates was implemented through CREG Res. 029, 039, 049 of 2016 in order to reduce energy consumption nationwide. Through CREG Res. 025 of 2016, the verified disconnectable demand and demand reduction campaigns were activated. These programs promote unregulated users to use their emergency or backup plants to decrease the demand of the national interconnected system in exchange of specific remunerations for each case.

17 Promigas Relevant Results SBG Distribution: Relevant Events Electric Power As of March 2016, CEO has connected 2,342 new users in the Department of Cauca, reaching a total of 336,633 users, complying 100% with the budget. The sale of energy through the first quarter was equal to 142 GWh, which represents an execution of 101%. Continuing with its efforts to reduce losses, Compañia Energetica de Occidente has managed to bring the indicator of commercial losses to 15.4% (6.2 points below the contractual requirement).

18 Financial Statements Volúmenes

19 Balance Sheet - Promigas COP Millions Dic-15 Mar-16 Var % Cash & Temp. Investments % Other Non Current Assets % PP&E % Concessions Assets % Financial Assets % Other Assets % Total Assets % Current Liabilities % Long Term Liabilities % Total Liabilities % Shareholder's Equity % Total Liabilities + Equity % do Final Assets Liabilities Shareholder's Equity Dic-15 Mar-16 Assets: The increase is mainly due to the registration of dividends from affiliated companies for a value of $109,315 MM. PP&E decreased due to the transfer to the Income Statement of the project costs for the construction of the LNG Micro-plant ($4,237 MM) and to transfer to Buildings for the capitalization of adjustments to the Palomino station ($828 MM). The Assets Under Concession increased due to additions of constructions underway of the projects: Sincelejo Mamonal Loop, GPF Equipment Hocol-Promisol, Filadelfia Compressor, Hub Cartagena, among others. Liabilities: Short-term liabilities increased due to the dividends ordered in the shareholders meeting of March. Long-term liabilities increased due to loans received from banks.

20 Income Statement - Promigas COP Millions Mar- 15 Mar- 16 Var % Operating Revenues % Financial Assets Income % Dividends Earned % Equity Earnings % AO&M % Operating Income % EBITDA % Interest Income % Interest Expenses % Other Income/Expenses (838) N.A. Income Before Income Taxes % Income Taxes % Net Income % Revenues: Higher operation revenues due to increased freight rates/resolution 040, which took effect in May In March 2016, the Agreement with Canacol (Gacelca) 35 MMSCFD began being invoiced ($5,800 MM). Higher revenues due to dividends received from Cálidda ($36,253 MM) and Gases del Caribe ($17,894 MM) in March Increased revenues by Equity Method mainly due to greater Net Income of Gases de Occidente ($5,405 MM), as a result of a greater volume of gas sales compared to the previous year. Costs and Expenses: Increase mainly due to higher depreciation costs ($9,938), as a result of adjustments to the calculation of the pipeline concessions made in March 2015; increase of the labor costs due to the wage increase implemented in 2016 in addition to further training, medical expenses and other items, according to the activities undertaken throughout the year. EBITDA: Increased by 39% in accordance with the increased revenues. Financial Expenses: Increase due to the issue of bonds for $400,000 of March 2015 and a higher debt balance, with an additional $461,722 MM. Others: Decrease mainly due to the transfer of expenses of the LNG Micro-plant project costs ($4,235 MM). Also affected due to the exchange difference over accounts payable in Dollars and on advance payments in Dollars for future capitalizations of Gases del Pacifico (US $6,300,000 MM). Net Income: Increased by 45% compared to the same period last year.

21 Income Statement - Consolidated COP Millions Mar- 15 Mar- 16 Var % Operating Revenues % Financial Assets Income % Dividends & Equity Earnings % AO&M % Operating Income % EBITDA % Interest Income % Interest Expenses % Other Income/Expenses (329) N.A. Income Before Income Taxes % Income Taxes % Minority Interest % Net Income % Revenues: Higher revenues due to increased freight rates/resolution 040, which took effect in May Exchange rate increase, which impacts the gas transportation rates and the price of gas for distributors. Increased revenues of Gases de Occidente due to greater volume of gas sales. Costs and Expenses: Exchange rate increase affecting the cost of gas for distributors, but not their performance, as they have pass-through revenues-costs. EBITDA: Increased by 22% in accordance with the increased revenues. Financial Expenses: Increased due to the debt balance in March 2016 being higher given the issue of bonds by Promigas ($400,000 MM) in March 2015 and a higher inflation that impacted the costs of debt indexed to the CPI. Net Income: Increased by 43% compared to the same period last year, according to the increase in earnings before taxes.

22 Annexes Volúmenes

23 Cash Flow Statement - Promigas COP Millions March 2016 Net Income Depreciation & Amortization Equity Earnings (53.364) Dividends Earned Working Capital Changes ( ) Cash From Operating Activities Capital Expenditures (97.036) Cash Flow Before Financing Activities (62.481) Third Party Debt Increase Debt - Principal Payment (6.444) Permanent Investments - Shareholder's Cash Flow Dividends Paid (51.060) Net Cash Flow (11.281) Initial Cash Final Cash

Consolidated Balance Sheet COP Millions Dic-15 Mar-16 Var % Cash & Temp. Investments 184.136 255.739 39% Other Non Current Assets 734.207 887.636 21% PP&E 1.252.375 1.336.591 7% Concessions Assets 1.

24 Consolidated Balance Sheet COP Millions Dic-15 Mar-16 Var % Cash & Temp. Investments % Other Non Current Assets % PP&E % Concessions Assets % Financial Assets % Other Assets % Total Assets % Current Liabilities % Long Term Liabilities % Total Liabilities % Shareholder's Equity % Total Liabilities + Equity % do Final Assets Liabilities Shareholder's Equity Dic-15 Mar-16

25 Separated Income Statement - Promigas [310000] Comprehensive Income Statement, Quarterly Result by Expenses Quarterly results [summary] Earnings (loss) [synopsis] 01/01/2016 TO 31/03/ /07/2015 TO 30/09/2015 Revenues of ordinary activities Cost of Sales Gross earnings Other revenues 0 0 Distribution expenses 0 0 Administrative and selling expenses Employee benefit expenses Reversal of impairments (impairment) recognized in quarterly end results Other expenses Other earnings (loss) Earnings (loss) for operating activities Difference between carrying amount of dividends payable and carrying amount of non-cash distributed assets 0 0 Earnings (loss) arising from net monetary position 0 0 Earnings (loss) arising from the derecognition of financial assets measured at amortized cost 0 0 Financial revenues Financial costs Share in earnings (loss) of assocites and ventures accounted for using the equity method Other earnings (expense) from affiliated companies, joint controlled entities and related entities Earnings (losses) arising from the difference between prior carrying value and fair value of financial assets reclassified as measured at fair value 0 0 Earnings (loss) before taxes Revenue (expense) due to taxes Earnings (loss) from continuing operations Earnings (loss) from discontinued operations 0 0 Earnings (loss) Earnings (loss) attributable to [synopsis] Earnings (loss) attributable to owners of parent company Earnings (loss) attributable to non-controlling interests 0 0 Earnings per share [synopsis] Common Shares [member] Common Shares [member] Basic earnings per share [synopsis] Basic earnings (loss) per share from continuing operations Basic earnings (loss) per share from discontinued operations 0 0 Total basic earnings (losses) per share Diluted earnings per share [synopsis] Diluted earnings (loss) per share from continuing operations 0 0 Diluted earnings (loss) per share from discontinued operations 0 0 Total diluted earnings (loss) per share 0 0

26 Consolidated Income Statement [310000] Comprehensive Income Statement, Quarterly Result by Expenses Quarterly results [summary] Earnings (loss) [synopsis] 01/01/2016 TO 31/03/ /07/2015 TO 30/09/2015 Revenues of ordinary activities Cost of Sales Gross earnings Other revenues 0 0 Distribution expenses 0 0 Administrative and selling expenses Employee benefit expenses Reversal of impairments (impairment) recognized in quarterly end results Other expenses Other earnings (loss) Earnings (loss) for operating activities Difference between carrying amount of dividends payable and carrying amount of non-cash distributed assets 0 0 Earnings (loss) arising from net monetary position 0 0 Earnings (loss) arising from the derecognition of financial assets measured at amortized cost 0 0 Financial revenues Financial costs Share in earnings (loss) of assocites and ventures accounted for using the equity method Other earnings (expense) from affiliated companies, joint controlled entities and related entities Earnings (losses) arising from the difference between prior carrying value and fair value of financial assets reclassified as measured at fair value 0 0 Earnings (loss) before taxes Revenue (expense) due to taxes Earnings (loss) from continuing operations Earnings (loss) from discontinued operations 0 0 Earnings (loss) Earnings (loss) attributable to [synopsis] Earnings (loss) attributable to owners of parent company Earnings (loss) attributable to non-controlling interests Earnings per share [synopsis] Common Shares [member] Common Shares [member] Basic earnings per share [synopsis] Basic earnings (loss) per share from continuing operations Basic earnings (loss) per share from discontinued operations 0 0 Total basic earnings (losses) per share Diluted earnings per share [synopsis] Diluted earnings (loss) per share from continuing operations 0 0 Diluted earnings (loss) per share from discontinued operations 0 0 Total diluted earnings (loss) per share 0 0

27 Thank you!

QUARTERLY MANAGEMENT RESULTS. M a r c h

QUARTERLY MANAGEMENT RESULTS. M a r c h QUARTERLY MANAGEMENT RESULTS M a r c h 2 0 1 7 CORPORATE ASPECTS General Results Relevant data by GEN (Figures as of March 2017) GEN Transmission GEN Distribution 3 * Gas pipeline: 3,089 kilometers 4%