QUARTERLY

MANAGEMENT

RESULTS

M a r c h 2 0 1 7

CORPORATE

ASPECTS

General ResultsRelevant data by GEN (Figures as of March 2017)

*

62% 4%34%

Gas pipeline: 3,089 kilometers ∆4%

Compression Capacity: 47.8 khp

Transmission Capacity: 961.3 MCFD ∆20%

Transported volume: 487.7 MCFD

33% 56% 11%

CONSOLIDATED REVENUES MARCH 2017: COP 890,876 MM ∆-8%

CONSOLIDATED EBITDA MARCH 2017: COP 308,903 MM ∆18%

NET PROFIT MARCH 2017: COP 161,640 MM ∆3% (18 companies; 2 countries; 3,001 employees** )

* Includes Gases del Caribe, Cálidda, Efigas and Gases de La Guajira / ** Does not include contractors

GEN

Transmission

Users: 3.74 MM ∆6% (40% country)

58,640 connections

Communities serviced: 716 ∆7%

(64% country)

Networks laid: 53,702 km ∆5%

Gas sales: 1,966 MMm3 ∆-10%

Brilla

Users: 2,17 MM ∆35%

Loan portfolio: 559,517 MM ∆23%

GEN

Distribution

Accumulated users: 353,031 ∆5%

Energy demand: 151 GWh ∆6%

Losses: 16.62%

Networks laid: 26,108 km ∆3%

3

COASTAL TRANSMISSION SYSTEM

Semester I, Southern Loop

entry into operation (+95

MCFD)

FINANCING OF PROJECTS

Successful financing

strategy.

(US $ 477 million

granted)

CONSOLIDATED INVESTMENT 2016

USD $279 MM

Transmission

SPEC

Distribution*

USD $166 MM

USD $83 MM

USD $30 MM

PROMISOL

Construction and

operation Canacol

and Hocol plants

DISTRIBUTION CONNECTIONS

145,608 users in

Colombia and

93,264 in Peru

SPEC

Start of

operations

* With Cálidda and Gases del Caribe USD $133 MM

Relevant Achievements 20164

PromigasGEN Transmission Results

5

PromigasNatural Gas Transmission

Costa AtlánticaAt the end of the first quarter of the year, Promigas reached:

• Gas pipeline length: 2,556 Km

• Transmission Capacity: 738.3 MCFD (89% Contracted)

• Compression Capacity: 47.8 Khp

Thermoelectric Sector: Reduced consumption due to higher

hydrological inputs.

Industrial Sector: Higher consumption due to the continuation of the

Reficar stabilization plan for consumption and an increase in the

consumption of cement companies due to the availability of natural

gas at competitive prices.

Atlantic Coast

Portfolio

Due to the higher consumption of Ecopetrol the

transmission volume of Promioriente as of March 2017 was

5% higher than in 2016.

The volume transported increased in the first quarter of

2016 as a result of events such as low pressures due to the

El Niño phenomenon and EPM maintenance.

(*) Includes volumes of tranches Gibraltar – Bucaramanga and Bucaramanga – Payoa – Barrancabermeja

6

PromigasGEN Transmission: Highlights

Promigas is developing the following

commercial agreements:

• Transmission contract for new gas

from the Canacol fields for 40

MCFD. Estimated start date

December 2017.

• Contract for 100 MCFD with

Canacol signed in November 2016.

• Signing of take-or-pay transmission

contract with Pacific for 15 MCFD,

as of January 1, 2010.

• Signing of take-or-pay contract with

Surtigas for 3 MCFD from Jobo.

From February to June 2017.

Promioriente reached an average

transported volume of 66 MCFD,

5% higher than that transported at

the end of March 2016, due to the

higher consumption of the

interruptible supply contract with

Ecopetrol.

Continue the execution of the

compressor projects of

Promioriente (Los Pinos), to

provide greater capacity to the

system; and those of

Transmetano (Malena), to

maintain reliability in the EPM

dispatch. Estimated start of

operation before the end of June

2017.

Fitch Ratings maintains the BBB-

(international) rating for local and

foreign currency IDRs, highlighting a

strong market position, geographical

diversification, low risk profile for

investors, and a stable and

predictable revenue structure.

Likewise, it affirms the national rating

of Promigas at AAA with a stable

outlook.

7

PromigasGEN Transmission: Highlights

8

PROMISOL:

• Construction work of the Hocol gas treatment plants finished in January.

• 100% operational availability in the Canacol and Hocol plants (dehydration

and compression).

• Continue with the construction of the compressor projects of Promioriente

(Los Pinos) and Transmetano (Malena), which will result in greater reliability

of the transmission systems (start of operation in June 2017).

ZONAGEN:

• As part of the commercial management the sale of 100% of the generation

capacity of the 4 engines installed in the Barranquilla free trade zone, and

70% of the engines installed in the La Cayena free trade zone stands out.

SPEC:

• From the start of operations in December 2016, it met the goal of 100%

operational stability.

• In March controls and procedures were carried out to achieve the reduction

of the average generation of Boil Off Gas (evaporation losses), with positive

results.

• Signing of the LNG purchase agreement between CALAMARI and SPEC

on March 23, 2017 (gas surplus purchased by SPEC for plant testing)..

PromigasGEN Transmission: Ongoing Projects

Company Project Schedule CAPEX

Promigas

Construction of the Southern Loop

(Increase of transport capacity in 115

MCFD)

Start of staggered

operation. Pending:

Subfluvial crossing Canal

del Dique.

US$ 181 MM

SPEC

LNG regasification terminal,

Cartagena:

• Project Execution: 100%

• 100% terminal availability

Phase I: FSRU (Start of

operation in December

2016)

Phase II: On shore

Terminal (Subject to

negotiation)

Phase I: US$ 150 MM

Transmetano Malena Compressor 84% execution $32,790 MM

Promioriente Los Pinos Compressor 50% execution $23,450 MM

9

PromigasProject Finance Management / (US$477 Million)

Bonds issue SPEC financing Syndicated Credit

Amount

COP $500,000 MM

(September)

Rate

IPC+4.1 (9.87% EAR)

Destination

Southern Loop +

Refinancing

Information

Successful placement,

2.25 times

oversubscribed.

Amount

USD $110 MM

(December)

Rate

LIBOR+4.2 (6.20% EAR)

Destination

SPEC Project Financing

Information

First credit with Project

Finance structure

(Davivienda and Corpbanca).

Amount

USD $200 MM

(December)

Rate

LIBOR+2.5 (4.50% EAR)

Destination

GDO, Promisol, Capex

Promigas

Information

First syndicated loan (14

banks from different

countries).

Note: CPI @ 5.75%, Libor 6M @ 2.0%

16th year Promigas AAA (national rating) and 7th year BBB- (International rating)

10

PromigasGEN Transmission: Regulatory Aspects

• Promigas has made proposals with respect to the tariff methodology, set out in Resolution 090 of 2016, through a series

of meetings with the CREG on key issues: WACC, asset valuation, system stamp, useful life, mechanisms for

infrastructure development, in addition to others, seeking to guarantee fair and environmentally friendly conditions for

the transmission of natural gas. The final resolution is expected in the second half of 2017.

• In November 2016 the UPME published the final version of the Natural Gas Transitional Plan and in January the

Ministry of Mines and Energy accepted the proposed projects.

• Promigas is analysing the list of projects and promoting a deeper analysis about the suitability of the same along with

different agents of the natural gas market.

• The CREG issued a Resolution for comments seeking to regulate particular aspects for the execution and operation of

the regasification plant in Buenaventura proposed by the UPME. Promigas has raised its position regarding this plant in

different forums of the sector.

Tariff Methodology

Supply Plan (UPME) - Supply and Reliability of gas service

11

PromigasGEN Distribution results

12

PromigasGEN Distribution: Highlights

13

Colombia

• During the first quarter of 2017, the distributors in which Promigas is a shareholder connected 32,255 new users for a

cumulative total of 3.3 million users. The volume of gas sold to March is 801 MM3.

• 21 new communities were able to benefit from the natural gas service, for a total of 696.

• Fitch Ratings reaffirmed the AAA rating for Gases de Occidente and Surtigas (national rating) with a stable outlook. The

decision to reaffirm the rating takes into account its strong competitive position given the natural monopoly, the stability of

the operating generation due to the regulated nature of the business and the credit metrics suitable for the rating

category.

Peru

Cálidda

• 26,385 new users were connected, for a total of approximately 465,000 homes serviced in Lima and El Callao,

distributing 1,165 MM3 of natural gas to March 2017. The budget execution of connected users in the first quarter is

107% and the sale of gas is 98%.

• Fitch Ratings ratified the upgrade of rating from BBB- to BBB, highlighting a strong market position, predictable and

stable cash flow, and improved credit metrics.

Gases del Pacífico: Concession of 21 years to distribute gas in northern Peru

• SSD (service start date) runs from July 1 to July 30 due to delayed construction of the LNG platform.

• The provision of the service in all the departments will start to be rolled out from October.

PromigasGEN Distribution: Regulatory Aspects

Gas Distribution Methodology

• The gas distribution companies are waiting for the supplementary

information to the CREG 02 of 2013 methodology, with respect to

the articles revoked in July 2013. Promigas has repeatedly

expressed its concerns regarding the initial proposal of the

commission.

Gas Marketing Methodology

• On March 10, 2017, Resolution CREG 004 of 2017 was

published for comments, which establishes the general criteria to

remunerate the commercialization of combustible gas through

pipeline networks to regulated users. In conjunction with

Naturgas, a measurement was made of the impact of the

application of the resulting charge, reflecting a direct effect on the

marketers due to the proposed cost minimization. The inclusion

by the CREG of the following aspects are noted: G and T

mismatch, alignment with distribution methodology, portfolio risk,

among others.

14

PromigasGEN Distribution: Highlights FNB - Brilla

15

Brilla reached the total of 2

million loans granted to

Colombian families for their

good track record in paying

the natural gas service. With

acknowledgments from the

World Bank, the G-20, the

Financial Times and IFC,

BRILLA is a successful

example of inclusive

business with the base of the

pyramid in Colombia.

Placement of COP 99,971

million as of March 2017,

for a historical

accumulation of COP 2.0

billion and a consolidated

portfolio of COP 559,517

million.

98,370 users benefitted from

January to March 2017 and

2,105,654 from the beginning

of the program, distributed as

follows: Housing level 1: 34%,

Housing level 2: 41%,

Housing level 3: 19%, Others:

6%, reflecting the importantbenefit of this program.

The portfolio continues to

behave appropriately, which

ensures the sustainability of

the program in the long term.

PromigasGEN Distribution: Electric Power

• On March 10, a fourth version of the new distribution methodology was published for comments: CREG 019 resolution of

2017. In conjunction with Asocodis, an impact assessment was carried out for companies and end users.

• As of March 2017, CEO has connected 4,970 new users in the department of Cauca reaching a total of 353,051 users

with a 100% budget compliance.

• Energy sales for the third quarter were 152 GWh which represents a 109% execution.

• Continuing its work to reduce losses, the Compañía Energética de Occidente has managed to keep the commercial loss

indicator on average at 16.62% for Q1, this percentage is 3.88% than what is requested in the concession contract.

16

Regulatory Aspects

Highlights

Corporate EventsProfit Distribution Second Semester 2016

17

At the meeting held on March 21, 2017, dividends were declared for

COP 183,845 million, distributed as follows:

Dividends in cash at the rate of COP 162.00 per share on the

outstanding shares, as follows:

• Ordinary: COP 16.00 per share (COP 108,945 MM) (payable

in 6 monthly installments of COP 16.00 pesos per share as of

April 2017).

• Extraordinary dividends: COP 66.00 per share (COP 74,900

MM) (payable in a single installment in April 2017).

With this amount, a 100% Payout Ratio was achieved after IFRS

adjustments.

Corporate eventsAchievements and Acknowledgments

18

WATTA KA <II, an initiative born from the

alliance between the Promigas Foundation,

the Alpina Foundation and the Pathways of

Identity Foundation (FUCAI in Spanish) was

awarded the RedEAmérica Transformers

Latin American Award in the category of

private social investment and sustainable

communities.

Some of the educational change initiatives

of the foundation are given to other

institutions under the scheme of licenses for

use and through this figure the foundation

extends its presence to other territories in

the country and even outside the country.

This is the case of the "Reading Schools" a

project that the Gases de Occidente

Foundation has been developing - under a

license for use - in Cali, Darién and Tuluá.

Promigas was formally accepted in the Intellectual Property

Network, Area of Industry and Energy, SECOPI (Shared

Service of Intellectual Property). The application for admission

was approved on February 24 of this year.

Promigas, with the support of its Center for Research and

Innovation in Energy and Gas (CIIEG), launched the business

innovation promotion program, Innovation Initiatives 2017,

which seeks to identify 5 investment projects focused on

innovation with the potential to generate USD 1 million of net

income per year. The program was extended to Transmetano,

Promioriente, Promisol, SPEC, Surtigas, Gases de Occidente,

Compañía Energética de Occidente and the Promigas

foundation.

FINANCIAL

STATEMENTS

General Balance Promigas

Assets

In the first quarter the syndicated loan disbursement of USD 107.2 MM

was received, used for the prepayment of debt, project financing, and

loans to related parties: SPEC (Current Assets) and to Promisol (LT

Debtors - Other Assets); at the beginning of operations at the Hocol

plant (January), and in compliance with international norm IAS 17, the

compressors leased to Promisol were transferred from PP&E to the

accounts receivable financial leasing (Other Assets).

Liabilities

Increase as a result of the disbursement of the syndicated loan

(structured by JP Morgan) and due to the ordinary and extraordinary

dividends decreed at the March assembly.

20

Promigas Statement of Profit and Loss

273.581

204.765

170.969

285.310

206.413

165.280

0

50.000

100.000

150.000

200.000

250.000

300.000

Ingresos EBITDA Utilidad Neta

Mar-16 Mar-17

∆4%

∆1%

∆-3%

(1) No incluye activo financiero.

21

Revenue: Increase in revenues in 2017 in relation to the loss in 2016; higher

profit revenue due to the equity method in the companies: Surtigas, Promisol,

SPEC and CEO.

Costs and Expenses: In 2017 the combustible gas consumption at Palomino

was COP 1,746 MM, and a COP 503 MM compression service cost was

recorded for the Filadelfia and Sahagún stations, and the higher maintenance

of machinery and equipment due to the increased use of compressors.

Increase of Colombian Sales Tax from 16% to 19%, and higher 4x1000 taxes.

EBITDA: Shows an increase of 1% in line with the higher growth of Costs and

Expenses in relation to revenues.

Financial Income: Higher financial income as a result of interest generated by

intercompany loans with Promisol (COP 10,000MM), Transmetano (COP

10,000MM), and GDO (COP 103,700MM).

Financial Expenses: Increase due to the bond issue for COP 500,000 MM in

September 2016 and the syndicated loan in January 2017 (USD 41.472 MM),

and a second payment in March (USD 65.795 MM).

Other: Higher expenses in 2016 due to the transfer of the project costs for the

LNG micro-plant COP 4,235 MM.

Net Income: Decreases as a result of higher financial expenses in 2017. This

income represents an execution of 102% against budget (COP 162,520 MM).

Promigas Consolidated Statement of Profit and Loss

(1) No incluye activo financiero.

22

Revenues: The revenues of the first quarter of 2016 are higher due to

the El Niño phenomenon, which allowed more gas to be sold to the

thermoelectric generation plants (Surtigas and GDO).

Costs and Expenses: Lower supply costs due to the lower volume of

gas sold due to the absence of the El Niño phenomenon.

EBITDA: Presents an increase of 18% in accordance with the

decrease of costs and expenses.

Financial Income: Higher income due tot intercompany loans granted

by Promigas to its subsidiaries.

Financial Expenses: Increase in the issuance of bonds by Promigas

(COP 500,000bn) in September 2016 and disbursement of the

syndicated loan in January 2017. In addition, SPEC received

disbursements of its financing for USD 90MM in December 2016, the

majority of which were to replace bridging loans.

Net Income: 3% increase as a result of lower costs and expenses.

This profit represents 100% budget compliance.

ANNEXES

Promigas Cash Flow Statement24

Consolidated Balance Sheet

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

9.000.000

10.000.000

Activos Pasivos Patrimonio

Dic-16 Mar-17

∆0%

∆1%

∆0%

25

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