Q U A R T E R LY M A N A G E M E N T R E S U LT S S E P T E M B E R 2 0 1 6

W E L C O M E

CORPORATE ASPECTS

GENERAL RESULTS General information by Strategic Business Group (Figures as of September 2016)

CONSOLIDATED EBITDA 2016: $940,970 MM ∆37%

NET INCOME 2016: $462,529 MM ∆34% (20 companies; 2 countries; 2,844 employees** )

* Includes Gases del Caribe, Cálidda, Efigas and Gases de La Guajira

CONSOLIDATED REVENUES 2016: $2,970,277 MM ∆49%

Gas pipeline : 3,092 kilometers

Compression capacity: 62.1 khp

Transportation capacity: 961.3 MCFD

Transported volume: 488.5 MCFD

SBG Transportation

75%

36%

SBG Distribution

19% 6%

53% 11%

Users: 3.64 MM (40% country)

156,683 connections Communities served: 695 (63% country)

Installed networks: 51,905 km

Sale of gas: 6.920 MMm3

Brilla Users: 1.89 MM Portfolio: 516,523 MM

Total users: 342.509 Energy demand: 444 GWh Loses: 17,2 % Installed networks: 25,631 km

*

/ ** Contractors not included

Promigas Specific Results: SBG Transportation

2015 2016

Ene - Sept Ene - Sept Var %

Termoelectrico 197,2 164,9 20%

Industrial 76,3 120,9 -37%

Domestico 43,6 42,1 4%

GNVC 14,5 13,0 12%

TOTAL 331,6 340,9 -3%

Volumenes Transportados por

Sector (Mcpd)

Promigas Gas Natural Transportation

By the end of the third quarter, Promigas reached: - Length of pipelines: 2,559 Km - Transportation Capacity: 738.3 Mcfd (79% Contracted) - Compression Capacity: 62.1 Khp

• Thermoelectric Sector: Reduced consumption due to higher use of diesel for generation as a result of shortage price. • Industrial Sector: Increased due to start of operation of Reficar. Also, as of September, Gecelca gave use to its contracted

interruptible capacity in Termoguajira.

• Up to September 2016, Promioriente has a transported volume 12% higher compared to the same period in 2015, due to higher consumption of Ecopetrol and service impairment caused by the winter wave between June and September 2015.

• Up to September 2016, Transmetano reported a decrease in transported volume of 3% compared to 2015, due to delivery restrictions caused by low pressure during the first quarter of the year as a result of El Niño Phenomenon, coupled with industry maintenance and damages to the EPM networks.

Atlantic Coast

Portfolio 2015 2016

PROMIORIENTE Ene - Sept Ene - Sept Var %

Volumen Transportado (MPCD) 49,1 55,2 12%

2015 2016

TRANSMETANO Ene - Sept Ene - Sept Var %

Volumen Transportado (MPCD) 51,2 49,8 -3%

Promigas Relevant Results SBG Transportation: Highlights

• Promigas managed to incorporate 65 Mcfd of the Canacol fields connected in Jobo, thanks to the commissioning of the expansions of the transport system between Jobo and Cartagena.

• Promigas has infrastructure available to transport the new gas injection from the Bonga and Mamey fields of Hocol (30

Mcfd), which are expected to enter the System in December 2016. • With the two previous points, 95 additional Mcfd of natural gas would be completed and made available to the market.

• Reficar normalized its consumption, which ranges between 60 and 65 MCFD.

• Promioriente reached an average transported volume of 55 Mcfd, 12% higher compared to September 2015. In August it

reached the highest volume of the year with 69 Mcfd (Gibraltar 37.92 and Barranca 31.09 Mcfd).

• Transmetano consolidates the capacity contracted in the Antioquia area with the new outlet points established in the towns of Maceo, Yolombo, Santo Domingo and San Vicente.

• The execution of the compressor project of Promioriente (Los Pinos) continues, to offer greater capacity to the system, as well as the compressor project of Transmetano (Malena), to keep reliability in the dispatch of EPM. Estimated start of operation is in the first quarter of 2017.

Promigas Relevant Results SBG Transportation: Highlights

• Promisol: - The execution of the Southern Loop infrastructure project, which is already in operation, missing

only the completion of the sub-river crossing in the area of the Canal del Dique. - The works required for the gas import project from Venezuela are completed and the execution of

the projects of the gas treatment plants of Hocol and Canacol is in progress, the operation of which is expected to start in December 2016.

• SPEC executes the Regasification Plant project according to schedule. Among the most significant milestones are the purchase of the first LNG cargo for the commissioning, and in November arrives the FSRU to the terminal. The start date of the operation is December 2016.

Promigas Relevant Results SBG Transportation: Ongoing projects

Company Project Schedule CAPEX

Promigas Construction Loop San Mateo – Mamonal (Increased transportation capacity by 115 MCFD)

Start of stepped operation. Slope sub-river crossing Canal del Dique.

US$ 134 MM (Approved by CREG: US$ 68 MM)

SPEC

LNG regasification terminal, Cartagena: • Project execution: 99% • FSRU and LNG cargo arrival • Commissioning phase

Phase I: FSRU (Dec. 2016) Phase II: On shore Terminal (Subject to negotiation)

Phase I: US$ 142 MM

Promisol Dehydration and compression station for Hocol (Treatment of 30 MCFD) and Canacol (Treatment of 60 MCFD)

Hocol: Starts operation in December 2016 Canacol: Starts operation in December 2016

Hocol: US$ 48.8 MM Canacol: US$ 29 MM

Promigas Relevant Results SBG Transportation: Regulatory Aspects

• Adjustment of regulated charges Promigas y Promioriente: The CREG defined the adjustment of regulated charges for Promigas in the sections of SRT Mamonal and Regional Gas Pipelines, and for Promioriente in the Barranca-Payoa-Bucaramanga section, due to the expiration of its regulatory useful life. Thanks to the maintenance programs carried out by these companies, it was determined that the replacement of these pipelines is not necessary, but investments to extend their useful life for an additional 20 years are required, thereby generating savings to the demand for natural gas in the area of influence.

• Pricing Methodology: The CREG issued for comments Resolution 090/2016, which provides the general criteria for the remuneration of the transportations service. The final resolution is expected for the early second half of 2017.

• Supply Plan (UPME) – Supply and Reliability of gas service: At the end of September, 2 versions of the Plan had been published for comments, and working groups have been held between the industry and the Unit. The final Plan is expected before the end of 2016.

Promigas Specific Results: SBG Distribution

Promigas Relevant Results SBG Distribution: Natural Gas Highlights

Colombia

• As of September 2016, the distributors in which Promigas has shareholding interests connected 84,865 new users, reaching a total of 3,233,868. The volume of gas sold amounted to 2,489 MM3.

• 27 new communities were served with natural gas, reaching a total of 675 served communities.

Peru

• Cálidda - 21,236 new users were connected, reaching a total of 416,954 in Lima and El Callao, distributing

4,431 MM3 of natural gas as of September 2016. The budget execution of connected users until September is 99% and of the distributed volume is 104%.

• Gases del Pacífico: 21-year concession for the distribution of gas in northern Peru - New date of commercial start-up in May 2017 due to delay in the construction of the LNG loading

port, this delay does not affect any contractual commitments of Gases del Pacífico. - The regasification stations of the 7 locations have a weighted overall progress of about 74%.

Promigas Relevant Results SBG Distribution: Regulatory Aspects

Gas distribution rates • On July 15, 2016, the CREG published Resolution 093, whereby the gas distribution methodology

provided in CREG Resolution 202/2013 is partially revoked and the filing of the pricing requests is ordered.

• Subsequently, it published CREG Draft Resolution 095, whereby CREG Resolution 202/2013 is complemented and other provisions are set out.

• The gas distribution companies are waiting for the effective complement to the methodology. Gas trade • CREG Resolution 097 provided that the direct negotiation mechanism would apply for the trade of

natural gas in the primary market in the year 2016. It also provided that the schedule for this mechanism and for the application of the auction mechanism for the use or sell long-term process.

Promigas Relevant Results SBG Distribution: Highlights FNB - Brilla

• Placement of $ 299,913 million as of September 2016, for a historical total of $ 1,818,237 million and a consolidated portfolio of $ 516,523 million.

• 282,367 benefited users from January to September 2016, and 1,897,041 since the beginning of the

program, distributed as follows: Stratum 1: 34%, Stratum 2: 41%, Stratum 3: 19%, Other: 6%, reflecting the important benefit of this program.

• The portfolio maintains an appropriate behavior, ensuring the long-term sustainability of the program.

Promigas Relevant Results SBG Distribution: Electric Power

Regulatory Aspects

• Publication for comments of the new methodology CREG 176/2016. According to the new agenda of the CREG, the remuneration scheme of the energy distribution activity is expected to be effective by the end of the year.

Highlights • As of September 2016, CEO has connected 3,223 new users in the Department of Cauca, reaching a

total of 342,509 users with a budget compliance of 99%.

• Energy sales for the third quarter were 157 GWh, which represents an execution of 108%.

• Continuing with its work to reduce losses, Compañía Energética de Occidente has managed to keep the indicator of average commercial losses at 15.8% for 3Q.

Corporate Events Distribution of Profits I First Half of 2016

In the meeting held on September 22, 2016, dividends were ordered for $239,453 million pesos, which will

be distributed as follows:

• Cash dividends at $211,00 pesos per share over the outstanding shares as follows:

- Ordinary: $16.00 pesos per share ($108,945 million) (payable in six monthly installments of

$16.00 pesos per share from October 2016).

- Extraordinary: $46.00 pesos per share ($52,203 million) (payable in a single installment in

October 2016).

- Extraordinary: $69.00 pesos per share ($78,305 million) (payable in a single installment in March

2017).

• Increase over the previous period by $ 83,979 MM and Payout Ratio 100% after IFRS adjustments.

Corporate Events Achievements and Recognitions

• Promigas and Cerrejón launch their first think tank for the development of La Guajira: GUAJIRA360º, whose objective is to generate perspectives to manage all stakeholders interested in the development and progress of the department.

• Promigas ranked first nationwide in the third version of the Shared Car Week, an initiative to raise

awareness of the rational use of private vehicles, aimed at raising the average vehicle occupancy, reducing the carbon and energy footprints produced by our commutes, and contributing to the city’s sustainable transportation. The Promigas program is based on the premises of the PEMS (Spanish acronym for Sustainable Transportation Business Program), led nationwide by the Chevrolet Foundation, Universidad de los Andes and the ANDI.

• The Promigas Foundation provided wide support in the launch of the Barranquilla District Education Plan 2016-2026 and in the signing of the Pact for Education, long-term programs that seek to be a tool for managing local policies in order to improve the quality of education, giving priority to the role of the family in school learning.

FINANCIAL STATEMENTS

Saldo Final

4.488.620

2.201.975 2.286.646

5.333.261

2.749.400 2.583.861

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Activos Pasivos Patrimonio

Dic-15 Sept-16

Promigas Balance Sheet

• Assets: The increase was mainly due to adjustments for the adoption of IAS 27, by which the companies Calidda and Gases del Caribe were registered with the Equity Method ($226,871 MM), and the increase in the Assets Under Concession account, caused by additions of ongoing constructions in the projects: Loop Sincelejo - Mamonal, Compressor Filadelfia, Hub Cartagena, Pavia Mamonal, and Jobo Paiva, among others.

• Liabilities: Increased by the issue of bonds used for the prepayment of loans, improving rate and term conditions, and to continue with the execution of the investment plan; and by the ordinary and extraordinary dividends ordered at the September meeting.

• Equity: Increase by the accumulated profits for the period.

∆19%

∆25% ∆13%

609.785

493.825

353.423

805.043

682.917

461.581

0

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Ingresos EBITDA Utilidad Neta

Sept-15 Sept-16

Promigas Income Statement

∆32%

∆38%

∆31%

• Revenues: Increased transportation rates / resolution 040 in May 2015; in March 2016 the agreement with Canacol (Gecelca) was invoiced for 35 MCFD; higher revenues from the registration with the equity method in Cálidda ($21,129 MM) and Gases del Caribe ($28,068 MM), and increased profits from other related companies such as Transmetano, SPEC, and CEO.

• Other

- Costs and Expenses: ∆5%

- Depreciation and Amortization: ∆24%

- Financial Expenses: ∆34%. Increased due to the issue of bonds for $400,000 in March 2015 and for $500,000 in September 2016.

- Taxes: ∆77%. Increased due to higher profits in 2016.

1.994.493

684.625

344.335

2.970.277

940.970

462.529

0

500.000

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1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

Ingresos EBITDA Utilidad Neta

Sept-15 Sept-16

Promigas Consolidated Income Statement

• Revenues: Increased transportation rates / resolution 040 in May 2015; increased exchange rate, which affects the gas transportation rates and the price of gas in the distributors. In Gases de Occidente greater volume of traded gas; CEO increased the rate by 27% due to the increase of the trade charge since October 2015, and higher revenues from pricing option and negotiation with Termovalle; Promioriente is applying a new pricing in 2016 since July 2015 in the Barranca section, 11% higher than before, and higher revenues in 2016 for the winter emergency in 2015 (June, July, August).

• Costs and Expenses: ∆55%. Increased exchange rate affects the cost of gas in the distributors, not affecting, however, its performance for being income-cost pass-through.

• Other

- Depreciation and Amortization: ∆18%

- Financial Expenses: ∆19%. Increased due to the issue of bonds by Promigas for $400,000 in March 2015 and for $500,000 in September 2016.

- Taxes: ∆44%. Increased due to higher profits in 2016.

∆49%

∆37%

∆34%

THANK YOU!

ANNEXES

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Activos Pasivos Patrimonio

Dic-15 Sept-16

Caja 32.975 67.171 104%

Inversiones Temporales 8.582 51.960 505%

Otros Activos Corrientes 183.869 306.967 67%

PP&E 91.821 205.223 124%

Activos Concesionados 943.098 1.023.764 9%

Activo Financiero 1.488.514 1.580.245 6%

Otros Activos 1.739.760 2.097.931 21%

Total Activos 4.488.620 5 .333.261 19%

Pasivos Corrientes 310.623 386.506 24%

Pasivo Largo Plazo 1.891.351 2.362.894 25%

Total Pasivos 2.201.975 2 .749.400 25%

Patrimonio 2.286.646 2.583.861 13%

Total Pasivos + Patrimonio 4.488.620 5 .333.261 19%

Cifras en Millones de Pesos Dic-15 Sep-16 Var %

Promigas Balance Sheet

• Assets: In cash, the difference occurs due to bonds issued in September ($500,000 MM) used for prepayment of loans ($284,000 MM), and loans granted to related companies ($123,700 MM) (LT Debtors - Other Assets); in Other Assets, the increase was due to adjustments for the adoption of IAS 27, by which the companies Calidda and Gases del Caribe were registered with the Equity Method ($226,871 MM); and Assets under Concession increased de to additions of ongoing constructions in the projects: Loop Sincelejo - Mamonal, Compressor Filadelfia, Hub Cartagena, Pavia Mamonal, and Jobo Paiva, among others.

• Liabilities: Increased by the issue of bonds used for the prepayment of loans and by the ordinary and extraordinary dividends ordered at the September meeting.

Ingresos Operacionales 152.453 166.026 9% 339.301 456.445 35%

Ingresos Activo Financiero 35.893 34.399 -4% 90.694 103.197 14%

Dividendos (54.147) 0 -100% 66.938 0 -100%

Método de Participación 125.391 71.447 -43% 112.852 245.401 117%

Costos y Gastos 53.937 69.166 28% 160.334 177.241 11%

Utilidad Operacional 205.653 202.706 -1% 449.451 627.802 40%- - -

EBITDA 221.666 223.581 1% 493.825 682.917 38%

Ingresos Financieros 3.426 4.760 39% 10.907 10.414 -5%

Gastos Financieros 32.318 42.831 33% 76.775 102.687 34%

Otros, Neto 4.109 (1.852) N.A. 10.623 (1.640) N.A.

Utilidad Antes de Impuesto 180.870 162.783 -10% 394.206 533.890 35%

Impuesto de Renta 29.488 23.554 -20% 40.784 72.310 77%

Utilidad Neta 151.382 139.229 -8% 353.423 461.581 31%

Cifras en Millones de Pesos Sept-15 Sept-16 Var %Abr-Jun/16 Jul-Sep/16 Var %

Promigas Profit and Loss Statement

3Q Vs. 2Q

• Revenues: Higher revenues due to higher volumes transported in the 3rd quarter (26 Mcfd); Fin. Asset decreased due to retroactive adjustment of the calculation thereof made in June; in June, adjustments were made for the adoption of IAS 27, registering Calidda and Gases del Caribe with the Equity Method.

• Costs and Expenses: Renewal of all risks policy and CR, as well as VAT; higher maintenance expenses and registration of the Nuevo Mundo project expenses.

Sept-16 Vs. Sept-15

• Revenues: Increased transportation rates / resolution 040 in May 2015; in March 2016 the agreement with Canacol (Gecelca) was invoiced for 35 MCFD; higher revenues from the registration with the equity method in Cálidda ($21,129 MM) and Gases del Caribe ($28,068 MM), and increased profits from other related companies such as Transmetano, SPEC, and CEO.

• Costs and Expenses: Higher costs for depreciation due to adjustments in the calculation of gas pipelines under concession in March 2015; labor expenses caused by annual salary increases, and Nuevo Mundo project fees ($2,206 MM) (this expense has its counterpart in revenues).

• Financial Expenses: Increased due to bonds issued for $400,000 in March 2015 and in September 2016 for higher debt balance.

• Other: Exchange difference on accounts receivable in dollars and on advances in dollars for future capitalization of Gases del Pacifico (US $6,300,000 MM), adjusted in May 2015 to CREE Tax 2014 (US 3,085 MM); compensation received from damages to the Palomino turbocharger ($ 2,541 MM); and relocations of the pipeline ($2,839 MM).

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Dic-15 Sept-16

Promigas Consolidated Balance Sheet

Caja e Inversiones 184.136 309.419 68%

Otros Activos Corrientes 734.207 1.264.494 72%

PP&E 1.252.375 1.653.937 32%

Activos Concesionados 1.731.488 1.846.965 7%

Activo Financiero 1.898.553 2.028.841 7%

Otros Activos 1.327.291 878.262 -34%

Total Activos 7.128.050 7 .981.919 12%

Pasivos Corrientes 309.647 1.259.619 307%

Pasivo Largo Plazo 1.892.327 3.951.741 109%

Total Pasivos 2.201.975 5 .211.360 137%

Patrimonio 2.179.871 2.770.558 27%

Total Pasivos + Patrimonio 4.381.846 7 .981.919 82%

Cifras en Millones de Pesos Dic-15 Sept-16 Var %

Ingresos Operacionales 955.600 895.011 -6% 1.823.007 2.742.329 50%

Ingresos Activo Financiero 45.344 43.496 -4% 114.820 130.484 14%

Div + Método de Participación 44.285 20.421 -54% 56.667 97.464 72%

Costos y Gastos 748.967 690.035 -8% 1.400.057 2.135.835 53%

Utilidad Operacional 296.262 268.893 -9% 594.436 834.442 40%

EBITDA 328.833 308.048 -6% 684.625 940.970 37%

Ingresos Financieros 6.244 7.324 17% 42.397 17.800 -58%

Gastos Financieros 74.208 81.719 10% 174.045 219.644 26%

Otros, Neto 8.208 4.123 N.A. 12.469 23.104 N.A.

Utilidad Antes de Impuesto 236.505 198.621 -16% 475.257 655.702 38%

Impuesto de Renta 71.955 45.470 -37% 119.984 172.982 44%

Interes Minoritario 4.143 7.229 74% 10.939 20.190 85%

Utilidad Neta 160.406 145.922 -9% 344.335 462.529 34%

Abr-Jun/16 Jul-Sep/16Cifras en Millones de Pesos Var %Var % Sept-15 Sept-16

Promigas Consolidated Profit and Loss Statement

Sept-16 Vs. Sept-15

• Revenues: Increased transportation rates / resolution 040 in May 2015; increased exchange rate, which affects the gas transportation rates and the price of gas in the distributors. In Gases de Occidente greater volume of traded gas; CEO increased the rate by 27% due to the increase of the trade charge since October 2015, and higher revenues from pricing option and negotiation with Termovalle; Promioriente is applying a new pricing in 2016 since July 2015 in the Barranca section, 11% higher than before, and higher revenues in 2016 for the winter emergency in 2015 (June, July, August).

• Costs and Expenses: Increased exchange rate affects the cost of gas in the distributors, not affecting, however, its performance for being income-cost pass-through.

• Financial Expenses: Increased due to a higher debt balance as of March 2016; to the issue of bonds by Promigas ($400,000 MM) in March 2015 and September 2016 ($ 400,000 MM); and to a higher inflation, which impacts the costs of debt indexed to the CPI.

Promigas Cash Flow Statement

Utilidad Neta 459.551

Depreciaciones, Amortizaciones y Provisiones 53.423

Metodo de Participacion (245.401)

Dividendos Recibidos 111.669

Cambios en Activos/Pasivos (358.776)

Flujo Operacional 20.466

Inversion en Bienes de Capital (217.750)

Flujo de Caja Libre (197.285)

Desembolsos de Creditos 811.178

Prestamos a Vinculados Economicos -

Amortizaciones (372.946)

Inversiones Permanentes -

Flujo de Caja Accionistas 240.947

Dividendos Pagados (206.497)

Flujo de Caja Neto 34.450

Saldo Inicial 32.721

Saldo Final 67.171

Cifras en Millones de Pesos Septiembre 2016