Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (June 2022)
24 slides from Geopark's investor presentation, June 2022
Slide 1: Corporate Presentation June 2022
Cleanest & Kindest Hydrocarbons Best in Class Safest, Lowest Cost & Oil & Gas Finders Most Efficient Operator Consistent Free Cash Flow & Value Delivery Commitment & Culture Corporate Presentation June 2022
Slide 2: Long-Term Value Proposition
Long-Term Value Proposition 45 40 Proven Track Record 2009-2021 Oil and Gas Production: CAGR 16% COLOMBIA 35 ECUADOR Leading Oil and Gas Finders Drilling Success Rate* 75+% (2006 – 2021) 30 BRAZIL Net Average Daily Production Low-Cost Operator Operating and Structure Costs 25 Per Barrel Below Peers
Slide 3: Best in Class Oil & Gas Finders
Best in Class Oil & Gas Finders 3
Slide 4: Proven Oil & Gas Finder
Asset Base Proven Oil & Gas Finder D&M CERTIFIED 2P RESERVES AND NPV10 2021 GEOPARK OIL AND GAS FINDING METRICS 159 MMBOE $2.31 BN 2P GROSS MMBOE TOTAL DISCOVERED 2P RESERVE REPLACEMENT RATIO (2006-2021) (2015-2021) 4 0.02 3 0.05 Argentina R3 17 0.22 Brazil 135 2.02 Chile >400 189% Colombia 2P RESER
Slide 5: High Quality Low Breakeven Portfolio
Asset Base High Quality Low Breakeven Portfolio COLOMBIA LLANOS 34 • Second largest operator in Colombia 31,150 boepd* LLANOS BASIN • Key Assets: Llanos 34, CPO-5, Lanos 87 (Llanos basin) 136 mmboe CPO-5 2P Net Reserves** • 1.5 mm strategic acreage added since PUTUMAYO BASIN 2019 around Llanos 34 C
Slide 6: Llanos 34 Cash Flow Engine
Asset Base Llanos 34 Cash Flow Engine Chachalaca Field Max Field PANAMA Chiricoca Field VENEZUELA Tilo Field LLA-34 LLANOS 34 BLOCK: GEOPARK Oil fields OPERATED WITH 45% WI COLOMBIA Structural high ECUADOR BRAZIL Guaco Field • Largest discovery in 20+ years in Colombia Tigana Field PERU Tarotaro Fie
Slide 7: Llanos Basin Growth Fairway
Asset Base Llanos Basin Growth Fairway PANAMA VENEZUELA SYSTEMATIC CONSOLIDATION OF HIGH POTENTIAL ACREAGE AROUND CORE ASSET NEAR TERM CATALYSTS COLOMBIA GeoPark exploration blocks GeoPark producing blocks ECUADOR BRAZIL GeoPark producing oil fields PERU LLANOS 87 Other producing oil fields LLANOS 1
Slide 8: CPO-5 Big Prize
Asset Base CPO-5 Big Prize GROWTH OPPORTUNITIES PRODUCTION & RESERVE GROWTH SINCE ACQUISITION UNDERSCORE PROJECT POTENTIAL GROSS PRODUCTION (BOPD) GROSS RESERVES (MMBBL) • Two discovered oil fields with breakevens of ~$6-7 /bbl* • Light oil, 36-41º API 20,536 162 +224% • Mid to low-risk exploration
Slide 9: Safest, Lowest Cost & Most Efficient Operator
Safest, Lowest Cost & Most Efficient Operator 9
Slide 10: Low-Cost Operator: Capabilities & Efficiencies
Capabilities & Efficiencies Low-Cost Operator OPERATING COSTS DOWN BY 50% STRUCTURE COSTS DOWN BY 55% OPEX ($/boe) G&A/G&G Costs ($/boe) 16 50% Decrease 55% Decrease 11 9 8 8 8 7 7 7 7 6 6 5 5 5 4 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 ~95% OF PRODUCTION IS C
Slide 11: Consistent Free Cash Flow & Value Delivery
Consistent Free Cash Flow & Value Delivery 11
Slide 12: Resilient Cash Flow, Superior Returns on Capital
Resilient Cash Flow Superior Returns on Capital Invested CASH GENERATION 2-3X CAPEX IN EVERY OIL PRICE ENVIRONMENT 3x+ Operating Netback and Capital Expenditures (CAPEX) ($mm) 3x+ 447 398 2x+ 352 3x+ 2x+ 276 228 2x+ 3x+ 118 122 125 126 129 106 75 49 39 2015 2016 2017 2018 2019 2020 2021 Operating Ne
Slide 13: Strong Free Cash Flow: Self-funded 2022 Work Program
Strong Free Cash Flow Self-funded & Flexible Work Program FREE CASH FLOW FUNDS LOW-RISK EXPLORATION, 2022 WORK PROGRAM HIGHLIGHTS DELEVERAGING AND SHAREHOLDER RETURNS BRENT ($/bbl) $80-85 PRODUCTION GROSS 2022 PRODUCTION 38,500-40,500* boepd GROWTH* WELLS CAPEX 2022 $200-220 MM ~10% 50-55 EXPLORATIO
Slide 14: Strong Free Cash Flow: High Return Barrels
Strong Free Cash Flow High Return Barrels POSITIONED TO GENERATE SIGNIFICANT FREE CASH FLOW 2022E Free Cash Flow* ($mm) at $80-85 per bbl (Brent) (100-115) (90-105) (50-55) 550-580 (40-45) (38-42) 210-240 Operating Netback** Netback Development Capex Exploration Capex Cash G&A/G&G Cash Taxes Mandato
Slide 15: Strong Balance Sheet
Resilient Cash Flow Strong Balance Sheet CONSERVATIVE USE OF DEBT TO GROW THE BUSINESS Gross & Net Leverage (Gross and Net Debt / Adjusted EBITDA) Long-term Target: Covenant: 5.1 Net Leverage <1.5x Net Leverage <3.25x LOWER DEBT, LOWER COST & 4.6 IMPROVED DEBT PROFILE 4.0 3.6 3.6 2.4 Debt Amortizati
Slide 16: Downside Oil Price Protection
Resilient Cash Flow Downside Oil Price Protection HEDGES IN PLACE SECURE BASE OIL PRICE* HEDGING STRATEGY • First line of defense: low-cost operator with low breakevens Brent • Provide oil price stability consistent with base budget assumptions 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 $/BBL • Secure price
Slide 17: 2022 Provides Unique Entry Point
Opportunity 2022 Provides Unique Entry Point COMPREHENSIVE & FLEXIBLE VALUE RETURN STRATEGY SHAREHOLDER RETURN TRACK RECORD (2017 – 2022) * BEST PERFORMING E&P STOCK (NYSE 2017-2019) +413% 205% TOTAL SHAREHOLDER Feb 2017- RETURN Feb 2022 +200% SHARE $90 MM BUYBACK 2019-1Q2022 PROGRAM +57% BRENT INCR
Slide 18: Cleanest & Kindest Hydrocarbons
Cleanest & Kindest Hydrocarbons 18
Slide 19: Sustainability = ESG+
Sustainability = ESG+ FOUNDING PRINCIPLES SINCE DAY ONE IN 2002 SAFETY PROSPERITY EMPLOYEES ENVIRONMENT COMMUNITY DEVELOPMENT 24,179,280 205% 100% ZERO Barrels of oil produced and transported Total shareholder returns 5 years* Employees are shareholders sanctions STRONG Without third-party community
Slide 20: Leading the Way to the Energy Transition
Environment Leading the Way to the Energy Transition INDUSTRY-LEADING LOW CARBON INTENSITY* (Scopes 1 and 2 ) 60.0 50.0 GHG Intensity (KgCO2e/boe) ENVIRONMENT 40.0 30.0 Carbon Intensity Well Below Industry 20.0 25-30% BELOW INDUSTRY AVERAGE 10.0 FAST, IMMEDIATE AND AGGRESSIVE 0.0 TARGETS Equinor BP
Slide 21: Social & Governance Best Practices
Social & Governance Best Practices SAFETY COMMUNITY DEVELOPMENT GOVERNANCE Safety First Neighbor of Choice Strong Oversight 0.7 bbls Majority Independent Directors $3.2 MILLION Oil Spilled for Every Million Barrels Investments in Social and Environmental Programs – 73% Strengthened Committee Charter
Slide 22: Company Directory
Company Directory Executive Team James F. Park Chief Executive Officer Augusto Zubillaga Chief Operating Officer Andrés Ocampo Chief Financial Officer CONTACTS Shareholder Stacy Steimel Bogotá, Colombia Value Team Shareholder Value Director Calle 94 Nº11-30. Piso 8, Phone: +(57 1) 734 2337 Miguel Be
Slide 23: Disclaimer
Disclaimer The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” or “us”) solely for informational purposes. No The information included in this presentation regarding GeoPark’s estimated quantities of proved, probable and possible reserves in Chile, representation o
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