Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (March 2024)
35 slides from Geopark's investor presentation, March 2024
Slide 1: Management Presentation
March 2024 WWW.GEO-PARK.COM MANAGEMENT PRESENTATION C R E A T I N G V A L U E A N D G I V I N G B A C K
Slide 2: Cautionary Statements Relevant to Forward-Looking Information
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING Specifically, forward-looking information contained herein regarding INFORMATION resources may include: estimated volumes and value of the The information contained herein has been prepared by GeoPark Company's oil and gas resources and the ability t
Slide 3: Index
INDEX 01 RIGHT BUSINESS 02 RIGHT NEIGHBORHOODS 03 SOLID AND 04 SPEED (ESG+) PROFITABLE SINCE DAY ONE 05 WE MAKE ASSETS BETTER C R E A T I N G V A L U E A N D G I V I N G B A C K 3
Slide 4: Right Business
C R E A T I N G V A L U E A N D G I V I N G B A C K 01 RIGHT BUSINESS
Slide 5: Who We Are
01. RIGHT BUSINESS WHO WE ARE LATAM-WIDE Experience and track record executing projects in six countries INDEPENDENT in Latin America, with diversified outlook since inception 21+ YEAR TRACK LEADING OIL RIGHT RECORD AND GAS FINDERS TEAM • 135+ MMBOE Net produced • Accomplished 81% • Proven Team • 40
Slide 6: Medium-Term Vision: Leading Latin American Independent
01. RIGHT BUSINESS MEDIUM-TERM VISION LEADING LATIN AMERICAN INDEPENDENT Production 100,000 BOEPD Cash Flow Generation Maintain Cash Generation 2-4X 2P Reserves CAPEX 400 MMBOE ü PEOPLE ü CAPITAL Capital Allocation ü PROJECTS Allocate Capital to Highest Assets Portfolio ü ASSETS Value Projects Deep
Slide 7: Right Neighborhoods
C R E A T I N G V A L U E A N D G I V I N G B A C K 02 RIGHT NEIGHBORHOODS
Slide 8: Reserves: 110% 2P Replacement
02. RIGHT NEIGHBORHOODS RESERVES NET 2P RESERVES INCREMENTAL VOLUMES 110% 2P REPLACEMENT Added 14 MMBOE of Net 2P Reserves 2P 2022 TO 2023 YEAR-END RESERVES EVOLUTION 0.2 1.8 $175 MM 2P NPV10 After Tax added with 12.7 16.0 discoveries versus $73 MM invested in 2023 exploration drilling 113.8 115.1 A
Slide 9: Llanos 34: A World-Class Asset
02. RIGHT NEIGHBORHOODS KEY METRICS LLANOS 34 53,660 94% A WORLD-CLASS Gross BOPD Production efficiency 4Q2023 4Q2023 ASSET 9.7 kgCO2e/BOE Low emissions 9.0 Years* 2P Reserve Life Index OVERVIEW • Acquired in 2012 with no • 170+ gross MMBBL produced 2022 2023 reserves or production • Tigana & Jacana
Slide 10: Llanos 34: Improving Recovery
02. RIGHT NEIGHBORHOODS LLANOS 34 WATERFLOODING IMPROVING • Pilot phase 2022 -2023 • Optimum water injection through 5-spot and RECOVERY peripheral flooding • Improved Recovery Factor by pressure maintenance and sweep • 22 injectors implemented - 3,300 bopd incremental production HORIZONTAL WELLS •
Slide 11: CPO-5: Unlocking the Upside
02. RIGHT NEIGHBORHOODS KEY METRICS CPO-5 22,733 8 UNLOCKING THE Gross BOPD Producing wells 4Q2023 UPSIDE 2.3x Production increase since 6.6 Years 2P Reserve Life Index* 2023 acquisition OVERVIEW • Acquired in 2020 • Adjacent to core Llanos 34 Block • Indico ranks among top 10 producing oil fields i
Slide 12: Innovation: Agility and Quick Wins
02. RIGHT NEIGHBORHOODS INNOVATION FOCUS AGILITY AND QUICK WINS Production PROJECT IMPACT FOCUS Artificial Intelligence • Leak detection in OBA pipeline - $21-25k/yr • Energy optimization of inj. pumps - $150-200k/yr Circular Economy & • Fluid prediction from mud with gas cromatography Energy Transi
Slide 13: Llanos Basin Champion
02. RIGHT NEIGHBORHOODS LLANOS BASIN HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN CHAMPION LLANOS 87 LLANOS 32 Total acreage 20x Size of Llanos 34 LLANOS 124 2024 CAMPAIGN Development Km2 Exploration and Appraisal of 3D Wells Wells Seismic LLANOS 123 LLANOS 34 LLANOS BASIN Consolidated Activity 3-4 24-
Slide 14: New Growth Fairways
02. RIGHT NEIGHBORHOODS NEW GROWTH L L A N O S C P O - 5 B L O C K | Non-operated, 30% WI Halcon 1 ~110 FAIRWAYS Delineating Drilled: Oct 2023 BOPD the Paleocene Play CPO-5 in Northern CPO-5 Perico 1 ~620 Paleocene Drilled: Dec 2023 BOPD Play C O L O M B IA 80-160 MMBO OOIP* L L A N O S 1 2 3 B L O
Slide 15: Putumayo & Oriente: Underexplored Proven Basin
02. RIGHT NEIGHBORHOODS PUTUMAYO & ORIENTE: KEY HIGHLIGHTS PUTUMAYO UNDEREXPLORED 1,658 Gross BOPD 92% Production $4/BBL Transport Cost PROVEN BASIN Efficiency 4Q2023 4Q2023 2024 CAMPAIGN • Drilling 1-2 gross exploration wells in the PUT-8 Venezuela Block, adjacent to the Platanillo Block Other Prod
Slide 16: Developing Expertise in the U-Sand
ORIENTE – PUTUMAYO BASIN: TYPE WELL 02. RIGHT NEIGHBORHOODS DEVELOPING EXPERTISE IN THE U-SAND OBJECTIVES • Seven wells drilled, Seven successes Venezuela • Developed a proprietary U-Sand reservoir model, has significant potential; significant competitive P R E S E N T A T I O N advantage COLOMBIA •
Slide 17: Solid and Profitable
C R E A T I N G V A L U E A N D G I V I N G B A C K 03 SOLID AND PROFITABLE
Slide 18: Low-Cost & Efficient Operator
03. SOLID AND PROFITABLE ON THE GROUND OPERATIONAL EXPERIENCE LOW-COST & 120+ MM 300+ EFFICIENT OPERATOR Net BOE Produced Gross Wells Drilled 2006-2023 2013-2023 PRODUCTION GROWTH (BOEPD) 9 Rigs 480+ / 2,400+ 10% CAGR Consolidated (2013-2024E) 35,500-39,000* 4 drilling + 5 workover Direct / Indirect
Slide 19: Cost & Capital Efficiency
03. SOLID AND PROFITABLE COST & CASH GENERATION 2-4x CAPEX IN EVERY OIL PRICE ENVIRONMENT CAPITAL Operating Netback ($MM) = Ajusted AdjustedEBITDA EBITDA+ +G&A/G&G G&A/G&G 593 3.5x ~3x EFFICIENCY CAPEX ($MM) 2.5x 470-600 Operating Netback/CAPEX Ratio (x times) 3.5x 503 LEADS TO 3.2x 447 398 2.7x 352
Slide 20: Differentiated Returns Improving
03. SOLID AND PROFITABLE DIFFERENTIATED ROACE - LATAM JUNIOR E&P’s - LAST TWELVE MONTHS RETURNS 50.4% 2 0 1 9 V S 2 0 2 3 IMPROVING R O A C E 50.4% 39.0% RETURNS ON 37.1% 35.7% +36% 31.0% CAPITAL 20 19 20 23 EMPLOYED 21.1% 18.7% P R E S E N T A T I O N 13.6% 11.7% M A N A G E M E N T GeoPark Peer 1
Slide 21: 2024 Work Program: Disciplined Capital Allocation
03. SOLID AND PROFITABLE 2024 WORK PROGRAM: 2024 WORK PROGRAM HIGHLIGHTS DISCIPLINED CAPITAL 35,500-39,000* BOEPD Production 35-45 Gross Wells ALLOCATION Assuming no production from the 2024 exploration drilling program 2024 CAPEX BREAKDOWN ($80-90/BBL BRENT) ~70-80% 5-10 Allocated to Gross Explorat
Slide 22: Free Cash Flow
STRONG FREE CASH FLOW* GENERATION 03. SOLID AND PROFITABLE 2024E Free Cash Flow** ($MM) at $80-90 per BBL (Brent) 2024 (100-140) FREE CASH 420-550 (50-60) FLOW (145-160)*** (27-30) 90-160 Adjus ted EBITDA Dev elopment & Exploration Capex Cas h Taxes Mandatory Debt Free Cash Flow Appraisal Capex Serv
Slide 23: Strong Balance Sheet with Safety Nets in Place
03. SOLID AND PROFITABLE ASSETS AND SAFETY NETS STRONG BALANCE SHEET $133 MM Hedges WITH SAFETY NETS Cash & Cash Equivalents In Place December 31, 2023 Securing Base Oil Price IN PLACE $1.8 BN* 2P Net Present Value Proven Team and Track Record LIABILITIES $80 MM** 9.1 YEARS* Well-structured, low-cos
Slide 24: Hedging Program Ongoing Capex & Debt Service
03. SOLID AND PROFITABLE APPROACH HEDGING 12-15 months PROGRAM Tenor 28% Average Hedging Ratio (2024) % ONGOING CAPEX On track with target 30-50% production % Hedge Target & DEBT SERVICE HEDGE BOOK OVERVIEW 120 Hedged P R E S E N T A T I O N $112.6 $110.6 Production Ceiling Ceiling (BBL/D) $97.0 $99
Slide 25: Returning Value to Shareholders
03. SOLID AND PROFITABLE RETURNED MORE THAN 45% OF MARKET CAP RETURNING VALUE TO SHAREHOLDERS SINCE 2019 TO SHAREHOLDERS Quarterly $69 MM Total Distributed 6.15% 2019 - 2023 10 YEARS OUTPERFORMING BRENT Cash Dividend Yield* Dividend $7.5 MM 21 0% $30 MM Annually 11 0% +30% 10% -25% $156 MM Brent 20%
Slide 26: SPEED (ESG+) Since Day One
C R E A T I N G V A L U E A N D G I V I N G B A C K 04 SPEED (ESG+) SINCE DAY ONE
Slide 27: Clean Hydrocarbons: Climate Action
04. SPEED SINCE DAY ONE CLEAN 130,000+ tons Of CO2 Emissions prevented HYDROCARBONS: 34% CLIMATE ACTION Reduction in Carbon Emissions Intensity to 12.1 kgCO2 e/bbl* CO2 reduction Goals for all employees GHG EMISSIONS INTENSITY REDUCTION TARGETS CLEANER ENERGY Scopes 1 & 2 (GeoPark operated) ENERGY M
Slide 28: Social: Employer and Neighbor of Choice
04. SPEED SINCE DAY ONE SOCIAL: OUR EMPLOYEES EMPLOYER AND 100% Own shares Have access to Received NEIGHBOR OF CHOICE in the wellness training in 2022 Company benefits 30% Of the Executive Team are women PREMISES AND ENABLING FACTORS P R E S E N T A T I O N Permanent Relations, 01 Early management o
Slide 29: Governance: Diverse and Experienced Board
04. SPEED SINCE DAY ONE GOVERNANCE: DIVERSE AND EXPERIENCED BOARD EXECUTIVE BOARD MEMBERS INDEPENDENT BOARD MEMBERS Somit Varma James F. Park Sylvia Escovar Former Global Head of Oil, Gas, Mining and Co-founder and Chair Of The Board Chemicals at the International Finance Corporation Former CEO of G
Slide 30: GeoPark Named 'ESG Leader'
MSCI:RATINGS EVOLUTION 04. SPEED SINCE DAY ONE GEOPARK NAMED ESG RATING DISTRIBUTION 39% ESG Leader ‘ESG LEADER’ 13% 26% 17% CARBON DISCLOSURE PROJECT: 4% Beginning the Journey 0% 0% CCC B BB BBB A AA AAA Climate Change 2022: Score C Universe: MSCI ACWI Index constituents, Oil & Gas Exploration & Cl
Slide 31: We Make Assets Better
C R E A T I N G V A L U E A N D G I V I N G B A C K 05 WE MAKE ASSETS BETTER
Slide 32: Creating Value Through Acquisitions
05.WE MAKE ASSETS BETTER CREATING VALUE THROUGH ACQUISITIONS through acquisitions LLA34:GROSS OIL PRODUCTION PROFILE SINCE ACQUISITION VALUATION From zero production to 70,000 BOPD in 10 years CPO-5:GROSS PRODUCTION PROFILE SINCE ACQUISITION VALUATION From 8,000 BOPD to 24,000 BOPD in 4 years Purcha
Slide 33: Multiple Opportunities Across Latin America
05.WE MAKE ASSETS BETTER MULTIPLE OPPORTUNITIES GEOPARK APPROACH ACROSS LATIN AMERICA Strong track record of creating value through acquisitions • Geology first: best basins, best rocks, best play types selected by G&G Team COLOMBIA • Achieve scale with value: ECUADOR production and reserves with up
Slide 34: In Summary
IN SUMMARY 20+ Track record of value Industry-leading capital returns, Renewed vision P R E S E N T A T I O N years building hand-in-hand with the right creation for the future business and ESG culture delivery M A N A G E M E N T 34
Slide 35: Pale |
Pale | la aol GEOPARK