Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (June 2022)
51 slides from Geopark's investor presentation, June 2022
Slide 1: GeoPark Management Presentation June 2022
OE OPARK PRESENTATION 9 eal GEOPARK June 2022
Slide 2: Agenda
Agenda Twenty Years Building the Right Business & Culture JAMES F. PARK, CEO & FOUNDER Sustainable Growth Strategy ANDRÉS OCAMPO, INCOMING CEO Political Landscape & Social Impact MARCELA VACA, GENERAL DIRECTOR AUGUSTO ZUBILLAGA, CHIEF TECHNICAL OFFICER Best & Smartest Oil & Gas Finders IGNACIO MAZAR
Slide 3: 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
Slide 4: Twenty Years Building the Right Business & Culture
Twenty Years Building the Right Business & Culture James F. Park - CEO and Founder Andrés Ocampo - Incoming CEO 4
Slide 5: Twenty Years Building the Right Business & Culture (video)
Twenty Years Building the Right Business & Culture PLAY VIDEO 5
Slide 6: Long-Term Value Proposition
Long-Term Value Building the Right Team Proven Team and Unique Culture Proposition Proven Track Record 2009-2021 Oil and Gas Production: CAGR 16% Leading Oil and Gas Finders Drilling Success Rate* 75%+ (2006 – 2021) 40 Low-Cost Operator 35 Operating and Structure Costs Per Barrel Below Peers 30 BRAZ
Slide 7: Track Record & Key Milestones
Track Record & Key ASSEMBLED* 4.6 MM ACRES Milestones (2002-2021) 4,600+ ACQUIRED SQ KM 3D SEISMIC DRILLED 400+ GROSS WELLS TRUE LATIN AMERICAN INDEPENDENT DISCOVERED 420+ MMBOE OF 2P RESERVES PRODUCED 100+ MMBOE NET VALUE CREATED* $2.3 BN From Zero to 1+ Billion 2P NPV10 MARKET CAPITALIZATION** 7 *
Slide 8: Founding Values Since Day One
Founding Values Since Day One COMMUNITY SAFETY PROSPERITY EMPLOYEES ENVIRONMENT DEVELOPMENT 8
Slide 9: Sustainable Growth Strategy
Sustainable Growth Strategy 99
Slide 10: Proven Business Model
Proven Business Model FULL CAPABILITIES ACROSS THE E&P VALUE CHAIN CLEANEST & KINDEST SAFEST, BEST & SMARTEST HYDROCARBONS LOWEST COST & OIL & GAS MOST EFFICIENT PRIORITIES FINDERS OPERATOR CONSISTENT FREE CASH FLOW & VALUE DELIVERY COMMITMENT & CULTURE Base Disciplined Energy Business and Profitabl
Slide 11: Base Business Performance & Delivery with Big Upside Potential
Base Business 5 YEAR HIGH GROWTH PLAN IN PLACE (2022-2026E) Performance & ~10% ~$750-800 MM Delivery with CAGR PRODUCTION DEVELOPMENT & EXPLORATION Big Upside GROWTH POTENTIAL CAPEX Potential 700-800 MMBOE 180-200 Gross wells DEVELOPMENT & EXPLORATORY GROSS UNRISKED EXPLORATION RESOURCES* ~100,000 U
Slide 12: Energy Transition and ESG Focus
Energy FAST, IMMEDIATE & AGGRESSIVE PLAN IN PLACE* Transition and ESG SHORT-TERM MEDIUM-TERM LONG-TERM Focus 35-40% 40-60% Net Zero Emissions intensity reduction** Emissions intensity reduction** Emissions by 2050** by 2025 or sooner by 2025-2030 KEY PROJECTS Oleoducto del Subsoil and Surface Casana
Slide 13: Political Landscape & Social Impact
Political Landscape & Social Impact Marcela Vaca - General Director 13
Slide 14: Colombia's Oil & Gas Sector
Colombia’s Oil & Gas Sector 752,100 BOPD 363 KBPD $2+ BILLION 7.6 YEARS Average Daily Production Refining Capacity Proven Oil Reserves 1P Reserve Life Index DECISIVE SECTOR OF THE ECONOMY $6.9 BILLION $13.5 BILLION 3.3% $3+ BILLION $800 MILLION Government (~33%) of GDP Expected Foreign Direct E&P In
Slide 15: Cleanest & Kindest Hydrocarbons
GHG EMISSION INTENSITY REDUCTION TARGETS Cleanest & Scope 1 & 2 refer to GeoPark’s operated assets and using 2020 as baseline Kindest SHORT-TERM MEDIUM-TERM LONG-TERM Hydrocarbons 35-40% 40-60% Net Zero Emissions intensity reduction Emissions intensity reduction Emissions by 2050 by 2025 or sooner b
Slide 16: Our Commitment to People and the Planet (video)
Our Commitment to People and the Planet PLAY VIDEO 16
Slide 17: Neighbor of Choice
Neighbor of $6.1 MM COMMITED IN SOCIAL & ENVIRONMENTAL PROGRAMS 2021 Choice WELL-BEING AND QUALITY OF LIFE 86% INVESTMENT IN RURAL AREAS BENEFITING 288K+ PEOPLE ECONOMIC 89% LOCAL HIRING DEVELOPMENT $59 MM GOOD & SERVICES ACQUIRED FROM LOCAL SUPPLIERS UNITED NATIONS EDUCATION, CULTURE 36 PROJECTS AN
Slide 18: Highest Governance Standards
Highest Governance Standards FEMALE CHAIR DIRECTOR OVERBOARDING MAJORITY INDEPENDENT POLICY DIRECTORS KEY COMMITTEES 100% INDEPENDENT CHANGE OF INDEPENDENT Audit, Nomination & Corporate Governance, AUDITORS IN 2020 and Compensation Committees CULTURE OF ETHICS AND COMPLIANCE • Ethics Line • Complian
Slide 19: GeoPark People & Culture
GeoPark People & Culture OUR SECRET SAUCE INVESTING IN OUR PEOPLE - ALWAYS CULTURE! OWNERSHIP! Employees are Senior Management 100% Shareholders 42% are Women Training Hours 33 per Employee 83% Professional Team 42% Completed Post-graduate 8 Nationalities SUCCESSFULLY PROMOTING INTERNAL TALENT 19 So
Slide 20: Best & Smartest Oil & Gas Finders
Best & Smartest Oil & Gas Finders Augusto Zubillaga - Chief Technical Officer Ignacio Mazariegos - New Business Director 20
Slide 21: Best & Smartest Oil & Gas Finders (video)
Best & Smartest Oil & Gas Finders PLAY VIDEO 21
Slide 22: Leading Oil & Gas Finding Team
THE POWER OF THE TEAM Leading Oil & Gas Finding Team 75%+ 420+ DRILLING SUCCESS MMBOE GROSS RATE* 2006-2021 400+ Wells drilled (2006-2021) BARRELS DISCOVERED (2P) OUTSTANDING TRACK RECORD OF FINDING HYDROCARBONS Production 38.6 MBOED** 74% Coming from Barrels 2P Reserves 159 MMBOE*** 77% Discovered
Slide 23: Introducing New Ideas to the Llanos
Introducing New Ideas to the Llanos STRATIGRAPHIC Basin COLUMN EAST RANGE ANTITHETIC NORMAL FAULT LOCATION (Compressive Fault System) (Footwall Block Oil Accumulation) Max Field: 7.1 mmbbl LLANOS BASIN (Extensional Fault System) STRUCTURAL TRAP TYPES 23
Slide 24: Llanos 34: Largest Discovery in 20+ Years
Llanos 34: Largest Discovery in 20+ Years 2012 2014-2015 2016-2022 NEW IDEAS & FIRST OIL BIG TIGANA & JACANA DISCOVERIES NEW DISCOVERIES + DELINEATION LEADING SUBSURFACE AND PROJECT EXECUTION CAPABILITIES KEY FEATURES Tigana & Jacana 0.8-1 BN 148 MM 13 Ranked Within Top 10 Barrel Original Oil Gross
Slide 25: Multiyear Exploration Inventory in Colombia
Multiyear 90+ PROJECTS Exploration LOW RISK EXPLORATION PORTFOLIO Inventory TO SUSTAIN FUTURE GROWTH In Colombia 0.9-1.8 0.4-0.8 BN BOE GROSS BN BOE NET (UNRISKED) (UNRISKED) EXPLORATION INVENTORY IN LLANOS & LLANOS BASIN PUTUMAYO / ORIENTE PUTUMAYO/ ORIENTE # Estimated Gross Projects (Leads & Prosp
Slide 26: Llanos Basin Exploration Inventory
HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN Llanos Basin 2022 CAMPAIGN Exploration (Gross Wells) Expanding Inventory 2-3 EXPLORATION Knowledge WELLS 4,000+ sq km 3D Seismic Merge 2 EXPLORATION WELLS LLANOS 87 5-7 EXPLORATION LLANOS 124 LLANOS 32 WELLS 1-2 EXPLORATION WELLS 20X LLANOS 34 SIZE OF LLANOS
Slide 27: Scale With Value
Scale With 20 YEARS GROWING THROUGH ACQUISITIONS FOLLOWED BY DELIVERY Value 2022 ON TI CR ~40,000 BOEPD DA EA EN 159 MMBOE 2P TI MM VE Achieve CO OR Scale With RE Primary target basins IG 2020 IN D Value AT AN Secondary target basins IO EW N OF VI ESG RE OP AMERISUR US PO UO 2019 RT Great Balanced A
Slide 28: Amerisur Case Study
INVESTMENT THESIS Amerisur 1. Consolidate most attractive acreage on trend of Llanos 34 - with high Case Study production fields and big exploration upside 2. Gain access to Putumayo with existing infrastructure and carried exploration for $93 MM 3. Financial and operational synergies in Colombia AC
Slide 29: Low Cost, Low Carbon & Safe Production
Low Cost, Low Carbon & Safe Production Martín Terrado - Chief Operating Officer 29
Slide 30: Safety First
Lost Time Injury Rate Safety (per million hours worked) First 1.14 0.61 0.42 0.40 0.29 2017 2018 2019 2020 2021 • First Oil & Gas Company to Receive 0.05 BBL COVID-19 Bureau Veritas Certification RESPONSE • COVID-19 Committee: prevention, of oil spilled per million barrel produced mitigation and car
Slide 31: Proven Operator
Proven Operator 60,000+ BOEPD 100+ MM GROSS NET BOE PRODUCED OPERATED 2006-2021 PRODUCTION ZERO TO 40,000 BOEPD PRODUCTION GROWTH (2006-2022E) 38,500-40,500 BOEPD 70+% OF NET PRODUCTION OPERATED BY GEOPARK 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E Producti
Slide 32: Cost Efficiencies Achieved & Maintained
Cost Efficiencies Achieved & OPERATING COSTS DOWN 50% ($/BOE) Maintained 16 50% Decrease 11 ~95% OF PRODUCTION IS CASH FLOW POSITIVE 8 8 8 AT $20-30 BRENT 7 7 7 Oil ($40-50 /BBL) 100% Oil ($20-30 /BBL) 2014 2015 2016 2017 2018 2019 2020 2021 ~95% Gas ~10% Sustainable Cost Reductions (Unaffected by o
Slide 33: Fastest, Most Efficient & Lowest Cost Driller in Colombia
Fastest, Most Efficient & Lowest LOW-COST CHAMPION Cost Driller in USD PER METER DRILLED* AVERAGE DRILLING DAYS PER WELL* Colombia 1,658 1,622 35% 64% 22.9 Decrease Decrease 21.5 20.8 Llanos 34 in Review 17.1 17.8 16.6 15.7 15.5 14.1 688 696 684 642 627 608 585 2013 2014 2015 2016 2017 2018 2019 202
Slide 34: Transport Cost Savings in Colombia
Transport Cost Savings in COMMERCIAL & TRANSPORTATION DISCOUNTS ($/BBL) Colombia ODCA STARTED 44% OPERATIONS IN 2019 Decrease 42 Km LENGTH 16 15 15 15 11 8 8 4Q2015 4Q2016 4Q2017 4Q2018 4Q2019 4Q2020 4Q2021 KEY PROJECT: OLEODUCTO DE CASANARE (ODCA) ~$1.5/BBL 80,000 BOPD $16 MM TIGANA CONNECTION TRAN
Slide 35: Electrification of Llanos 34
Electrification KEY METRICS of Llanos 34 37 KM 94 2 SUB-STATIONS LINE TOWERS TIGANA/JACANA Improving Carbon EXTENSION Performance & Operational Reliability 68 MW 115 KV 100,000 TONS/YEAR TRANSMISSION VOLTAGE LOWER EMISSIONS CAPACITY EXECUTION TIMELINE May 2022 July 2022 2H2022 INTERCONNECTED INTERCO
Slide 36: Llanos 34: A World Class Asset
Llanos 34: KEY METRICS A World Class Asset 58,818 ~$5.5/BBL <$20/BBL GROSS BOPD OPERATING BREAKEVENS* (1Q2022) COSTS GeoPark Operated, 45% WI 95% 11.5 YEARS 17.4 KgCO E/BOE 2 PRODUCTION 2P RESERVE LOW EMISSIONS EFFICIENCY** LIFE INDEX*** WELL ECONOMICS NET PRODUCTION AND RESERVES GROWTH NET PRODUCTI
Slide 37: CPO-5: Unlocking the Upside
CPO-5: KEY METRICS Unlocking the Upside 20,148 ~$3/BBL <$10/BBL GROSS BOPD OPERATING BREAKEVENS* (April-May 2022) COSTS GeoPark Non-operated, 30% WI 5 14.7 YEARS ~8,000 PRODUCING 2P RESERVE GROSS BOPD WELLS (May 2022) LIFE INDEX** ADDED IN 2022YTD INDICO-2 WELL ECONOMICS PRODUCTION & RESERVE GROWTH
Slide 38: Innovation: Do it Efficiently, Do it Better
Innovation: Do it Efficiently, Do it Better Increase Optimize Reduce Mitigate Reduce Carbon Production Processes Costs Risks Footprint FOCUS SOLUTIONS ORIENTED OPERATOR 60+ 120+ Projects People (2021-2022YTD) Involved RESULTS Training Strategic Acknowledgements Workshops Partnerships & Awards 38
Slide 39: Innovation Case Study: Predicting Pump Failure
Innovation Case Study: Predicting Pump Failure INDUSTRY STANDARD: REACTIVE PUMP REPAIR INNOVATIVE SOLUTION: AI TO PREDICT FAILURES Pump 7 days 10 days Failure Alarm 7 days 10 days Pump Rig to Production Pump Rig to Production Failure Repair Pump Restored Failure Repair Pump Restored • Opportunity to
Slide 40: Disciplined Capital Allocation & Capital Structure
Disciplined Capital Allocation & Capital Structure Verónica Dávila - Incoming CFO Marcelo Iribarne - Capital Markets Director 40
Slide 41: Capital Efficiency Leads to Superior Results
Capital Efficiency Leads to Superior Results CASH GENERATION 2-4X CAPEX IN EVERY OIL PRICE ENVIRONMENT Operating Netback CAPEX 590-620 2.9x Operating Netback/CAPEX Ratio (x times) 3.2x 3.5x 447 2.7x 398 3.7x 2.1x 352 3.1x 276 2.4x 228 200-220 118 122 125 126 129 106 75 49 39 201 5 201 6 201 7 201 8
Slide 42: High Impact Capital Allocation
High Impact ASSET-BASED CAPITAL ALLOCATION Capital Allocation LLANOS PRODUCTION CPO-5 ORIENTE RN BAL RETU ANC E DER SHE KEY CRITERIA EHOL ET PUTUMAYO CHILE / BRAZIL SHAR LLANOS EXPLORATION Technical Strategic ALLOCATING CAPITAL SELF-FUNDED AND TO HIGHEST RANKING FLEXIBLE WORK PROJECTS PROGRAMS Econo
Slide 43: Ambitious 2022 Capital Investment Program
100 95-100 Ambitious 2022 Brent ($/bbl) 72 71 Capital Investment 64 55 Program 54 45 45 CAPEX 238 200- ($MM) 220 125 126 129 106 75 49 39 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2022 WORK PROGRAM HIGHLIGHTS $90-105 MM $200-220 MM ~10% 50-55 $100-115 MM PRODUCTION GROSS $70-90 MM GROWTH* WELLS
Slide 44: Strong Free Cash Flow
2022E Free Cash Flow* ($mm) at $95-100 per bbl (Brent) Strong Free (100-115) Cash Flow (90-105) (50-55) High Return 590-620 (40-45) Barrels (38-42) 250-280 Operating Netback Development Capex Exploration Capex Cash G&A/G&G Cash Taxes Mandatory Debt Free Cash Flow Service Payments SENSITIVITY TO BREN
Slide 45: Deleveraging Generates Savings
Comfortable Reducing Deleveraging Debt Profile Cost of New Generates ($MM) Debt As of May 31, 2022 500 Savings SUCCESSFULL Expected to be redeemed in CONSENT 2H2022* 7.6% 6.5% 5.6% 5.1% 87 2022 2023 2024 2025 2026 2027 2013 2017 2020 2021 2021-2022E GROSS DEBT EVOLUTION ($MM) 775 -105 587 -83 500 -8
Slide 46: Proven Balance Sheet Management
Proven GROSS & NET LEVERAGE (GROSS AND NET DEBT / ADJUSTED EBITDA) Balance 5.1 Sheet 4.6 COVENANT: Management 4.0 3.6 3.6 NET LEVERAGE <3.25X LONG-TERM OBJECTIVE: 2.4 2.7 2.2 NET LEVERAGE <1.5X 1.7 1.9 1.4 1.2 0.8 - 0.9 1.0 0.9 0.6 - 0.7 2015 2016 2017 2018 2019 2020 2021 2022E* 2022 (E) Gross Debt
Slide 47: Disciplined Risk Management
Disciplined STRUCTURE TENOR Risk 2016-2019 2020-2021 2022E - ONWARDS Management ZERO 12-15 COST MONTHS COLLARS 30-50% 50-75% 30-50% PRODUCTION PRODUCTION PRODUCTION HEDGED HEDGED HEDGED HEDGES IN PLACE TO SECURE BASE OIL PRICE 130 Call $112.6 Call $111.8 110 Hedged Production Call $92.6 (bbl/d) BREN
Slide 48: Comprehensive & Flexible Shareholder Value Return Strategy
Shareholder Value Return 141% $95 MM $25 MM TOTAL SHAREHOLDER RETURN* SHARE BUYBACK PROGRAM CASH DIVIDEND Comprehensive & (Share Price Change + Dividends) May 2017- May 2022 2019-2022YTD 2019-2022YTD ~2% Dividend Yield Flexible Strategy SUCCESSFUL CONSENT ADDS FLEXIBILITY TO ESTABLISH A LONG-TERM SH
Slide 49: The Next Generation
The Next Generation Andrés Ocampo - Incoming CEO 49
Slide 50: The Next Generation
The Next CLEANEST & Generation BEST & SMARTEST KINDEST HYDROCARBONS SAFEST, LOWEST OIL & GAS COST & MOST FINDERS EFFICIENT OPERATOR CONSISTENT FREE CASH FLOW & VALUE DELIVERY COMMITMENT & CULTURE Base Business ~10% ~$3 Billion Performance and Delivery CAGR PRODUCTION 2022-2026E CASH GROWTH POTENTIAL
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