Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (January 2022)
28 slides from Geopark's investor presentation, January 2022
Slide 1: Corporate Presentation
Cleanest & Kindest Hydrocarbons Best in Class Safest, Lowest Cost & Oil & Gas Finders Most Efficient Operator Consistent Free Cash Flow & Value Delivery Corporate Presentation January 2022
Slide 2: Long-Term Value Proposition
Long-Term Value Proposition 42,000 Proven Track Record 2009-2020 Oil and Gas Production: CAGR 18% Oil and Gas Reserves: CAGR 14% COLOMBIA 37,000 ECUADOR Leading Oil and Gas Finders Drilling Success Rate* 75+% (2006 – 2020) 32,000 BRAZIL Low-Cost Operator Operating and Structure Costs 27,000 Per Barr
Slide 3: 18 Year Track Record and Value Delivery
18 Year Track Record and Value Delivery RIGOROUS RISK MANAGEMENT = CONSISTENT VALUE CREATION PRODUCTION (MBOEPD) RESERVES (2P, MMBOE) 197 40 40 CAGR 14% CAGR 18% 184 36 175 159 143 28 122 125 22 20 20 14 70 11 57 50 50 7 8 42 6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 2010 20
Slide 4: Best in Class Oil & Gas Finders
Best in Class Oil & Gas Finders
Slide 5: Asset Base: Proven Oil & Gas Finder
Asset Base Proven Oil & Gas Finder D&M CERTIFIED 2P RESERVES AND NPV10 2020 LEADING OIL AND GAS FINDING TEAM IN LATIN AMERICA 175 MMBOE $2.5 BN 6 0.04 • Over 25+ year track record (800+ mmboe discovered to date) 3 0.03 Argentina 25 0.3 • Growth strategy targets low cost, low risk, high potential Bra
Slide 6: Asset Base: High Quality Low Breakeven Portfolio
Asset Base High Quality Low Breakeven Portfolio COLOMBIA • Second largest operator in 33,228 boepd* Colombia LLANOS 34 • Key Assets: Llanos 34, CPO-5 141 mmboe (Llanos basin) 2P Net Reserves** • 1.4+ mm strategic acreage added in 2019 around Llanos 34 23 Blocks LLANOS BASIN (19 Operated) • RLI: 1P
Slide 7: Asset Base: Llanos 34 Cash Flow Engine
Asset Base Llanos 34 Cash Flow Engine Oil fields (3P D&M 2020) Chachalaca Field Max Field PANAMA Chiricoca Field VENEZUELA Structural high Tilo Field LLA-34 COLOMBIA LLANOS 34 BLOCK: GEOPARK ECUADOR BRAZIL Guaco Field OPERATED WITH 45% WI Tigana Field PERU Tarotaro Field • Largest discovery in 20+ y
Slide 8: Asset Base: Llanos Basin Growth Fairway
Asset Base Llanos Basin Growth Fairway PANAMA VENEZUELA SYSTEMATIC CONSOLIDATION OF HIGH POTENTIAL ACREAGE AROUND CORE ASSET COLOMBIA GeoPark exploration blocks NEAR TERM CATALYSTS GeoPark producing blocks ECUADOR BRAZIL GeoPark producing oil fields PERU LLANOS 87 Other producing oil fields LLANOS 1
Slide 9: Asset Base: CPO-5 Big Prize
Asset Base CPO-5 Big Prize PRODUCTION & RESERVE GROWTH SINCE ACQUISITION UNDERSCORE PROJECT POTENTIAL GROSS PRODUCTION (BOPD) GROSS RESERVES (MMBBL) 13,142 167 +236% +62% 8,116 +123% 71 50 32 December 2019 December 2020 July 2019 2020 Year-end 2P Certified Gross Reserves 3P Certified Gross Reserves
Slide 10: Safest, Lowest Cost & Most Efficient Operator
Safest, Lowest Cost & Most Efficient Operator
Slide 11: Capabilities & Efficiencies: Low-Cost Operator
Capabilities & Efficiencies Low-Cost Operator OPERATING COSTS DOWN BY 56% ~90% OF PRODUCTION IS CASH STRUCTURE COSTS DOWN BY 55% FLOW POSITIVE AT $20-$30 BRENT OPEX ($/boe) Breakeven ($/boe) G&A/G&G Costs ($/boe) 16 56% Decrease Oil ($40-50 /bbl) 100% 55% Decrease 11 9 Oil ($20-30 /bbl) 8 8 ~90% 7 7
Slide 12: High Margins Even at Low Oil Prices
Capabilities & Efficiencies High Margins Even at Low Oil Prices COST EFFICIENCIES INCREASE ADJUSTED EBITDA MARGINS Adjusted EBITDA ($mm) Adjusted EBITDA Margin 58% 55% 55% 53% 363 41% 331 35% 218 176 74 78 2015 2016 2017 2018 2019 2020 Brent ($/bbl) 54 45 55 72 64 45 Source: Bloomberg. LOW COST TO D
Slide 13: Consistent Free Cash Flow & Value Delivery
Consistent Free Cash Flow & Value Delivery
Slide 14: Superior Returns on Capital Invested
Resilient Cash Flow Superior Returns on Capital Invested CASH GENERATION 2-3X CAPEX IN EVERY OIL PRICE ENVIRONMENT 3x+ Operating Netback and Capital Expenditures (CAPEX) ($mm) 3x+ 447 398 2x+ 3x+ 276 3x 253 228 3x+ 2x+ 118 122 125 126 106 75 85 49 39 2015 2016 2017 2018 2019 2020 9M2021 Operating Ne
Slide 15: Strong Free Cash Flow: Self-funded & Flexible Work Program
Strong Free Cash Flow Self-funded & Flexible Work Program FREE CASH FLOW FUNDS LOW RISK EXPLORATION, DISCIPLINED CAPITAL ALLOCATION METHODOLOGY DELEVERAGING AND SHAREHOLDER RETURNS • Self-Funded work program • Allocating capital to most value-adding projects based on four criteria: BASE CASE $65-70
Slide 16: Strong Free Cash Flow: High Return Barrels
Strong Free Cash Flow High Return Barrels 9M2021 OPERATING NETBACKS ($/BOE) Brent $68/bbl - Gas $3-4/mcf* 68 62 (10) (8) (6) (6) (9) (8) (9) 32 (7) (6) (5) (7) (12) 28 26 15 Colombia Brazil-Argentina-Chile Consolidated Vasconia Differential Transportation & Commercial Discounts Selling/Royalties OPE
Slide 17: Resilient Cash Flow: Strong Balance Sheet
Resilient Cash Flow Strong Balance Sheet LOWER DEBT, LOWER COST & IMPROVED DEBT PROFILE Debt Amortization Profile ($mm)* Before Current Before and After Strategic 500 Deleveraging (April 2021) 425 350 170 2021 2022 2023 2024 2025 2026 2027 * Does not include an amortizing debt of $3.5 mm with Santan
Slide 18: Downside Oil Price Protection
Resilient Cash Flow Downside Oil Price Protection HEDGES IN PLACE SECURE BASE OIL PRICE* HEDGING STRATEGY Brent • First line of defense: low-cost operator with low breakevens 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 $/BBL • Provide oil price stability consistent with base budget assumptions Weighted • Sec
Slide 19: Opportunity: 2021 Provides Unique Entry Point
Opportunity 2021 Provides Unique Entry Point SHAREHOLDER RETURN TRACK RECORD (2016 – 2021) BEST PERFORMING E&P STOCK TOTAL SHARE CURRENT * (NYSE 2017-2019) SHAREHOLDER BUYBACK CASH DIVIDEND +415% +235% RETURN PROGRAM POLICY October 2021 +70% 245% $85 MM $2.5 MM 2016-2021 2019-2021 QUARTERLY +40% Oct
Slide 20: Cleanest & Kindest Hydrocarbons
Cleanest & Kindest Hydrocarbons
Slide 21: Sustainability = ESG+
Sustainability SPEED = ESG+ FOUNDING PRINCIPLES SINCE DAY ONE IN 2002 STRONG 24,179,280 245% BARRELS OF OIL PRODUCED AND TRANSPORTED TOTAL SHAREHOLDER RETURNS COMMUNITY SUPPORT WITHOUT THIRD-PARTY INCIDENTS *As of 29-Oct-21. 5 YEARS* ZERO 100% SANCTIONS EMPLOYEES ARE SHAREHOLDERS 21
Slide 22: Environment: Leading the Way to the Energy Transition
Environment Leading the Way to the Energy Transition INDUSTRY-LEADING LOW CARBON INTENSITY* (Scopes 1 and 2 ) ENVIRONMENT 60.0 50.0 GHG Intensity (KgCO2e/boe) Carbon Intensity Well 40.0 Below Industry 30.0 20.0 25-30% BELOW INDUSTRY AVERAGE FAST, IMMEDIATE AND 10.0 AGGRESSIVE TARGETS 0.0 Canacol Fro
Slide 23: Social: Neighbor of Choice
Social Neighbor of Choice SAFETY COMMUNITY DEVELOPMENT 0.7 bbls of Oil Spilled for Every Million Barrels $3.2 million 75% Produced Investments in Social Local Hiring at and Environmental December 2020 Programs – 73% First Oil & Gas Company to Receive Focused on Rural Areas COVID-19 Bureau Veritas Ce
Slide 24: Governance: Best Governance Practices
Governance Best Governance Practices GOVERNANCE STRONG OVERSIGHT MAJORITY OF INDEPENDENT DIRECTORS Majority Independent Directors SYLVIA ESCOVAR GÓMEZ Independent Chair JAMES F. PARK Independent and Female Chair Co-founder CEO & Director ROBERT A. BEDINGFIELD Risk Committee Chaired by Independent Di
Slide 25: Company Directory
Company Directory Executive Team James F. Park Chief Executive Officer Augusto Zubillaga Chief Operating Officer Andrés Ocampo CONTACTS Chief Financial Officer Shareholder Stacy Steimel Bogotá, Colombia Value Team Shareholder Value Director Calle 94 Nº11-30. Piso 8, Phone: +(57 1) 734 2337 Miguel Be
Slide 26: Disclaimer
Disclaimer The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” or “us”) solely The information included in this presentation regarding GeoPark’s estimated quantities of proved, for informational purposes. No representation or warranty, either expressed or implied,
Slide 27: Come on Board: Short, Medium & Long Term Investment Opportunity
Come on Board Short, Medium & Long Term Investment Opportunity PEOPLE MEXICO + TRACK-RECORD COLOMBIA + ECUADOR UPSIDE PERU BRAZIL + VALUE + ARGENTINA SELF-FUNDING + PLATFORM 27
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