Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (May 2024)
27 slides from Geopark's investor presentation, May 2024
Slide 1: Corporate Presentation May 2024
CORPORATE PRESENTATION May 2024
Slide 2: Disclaimer
GeoPark CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION The information contained herein has been prepared by GeoPark solely for informational purposes. No representation or warranty, either expressed or DISCLAIMER implied, is provided in relation to the accuracy, completeness or relia
Slide 3: Who We Are
LEADING INDEPENDENT LATAM E&P COMPANY WHO WE ARE ENDURING PRINCIPLES AND APPROACH Energy Oil & Gas Latin America GeoPark Approach Right Team Leading Oil and Gas Finders Proven Team and Unique Culture Drilling Success Rate*** 81% BRAZIL 21 Year Track Record SPEED = ESG+ From Zero to 35,500-39,000* BO
Slide 4: Medium-Term Vision
LEADING INDEPENDENT LATAM E&P COMPANY MEDIUM-TERM VISION Production 100,000 BOEPD Cash Flow Generation Maintain Cash Generation 2P Reserves 2-4X CAPEX 400 MMBOE ü PEOPLE ü CAPITAL ü ASSETS ü PROJECTS Assets Portfolio Capital Allocation ü EXECUTION ü RETURNS Allocate Capital to Deep and Diversified C
Slide 5: Right Neighborhoods
RIGHT NEIGHBORHOODS 5
Slide 6: New Position in Vaca Muerta - Argentina
RIGHT NEIGHBORHOODS NEW POSITION IN VACA MUERTA - ARGENTINA MATA MORA NORTE (NEUQUEN) MATA MORA SUR (NEUQUEN) • 43,243 acres • 11,861 acres • Current Gross Production: 11,207 BOEPD • Certified 3C Contingent • Gross 2P Reserves: 110 MMBOE* Resources: 51 MMBOE* • License Expiration Date: 2056 • Licens
Slide 7: Llanos 34 - A World-Class Asset
RIGHT NEIGHBORHOODS LLANOS 34 - A WORLD-CLASS ASSET Chiricoca KEY METRICS VENEZUELA VENEZUELA Chachalaca Llanos Basin LLA-34 Tilo COLOMBIA LL-34 Max ECUADOR COLOMBIA Tigana PERU BRAZIL ECUADOR BRAZIL PERU Guaco Tarotaro 53,001 94% 7.0 9.0 Years* Tua Gross BOPD Production efficiency kgCO2e/BOE 2P Res
Slide 8: CPO-5 - Unlocking the Upside
RIGHT NEIGHBORHOODS CPO-5 - UNLOCKING THE UPSIDE KEY METRICS VENEZUELA Llanos 34 Block CPO-5 Perico 1 Exploration Well Jacana Field Cabrestero Block COLOMBIA ECUADOR BRAZIL PERU Halcon 1 Exploration Well Mariposa Field 30,000 10 2.3x 6.6 Years GeoPark Producing Oil Fields Indico Field Cisne Explorat
Slide 9: Llanos Basin Champion
RIGHT NEIGHBORHOODS LLANOS BASIN CHAMPION 2024 CAMPAIGN HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN LLANOS BASIN 3-4 Exploration Wells GeoPark Exploration Blocks Consolidated 24-33 Development and Appraisal Wells GeoPark Producing Blocks LLANOS 32 TOTAL ACREAGE Activity 20x 880+ km2 of 3D Seismic GeoP
Slide 10: Putumayo & Oriente - Underexplored Proven Basin
RIGHT NEIGHBORHOODS PUTUMAYO & ORIENTE - UNDEREXPLORED PROVEN BASIN KEY HIGHLIGHTS PUTUMAYO KEY HIGHLIGHTS ORIENTE PUT-36 VENEZUELA COLOMBIA MECAYA 1,647 2,966 PLATANILLO Gross BOPD Gross BOPD Putumayo & (1Q2024) (1Q2024) Oriente Basin PUT-9 ECUADOR BRAZIL PERU OTA PIPELINE PUT-8 93% 89% COATI COLOM
Slide 11: Solid and Profitable
SOLID AND PROFITABLE 11
Slide 12: Low-Cost & Efficient Operator
SOLID AND PROFITABLE LOW-COST & EFFICIENT OPERATOR OPERATING COSTS LOW BREAKEVENS 34% El Niño Impact Reduction Oil ($40-50 /BBL) ($/boe) 19 Oil ($25-30 /BBL) ~90% 16 13 12-13 11 of production is cash flow 8 8 8 8 positive at $25-30 /BBL Brent 7 7 7 Gas 201 3 201 4 201 5 201 6 201 7 201 8 201 9 2020
Slide 13: Cost & Capital Efficiency Leads to Superior Results
SOLID AND PROFITABLE COST & CAPITAL EFFICIENCY LEADS TO SUPERIOR RESULTS CASH GENERATION 2-4x CAPEX IN EVERY OIL PRICE ENVIRONMENT Operating Netback ($MM) = Ajusted EBITDA + G&A/G&G ~3x 593 3.5x CAPEX ($MM) 2.5x 90-100* Operating Netback/CAPEX Ratio (x times) 503 470-600 3.5x 447 3.2x 398 2.7x 3.7x
Slide 14: Differentiated Returns - Improving Returns on Capital Employed
SOLID AND PROFITABLE DIFFERENTIATED RETURNS - IMPROVING RETURNS ON CAPITAL EMPLOYED ROACE - LATAM JUNIOR E&P’s - LAST TWELVE MONTHS 2 0 1 9 V S 2 0 2 3 50.4% R O A C E 50.4% 37.1% 39.0% 35.7% 31.0% 20 19 20 23 21.1% 18.7% 13.6% 11.7% GeoPar k Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Source:
Slide 15: 2024 Work Program - Disciplined Capital Allocation
SOLID AND PROFITABLE 2024 WORK PROGRAM - DISCIPLINED CAPITAL ALLOCATION 2024 WORK PROGRAM HIGHLIGHTS 2024 CAPEX BREAKDOWN ($80-90/BBL BRENT) 35,500-39,000* 35-45 $50-60 MM 90-100** BOEPD Production Gross Wells $100-140 MM $150-200 MM +5,500-6,500** BOEPD Production ~70-80% 5-10 DEVELOPMENT & EXPLORA
Slide 16: 2024 Free Cash Flow & Returns
SOLID AND PROFITABLE 2024 FREE CASH FLOW & RETURNS STRONG FREE CASH FLOW* GENERATION 2024E Free Cash Flow** ($MM) at $80-90 per BBL (Brent) 90-100*** (100-140) 420-550 (50-60) (145-160)**** (90-100***) (27-30) 90-160 Adjusted EBITDA Development & Appraisal Capex Exploration Capex Cash Taxes Mandator
Slide 17: Strong Balance Sheet with Safety Nets in Place
SOLID AND PROFITABLE STRONG BALANCE SHEET WITH SAFETY NETS IN PLACE ASSETS AND SAFETY NETS LIABILITIES WELL-STRUCTURED, LOW-COST & LONG-MATURING DEBT PROFILE $151 MM Hedges in Place Securing Cash & Cash Equivalents Base Oil Price (March 31, 2024) $275 MM debt Proven Team and Track reduction since $5
Slide 18: Hedging Program Secures Base Oil Price
SOLID AND PROFITABLE HEDGING PROGRAM SECURES BASE OIL PRICE APPROACH 12-15 30-50% MONTHS 28% AVERAGE HEDGING RATIO (2024) % PRODUCTION % Tenor Hedge Target On track with target HEDGE BOOK OVERVIEW 120 $112.6 $110.6 Hedged Production CEILING $94.7 $97.0 $99.4 (BBL/D) CEILING CEILING $91.8 $92.0 CEILI
Slide 19: Returning Value to Shareholders
SOLID AND PROFITABLE RETURNING VALUE TO SHAREHOLDERS 10 YEARS OUTPERFORMING BRENT RETURNED MORE THAN 55% OF MARKET CAP SINCE 2019 21 0% $77 MM $7.5 MM 6.00% Quarterly Cash Total Distributed $30 MM Dividend 11 0% Dividend 2019 – YTD2024 Annually Yield* +45% 10% $200 MM $43.7 MM ˜30% of Shares Up to $
Slide 20: SPEED (ESG+) Since Day One
- Cte ‘ : : ml \ GEOPARK ——. SPEED (ESG+) SINCE DAY
Slide 21: Environment & Social - Employer and Neighbor of Choice
SPEED SINCE DAY ONE ENVIRONMENT & SOCIAL - EMPLOYER AND NEIGHBOR OF CHOICE GHG EMISSIONS INTENSITY REDUCTION TARGETS WELLBEING & BIODIVERSITY SCOPES 1 & 2 (GEOPARK OPERATED) BASELINE: 2020 QUALITY OF LIFE Contribute Contribute to meeting to stopping deforestation basic needs Short Term Medium Term L
Slide 22: Governance – Diverse and Experienced Board
SPEED SINCE DAY ONE GOVERNANCE – DIVERSE AND EXPERIENCED BOARD INDEPENDENT BOARD MEMBERS EXECUTIVE BOARD MEMBERS Audit Audit Compensation SPEED Nomination & Nomination & Corporate Corporate Technical Technical Governance Governance SPEED Compensation Strategy & Risk Strategy & Risk SPEED SYLVIA ESCO
Slide 23: GeoPark Named 'ESG Leader'
SPEED SINCE DAY ONE GEOPARK NAMED ‘ESG LEADER’ MSCI:RATINGS EVOLUTION CARBON DISCLOSURE PROJECT: ESG RATING DISTRIBUTION Beginning the Journey 39% ESG Leaders Climate Change 2022: Score C 26% Climate Change 2023: Score B 17% 13% Water Security 2023: Score C 4% 0% 0% CCC B BB BBB A AA AAA Signatory t
Slide 24: We Make Assets Better
WE MAKE ASSETS BETTER 24
Slide 25: Creating Value Through Acquisitions
WE MAKE ASSETS BETTER CREATING VALUE THROUGH ACQUISITIONS LLA34:GROSS OIL PRODUCTION PROFILE SINCEACQUISITION CPO-5:GROSS PRODUCTION PROFILE SINCEACQUISITION FROM ZERO PRODUCTION TO 70,000 BOPD IN 10 YEARS SIGNIFICANT EXPLORATION INVENTORY & POTENTIAL UPSIDE TO CONTINUE GROWING PRODUCTION & RESERVES
Slide 26: Latin America Is an Opportunity Rich Environment
WE MAKE ASSETS BETTER LATIN AMERICA IS AN OPPORTUNITY RICH ENVIRONMENT GEOPARK APPROACH MULTIPLE OPPORTUNITIES STRONG TRACK RECORD OF CREATING VALUE THROUGH • Significant Yet To Find (oil/gas) ACQUISITIONS COLOMBIA • Multiple proven performance systems • Geology first: best basins, best rocks, best
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