Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (February 2023)
21 slides from Geopark's investor presentation, February 2023
Slide 1: Corporate Presentation February 2023
CORPORATE PRESENTATION February, 2023
Slide 2: Disclaimer
GeoPark DISCLAIMER The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” or “us”) solely for informational purposes. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information co
Slide 3: Long-Term Value Proposition
LEADING INDEPENDENT LATAM E&P COMPANY LONG-TERM VALUE PROPOSITION Building the Right Team Leading Oil and Gas Finders Proven Team and Unique Culture Drilling Success Rate*** 75%+ 20 Year Track Record SPEED = ESG+ From zero to 40,500* BOEPD Net Zero Commitment**** Discovered 430+ MMBOE of 2P Reserves
Slide 4: Base Business Performance with Upside Potential
LONG-TERM VALUE PROPOSITION BASE BUSINESS PERFORMANCE WITH UPSIDE POTENTIAL 5 YEAR GROWTH PLAN IN PLACE (2022-2026E) ~10% ORGANIC GROWTH POTENTIAL* CAGR Production Growth Potential Unrisked exploration ~100,000 upside & inorganic BOEPD opportunities Longer ~$750-800 MM Term View ~55,000- 2022-2026E
Slide 5: Building the Right Portfolio
HIGH-QUALITY ASSET BASE BUILDING THE RIGHT PORTFOLIO COLOMBIA • Second largest operator in Colombia • Introduced new geological play-type and community 33,749* 110 MMBO approach BOEPD 2P Net • Key Assets: Llanos 34, CPO-5, Llanos 87, Llanos 123, Reserves** Llanos 124 (Llanos basin) • 1.5 mm strategi
Slide 6: Llanos 34: A World Class Asset
HIGH-QUALITY ASSET BASE LLANOS 34: A WORLD CLASS ASSET VENEZUELA Chachalaca Field KEY METRICS LLA-34 Chiricoca Field Tilo Field COLOMBIA ECUADOR BRAZIL Max Field 57,016 ~$6 /BBL <$20 /BBL PERU Gross BOPD Operating Breakevens* Guaco Field Tigana Field (2022) Costs (9M2022) Tarotaro Field 94% 9.4 YEAR
Slide 7: CPO-5: Unlocking the Upside
HIGH-QUALITY ASSET BASE CPO-5: UNLOCKING THE UPSIDE Jacana Field VENEZUELA Llanos 34 block KEY METRICS CPO-5 COLOMBIA Cabrestero block Parex 100% WI 20,235 ~$2.5-3 /BBL <$10 /BBL ECUADOR BRAZIL PERU Gross BOPD Operating Breakevens* Mariposa (2022) Costs (9M2022) Field GeoPark Producing Oil Fields In
Slide 8: Llanos Basin Exploration Inventory
HIGH-QUALITY ASSET BASE LLANOS BASIN EXPLORATION INVENTORY HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN Expanding Knowledge 2023 CATALYSTS GeoPark Exploration Blocks 4,000+ sq km GeoPark Producing Blocks 3D Seismic Merge CPO-5 3-4 GeoPark Producing Oil Fields LLANOS 87 GeoPark Non-0perated, 30% WI Expl
Slide 9: Low Cost & Efficient Operator
HIGH-QUALITY ASSET BASE LOW COST & EFFICIENT OPERATOR PRODUCTION GROWTH: 12% PER YEAR CAGR (2013-2022) Production (BOEPD) 39,500-41,500 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E OPERATING COSTS DOWN 53% ($/BOE) 95% OF PRODUCTION CASH FLOW POSITIVE @$20-30 /BBL BRENT Cost reductions and
Slide 10: Cost & Capital Efficiency Leads to Superior Results
DISCIPLINED CAPITAL ALLOCATION & CAPITAL STRUCTURE COST & CAPITAL EFFICIENCY LEADS TO SUPERIOR RESULTS CASH GENERATION 2-4X CAPEX IN EVERY OIL PRICE ENVIRONMENT ~3x ~3x Operating Netback ($MM) 600-630 560-630 Operating Netback/CAPEX Ratio (x times) 3.5x CAPEX ($MM) 3.2x 447 2.7x 398 3.7x 352 2.1x 27
Slide 11: Ambitious 2023 Work Program
DISCIPLINED CAPITAL ALLOCATION & CAPITAL STRUCTURE AMBITIOUS 2023 WORK PROGRAM 2023 WORK PROGRAM HIGHLIGHTS 2023 CAPEX BREAKDOWN ($80-90 /BBL Brent) 39,500-41,500* 50-55 $70-80 MM $200-220 MM BOEPD of Production Gross Wells * Assuming no production from the $130-140 MM 2023 exploration drilling prog
Slide 12: High Return Barrels
DISCIPLINED CAPITAL ALLOCATION & CAPITAL STRUCTURE HIGH RETURN BARRELS STRONG FREE CASH FLOW GENERATION 2023E Free Cash Flow* ($MM) at $80-90 per BBL (Brent) 560-630 (130-140) (70-80) (50-55) (150-210) (27-30) 120-140 Operating Netback Development Capex Exploration Capex Cash G&A/G&G Cash Taxes Mand
Slide 13: Strong Balance Sheet with Safety Nets in Place
DISCIPLINED CAPITAL ALLOCATION & CAPITAL STRUCTURE STRONG BALANCE SHEET WITH SAFETY NETS IN PLACE ASSETS LIABILITIES Well-Structured, Low Cost & Long-Maturing Debt Profile $128.8 MM Cash & Cash Equivalents (2022) Hedges in Place Securing Base Oil $500 MM 5.5% Price $1.8 BN* BOND MATURING IN 2027 COU
Slide 14: Disciplined Risk Management
DISCIPLINED RISK MANAGEMENT RISK MANAGEMENT BUSINESS GEOPOLITICAL - MACROECONOMIC - REGULATORY Macro Risk • Multi-country, multi-project, risk-balanced portfolio approach • 35 blocks, 8 basins, 4 countries, 4.5 million acres • OECD (Colombia and Chile) • Strategic partners OPERATIONAL ECONOMIC SOCIA
Slide 15: Hedging Program in Place to Secure Base Oil Price
DISCIPLINED RISK MANAGEMENT HEDGING PROGRAM IN PLACE TO SECURE BASE OIL PRICE APPROACH DIVERSIFIED HEDGING COUNTERPARTS ZERO COST 12-15 30-50% % COLLARS MONTHS PRODUCTION Structure Tenor Hedge 2023 HEDGE BOOK OVERVIEW 120 $113.1 Hedged Production $112.6 (BBL/D) 100 CALL CALL $101.1 CALL BRENT $ /BBL
Slide 16: Returning Value to Shareholders
DISCIPLINED CAPITAL ALLOCATION & CAPITAL STRUCTURE RETURNING VALUE TO SHAREHOLDERS COMPREHENSIVE & FLEXIBLE STRATEGY 5-Year Total Shareholder Return* Share Buyback Program Quarterly Cash Dividend 2023 SHAREHOLDER RETURN TARGET 65% $125 MM $7.5 MM 2017–2022 2017 – 2022 ~3.6%* Dividend Yield 40-50% of
Slide 17: Environment: Clean Hydrocarbons
SPEED = ESG+ ENVIRONMENT: CLEAN HYDROCARBONS KEY ELEMENTS OF OUR STRATEGY Energy Cleaner Efficiency Energy Matrix Mitigation Compensation KEY PROJECTS GHG EMISSION INTENSITY REDUCTION TARGETS Scope 1 & 2 refer to GeoPark’s operated assets and use 2020 as a baseline Solar Oleoducto del Photovoltaic C
Slide 18: Social: Neighbor of Choice
SPEED = ESG+ SOCIAL: NEIGHBOR OF CHOICE $6.1 MM COMMITED IN SOCIAL & ENVIRONMENTAL PROGRAMS 2021 WELL-BEING AND HUMAN RIGHTS QUALITY OF LIFE DUE DILIGENCE Investment in Rural Issues Resolved 86% Areas Benefiting 288k+ 86% by ‘Cuéntame’ People UNITED NATIONS EDUCATION, CULTURE INSTITUTIONAL AND SPORT
Slide 19: Governance: Best-in-Class Standards
SPEED = ESG+ GOVERNANCE: BEST-IN-CLASS STANDARDS Majority Independent Director Overboarding Key Committees Directors Female Chair Policy 100% Independent Audit, Nomination & Corporate Governance, and Compensation Committees Change of Independent Two New Board Committees New Human Rights Technical an
Slide 20: Proven Business Model
LEADING INDEPENDENT LATAM E&P COMPANY PROVEN BUSINESS MODEL FULL CAPABILITIES ACROSS THE E&P VALUE CHAIN CLEANEST & KINDEST HYDROCARBONS SAFEST, LOWEST BEST & SMARTEST COST & MOST OIL & GAS FINDERS EFFICIENT OPERATOR CONSISTENT FREE CASH FLOW & VALUE DELIVERY COMMITMENT & CULTURE G e o P a r k C o r
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