Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (March 2022)
25 slides from Geopark's investor presentation, March 2022
Slide 1: Corporate Presentation March 2022
Cleanest & Kindest Hydrocarbons Best in Class Safest, Lowest Cost & Oil & Gas Finders Most Efficient Operator Consistent Free Cash Flow & Value Delivery Corporate Presentation March 2022
Slide 2: Long-Term Value Proposition
Long-Term Value Proposition 45,000 Proven Track Record 2009-2021 Oil and Gas Production: CAGR 16% 40,000 Leading Oil and Gas Finders Drilling Success Rate* 75+% (2006 – 2021) COLOMBIA 35,000 ECUADOR Low-Cost Operator 30,000 Operating and Structure Costs Per Barrel Below Peers BRAZIL Focus on ESG 25,
Slide 3: Best in Class Oil & Gas Finders
Best in Class Oil & Gas Finders
Slide 4: Asset Base Proven Oil & Gas Finder
Asset Base Proven Oil & Gas Finder D&M CERTIFIED 2P RESERVES AND NPV10 2021 LEADING OIL AND GAS FINDING TEAM IN LATIN AMERICA 159 MMBOE $2.3 BN 4 0.02 • Over 25+ year track record (800+ mmboe discovered to date) 3 0.05 Argentina 17 0.2 • Growth strategy targets low cost, low-risk, high potential Bra
Slide 5: Asset Base High Quality Low Breakeven Portfolio
Asset Base High Quality Low Breakeven Portfolio COLOMBIA LLANOS 34 • Second largest operator in Colombia 31,150 boepd* LLANOS BASIN • Key Assets: Llanos 34, CPO-5, Lanos 87 (Llanos basin) 136 mmboe CPO-5 2P Net Reserves** • 1.4+ mm strategic acreage added in PUTUMAYO BASIN 2019 around Llanos 34 COL
Slide 6: Asset Base Llanos 34 Cash Flow Engine
Asset Base Llanos 34 Cash Flow Engine Oil fields 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+ years in Colomb
Slide 7: 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 8: Asset Base CPO-5 Big Prize
Asset Base CPO-5 Big Prize GROWTH OPPORTUNITIES PRODUCTION & RESERVE GROWTH SINCE ACQUISITION UNDERSCORE PROJECT POTENTIAL GROSS PRODUCTION (BOPD) GROSS RESERVES (MMBBL) • Two discovered oil fields with breakevens of ~$6-7 /bbl* 16,100 162 • Light oil, 36-41º API +224% • Mid to low-risk exploration
Slide 9: Safest, Lowest Cost & Most Efficient Operator
Safest, Lowest Cost & Most Efficient Operator
Slide 10: Capabilities & Efficiencies Low-Cost Operator
Capabilities & Efficiencies Low-Cost Operator OPERATING COSTS DOWN BY 50% STRUCTURE COSTS DOWN BY 55% OPEX ($/boe) G&A/G&G Costs ($/boe) 16 50% 55% Decrease Decrease 11 9 8 8 8 7 7 7 7 6 6 5 5 5 4 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 ~95% OF PRODUCTION IS C
Slide 11: Consistent Free Cash Flow & Value Delivery
Consistent Free Cash Flow & Value Delivery
Slide 12: Resilient Cash Flow Superior Returns on Capital Invested
Resilient Cash Flow Superior Returns on Capital Invested CASH GENERATION 2-3X CAPEX IN EVERY OIL PRICE ENVIRONMENT 3x+ Operating Netback and Capital Expenditures (CAPEX) ($mm) 3x+ 447 398 2x+ 352 3x+ 2x+ 276 228 2x+ 3x+ 118 122 125 126 129 106 75 49 39 2015 2016 2017 2018 2019 2020 2021 Operating Ne
Slide 13: 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 $65-70
Slide 14: Strong Free Cash Flow High Return Barrels
Strong Free Cash Flow High Return Barrels POSITIONED TO GENERATE SIGNIFICANT FREE CASH FLOW 2022E Free Cash Flow* ($mm) at $65-70 per bbl (Brent) (90-100) (70-80) (50-55) 420-470 (40-45) (38-42) 110-150 121 Operating Netback** Netback Development Capex Exploration Capex Cash G&A/G&G Cash Taxes Manda
Slide 15: Resilient Cash Flow Strong Balance Sheet
Resilient Cash Flow Strong Balance Sheet LOWER DEBT, LOWER COST & IMPROVED DEBT PROFILE Debt Amortization Profile ($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 16: Resilient Cash Flow 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 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 $/BBL • Provide oil price stability consistent with base budget assumptions Weighte
Slide 17: Opportunity 2022 Provides Unique Entry Point
Opportunity 2022 Provides Unique Entry Point SHAREHOLDER RETURN TRACK RECORD (2017 – 2022) COMPREHENSIVE & FLEXIBLE VALUE RETURN STRATEGY * BEST PERFORMING E&P STOCK (NYSE 2017-2019) +413% TOTAL 205% SHAREHOLDER 2017-2022 RETURN +200% SHARE $90 MM BUYBACK 2019-1Q2022 PROGRAM INCREASED +57% $5.0 MM C
Slide 18: Cleanest & Kindest Hydrocarbons
Cleanest & Kindest Hydrocarbons
Slide 19: Sustainability SPEED = ESG+
Sustainability SPEED = ESG+ FOUNDING PRINCIPLES SINCE DAY ONE IN 2002 STRONG 24,179,280 205% BARRELS OF OIL PRODUCED AND TRANSPORTED TOTAL SHAREHOLDER RETURNS COMMUNITY SUPPORT WITHOUT THIRD-PARTY INCIDENTS * As of 1-Feb-22. 5 YEARS* ZERO 100% SANCTIONS EMPLOYEES ARE SHAREHOLDERS 19 19
Slide 20: 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 21: Social & Governance Best Practices
Social & Governance Best Practices SAFETY COMMUNITY DEVELOPMENT GOVERNANCE Safety First Neighbor of Choice Strong Oversight Majority Independent Directors 0.7 bbls $3.2 MILLION Oil Spilled for Every Million Barrels Investments in Social and Strengthened Committee Charters Produced Environmental Prog
Slide 22: Company Directory
Company Directory Executive Team James F. Park Chief Executive Officer Augusto Zubillaga Chief Operating Officer CONTACTS Andrés Ocampo Chief Financial Officer Bogotá, Colombia Calle 94 Nº11-30. Piso 8, Shareholder Stacy Steimel Phone: +(57 1) 734 2337 Value Team Shareholder Value Director Email: ir
Slide 23: 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 24: 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 24
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