Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (November 2022)
25 slides from Geopark's investor presentation, November 2022
Slide 1: GeoPark Presentation November 2022
GEOPARK PRESENTATION Pa a GEOPARK November 2022
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” or “us”) solely for informational purposes. No Certified reserves refers to net reserves independently evaluated by the petroleum consulting firm, D&M. The reserves estimates in the reports representati
Slide 3: 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 4: 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 $0.8 Billion 2P NPV10 MARKET CAPITALIZATION** 4
Slide 5: 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 6: Base Business Performance & Delivery with Big Upside Potential
Base Business 5 YEAR HIGH GROWTH PLAN IN PLACE (2022-2026E) Performance & Delivery with ~10% ~$750-800 MM CAGR PRODUCTION DEVELOPMENT & EXPLORATION Big Upside GROWTH POTENTIAL CAPEX Potential 180-200 Gross wells 700-800 MMBOE DEVELOPMENT & EXPLORATORY GROSS UNRISKED EXPLORATION RESOURCES* UNRISKED ~
Slide 7: 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 8: Best & Smartest Oil & Gas Finders
Best & Smartest Oil & Gas Finders 8
Slide 9: Leading Oil & Gas Finding Team
Leading Oil & THE POWER OF THE TEAM 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 38.4 MBOED** 70+% Barrels 2P Reserves 159 MMBOE*** 70+% Discovered by GeoPark
Slide 10: Llanos 34: Largest Discovery in 20+ Years in Colombia
Llanos 34: Largest Discovery in 20+ Years in Colombia 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 Origina
Slide 11: Llanos Basin Exploration Inventory
HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN Llanos Basin Exploration Expanding Inventory 20X Knowledge 4,000+ sq km SIZE OF 3D Seismic Merge LLANOS 34 LLANOS 87 LLANOS 124 LLANOS 32 LLANOS 34 LLANOS 123 Tigana 0.2-0.4* Jacana Llanos 87 LLANOS 104 Llanos 123 BILLION BOE Llanos 124 Mariposa GROSS Llanos
Slide 12: 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 13: Low Cost, Low Carbon & Safe Production
Low Cost, Low Carbon & Safe Production 13
Slide 14: Proven Operator
Proven Oil ($40-50 /BBL) Operator 60,000+ 100% BOEPD 100+ MM Oil ($20-30 /BBL) ~95% OF PRODUCTION GROSS NET BOE PRODUCED ~95% IS CASH FLOW OPERATED 2006-2021 POSITIVE AT $20-30 BRENT PRODUCTION Gas (Unaffected by ~10% oil price) ZERO TO 40,000 BOEPD PRODUCTION GROWTH (2006-2022E) CONSISTENTLY CUTTIN
Slide 15: 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 16: Llanos 34: A World Class Asset
Llanos 34: KEY METRICS A World Class Asset 57,707 ~$6/BBL <$20/BBL GROSS BOPD OPERATING BREAKEVENS* (3Q2022) COSTS (9M2022) GeoPark Operated, 45% WI 94% 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 P
Slide 17: CPO-5: Unlocking the Upside
CPO-5: KEY METRICS Unlocking the Upside 22,000+ ~$2.5-3/BBL <$10/BBL GROSS BOPD OPERATING BREAKEVENS* (November 1-13, 2022) COSTS (9M2022) GeoPark Non-operated, 30% WI 7 14.7 YEARS ~10,000 PRODUCING 2P RESERVE GROSS BOPD WELLS LIFE INDEX** ADDED (2022YTD) (November 2022) INDICO-2 WELL ECONOMICS PROD
Slide 18: Disciplined Capital Allocation & Capital Structure
Disciplined Capital Allocation & Capital Structure 18
Slide 19: Capital Efficiency Leads to Superior Results
Capital Efficiency Leads to Superior Results CASH GENERATION 2-4x CAPEX IN EVERY OIL PRICE ENVIRONMENT Operating Netback ($MM) CAPEX ($MM) 600-630 ~3x Operating Netback/CAPEX Ratio (x times) 3.2x 3.5x 447 2.7x 398 3.7x 2.1x 352 3.1x 276 2.4x 228 200-220 118 122 125 126 129 106 75 49 39 2015 2016 201
Slide 20: 2023: Another Ambitious Capital Investment Program
Brent 100 90-100 ($/bbl) 2023: Another 80-90 Ambitious Capital 72 64 71 Investment Program 54 55 45 45 CAPEX 238 200- 200- ($MM) 220 220 125 126 129 106 75 49 39 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2023 WORK PROGRAM HIGHLIGHTS $70-80 MM $200-220 MM 39,500-41,500* 50-55 BOEPD GROSS WE
Slide 21: Strong Free Cash Flow
2023E Free Cash Flow* ($mm) at $80-90 per bbl (Brent) Strong Free (130-140) Cash Flow (70-80) (50-55) 560-630 High Return (150-210) Barrels (27-30) 120-140 Operating Netback Development Capex Exploration Capex Cash G&A/G&G Cash Taxes Ma ndatory Debt Fre e Cash Flow Service Payments Cash Taxes includ
Slide 22: Deleveraging Generates Savings
Comfortable Reducing Deleveraging Debt Profile Cost of New Debt Generates ($MM) As of September 30, 2022 500 Savings SUCCESSFULL CONSENT 7.6% 6.5% 5.6% 5.1% FULLY SUCCESSFULL REDEEMED 2024 CONSENT NOTES 2022 2023 2024 2025 2026 2027 2013 2017 2020 2021 2021-2022E GROSS DEBT EVOLUTION ($MM) GROSS & N
Slide 23: Disciplined Risk Management
Disciplined STRUCTURE TENOR Risk 2016-2019 2020-2021 2022 - 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 120 Call $113.1 Call $112.6 Hedged Call $101.1 Production 100 (bbl/d) BREN
Slide 24: Shareholder Value Return
Shareholder Value Return Comprehensive & 88% $112 MM $7.5 MM Flexible Strategy TOTAL SHAREHOLDER RETURN SHARE BUYBACK PROGRAM QUARTERLY DIVIDEND (Share Price Change + Dividends)* 2019-October 7, 2022 ~3.5%* Dividend Yield Oct 2017 – Oct 2022 * As of October 7, 2022 2022 PROVIDES UNIQUE ENTRY POINT S
Slide 25: lead
4 lead GEOPARK