GeoPark Reports First Quarter 2024 Results
GeoPark (NYSE: GPRK), a leading Latin American oil and gas company, reported its financial results for Q1 2024. The company achieved $111.5 million in Adjusted EBITDA with a 67% margin and a 15% year-on-year increase in net profit to $30.2 million. Despite a 3% decline in oil and gas production to 35,473 boepd due to divestments, the firm maintained capital efficiency with a 35% return on capital employed. GeoPark's cash reserves grew to $150.7 million, and net leverage remained low at 0.8x. The company continued shareholder returns with a $0.147 per share dividend and a share buyback reducing outstanding shares by 8%. Future focus includes core operations in Colombia, new assets in Vaca Muerta, and exploration in Ecuador.
- Adjusted EBITDA of $111.5 million with a 67% margin.
- Net profit increased by 15% year-on-year to $30.2 million.
- Strong capital efficiency with a return on capital employed of 35%.
- Increased cash reserves to $150.7 million.
- Low net leverage at 0.8x.
- Shareholder returns with a $0.147 per share dividend.
- Successful share buyback reduced outstanding shares by 8%.
- Future focus on key assets in Colombia and newly acquired assets in Vaca Muerta.
- Oil and gas production declined by 3% to 35,473 boepd.
- Revenue decreased to $167.4 million from previous quarters.
- Production suspension in the Manati gas field since mid-March 2024.
- Decreased gas production from 16,664 mcfpd in 1Q2023 to 7,305 mcfpd in 1Q2024.
- Lower realized oil and gas prices compared to previous quarters.
Insights
GeoPark's financial performance in 1Q2024 shows a strong footing with
GeoPark's 1Q2024 average oil and gas production of 35,473 boepd was impacted by strategic divestment. However, stable production in key blocks (Llanos 34 and CPO-5) with future exploration in the Llanos and Oriente Basins shows strategic foresight. Key operational highlights include handling blockades in CPO-5 and maintenance in the Manati gas field, expected to resume production by late 2Q2024 or early 3Q2024. Despite production hiccups, the company's ability to increase production to 37,500 boepd in April 2024 highlights effective management and operational resilience. Future exploration in Vaca Muerta presents high-quality drilling opportunities, suggesting long-term growth potential. Investors should watch how these developments affect production volumes and costs in upcoming quarters.
Strong Cash Flow Generation and Net Income
Quarterly Cash Dividend of
FIRST QUARTER 2024 SUMMARY
In 1Q2024, GeoPark delivered
GeoPark invested
Capital efficiency was once again a key feature of the quarter. Each dollar invested in capital expenditures yielded
GeoPark ended 1Q2024 with a strong balance sheet, illustrating its sustained commitment to financial discipline. The cash position continued to strengthen and reached
These financial achievements and discipline allowed GeoPark to continue rewarding its shareholders with quarterly dividends of
Looking forward to the remainder of 2024, GeoPark’s activity set will be focused on continuing the development of its core operations in the Llanos 34 and CPO-5 blocks, incorporating into the portfolio the recently acquired Mata Mora and Confluencia assets in Vaca Muerta, and delineating the new plays opened in 2023 in the Llanos Basin in
Andrés Ocampo, Chief Executive Officer of GeoPark, said: “GeoPark delivered robust financial results in 1Q2024, underpinned by our long-standing commitment to capital efficiency. The recently announced access to Vaca Muerta creates an immediate inventory of quality drilling opportunities in one of the most productive oil and gas basins in the world. We are making steady progress towards the promised step-change in our underlying performance and growth path.”
Supplementary information is available at the following link:
FIRST QUARTER 2024 HIGHLIGHTS
Oil and Gas Production and Operations
-
1Q2024 average oil and gas production of 35,473 boepd reflected stable production in the Llanos 34 Block, but was impacted by localized blockades in the CPO-5 Block and maintenance activities in the Manati gas field (GeoPark non-operated,
10% WI) - Production in the Manati gas field has been suspended since mid-March 2024, and is expected to be restored in late second quarter or early third quarter 2024
- GeoPark’s average production in April 2024 increased to approximately 37,500 boepd, reflecting higher production from successful development activities in the Llanos 34 and CPO-5 blocks
Revenue, Adjusted EBITDA and Net Profit
-
Revenue of
$167.4 million -
Adjusted EBITDA of
$111.5 million 67% Adjusted EBITDA margin) -
Operating profit of
$84.0 million 50% operating profit margin) -
Cash flow from operations of
$87.6 million -
Net profit of
$30.2 million $0.55
Cost and Capital Efficiency
-
Capital expenditures of
$48.8 million - 1Q2024 Adjusted EBITDA to capital expenditures ratio of 2.3x
-
Last twelve-month return on average capital employed of
35% 1
Balance Sheet Reflects Financial Quality
-
Cash in hand of
$150.7 million - Net leverage of 0.8x and no principal debt maturities until January 2027
Accelerated Shareholder Returns
-
Cash dividends of
$7.5 million $30 million 6% dividend yield2) -
Successful tender of 4.4 million shares (
8% of outstanding shares) at a purchase price of$10 -
Quarterly cash dividend of
$0.14 7$7.5 million
| ______________________________ | ||
| 1 | ROCE is defined as last twelve-month operating profit divided by average total assets minus current liabilities. |
|
| 2 | Based on GeoPark’s market capitalization as of May 14. 2024. |
|
CONSOLIDATED OPERATING PERFORMANCE |
||||||
Key performance indicators: |
||||||
|
|
|
|
|
|
|
Key Indicators |
|
1Q2024 |
|
4Q2023 |
|
1Q2023 |
Oil productiona (bopd) |
|
34,255 |
|
35,842 |
|
33,801 |
Gas production (mcfpd) |
|
7,305 |
|
14,841 |
|
16,664 |
Average net production (boepd) |
|
35,473 |
|
38,315 |
|
36,578 |
Brent oil price ($ per bbl) |
|
81.8 |
|
82.9 |
|
82.5 |
Combined realized price ($ per boe) |
|
65.1 |
|
67.1 |
|
61.3 |
- Oil ($ per bbl) |
|
69.5 |
|
73.0 |
|
66.7 |
- Gas ($ per mcf) |
|
5.4 |
|
4.4 |
|
4.6 |
Sale of crude oil ($ million) |
|
162.2 |
|
192.7 |
|
175.1 |
Sale of purchased crude oil ($ million) |
|
1.8 |
|
1.3 |
|
0.8 |
Sale of gas ($ million) |
|
3.5 |
|
5.9 |
|
6.5 |
Commodity risk management contracts ($ million) |
|
(0.1) |
|
(0.2) |
|
— |
Revenue ($ million) |
|
167.4 |
|
199.7 |
|
182.5 |
Production & operating costsb ($ million) |
|
(38.5) |
|
(60.9) |
|
(52.5) |
G&G, G&Ac ($ million) |
|
(12.7) |
|
(15.3) |
|
(11.9) |
Selling expenses ($ million) |
|
(4.1) |
|
(4.8) |
|
(2.4) |
Operating profit ($ million) |
|
84.0 |
|
44.3 |
|
76.6 |
Adjusted EBITDA ($ million) |
|
111.5 |
|
117.8 |
|
114.9 |
Adjusted EBITDA ($ per boe) |
|
43.4 |
|
39.6 |
|
38.6 |
Net profit ($ million) |
|
30.2 |
|
26.3 |
|
26.3 |
Capital expenditures ($ million) |
|
48.8 |
|
66.6 |
|
45.0 |
Cash and cash equivalents ($ million) |
|
150.7 |
|
133.0 |
|
145.4 |
Short-term financial debt ($ million) |
|
5.7 |
|
12.5 |
|
5.7 |
Long-term financial debt ($ million) |
|
489.3 |
|
488.5 |
|
485.9 |
Net debt ($ million) |
|
344.3 |
|
368.0 |
|
346.2 |
Dividends paid ($ per share) |
|
0.136 |
|
0.134 |
|
0.130 |
Shares repurchased (million shares) |
|
— |
|
0.850 |
|
0.642 |
Basic shares – at period end (million shares) |
|
55,475 |
|
55,328 |
|
57,596 |
Weighted average basic shares (million shares) |
|
55,381 |
|
55,892 |
|
57,853 |
| _________________________ | ||
a) |
Includes royalties and other economic rights paid in kind in |
|
b) |
Production and operating costs include operating costs, royalties and economic rights paid in cash, share-based payments and purchased crude oil. |
|
c) |
G&A and G&G expenses include non-cash, share-based payments for |
|
All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified. Definitions and terms used herein are provided in the Glossary at the end of this document. This press release and its supplementary information do not contain all of the Company’s financial information and the Company’s consolidated financial statements and corresponding notes for the period ended March 31, 2024, will be available on the Company’s website.
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2024 (In millions of $) |
|
|
|
|
|
|
|
|
|
Other(a) |
|
Total |
Adjusted EBITDA |
|
113.4 |
|
(0.3) |
|
0.8 |
|
(0.1) |
|
(2.3) |
|
111.5 |
Depreciation |
|
(27.7) |
|
(0.4) |
|
(0.5) |
|
— |
|
(0.0) |
|
(28.7) |
Share based payment |
|
(0.3) |
|
(0.0) |
|
(0.0) |
|
— |
|
(1.3) |
|
(1.6) |
Lease Accounting - IFRS 16 |
|
1.6 |
|
0.0 |
|
0.2 |
|
— |
|
— |
|
1.9 |
Others |
|
1.0 |
|
0.1 |
|
(0.0) |
|
0.0 |
|
(0.2) |
|
0.8 |
OPERATING PROFIT (LOSS) |
|
88.0 |
|
(0.6) |
|
0.5 |
|
(0.1) |
|
(3.8) |
|
84.0 |
Financial costs, net |
|
|
|
|
|
|
|
|
|
|
|
(9.1) |
Foreign exchange charges, net |
|
|
|
|
|
|
|
|
|
|
|
0.2 |
PROFIT BEFORE INCOME TAX |
|
|
|
|
|
|
|
|
|
|
|
75.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q2023 (In millions of $) |
|
|
|
|
|
|
|
|
|
Other(a) |
|
Total |
Adjusted EBITDA |
|
113.5 |
|
1.0 |
|
1.6 |
|
1.5 |
|
(2.6) |
|
114.9 |
Depreciation |
|
(22.5) |
|
(1.3) |
|
(0.6) |
|
(2.8) |
|
(0.0) |
|
(27.2) |
Write-off of unsuccessful exploration efforts |
|
(10.6) |
|
— |
|
— |
|
— |
|
— |
|
(10.6) |
Share based payment |
|
(0.1) |
|
— |
|
— |
|
— |
|
(1.4) |
|
(1.5) |
Lease Accounting - IFRS 16 |
|
1.3 |
|
0.0 |
|
0.3 |
|
0.3 |
|
— |
|
1.9 |
Others |
|
(0.9) |
|
0.0 |
|
(0.1) |
|
0.0 |
|
(0.0) |
|
(1.0) |
OPERATING PROFIT (LOSS) |
|
80.8 |
|
(0.4) |
|
1.1 |
|
(1.0) |
|
(4.0) |
|
76.6 |
Financial costs, net |
|
|
|
|
|
|
|
|
|
|
|
(9.8) |
Foreign exchange charges, net |
|
|
|
|
|
|
|
|
|
|
|
(3.4) |
PROFIT BEFORE INCOME TAX |
|
|
|
|
|
|
|
|
|
|
|
63.4 |
| _______________________ | ||
| (a) |
Includes |
|
CONFERENCE CALL INFORMATION
Reporting Date for 1Q2024 Results Release, Conference Call and Webcast
GeoPark will report its 1Q2024 financial results on Wednesday, May 15, 2024, after the market close.
In conjunction with the 1Q2024 results press release, GeoPark management will host a conference call on Thursday, May 16, 2024, at 10:00 am (Eastern Daylight Time) to discuss the 1Q2024 financial results.
To listen to the call, participants can access the webcast located in the Invest with Us section of the Company’s website at www.geo-park.com, or by clicking below:
https://events.q4inc.com/attendee/738365444
Interested parties may participate in the conference call by dialing the numbers provided below:
United States Participants: +1 404-975-4839
Global Dial-In Numbers: https://www.netroadshow.com/conferencing/global-numbers?confId=64224
Passcode: 950684
Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast.
An archive of the webcast replay will be made available in the Invest with Us section of the Company’s website at www.geo-park.com after the conclusion of the live call.
GLOSSARY |
|
|
|
2027 Notes |
|
|
|
Adjusted EBITDA |
Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, the effect of IFRS 16, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payments, unrealized results on commodity risk management contracts and other non-recurring events |
|
|
Adjusted EBITDA per boe |
Adjusted EBITDA divided by total boe deliveries |
|
|
Operating Netback per boe |
Revenue, less production and operating costs (net of depreciation charges and accrual of stock options and stock awards, the effect of IFRS 16), selling expenses, and realized results on commodity risk management contracts, divided by total boe deliveries. Operating Netback is equivalent to Adjusted EBITDA net of cash expenses included in Administrative, Geological and Geophysical and Other operating costs |
|
|
Bbl |
Barrel |
|
|
Boe |
Barrels of oil equivalent |
|
|
Boepd |
Barrels of oil equivalent per day |
|
|
Bopd |
Barrels of oil per day |
|
|
G&A |
Administrative Expenses |
|
|
G&G |
Geological & Geophysical Expenses |
|
|
Mcfpd |
Thousand cubic feet per day |
|
|
Net Debt |
Current and non-current borrowings less cash and cash equivalents |
|
|
WI |
Working interest |
NOTICE
Additional information about GeoPark can be found in the Invest with Us section of the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and percentages included in this press release and its supplementary information have been rounded for ease of presentation. Percentage figures included in this press release and its supplementary information have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. In addition, certain other amounts that appear in this press release and its supplementary information may not sum due to rounding.
This press release and its supplementary information contain certain oil and gas metrics, including information per share, operating netback, reserve life index and others, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release and its supplementary information contain statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, the drilling campaign and share buyback program. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the
Oil and gas production figures included in this press release and its supplementary information are stated before the effect of royalties paid in kind, consumption and losses. Annual production per day is obtained by dividing total production by 365 days.
Non-GAAP Measures: The Company believes Adjusted EBITDA, free cash flow and operating netback per boe, which are each non-GAAP measures, are useful because they allow the Company to more effectively evaluate its operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company’s calculation of Adjusted EBITDA, free cash flow, and operating netback per boe may not be comparable to other similarly titled measures of other companies.
Adjusted EBITDA: The Company defines Adjusted EBITDA as profit for the period before net finance costs, income tax, depreciation, amortization and certain non-cash items such as impairments and write-offs of unsuccessful exploration and evaluation assets, accrual of stock options and stock awards, unrealized results on commodity risk management contracts and other non-recurring events. Adjusted EBITDA is not a measure of profit or cash flow as determined by IFRS. The Company excludes the items listed above from profit for the period in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, profit for the period or cash flow from operating activities as determined in accordance with IFRS or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. For a reconciliation of Adjusted EBITDA to the IFRS financial measure of profit, see the accompanying financial tables and the supplementary information.
Operating Netback per boe: Operating netback per boe should not be considered as an alternative to, or more meaningful than, profit for the period or cash flow from operating activities as determined in accordance with IFRS or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from operating netback per boe are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none of which are components of operating netback per boe. The Company’s calculation of operating netback per boe may not be comparable to other similarly titled measures of other companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240515898834/en/
INVESTORS:
Stacy Steimel
Shareholder Value Director
T: +562 2242 9600
ssteimel@geo-park.com
Miguel Bello
Market Access Director
T: +562 2242 9600
mbello@geo-park.com
Diego Gully
Investor Relations Director
T: +55 21 99636 9658
dgully@geo-park.com
MEDIA:
Communications Department
communications@geo-park.com
Source: GeoPark Limited
FAQ
What is the Adjusted EBITDA for GeoPark in Q1 2024?
How much did GeoPark's net profit increase in Q1 2024?
What is the dividend per share announced by GeoPark for Q1 2024?
How did GeoPark's oil and gas production change in Q1 2024?
What is GeoPark's cash position at the end of Q1 2024?
What is the net leverage of GeoPark as of Q1 2024?
How much did GeoPark invest in capital expenditures during Q1 2024?
What are the future focus areas for GeoPark in 2024?
How much was GeoPark's revenue in Q1 2024?
What is the expected timeline for production restoration in the Manati gas field?
