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GeoPark Reports Second Quarter 2024 Results

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GeoPark (NYSE: GPRK) reported financial results for 2Q2024, achieving $127.9 million Adjusted EBITDA with a 67% margin and a net profit of $25.7 million. Production averaged 35,608 boepd, down 3% YoY due to the Chilean business divestment and unscheduled maintenance at the Manati gas field in Brazil. Capital expenditures amounted to $49.2 million, focusing on core operations in Colombia and new plays in Colombia and Ecuador. A $0.147 per share dividend will be paid on September 12, 2024. The Vaca Muerta acquisition, effective July 1, is expected to boost production to over 41,000 boepd. Financial performance was strong, with revenue at $190.2 million, a 14% increase from 1Q2024. GeoPark repurchased 4.4 million shares, reducing shares outstanding by 8%. Risks include delays in the Manati field restart and challenges in Colombia.

GeoPark (NYSE: GPRK) ha riportato i risultati finanziari per il 2Q2024, raggiungendo un Adjusted EBITDA di 127,9 milioni di dollari con un margine del 67% e un utile netto di 25,7 milioni di dollari. La produzione ha avuto una media di 35.608 boepd, in calo del 3% rispetto all'anno precedente a causa della dismissione dell'attività cilena e della manutenzione non programmata nel giacimento di gas di Manati in Brasile. Le spese in conto capitale sono ammontate a 49,2 milioni di dollari, concentrandosi sulle operazioni principali in Colombia e su nuovi sviluppi in Colombia ed Ecuador. Un dividendo di 0,147 dollari per azione sarà corrisposto il 12 settembre 2024. L'acquisizione di Vaca Muerta, effettiva dal 1 luglio, dovrebbe aumentare la produzione a oltre 41.000 boepd. Le performance finanziarie sono state solide, con ricavi di 190,2 milioni di dollari, un aumento del 14% rispetto al 1Q2024. GeoPark ha riacquistato 4,4 milioni di azioni, riducendo il numero di azioni in circolazione dell'8%. I rischi includono ritardi nel riavvio del campo di Manati e sfide in Colombia.

GeoPark (NYSE: GPRK) informó sobre los resultados financieros del 2Q2024, alcanzando un EBITDA ajustado de 127,9 millones de dólares con un margen del 67% y una ganancia neta de 25,7 millones de dólares. La producción promedió 35,608 boepd, una disminución del 3% en comparación con el año anterior debido a la desinversión del negocio en Chile y el mantenimiento no programado en el campo de gas Manati en Brasil. Los gastos de capital ascendieron a 49,2 millones de dólares, centrándose en las operaciones principales en Colombia y nuevos proyectos en Colombia y Ecuador. Se pagará un dividendo de 0,147 dólares por acción el 12 de septiembre de 2024. La adquisición de Vaca Muerta, efectiva desde el 1 de julio, se espera que incremente la producción a más de 41,000 boepd. El desempeño financiero fue sólido, con ingresos de 190,2 millones de dólares, un aumento del 14% en comparación con el 1Q2024. GeoPark recompró 4,4 millones de acciones, reduciendo el número de acciones en circulación en un 8%. Los riesgos incluyen retrasos en el reinicio del campo Manati y desafíos en Colombia.

GeoPark (NYSE: GPRK)는 2분기 2024 재무 결과를 보고하며, 1억 2천 790만 달러의 조정 EBITDA를 기록하고 67%의 마진과 2천 570만 달러의 순이익을 달성했습니다. 생산량은 평균 35,608 boepd로, 칠레 사업 매각과 브라질 마나티 가스전의 비정기적인 유지보수로 인해 지난해보다 3% 감소했습니다. 자본 지출은 4천 920만 달러에 달하며, 콜롬비아의 핵심 운영과 콜롬비아 및 에콰도르의 새로운 유전 개발에 집중하고 있습니다. 주당 0.147달러의 배당금이 2024년 9월 12일에 지급될 예정입니다. 7월 1일부터 유효한 바카 무에르타 인수는 생산량을 41,000 boepd 이상으로 증가시킬 것으로 기대됩니다. 재무 성과는 강력했으며, 수익은 1억 9천 2백만 달러로 2024년 1분기 대비 14% 증가했습니다. GeoPark는 440만 주를 다시 매입하여 유통 주식을 8% 줄였습니다. 리스크로는 마나티 유전 재가동 지연과 콜롬비아의 도전 과제가 포함됩니다.

GeoPark (NYSE: GPRK) a annoncé les résultats financiers pour le 2T2024, atteignant un EBITDA ajusté de 127,9 millions de dollars avec une marge de 67% et un bénéfice net de 25,7 millions de dollars. La production a moyenne 35 608 boepd, en baisse de 3% par rapport à l'année précédente en raison de la cession de l'activité chilienne et de la maintenance imprévue sur le champ gazier de Manati au Brésil. Les dépenses d'investissement ont atteint 49,2 millions de dollars, se concentrant sur les opérations de base en Colombie et de nouveaux projets en Colombie et Équateur. Un dividende de 0,147 dollar par action sera payé le 12 septembre 2024. L'acquisition de Vaca Muerta, effective depuis le 1er juillet, devrait augmenter la production à plus de 41 000 boepd. La performance financière a été solide, avec des revenus de 190,2 millions de dollars, soit une augmentation de 14% par rapport au 1T2024. GeoPark a racheté 4,4 millions d'actions, réduisant le nombre d'actions en circulation de 8%. Les risques comprennent des retards dans le redémarrage du champ de Manati et des défis en Colombie.

GeoPark (NYSE: GPRK) hat die finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und ein bereinigtes EBITDA von 127,9 Millionen US-Dollar mit einer Marge von 67% und einem Nettogewinn von 25,7 Millionen US-Dollar erzielt. Die Produktion lag im Durchschnitt bei 35.608 boepd, was einem Rückgang von 3% im Vergleich zum Vorjahr aufgrund der Veräußrung des chilenischen Geschäfts und ungeplanter Wartungsarbeiten im Gasfeld Manati in Brasilien entspricht. Die Investitionsausgaben betrugen 49,2 Millionen US-Dollar und konzentrierten sich auf die Kernaktivitäten in Kolumbien sowie auf neue Projekte in Kolumbien und Ecuador. Eine Dividende von 0,147 US-Dollar pro Aktie wird am 12. September 2024 ausgezahlt. Die Übernahme von Vaca Muerta, die am 1. Juli wirksam wurde, wird voraussichtlich die Produktion auf über 41.000 boepd steigern. Die finanzielle Leistung war stark, mit Einnahmen von 190,2 Millionen US-Dollar, was einem Anstieg von 14% im Vergleich zum 1. Quartal 2024 entspricht. GeoPark hat 4,4 Millionen Aktien zurückgekauft und die ausgegebenen Aktien um 8% reduziert. Risiken beinhalten Verzögerungen bei der Wiederinbetriebnahme des Manati-Feldes und Herausforderungen in Kolumbien.

Positive
  • Achieved $127.9 million Adjusted EBITDA with a 67% margin.
  • Net profit of $25.7 million.
  • Revenue increased by 14% to $190.2 million.
  • Paid $7.5 million in quarterly dividends.
  • Repurchased 4.4 million shares, reducing outstanding shares by 8%.
  • Completed Vaca Muerta acquisition, boosting production to over 41,000 boepd.
  • Increased Fitch Ratings outlook to stable.
  • Received $300 million funding commitment from Vitol agreement.
Negative
  • Production down 3% YoY due to Chilean business divestment and Manati gas field maintenance.
  • Net profit decreased by 15% compared to 1Q2024 due to Colombian peso devaluation impacts on taxes.
  • Operating costs increased to $41.4 million from $38.5 million.

Stable Production Underpins Strong Cash Flow Generation

Acquisition in Vaca Muerta Effective July 1

Quarterly Cash Dividend of $0.147 Per Share

BOGOTA, Colombia--(BUSINESS WIRE)-- GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator, and consolidator, reports its consolidated financial results for the three-month period ended June 30, 2024 (“Second Quarter” or “2Q2024”). A conference call to discuss these financial results will be held on August 15, 2024, at 10:00 am (Eastern Daylight Time).

SECOND QUARTER 2024 FINANCIAL SUMMARY

In 2Q2024, GeoPark delivered $127.9 million Adjusted EBITDA1, a margin of 67%, and $25.7 million net profit. Quarterly average oil and gas production in 2Q2024 reached 35,608 boepd, down 3% compared to 2Q2023, mainly due to the divestment of the Chilean business on January 18, 2024, and suspended production at the Manati gas field in Brazil (GeoPark non-operated, 10% WI) due to unscheduled maintenance.

GeoPark invested $49.2 million in capital expenditures in 2Q2024, focused on i) continuing the development of its core operations in the Llanos 34 (GeoPark operated, 45% WI) and CPO-5 (GeoPark non-operated, 30% WI) blocks in Colombia; ii) delineating the new plays opened in 2023 in the Llanos Basin in Colombia and the Oriente Basin in Ecuador and iii) preparing the new Llanos 86 and 104 blocks (GeoPark operated, 50% WI) for future exploration.

Capital efficiency was once again a key feature of the quarter. Each dollar invested in capital expenditures yielded $2.6 in Adjusted EBITDA, and the return on average capital employed reached 38%.

These financial achievements and discipline allowed GeoPark to continue rewarding its shareholders with quarterly dividends of $7.5 million ($0.147 per share) and a successful tender offer of 4.4 million shares at $10 per share that was launched in 1Q2024 and ended in April 2024, reducing shares outstanding by approximately 8%. Undersubscription to the tender offer demonstrated shareholder confidence.

GeoPark’s acquisition in Vaca Muerta was effective July 1, 2024, and is expected to close by the end of the third quarter. The acquisition adds to pro forma production, taking consolidated pro forma production to more than 41,000 boepd as of the effective date. Following 12,508 bopd gross average production in 2Q2024 from the unconventional development wells in the Mata Mora Norte Block (GeoPark non-operated, 45% WI), the operator is currently drilling three unconventional exploration wells in the Confluencia Norte Block (GeoPark non-operated, 50% WI) aimed at derisking the full potential of the block.

Andrés Ocampo, Chief Executive Officer of GeoPark, said: “GeoPark again delivered strong financial performance in 2Q2024, underscoring the effectiveness of our strategic initiatives and disciplined approach to capital allocation, while maintaining a robust balance sheet. In the second half of 2024, we look forward to the continued development of our core operations in Colombia and Ecuador, and the integration of our newly acquired assets in Vaca Muerta. Our strategy remains centered on delivering consistent value to our shareholders through prudent financial management and targeted growth initiatives.”

Supplementary information is available at the following link: https://ir.geo-park.com/2Q24-SupplementaryRelease/

SECOND QUARTER 2024 HIGHLIGHTS

Oil and Gas Production and Operations

  • 2Q2024 consolidated average oil and gas production of 35,608 boepd2
  • Production increased 11% in Ecuador and 3% in Colombia, offsetting suspended production at the Manati gas field in Brazil due to unscheduled maintenance
  • Llanos 34 Block average production in 2Q2024 was 3% lower than 1Q2024 due to sporadic blockades, weather-associated flooding, and base decline, partly offset by new well production
  • The CPO-5 Block reached record average production in 2Q2024 after putting the Indico 3 well on production. The Lark 1 exploration well reached total depth in late July 2024 with no hydrocarbons in the targeted Ubaque and Guadalupe formations, and the well was abandoned
  • 10 rigs in operation at the end of 2Q2024 (6 drilling rigs and 4 workover rigs), including one drilling rig in Argentina

Revenue, Adjusted EBITDA and Net Profit

  • Revenue of $190.2 million, an increase of 14% from 1Q2024, reflecting higher realized oil prices
  • Adjusted EBITDA of $127.9 million (67% Adjusted EBITDA margin), an increase of 15% from 1Q2024
  • Operating profit of $90.3 million (47% Operating profit margin), an increase of 8% from 1Q2024
  • Net profit of $25.7 million, a decrease of 15% from 1Q2024 mainly due to the effect of the devaluation of Colombian peso on deferred income taxes

Cost and Capital Efficiency

  • Capital expenditures of $49.2 million
  • 2Q2024 Adjusted EBITDA to capital expenditures ratio of 2.6x
  • Last twelve-month return on average capital employed of 38%3

Balance Sheet Reflects Financial Quality

  • Cash in hand of $66.0 million, after repurchasing outstanding shares worth $43.7 million, making a $49.1 million advanced payment for the Vaca Muerta acquisition in Argentina, and paying $52.5 million income tax (Colombia 2023 full amount)
  • Net leverage remained healthy (0.9x), with no principal debt maturities until January 2027
  • Current cash position of $85.8 million (July 31, 2024)
  • Fitch Ratings revised GeoPark’s rating outlook to stable (from negative), reflecting the increase in reserves and improved geographic footprint resulting from the Vaca Muerta acquisition in Argentina

Growing Shareholder Returns

  • Cash dividends of $7.5 million (representing an annualized dividend of approximately $30 million, or a 6.8% dividend yield4)
  • Successful tender of 4.4 million shares (8% of outstanding shares) at a purchase price of $10 per share on April 2024
  • Quarterly cash dividend of $0.147 per share payable on September 12, 2024, to shareholders of record at the close of business on August 29, 2024

Commercial Agreements Improve Price Realizations and Add Financial Flexibility

  • Vitol Agreement: Commercial agreement in effect as of July 1, delivering production from the Llanos 34 Block and improving price realizations by $0.60/barrel vs the average price realizations from January 2021 to July 2024. Access to committed funding for up to $300 million, with an option to increase by another $200 million for a total of $500 million, in prepaid future oil sales over the period of the offtake contract. As of today, GeoPark has not drawn any amounts for prepaid sales
  • Trafigura Agreement: New commercial agreement in effect as of August 1, delivering production from the CPO-5 Block and improving price by $2.65/barrel vs the average price realizations from January 2021. This agreement is associated with a prepayment facility for up to $100 million of financing to be repaid in future oil sales over the period of the offtake contract (12 months). Upon completion of the legal documentation, the prepayment agreement will provide GeoPark with immediate liquidity that will further strengthen its balance sheet and expand existing cash availability. As of today, GeoPark has not drawn any amounts for prepaid sales and the prepayment facility is subject to final signature of the contracts

2H2024 PRODUCTION UPDATE

During 1H2024, GeoPark averaged 35,540 boepd production, at the lower end of the 35,500-39,000 boepd organic production range indicated for 2024. During 2H2024, the main risks to production are (i) increased uncertainty around the effective restart date of the Manati field, originally planned by end of May 2024, and now expected by the operator to initiate end of October, (ii) new well activity and performance in the Llanos 34 Block may not offset the natural base decline of the fields, and (iii) increased frequency and duration of blockades around the operations in Colombia. The downside associated to these risks could be approximately 1,500 - 2,500 boepd.

Potential positive results from ongoing exploration drilling in the Llanos 123, Espejo, and PUT-8 Blocks (GeoPark operated, 50% WI) may offset the impact of these risks and have not been included in the 2024 guidance. GeoPark will continue the appraisal drilling campaign by adding wells in the CPO-5 and Llanos 123 blocks.

Importantly, since July 1, production from the Vaca Muerta blocks in Argentina belongs to GeoPark and is already at 5,000 – 5,500 boepd net. These volumes will be consolidated on a line-by-line basis once the transaction is closed (expected by the end of September). Current production levels do not include the potential result from the 2H2024 development drilling campaign in Mata Mora Norte, nor the outcome of three exploration wells to be completed in Confluencia Norte.

GeoPark’s Adjusted EBITDA guidance of $420 - $550 million5 remains unchanged for 2024.

 

CONSOLIDATED OPERATING PERFORMANCE

 

Key performance indicators:

 

 

 

 

 

 

 

 

 

 

 

Key Indicators

 

2Q2024

 

1Q2024

 

2Q2023

 

1H2024

 

1H2023

Oil productiona (bopd)

 

35,504

 

 

34,255

 

 

33,672

 

 

34,880

 

 

33,736

 

Gas production (mcfpd)

 

623

 

 

7,305

 

 

17,453

 

 

3,964

 

 

17,061

 

Average net production (boepd)

 

35,608

 

 

35,473

 

 

36,581

 

 

35,540

 

 

36,580

 

Brent oil price ($ per bbl)

 

85.0

 

 

81.8

 

 

78.2

 

 

83.4

 

 

80.3

 

Combined realized price ($ per boe)

 

72.0

 

 

65.1

 

 

59.5

 

 

68.6

 

 

60.4

 

- Oil ($ per bbl)

 

74.9

 

 

69.5

 

 

64.3

 

 

72.3

 

 

65.4

 

- Gas ($ per mcf)

 

8.9

 

 

5.4

 

 

5.0

 

 

5.7

 

 

4.8

 

Sale of crude oil ($ million)

 

187.2

 

 

162.2

 

 

173.8

 

 

349.4

 

 

348.9

 

Sale of purchased crude oil ($ million)

 

2.4

 

 

1.8

 

 

1.2

 

 

4.2

 

 

1.9

 

Sale of gas ($ million)

 

0.6

 

 

3.5

 

 

7.3

 

 

4.1

 

 

13.9

 

Commodity risk management contracts ($ million)

 

 

 

(0.1

)

 

 

 

(0.1

)

 

 

Revenue ($ million)

 

190.2

 

 

167.4

 

 

182.3

 

 

357.6

 

 

364.8

 

Production & operating costsb ($ million)

 

(41.4

)

 

(38.5

)

 

(60.7

)

 

(80.0

)

 

(113.2

)

G&G, G&Ac ($ million)

 

(16.0

)

 

(12.7

)

 

(13.9

)

 

(28.7

)

 

(25.8

)

Selling expenses ($ million)

 

(4.4

)

 

(4.1

)

 

(2.2

)

 

(8.5

)

 

(4.6

)

Operating profit ($ million)

 

90.3

 

 

84.0

 

 

69.5

 

 

174.3

 

 

146.1

 

Adjusted EBITDA ($ million)

 

127.9

 

 

111.5

 

 

103.9

 

 

239.4

 

 

218.8

 

Adjusted EBITDA ($ per boe)

 

48.4

 

 

43.4

 

 

33.9

 

 

45.9

 

 

36.2

 

Net profit ($ million)

 

25.7

 

 

30.2

 

 

33.8

 

 

55.9

 

 

60.0

 

Capital expenditures ($ million)

 

49.2

 

 

48.8

 

 

43.4

 

 

98.0

 

 

88.3

 

Cash and cash equivalents ($ million)

 

66.0

 

 

150.7

 

 

86.4

 

 

66.0

 

 

86.4

 

Short-term financial debt ($ million)

 

12.5

 

 

5.7

 

 

12.5

 

 

12.5

 

 

12.5

 

Long-term financial debt ($ million)

 

490.2

 

 

489.3

 

 

486.8

 

 

490.2

 

 

486.8

 

Net debt ($ million)

 

436.7

 

 

344.3

 

 

412.9

 

 

436.7

 

 

412.9

 

Dividends paid ($ per share)

 

0.147

 

 

0.136

 

 

0.130

 

 

0.283

 

 

0.260

 

Shares repurchased (million shares)

 

4.369

 

 

 

 

1.082

 

 

4.369

 

 

1.724

 

Basic shares – at period end (million shares)

 

51,163

 

 

55,475

 

 

56,570

 

 

51,163

 

 

56,570

 

Weighted average basic shares (million shares)

 

52,246

 

 

55,381

 

 

57,114

 

 

53,787

 

 

57,481

 

_________________________

a)

Includes royalties and other economic rights paid in kind in Colombia for approximately 6,956 bopd, 5,916 bopd, and 2,952 bopd in 2Q2024, 1Q2024 and 2Q2023, respectively. No royalties were paid in kind in other countries. Production in Ecuador is reported before the Government’s production share.

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 $1.3 million, $1.5 million, and $1.7 million in 2Q2024, 1Q2024 and 2Q2023, respectively. These expenses are excluded from the Adjusted EBITDA calculation.

 

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 the Company’s financial information and the Company’s consolidated financial statements and corresponding notes for the period are available on the Company’s website.

 

RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

 

 

1H2024 (In millions of $)

 

Colombia

 

Ecuador

 

Brazil

 

Chile

 

Other(a)

 

Total

Adjusted EBITDA

 

238.9

 

 

6.5

 

 

(0.8

)

 

(0.1

)

 

(5.1

)

 

239.4

 

Depreciation

 

(59.1

)

 

(3.0

)

 

(0.9

)

 

 

 

(0.0

)

 

(63.0

)

Write-off of unsuccessful exploration efforts

 

(3.4

)

 

 

 

 

 

 

 

 

 

(3.4

)

Share based payment

 

(0.6

)

 

(0.0

)

 

(0.0

)

 

 

 

(2.6

)

 

(3.2

)

Lease Accounting - IFRS 16

 

3.2

 

 

0.0

 

 

0.5

 

 

 

 

 

 

3.6

 

Others

 

0.9

 

 

0.1

 

 

0.0

 

 

0.0

 

 

(0.3

)

 

0.8

 

OPERATING PROFIT (LOSS)

 

179.9

 

 

3.6

 

 

(1.2

)

 

(0.1

)

 

(7.9

)

 

174.3

 

Financial costs, net

 

 

 

 

 

 

 

 

 

 

 

(17.8

)

Foreign exchange charges, net

 

 

 

 

 

 

 

 

 

 

 

6.1

 

PROFIT BEFORE INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

162.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1H2023 (In millions of $)

 

Colombia

 

Ecuador

 

Brazil

 

Chile

 

Other(a)

 

Total

Adjusted EBITDA

 

215.6

 

 

1.4

 

 

4.0

 

 

2.6

 

 

(4.8

)

 

218.8

 

Depreciation

 

(47.3

)

 

(2.5

)

 

(1.2

)

 

(5.5

)

 

(0.0

)

 

(56.6

)

Write-off of unsuccessful exploration efforts

 

(12.2

)

 

 

 

 

 

 

 

 

 

(12.2

)

Share based payment

 

(0.5

)

 

(0.0

)

 

(0.0

)

 

(0.0

)

 

(2.8

)

 

(3.4

)

Lease Accounting - IFRS 16

 

4.1

 

 

0.0

 

 

0.5

 

 

0.5

 

 

 

 

5.1

 

Others

 

(0.7

)

 

(2.0

)

 

(0.2

)

 

(2.1

)

 

(0.8

)

 

(5.7

)

OPERATING PROFIT (LOSS)

 

159.0

 

 

(3.1

)

 

3.1

 

 

(4.6

)

 

(8.4

)

 

146.1

 

Financial costs, net

 

 

 

 

 

 

 

 

 

 

 

(19.3

)

Foreign exchange charges, net

 

 

 

 

 

 

 

 

 

 

 

(13.0

)

PROFIT BEFORE INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

113.8

 

_________________________

(a) Includes Argentina and Corporate.

 

2024 ANNUAL GENERAL MEETING

GeoPark’s 2024 Annual General Meeting was held on July 24, 2024. The results were: (i) All candidates were re-elected as members of the Board of Directors; (ii) Ernst & Young Audit S.A.S. (a member of Ernst & Young Global) was appointed as auditor of the Company; (iii) the Audit Committee was authorized to determine the remuneration of the Auditor; and (iv) The Audit Committee was authorized to amend Section 49 of the Company’s By-laws in the manner set forth in the notice of the meeting and proxy materials.

CONFERENCE CALL INFORMATION

GeoPark management will host a conference call on Thursday, August 15, 2024, at 10:00 am (Eastern Daylight Time) to discuss the 2Q2024 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/332625400

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=68476

Passcode: 027838

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

5.500% Senior Notes due 2027

 

 

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 U.S. Securities and Exchange Commission (SEC).

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.

_____________________________

1

For reconciliations, see “Reconciliation of Adjusted EBITDA to Profit Before Income Tax” in the Supplementary information.

2

Not including production from Vaca Muerta.

3

ROACE is defined as last twelve-month operating profit divided by average total assets minus current liabilities.

4

Based on GeoPark’s market capitalization as of August 5, 2024

5

Assuming $80-$90 per bbl Brent.

 

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 were GeoPark's 2Q2024 financial results?

GeoPark reported $127.9 million in Adjusted EBITDA with a 67% margin and a net profit of $25.7 million.

What was GeoPark’s average production in 2Q2024?

GeoPark’s average production in 2Q2024 was 35,608 boepd.

How much did GeoPark invest in capital expenditures during 2Q2024?

GeoPark invested $49.2 million in capital expenditures in 2Q2024.

What is the dividend per share announced for GeoPark shareholders?

GeoPark announced a quarterly cash dividend of $0.147 per share.

How did the Vaca Muerta acquisition affect GeoPark's production?

The Vaca Muerta acquisition is expected to increase GeoPark's production to over 41,000 boepd.

What is the new funding commitment from the Vitol agreement?

Vitol committed up to $300 million in funding with an option to increase by another $200 million.

What was the impact of the devaluation of the Colombian peso on GeoPark's 2Q2024 results?

The devaluation of the Colombian peso negatively impacted net profit due to the effect on deferred income taxes.

GEOPARK LIMITED

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