GeoPark Reports Third Quarter 2023 Results
- GeoPark experienced exploration successes and achieved strong free cash flow, opening up multiple new growth opportunities.
- The company's full-year 2023 average production guidance is 36,000-37,000 boepd.
- Revenue was $192.1 million, with an adjusted EBITDA of $115.2 million and a net profit of $24.8 million.
- GeoPark demonstrated cost and capital efficiency improvements, lower financial expenses, and a strengthened balance sheet.
- The company is committed to accelerating shareholder returns, with a quarterly dividend of $0.134 per share and a renewed share buyback program.
- None.
Exploration Successes Open Multiple Growth Fairways, Drilling Opportunities & New Plays
Consistently Strong Free Cash Flow
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 release does not contain all of the Company’s financial information and should be read in conjunction with GeoPark’s consolidated financial statements and the notes to those statements for the period ended September 30, 2023, available on the Company’s website.
THIRD QUARTER 2023 HIGHLIGHTS
Oil and Gas Production and Operations
-
3Q2023 consolidated average oil and gas production of 34,778 boepd, below its potential mainly due to temporarily shut-in production in the CPO-5 Block (GeoPark non-operated,
30% WI) inColombia and in the Fell Block (GeoPark operated,100% WI) inChile - Full-year 2023 average production guidance is expected to be 36,000-37,000 boepd, lower than 38,000-40,000 boepd guidance previously announced mainly due to the delays in bringing back shut-in production
- In late September 2023, the CPO-5 Block operator received approval from the regulator (ANH) to resume production in the Indico 6 and Indico 7 wells, which are currently producing approximately 8,000 bopd gross in aggregate
- 12 rigs currently in operation (7 drilling rigs and 5 workover rigs), including 4 drilling rigs on exploration and appraisal wells
2023 Exploration Campaign Successes Open New Appraisal and Development Fairways
Llanos 123 Block (GeoPark operated,
- The Toritos 1 exploration well initiated testing in September and is currently producing 1,300 bopd
- GeoPark is adding a new appraisal well, the Toritos Norte 1, to be spudded before year-end (subject to joint venture approval)
- Based on these positive results, GeoPark will pursue multiple potential drilling opportunities to be tested in 20241 (subject to joint venture approval)
Perico Block (GeoPark non-operated,
- GeoPark is developing a complete structural and stratigraphic geological model for the U-sand formation after three successful wells, Yin-2, Perico Centro 1 and Perico Norte 4, currently producing more than 2,700 bopd
-
The most recent appraisal well, the Perico Norte 4, initiated testing activities in early November and is currently producing approximately 1,230 bopd of 29 degrees API with a
6% water cut - GeoPark is adding a new appraisal well, the Perico Norte 5, to be spudded before year-end (subject to joint venture approval)
- Based on these positive results, GeoPark will pursue multiple potential drilling opportunities to be tested in 2024 (subject to joint venture approval)
CPO-5 Block – Llanos Basin in
- The Halcon 1 exploration well reached total depth in late October, and will test exploration potential in the northern part of the CPO-5 Block, close to the Llanos 34 Block
- Preliminary logging information indicates hydrocarbon potential in the Guadalupe formation and production tests are expected to initiate in late November
- The operator will spud the Perico 1 exploration well (adjacent to Halcon 1) before year-end to continue delineating the Guadalupe play in the northern part of the block
| ____________________________ |
1 Please refer to the 2024 Work Program and Shareholder Return Framework published on November 8, 2023. |
Llanos 87 Block (GeoPark operated,
- The Zorzal Este 1 exploration well reached total depth in early November
- Preliminary logging information indicates hydrocarbon potential in the Barco (Guadalupe) formation and production tests are expected to initiate in mid-November
- GeoPark plans to add a new appraisal well, the Zorzal Este 2, to be spudded before year-end (subject to joint venture approval)
- Based on these positive results, GeoPark will pursue multiple potential drilling opportunities to be tested in 2024 (subject to joint venture approval)
Llanos 34 Block (GeoPark operated,
- The first three horizontal wells are currently producing approximately 4,600 bopd combined
- The fourth horizontal development well initiated testing in early November 2023 and is currently producing approximately 3,450 bopd from the Mirador formation
- The fourth horizontal well was drilled faster, to a longer lateral length, and at a lower cost compared to the first three horizontal wells
Revenue, Adjusted EBITDA and Net Profit
-
Revenue of
$192.1 million -
Adjusted EBITDA of
$115.2 million 60% Adjusted EBITDA margin) -
Operating profit of
$80.5 million 42% operating profit margin) -
Cash flow from operations of
$92.6 million -
Net profit of
$24.8 million $0.44
Cost and Capital Efficiency as Key Differentiators
-
Capital expenditures of
$44.1 million - 3Q2023 Adjusted EBITDA to capital expenditures ratio of 2.6x
-
Last twelve-month return on capital employed (ROCE) of
42% 2
Lower Financial Expenses and Strengthened Balance Sheet
-
Cash in hand of
$106.3 million $86.4 million -
Financial expenses decreased to
$12.5 million $14.1 million $275 million - Net leverage of 0.8x and no principal debt maturities until 2027
-
$80 million
Accelerated Shareholder Returns
-
Quarterly dividend of
$0.13 4$7.5 million -
Equivalent to an annualized dividend of approximately
$30 million $0.53 55% dividend yield3) -
Completed share buyback program after acquiring 2.2 million shares (or
4% of total shares outstanding) for$23.6 million -
Expected to return over
$50 million -50% free cash flow target -
Renewed discretionary share buyback program for up to
10% of shares outstanding until December 2024
Upcoming Activities
- Drilling 10-12 gross wells in 4Q2023, targeting attractive conventional, short-cycle projects
-
Key projects include:
- CPO-5 Block: Testing the Halcon 1 exploration well and spudding the Perico 1 exploration well before year-end
- Llanos 123 Block: Currently drilling the Bisbita Centro 1 exploration well, expected to reach total depth in mid-November, and spudding the Toritos Norte 1 appraisal well before year-end (subject to joint venture approval)
- Llanos 87 Block: Testing the Zorzal Este 1 exploration well and spudding the Zorzal Este 2 appraisal well before year-end (subject to joint venture approval)
- Llanos 34 Block: Currently drilling one additional horizontal development well and spudding an additional horizontal well before year-end
- Perico Block: Spudding the Perico Norte 5 appraisal well before year-end (subject to joint venture approval)
-
Llanos 86 and Llanos 104 Blocks (GeoPark operated,
50% WI): Preliminary activities underway targeting the acquisition of over 650 square kilometers of 3D seismic to expand the inventory of exploration prospects
| ____________________________ |
2 ROCE is defined as last twelve-month operating profit divided by average total assets minus current liabilities. |
3 Based on GeoPark’s average market capitalization from October 1 to October 31, 2023. |
Andrés Ocampo, Chief Executive Officer of GeoPark, said: “Our team and portfolio have again delivered with the opening up of multiple new exciting growth fairways for further development following our recent drilling successes. The 2024 self-funded and flexible work program, announced today, builds on these successes to pursue multiple potential drilling opportunities to be tested in 2024. We will continue delivering on our commitment to return value to shareholders while maintaining a strong balance sheet, reducing emissions, and strengthening our relationship with our neighbors.”
CONSOLIDATED OPERATING PERFORMANCE
Key performance indicators:
Key Indicators |
3Q2023 |
2Q2023 |
3Q2022 |
9M2023 |
9M2022 |
Oil productiona (bopd) |
32,510 |
33,672 |
34,875 |
33,323 |
34,886 |
Gas production (mcfpd) |
13,610 |
17,453 |
21,126 |
15,898 |
22,799 |
Average net production (boepd) |
34,778 |
36,581 |
38,396 |
35,973 |
38,686 |
Brent oil price ($ per bbl) |
86.0 |
78.2 |
98.2 |
82.2 |
101.9 |
Combined realized price ($ per boe) |
68.3 |
59.5 |
77.5 |
62.9 |
81.2 |
⁻ Oil ($ per bbl) |
74.6 |
64.3 |
85.9 |
68.4 |
89.7 |
⁻ Gas ($ per mcf) |
4.4 |
5.0 |
4.5 |
4.7 |
4.8 |
Sale of crude oil ($ million) |
184.7 |
173.8 |
248.7 |
533.6 |
784.1 |
Sale of purchased crude oil ($ million) |
2.2 |
1.2 |
1.0 |
4.1 |
6.3 |
Sale of gas ($ million) |
5.3 |
7.3 |
8.6 |
19.1 |
28.2 |
Revenue ($ million) |
192.1 |
182.3 |
258.2 |
556.9 |
818.6 |
Commodity risk management contracts b ($ million) |
0.0 |
0.0 |
23.0 |
0.0 |
(70.7) |
Production & operating costsc ($ million) |
(58.2) |
(60.7) |
(87.1) |
(171.4) |
(282.8) |
G&G, G&Ad ($ million) |
(14.1) |
(13.9) |
(16.7) |
(39.9) |
(43.2) |
Selling expenses ($ million) |
(3.8) |
(2.2) |
(2.0) |
(8.3) |
(5.2) |
Operating profit ($ million) |
80.5 |
69.5 |
145.4 |
226.6 |
347.4 |
Adjusted EBITDA ($ million) |
115.2 |
103.9 |
141.3 |
334.0 |
408.7 |
Adjusted EBITDA ($ per boe) |
41.0 |
33.9 |
42.4 |
37.7 |
40.6 |
Net profit ($ million) |
24.8 |
33.8 |
73.4 |
84.8 |
172.2 |
Capital expenditures ($ million) |
44.1 |
43.4 |
43.4 |
132.4 |
115.2 |
Cash and cash equivalents ($ million) |
106.3 |
86.4 |
93.0 |
106.3 |
93.0 |
Short-term financial debt ($ million) |
5.7 |
12.5 |
6.8 |
5.7 |
6.8 |
Long-term financial debt ($ million) |
487.6 |
486.8 |
484.3 |
487.6 |
484.3 |
Net debt ($ million) |
387.0 |
412.9 |
398.1 |
387.0 |
398.1 |
Dividends paid ($ per share) |
0.132 |
0.130 |
0.127 |
0.392 |
0.291 |
Shares repurchased (million shares) |
0.500 |
1.082 |
1.110 |
2.224 |
1.802 |
Basic shares – at period end (million shares) |
56.118 |
56.570 |
58.543 |
56.118 |
58.543 |
Weighted average basic shares (million shares) |
56.513 |
57.114 |
59.029 |
57.155 |
59.691 |
a) |
Includes royalties and other economic rights paid in kind in |
b) |
Please refer to the Commodity Risk Management Contracts section below. |
c) |
Production and operating costs include operating costs, royalties and economic rights paid in cash, share based payments and purchased crude oil. |
d) |
G&A and G&G expenses include non-cash, share-based payments for |
Production: Oil and gas production in 3Q2023 was 34,778 boepd, down by
Deliveries: Oil and gas deliveries to GeoPark’s offtakers in 3Q2023 totaled 30,559 boepd, down by
The mix of royalties and economic rights paid in kind versus in cash affects Revenue and Production and operating costs but it is neutral at the Adjusted EBITDA level. In 3Q2023, royalties and economic rights paid in kind increased significantly compared to 3Q2022, resulting in lower revenue and lower production and operating costs (due to lower cash royalties and economic rights paid in cash).
Reference and Realized Oil Prices: Brent crude oil prices decreased by
A breakdown of reference and net realized oil prices in relevant countries in 3Q2023 and 3Q2022 is shown in the tables below:
3Q2023 - Realized Oil Prices ($ per bbl) |
|
|
|
Brent oil price (*) |
84.8 |
89.6 |
83.4 |
Local marker differential |
(4.3) |
- |
- |
Commercial, transportation discounts & other |
(5.8) |
(14.2) |
(12.3) |
Realized oil price |
74.7 |
75.4 |
71.1 |
Weight on oil sales mix |
|
|
|
3Q2022 - Realized Oil Prices ($ per bbl) |
|
|
|
Brent oil price (*) |
98.2 |
98.2 |
98.2 |
Local marker differential |
(3.8) |
- |
- |
Commercial, transportation discounts & other |
(8.7) |
(4.8) |
(5.2) |
Realized oil price |
85.7 |
93.4 |
93.0 |
Weight on oil sales mix |
|
|
|
(*) Corresponds to the average month of sale price ICE Brent for |
|||
Revenue: Consolidated revenue decreased by
Sales of crude oil: Consolidated oil revenue decreased by
The table below provides a breakdown of crude oil revenue in 3Q2023 and 3Q2022:
Oil Revenue (In millions of $) |
3Q2023 |
3Q2022 |
|
178.0 |
243.6 |
|
1.0 |
3.0 |
|
0.1 |
0.2 |
|
5.6 |
1.9 |
Oil Revenue |
184.7 |
248.7 |
(*) Net of Commodity risk management contracts designated as cash flow hedges. |
||
-
Colombia : 3Q2023 oil revenue decreased by27% to$178.0 million 13% to$74.7 16% to 27,022 bopd. Earn-out payments decreased to$7.2 million $9.3 million $0.7 million -
Chile : 3Q2023 oil revenue decreased by66% to$1.0 million 19% to$75.4 57% to 147 bopd, affected by temporarily shut-in oil production due to commercial negotiations with ENAP, the oil offtaker inChile . GeoPark reached an agreement with ENAP and as of August 2023, it gradually started reopening temporarily shut-in oil production of 400 bopd. -
Ecuador : 3Q2023 oil revenue increased by190% to$5.6 million 279% to 859 bopd while realized prices decreased by24% to$71.1 Ecuador are net of the Government’s production share.
Sales of purchased crude oil: 3Q2023 sales of purchased crude oil increased
Sales of gas: Consolidated gas revenue decreased by
The table below provides a breakdown of gas revenue in 3Q2023 and 3Q2022:
Gas Revenue (In millions of $) |
3Q2023 |
3Q2022 |
|
2.4 |
4.2 |
|
2.6 |
4.3 |
|
0.3 |
0.1 |
Gas Revenue |
5.3 |
8.6 |
-
Chile : 3Q2023 gas revenue decreased by43% to$2.4 million 32% to 7,988 mcfpd (1,331 boepd). Gas prices were16% lower, at$3.2 $19.4 -
Brazil : 3Q2023 gas revenue decreased by40% to$2.6 million 49% from the Manati gas field to 4,392 mcfpd (732 boepd). Gas prices increased by18% to$6.4 $38.4
Commodity Risk Management Contracts: Consolidated commodity risk management contracts amounted to zero in 3Q2023, compared to a
The table below provides a breakdown of realized and unrealized commodity risk management charges in 3Q2023 and 3Q2022:
Commodity Risk Management (In millions of $) |
3Q2023 |
3Q2022 |
Realized loss |
- |
(13.8) |
Unrealized gain |
- |
36.8 |
Commodity Risk Management Contracts |
- |
23.0 |
In 3Q2023 GeoPark had zero cost collars covering 9,000 bopd including purchased puts with an average price of
Please refer to the “Commodity Risk Management Contracts” section below for a description of hedges in place as of the date of this release.
Production and Operating Costs: Consolidated production and operating costs decreased to
The table below provides a breakdown of production and operating costs in 3Q2023 and 3Q2022:
Production and Operating Costs (In millions of $) |
3Q2023 |
3Q2022 |
Royalties paid in cash |
(0.8) |
(15.5) |
Economic rights paid in cash |
(14.8) |
(47.0) |
Operating costs |
(40.6) |
(23.6) |
Purchased crude oil |
(1.9) |
(0.7) |
Share-based payments |
(0.2) |
(0.3) |
Production and Operating Costs |
(58.2) |
(87.1) |
Consolidated royalties paid in cash amounted to
Consolidated economic rights paid in cash (including high price participation, x-factor and other economic rights paid to the Colombian Government in cash) amounted to
Consolidated operating costs increased to
The breakdown of operating costs is as follows:
-
Colombia : Total operating costs increased to$33.5 million $19.4 million Colombia decreased by16% ). Increased operating costs per boe in 3Q2023 mainly reflected higher energy costs due to a drought affecting the energy matrix inColombia with lower availability of hydroelectric power, as well as inflationary pressures (the general inflation index was approximately8% in 9M2023). -
Chile : Total operating costs decreased to$1.8 million $2.6 million Chile decreased by36% ), partially offset by higher operating costs per boe. -
Brazil : Total operating costs increased to$1.2 million $0.8 million Brazil decreased by49% ). -
Ecuador : Total operating costs increased to$4.1 million $0.6 million Ecuador increased by279% ) and higher operating costs per boe.
Consolidated purchased crude oil charges amounted to
Selling Expenses: Consolidated selling expenses increased to
Geological & Geophysical Expenses: Consolidated G&G expenses increased to
Administrative Expenses: Consolidated G&A decreased to
Adjusted EBITDA: Consolidated Adjusted EBITDA4 decreased by
| ____________________________ |
4See “Reconciliation of Adjusted EBITDA to Profit Before Income Tax” included in this press release. |
Adjusted EBITDA (In millions of $) |
3Q2023 |
3Q2022 |
|
115.6 |
139.1 |
|
1.0 |
3.6 |
|
0.6 |
2.5 |
|
(0.9) |
(1.6) |
|
0.7 |
0.7 |
Corporate |
(1.7) |
(3.0) |
Adjusted EBITDA |
115.2 |
141.3 |
The table below shows production, volumes sold and the breakdown of the most significant components of Adjusted EBITDA for 3Q2023 and 3Q2022, on a per boe basis:
Adjusted EBITDA/boe |
|
|
|
|
Totald |
|||||
|
3Q23 |
3Q22 |
3Q23 |
3Q22 |
3Q23 |
3Q22 |
3Q23 |
3Q22 |
3Q23 |
3Q22 |
Production (boepd) |
31,780 |
33,338 |
1,565 |
2,425 |
774 |
1,439 |
659 |
1,194 |
34,778 |
38,396 |
Inventories, RIK & Othera |
(4,645) |
(1,212) |
(86) |
(121) |
(29) |
19 |
202 |
(967) |
(4,219) |
(2,175) |
Sales volume (boepd) |
27,135 |
32,126 |
1,479 |
2,304 |
745 |
1,458 |
861 |
227 |
30,559 |
36,221 |
% Oil |
|
|
|
|
|
|
|
|
|
|
($ per boe) |
|
|
|
|
|
|
|
|
|
|
Realized oil price |
74.7 |
85.7 |
75.4 |
93.4 |
88.1 |
100.1 |
71.1 |
93.0 |
74.6 |
85.9 |
Realized gas pricec |
28.7 |
27.1 |
19.4 |
23.1 |
38.4 |
32.5 |
- |
- |
26.3 |
27.1 |
Realized commodity risk management contracts (Cash flow hedge) |
(0.3) |
- |
- |
- |
- |
- |
- |
- |
(0.2) |
- |
Earn-out |
(2.9) |
(3.2) |
- |
- |
- |
- |
- |
- |
(2.8) |
(2.8) |
Combined Price |
71.4 |
82.5 |
24.9 |
33.7 |
39.3 |
33.4 |
71.1 |
93.0 |
68.4 |
77.5 |
Realized commodity risk management contracts |
- |
(4.7) |
- |
- |
- |
- |
- |
- |
- |
(4.2) |
Operating costse |
(14.2) |
(6.7) |
(14.4) |
(12.4) |
(21.2) |
(8.7) |
(51.7) |
(30.7) |
(15.3) |
(7.3) |
Royalties & economic rights |
(6.1) |
(21.0) |
(0.9) |
(1.3) |
(3.1) |
(2.6) |
- |
- |
(5.5) |
(18.8) |
Purchased crude oilb |
- |
- |
- |
- |
- |
- |
- |
- |
(0.7) |
(0.3) |
Selling & other expenses |
(1.3) |
(0.5) |
(0.4) |
(0.4) |
- |
(0.0) |
(4.7) |
(19.6) |
(1.3) |
(0.6) |
Operating Netback/boe |
49.8 |
49.6 |
9.2 |
19.6 |
15.0 |
22.1 |
14.8 |
42.7 |
45.6 |
46.4 |
G&A, G&G & other |
|
|
|
|
|
|
|
|
(4.6) |
(4.0) |
Adjusted EBITDA/boe |
|
|
|
|
|
|
|
|
41.0 |
42.4 |
a) |
RIK (Royalties in kind) & Other: Includes royalties and other economic rights paid in kind in |
b) |
Reported in the Corporate business segment. |
c) |
Conversion rate of $mcf/$boe=1/6. |
d) |
Includes amounts recorded in the Corporate business segment. |
e) |
Operating costs per boe included in this table include certain adjustments to the reported figures (IFRS 16 and others). |
Operating costs per boe in
Depreciation: Consolidated depreciation charges increased to
Write-off of unsuccessful exploration efforts: The consolidated write-off of unsuccessful exploration efforts amounted to
Other Income (Expenses): Other operating income (expenses) showed a
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Financial Expenses: Net financial expenses decreased to
Foreign Exchange: Net foreign exchange losses amounted to
Income Tax: Income taxes totaled
Net Profit: Net profit decreased to
BALANCE SHEET
Cash and Cash Equivalents: Cash and cash equivalents totaled
This net decrease is explained by the following:
Cash and Cash Equivalents (In millions of $) |
9M2023 |
Cash flows from operating activities |
190.3 |
Cash flows used in investing activities |
(132.4) |
Cash flows used in financing activities |
(81.0) |
Currency Translation |
0.5 |
Net decrease in cash & cash equivalents |
(22.5) |
Cash flows from operating activities of
Cash flows used in financing activities mainly included
Financial Debt: Total financial debt net of issuance cost was
Financial Debt (In millions of $) |
September 30, 2023 |
December 31, 2022 |
2027 Notes |
493.3 |
497.6 |
Financial debt |
493.3 |
497.6 |
For further details, please refer to Note 13 of GeoPark’s consolidated financial statements as of September 30, 2023, available on the Company’s website.
FINANCIAL RATIOSa
| (In millions of $) | |||||
Period-end |
Financial
|
Cash and Cash
|
Net Debt |
Net Debt/LTM
|
LTM Interest Coverage |
3Q2022 |
491.1 |
93.0 |
398.1 |
0.8x |
12.7x |
4Q2022 |
497.6 |
128.8 |
368.8 |
0.7x |
14.9x |
1Q2023 |
491.6 |
145.4 |
346.2 |
0.7x |
15.8x |
2Q2023 |
499.3 |
86.4 |
412.9 |
0.8x |
15.4x |
3Q2023 |
493.3 |
106.3 |
387.0 |
0.8x |
15.5x |
| a) Based on trailing last twelve-month financial results (“LTM”). | |||||
Covenants in the 2027 Notes: The 2027 Notes include debt incurrence covenants that, among others, require that the Net Debt to Adjusted EBITDA ratio should not exceed 3.25 times and the Adjusted EBITDA to Interest ratio should exceed 2.5 times in order for GeoPark to incur new debt.
COMMODITY RISK MANAGEMENT CONTRACTS
The table below summarizes commodity risk management contracts in place as of the date of this release:
Period |
Type |
Reference |
Volume
|
Contract Terms (Average $ per bbl) |
|
|
|
|
|
Purchased Put |
Sold Call |
4Q2023 |
Zero cost collar |
Brent |
9,000 |
69.4 |
91.8 |
1Q2024 |
Zero cost collar |
Brent |
8,500 |
65.6 |
92.0 |
2Q2024 |
Zero cost collar |
Brent |
9,000 |
67.5 |
97.0 |
3Q2024 |
Zero cost collar |
Brent |
7,000 |
66.4 |
99.3 |
4Q2024 |
Zero cost collar |
Brent |
1,000 |
70.0 |
96.0 |
| ____________________________ |
5 Includes current income tax payments and withholding taxes from clients for |
SELECTED INFORMATION BY BUSINESS SEGMENT
|
|
|
(In millions of $) |
3Q2023 |
3Q2022 |
Sale of crude oil |
178.0 |
243.6 |
Sale of gas |
0.3 |
0.1 |
Revenue |
178.3 |
243.7 |
Production and operating costsa |
(48.9) |
(81.6) |
Adjusted EBITDA |
115.6 |
139.1 |
Capital expenditure |
41.3 |
36.7 |
(In millions of $) |
3Q2023 |
3Q2022 |
Sale of crude oil |
1.0 |
3.0 |
Sale of gas |
2.4 |
4.2 |
Revenue |
3.4 |
7.1 |
Production and operating costsa |
(1.9) |
(2.9) |
Adjusted EBITDA |
1.0 |
3.6 |
Capital expenditure |
0.0 |
0.2 |
(In millions of $) |
3Q2023 |
3Q2022 |
Sale of crude oil |
0.1 |
0.2 |
Sale of gas |
2.6 |
4.3 |
Revenue |
2.7 |
4.5 |
Production and operating costsa |
(1.4) |
(1.2) |
Adjusted EBITDA |
0.6 |
2.5 |
Capital expenditure |
0.0 |
0.0 |
(In millions of $) |
3Q2023 |
3Q2022 |
Sale of crude oil |
5.6 |
1.9 |
Sale of gas |
0.0 |
0.0 |
Revenue |
5.6 |
1.9 |
Production and operating costsa |
(4.1) |
(0.6) |
Adjusted EBITDA |
0.7 |
0.7 |
Capital expenditure |
2.8 |
6.4 |
a) |
Production and operating costs = Operating costs + Royalties + Share-based payments + Purchased crude oil. |
CONSOLIDATED STATEMENT OF INCOME
(QUARTERLY INFORMATION UNAUDITED)
(In millions of $) |
3Q2023 |
3Q2022 |
9M2023 |
9M2022 |
REVENUE |
|
|
|
|
Sale of crude oil |
184.7 |
248.7 |
533.6 |
784.1 |
Sale of purchased crude oil |
2.2 |
1.0 |
4.1 |
6.3 |
Sale of gas |
5.3 |
8.6 |
19.1 |
28.2 |
TOTAL REVENUE |
192.1 |
258.2 |
556.9 |
818.6 |
Commodity risk management contracts |
0.0 |
23.0 |
0.0 |
(70.7) |
Production and operating costs |
(58.2) |
(87.1) |
(171.4) |
(282.8) |
Geological and geophysical expenses (G&G) |
(2.6) |
(2.3) |
(7.6) |
(8.0) |
Administrative expenses (G&A) |
(11.6) |
(14.3) |
(32.3) |
(35.1) |
Selling expenses |
(3.8) |
(2.0) |
(8.3) |
(5.2) |
Depreciation |
(29.8) |
(21.4) |
(86.4) |
(66.2) |
Write-off of unsuccessful exploration efforts |
(9.3) |
(5.9) |
(21.5) |
(5.9) |
Other |
3.6 |
(2.6) |
(2.8) |
2.7 |
OPERATING PROFIT |
80.5 |
145.4 |
226.6 |
347.4 |
|
|
|
|
|
Financial costs, net |
(10.6) |
(13.3) |
(29.9) |
(44.0) |
Foreign exchange (loss) gain |
(4.0) |
11.5 |
(16.9) |
12.0 |
PROFIT BEFORE INCOME TAX |
65.9 |
143.6 |
179.7 |
315.4 |
|
|
|
|
|
Income tax |
(41.2) |
(70.2) |
(94.9) |
(143.1) |
PROFIT FOR THE PERIOD |
24.8 |
73.4 |
84.8 |
172.2 |
SUMMARIZED CONSOLIDATED STATEMENT OF FINANCIAL POSITION(QUARTERLY INFORMATION UNAUDITED)
(In millions of $) |
Sep '23 |
Dec '22 |
|
|
|
Non-Current Assets |
|
|
Property, plant and equipment |
699.9 |
666.8 |
Other non-current assets |
63.2 |
69.0 |
Total Non-Current Assets |
763.1 |
735.8 |
|
|
|
Current Assets |
|
|
Inventories |
12.2 |
14.4 |
Trade receivables |
63.3 |
71.8 |
Other current assets |
27.1 |
23.1 |
Cash at bank and in hand |
106.3 |
128.8 |
Total Current Assets |
208.9 |
238.1 |
|
|
|
Total Assets |
972.0 |
974.0 |
|
|
|
Total Equity |
157.4 |
115.6 |
|
|
|
Non-Current Liabilities |
|
|
Borrowings |
487.6 |
485.1 |
Other non-current liabilities |
135.8 |
144.1 |
Total Non-Current Liabilities |
623.4 |
629.2 |
|
|
|
Current Liabilities |
|
|
Borrowings |
5.7 |
12.5 |
Other current liabilities |
185.5 |
216.6 |
Total Current Liabilities |
191.2 |
229.2 |
Total Liabilities |
814.6 |
858.4 |
Total Liabilities and Equity |
972.0 |
974.0 |
SUMMARIZED CONSOLIDATED STATEMENT OF CASH FLOW
(QUARTERLY INFORMATION UNAUDITED)
(In millions of $) |
3Q2023 |
3Q2022 |
9M2023 |
9M2022 |
|
|
|
|
|
Cash flow from operating activities |
92.6 |
141.1 |
190.3 |
354.1 |
Cash flow used in investing activities |
(44.1) |
(42.6) |
(132.4) |
(100.1) |
Cash flow used in financing activities |
(28.6) |
(127.5) |
(81.0) |
(262.4) |
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX
9M2023 (In millions of $) |
|
|
|
|
Other(a) |
Total |
Adjusted EBITDA |
331.2 |
3.6 |
4.5 |
2.2 |
(7.4) |
334.0 |
Depreciation |
(71.7) |
(7.8) |
(1.7) |
(5.1) |
(0.0) |
(86.4) |
Write-off of unsuccessful exploration efforts |
(21.5) |
- |
- |
- |
- |
(21.5) |
Share based payment |
(0.9) |
(0.1) |
(0.0) |
(0.0) |
(4.3) |
(5.3) |
Lease Accounting - IFRS 16 |
6.1 |
0.7 |
0.7 |
0.0 |
- |
7.6 |
Others |
2.2 |
(2.2) |
(0.2) |
(0.5) |
(1.1) |
(1.9) |
OPERATING PROFIT (LOSS) |
245.4 |
(5.9) |
3.3 |
(3.4) |
(12.8) |
226.6 |
Financial costs, net |
|
|
|
|
|
(29.9) |
Foreign exchange charges, net |
|
|
|
|
|
(16.9) |
PROFIT BEFORE INCOME TAX |
|
|
|
|
|
179.7 |
9M2022 (In millions of $) |
|
|
|
|
Other(a) |
Total |
Adjusted EBITDA |
401.1 |
9.1 |
10.0 |
1.5 |
(13.0) |
408.7 |
Depreciation |
(52.8) |
(10.9) |
(2.2) |
(0.0) |
(0.2) |
(66.2) |
Unrealized commodity risk management contracts |
10.3 |
- |
- |
- |
- |
10.3 |
Write-off of unsuccessful exploration efforts |
(5.9) |
- |
- |
- |
- |
(5.9) |
Share based payment |
(1.2) |
(0.2) |
(0.0) |
(0.0) |
(6.1) |
(7.6) |
Lease Accounting - IFRS 16 |
3.4 |
0.8 |
1.0 |
0.0 |
0.1 |
5.4 |
Others |
1.6 |
0.5 |
0.4 |
(0.0) |
0.2 |
2.7 |
OPERATING PROFIT (LOSS) |
356.4 |
(0.7) |
9.2 |
1.5 |
(19.1) |
347.4 |
Financial costs, net |
|
|
|
|
|
(44.0) |
Foreign exchange charges, net |
|
|
|
|
|
12.0 |
PROFIT BEFORE INCOME TAX |
|
|
|
|
|
315.4 |
| a) Includes Argentina and Corporate. |
LAST TWELVE-MONTH RETURN ON AVERAGE CAPITAL EMPLOYED
(In millions of $) |
Sept 2023 |
Sept 2022 |
Last twelve-month Operating Income |
308.3 |
|
Total Assets – Period-end |
972.0 |
902.7 |
Current Liabilities – Period-end |
(191.2) |
(204.8) |
Capital Employed – Period-end |
780.8 |
697.9 |
Average Capital Employed |
739.4 |
- |
Average Return on Average Capital Employed |
|
|
CONFERENCE CALL INFORMATION
Reporting Date and Conference Call for 3Q2023 Financial Results
In conjunction with the 3Q2023 results press release, GeoPark management will host a conference call on November 9, 2023, at 10:00 am (Eastern Standard Time).
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/344411932
Interested parties may participate in the conference call by dialing the numbers provided below:
United States Participants: +1 (646) 904-5544
International Participants: +1 (833) 470-1428
Passcode: 865697
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 |
ANH |
Agencia Nacional de Hidrocarburos ( |
|
|
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 |
|
|
LTM |
Last Twelve Months |
|
|
Mboe |
Thousand barrels of oil equivalent |
Mcfpd |
Thousand cubic feet per day |
Net Debt |
Current and non-current borrowings less cash and cash equivalents |
WI |
Working interest |
NPV10 |
Present value of estimated future oil and gas revenue, net of estimated direct expenses, discounted at an annual rate of |
NOTICE
Additional information about GeoPark can be found in the Invest with Us section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.
This press release contains 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 contains 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, production guidance, shareholder returns, Adjusted EBITDA, capital expenditures, cash income taxes and free cash flow. 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 release 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.
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/20231107352474/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 GeoPark Limited's average production guidance for full-year 2023?
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What shareholder returns did GeoPark commit to accelerating?
