Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (February 2022)
27 slides from Geopark's investor presentation, February 2022
Slide 1: Corporate Presentation February 2022
Cleanest & Kindest Hydrocarbons Best in Class Safest, Lowest Cost & Oil & Gas Finders Most Efficient Operator Consistent Free Cash Flow & Value Delivery Corporate Presentation February 2022
Slide 2: Long-Term Value Proposition
Long-Term Value Proposition 45,000 Proven Track Record 2009-2021 Oil and Gas Production: CAGR 16% 40,000 Leading Oil and Gas Finders Drilling Success Rate* 75+% (2006 – 2021) COLOMBIA 35,000 ECUADOR Low-Cost Operator Operating and Structure Costs 30,000 Per Barrel Below Peers BRAZIL Focus on ESG 25,
Slide 3: Best in Class Oil & Gas Finders
Best in Class Oil & Gas Finders
Slide 4: Asset Base: Proven Oil & Gas Finder
Asset Base Proven Oil & Gas Finder D&M CERTIFIED 2P RESERVES AND NPV10 2020 LEADING OIL AND GAS FINDING TEAM IN LATIN AMERICA 175 MMBOE $2.5 BN 6 0.04 • Over 25+ year track record (800+ mmboe discovered to date) 3 0.03 Argentina 25 0.3 • Growth strategy targets low cost, low risk, high potential Bra
Slide 5: Asset Base: High Quality Low Breakeven Portfolio
Asset Base High Quality Low Breakeven Portfolio COLOMBIA LLANOS 34 • Second largest operator in Colombia LLANOS BASIN • Key Assets: Llanos 34, CPO-5 (Llanos 32,002 boepd* basin) • 1.4+ mm strategic acreage added in CPO-5 2019 around Llanos 34 • RLI: 1P 7.8 years; 2P 11.6 years; 3P 141 mmboe PUTUMAY
Slide 6: Asset Base: Llanos 34 Cash Flow Engine
Asset Base Llanos 34 Cash Flow Engine Oil fields Chachalaca Field Max Field PANAMA Chiricoca Field VENEZUELA Structural high Tilo Field LLA-34 COLOMBIA LLANOS 34 BLOCK: GEOPARK ECUADOR BRAZIL Guaco Field OPERATED WITH 45% WI Tigana Field PERU Tarotaro Field • Largest discovery in 20+ years in Colomb
Slide 7: Asset Base: Llanos Basin Growth Fairway
Asset Base Llanos Basin Growth Fairway PANAMA VENEZUELA SYSTEMATIC CONSOLIDATION OF HIGH POTENTIAL ACREAGE AROUND CORE ASSET COLOMBIA GeoPark exploration blocks NEAR TERM CATALYSTS GeoPark producing blocks ECUADOR BRAZIL GeoPark producing oil fields PERU LLANOS 87 Other producing oil fields LLANOS 1
Slide 8: Asset Base: CPO-5 Big Prize
Asset Base CPO-5 Big Prize GROWTH OPPORTUNITIES PRODUCTION & RESERVE GROWTH SINCE ACQUISITION UNDERSCORE PROJECT POTENTIAL GROSS PRODUCTION (BOPD) GROSS RESERVES (MMBBL) • Two discovered oil fields with breakevens of ~$6-7 /bbl* 167 • Light oil, 36-41º API 11,618 • Low-risk exploration prospects +43
Slide 9: Safest, Lowest Cost & Most Efficient Operator
Safest, Lowest Cost & Most Efficient Operator
Slide 10: Capabilities & Efficiencies: Low-Cost Operator
Capabilities & Efficiencies Low-Cost Operator OPERATING COSTS DOWN BY 56% ~90% OF PRODUCTION IS CASH STRUCTURE COSTS DOWN BY 55% FLOW POSITIVE AT $20-$30 BRENT OPEX ($/boe) Breakeven ($/boe) G&A/G&G Costs ($/boe) 16 56% Decrease Oil ($40-50 /bbl) 100% 55% Decrease 11 9 Oil ($20-30 /bbl) 8 8 ~90% 7 7
Slide 11: Capabilities & Efficiencies: High Margins Even at Low Oil Prices
Capabilities & Efficiencies High Margins Even at Low Oil Prices COST EFFICIENCIES INCREASE ADJUSTED EBITDA MARGINS Adjusted EBITDA ($mm) Adjusted EBITDA Margin 58% 55% 55% 53% 363 41% 331 35% 218 176 74 78 2015 2016 2017 2018 2019 2020 Brent ($/bbl) 54 45 55 72 64 45 Source: Bloomberg. LOW COST TO D
Slide 12: Consistent Free Cash Flow & Value Delivery
Consistent Free Cash Flow & Value Delivery
Slide 13: Resilient Cash Flow: Superior Returns on Capital Invested
Resilient Cash Flow Superior Returns on Capital Invested CASH GENERATION 2-3X CAPEX IN EVERY OIL PRICE ENVIRONMENT 3x+ Operating Netback and Capital Expenditures (CAPEX) ($mm) 3x+ 447 398 2x+ 3x+ 276 3x 253 228 3x+ 2x+ 118 122 125 126 106 75 85 49 39 2015 2016 2017 2018 2019 2020 9M2021 Operating Ne
Slide 14: Strong Free Cash Flow: Self-funded & Flexible Work Program
Strong Free Cash Flow Self-funded & Flexible Work Program FREE CASH FLOW FUNDS LOW RISK EXPLORATION, DISCIPLINED CAPITAL ALLOCATION METHODOLOGY DELEVERAGING AND SHAREHOLDER RETURNS • Self-Funded work program • Allocating capital to most value-adding projects based on four criteria: BASE CASE $65-70
Slide 15: Strong Free Cash Flow: High Return Barrels
Strong Free Cash Flow High Return Barrels POSITIONED TO GENERATE SIGNIFICANT FREE CASH FLOW 2022E Free Cash Flow** ($mm) (90-100) (70-80) (50-55) 400-450 (40-45) (38-42) 90-140 121 Operating Netback* Development Capex Exploration Capex Cash G&A/G&G Cash Taxes Mandatory Debt Free Cash Flow Service Pa
Slide 16: Resilient Cash Flow: Strong Balance Sheet
Resilient Cash Flow Strong Balance Sheet LOWER DEBT, LOWER COST & IMPROVED DEBT PROFILE Debt Amortization Profile ($mm)* Before Current Before and After Strategic 500 Deleveraging (April 2021) 425 350 170 2021 2022 2023 2024 2025 2026 2027 * Does not include an amortizing debt of $3.5 mm with Santan
Slide 17: Resilient Cash Flow: Downside Oil Price Protection
Resilient Cash Flow Downside Oil Price Protection HEDGES IN PLACE SECURE BASE OIL PRICE* HEDGING STRATEGY • First line of defense: low-cost operator with low breakevens Brent $/BBL 1Q2022 2Q2022 3Q2022 4Q2022 • Provide oil price stability consistent with base budget assumptions Weighted • Secure pri
Slide 18: Opportunity: 2022 Provides Unique Entry Point
Opportunity 2022 Provides Unique Entry Point SHAREHOLDER RETURN TRACK RECORD (2016 – 2021) BEST PERFORMING E&P STOCK TOTAL SHARE CURRENT * (NYSE 2017-2019) SHAREHOLDER BUYBACK CASH DIVIDEND +415% +210% RETURN PROGRAM POLICY January 2022 +70% 215% $89 MM $2.5 MM 2017-2022 2019-2022 QUARTERLY +40% Jan
Slide 19: Cleanest & Kindest Hydrocarbons
Cleanest & Kindest Hydrocarbons
Slide 20: Sustainability: SPEED = ESG+
Sustainability SPEED = ESG+ FOUNDING PRINCIPLES SINCE DAY ONE IN 2002 STRONG 24,179,280 215% BARRELS OF OIL PRODUCED AND TRANSPORTED TOTAL SHAREHOLDER RETURNS COMMUNITY SUPPORT WITHOUT THIRD-PARTY INCIDENTS 5 YEARS* *As of 29-Oct-21. ZERO 100% SANCTIONS EMPLOYEES ARE SHAREHOLDERS 20 20
Slide 21: Environment: Leading the Way to the Energy Transition
Environment Leading the Way to the Energy Transition INDUSTRY-LEADING LOW CARBON INTENSITY* (Scopes 1 and 2 ) ENVIRONMENT 60.0 50.0 GHG Intensity (KgCO2e/boe) Carbon Intensity Well 40.0 Below Industry 30.0 20.0 25-30% BELOW INDUSTRY AVERAGE FAST, IMMEDIATE AND 10.0 AGGRESSIVE TARGETS 0.0 Canacol Fro
Slide 22: Social: Neighbor of Choice
Social Neighbor of Choice SAFETY COMMUNITY DEVELOPMENT 0.7 bbls of Oil Spilled for Every Million Barrels $3.2 million 75% Produced Investments in Social Local Hiring at and Environmental December 2020 Programs – 73% First Oil & Gas Company to Receive Focused on Rural Areas COVID-19 Bureau Veritas Ce
Slide 23: Governance: Best Governance Practices
Governance Best Governance Practices GOVERNANCE STRONG OVERSIGHT MAJORITY OF INDEPENDENT DIRECTORS Majority Independent Directors SYLVIA Independent and Female Chair ESCOVAR GÓMEZ Independent Chair JAMES F. Risk Committee Chaired by PARK Independent Director ROBERT A. Co-founder CEO & BEDINGFIELD Di
Slide 24: Company Directory
Company Directory Executive Team James F. Park Chief Executive Officer Augusto Zubillaga Chief Operating Officer Andrés Ocampo Chief Financial Officer CONTACTS Shareholder Stacy Steimel Value Team Shareholder Value Director Bogotá, Colombia Calle 94 Nº11-30. Piso 8, Miguel Bello Phone: +(57 1) 734 2
Slide 25: Disclaimer
Disclaimer The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” or “us”) solely The information included in this presentation regarding GeoPark’s estimated quantities of proved, for informational purposes. No representation or warranty, either expressed or implied,
Slide 26: Come on Board: Short, Medium & Long Term Investment Opportunity
Come on Board Short, Medium & Long Term Investment Opportunity PEOPLE MEXICO + TRACK-RECORD COLOMBIA + ECUADOR UPSIDE PERU BRAZIL + VALUE + ARGENTINA SELF-FUNDING + PLATFORM 26
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