Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (June 2021)
28 slides from Geopark's investor presentation, June 2021
Slide 1: Corporate Presentation June 2021
Cleanest & Kindest Hydrocarbons Best & Smartest Safest, Lowest Cost Oil & Gas Finders & Most Efficient Operator Consistent Free Cash Flow & Value Delivery Corporate Presentation June 2021
Slide 2: Investment Highlights
Investment Highlights 42,000 Proven Team and Plan • Long-term value proposition and approach COLOMBIA • Right geography with immense opportunity • Best people and skillsets across full E&P value chain 37,000 ECUADOR • Motivated and owner-committed culture Low Risk High Value Asset Portfolio • Big pr
Slide 3: Track Record: 18 Years of Value Delivery
Track Record 18 Years of Value Delivery RIGOROUS RISK MANAGEMENT = CONSISTENT VALUE CREATION PRODUCTION (MBOEPD) RESERVES (2P, MMBOE) 40 40 197 CAGR 18% 36 CAGR 14% 184 175 165 159 28 143 122 125 22 20 20 14 70 11 57 50 50 7 8 42 6 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2009 201
Slide 4: Model & Criteria for Success in an Energy Transitioning World
Model & Criteria for Success Energy Transitioning World ✓ Best & Smartest Oil & Gas Finders ✓ Safest, Lowest Cost & Most Efficient Operator ✓ Consistent Free Cash Flow & Value Delivery ✓ Cleanest & Kindest Hydrocarbons 4
Slide 5: Best & Smartest Oil & Gas Finders
Best & Smartest Oil & Gas Finders 5
Slide 6: Proven Oil & Gas Finder
Asset Base & Excellence Capabilities Proven Oil & Gas Finder LOOKING FOR OIL WHERE OIL HAS ALREADY BEEN FOUND LEADING OIL AND GAS FINDING TEAM IN LATIN AMERICA • Over 25+ year track record (800+ mmboe discovered to date) • 0 to 175 mmboe 2P net reserve growth consistently increased since 2006 • Grow
Slide 7: Deep Portfolio in the Right Geography
AssetBase Asset Base Deep Portfolio in the Right Geography Diversified LLANOS 34 COLOMBIA • Second largest operator in Colombia 33,228 boepd* LLANOS BASIN • Key Assets: Llanos 34, CPO-5 (Llanos CPO-5 PUTUMAYO basin) 141 mmboe BASIN • 1.4+ mm strategic acreage added in 2019 2P Net Reserves** around
Slide 8: Llanos 34: Cash Flow Core Engine
AssetBase Asset Base Llanos Llanos 34 Cash34Flow CoreEngine Value Oil fields (3P D&M 2020) Chachalaca Field Tilo Field Max Field Chiricoca Field Tigana Field LLANOS 34 BLOCK: GEOPARK OPERATED WITH 45% WI Tarotaro Field Guaco Field • Largest discovery in 20+ years in Colombia • Introduced new geologi
Slide 9: Llanos Basin Growth Fairway
Asset AssetBase Base Llanos BasinBasin Llanos Growth Fairway Champion SYSTEMATIC CONSOLIDATION OF HIGH POTENTIAL ACREAGE AROUND CORE ASSET LLANOS 87 • 1.4+ MILLION STRATEGIC LLANOS 32 ACRES ADDED SINCE 2019 • 0.6-1.3 BILLION BBL OF LLANOS 124 GROSS RECOVERABLE EXPLORATION RESOURCES (230–480 MMBOE NE
Slide 10: CPO-5: Big Prize
AssetBase Asset Base CPO-5 CPO-5 GrowthBig Fairway Prize PRODUCTION & RESERVE GROWTH SINCE ACQUISITION LARGE GROWTH POTENTIAL ADJACENT TO AND ON TREND WITH LLANOS 34 UNDERSCORE PROJECT POTENTIAL • Most prospective block in GeoPark’s porfolio • Mid to low-risk exploration prospects GROSS PRODUCTION (
Slide 11: Safest, Lowest Cost & Most Efficient Operator
Safest, Lowest Cost & Most Efficient Operator 11
Slide 12: Low-Cost Operator
Capabilities Capabilities&& Efficiencies Excellence Low-Cost Low Cost Operator DRIVING DOWN EACH AND EVERY COST OPERATING COSTS DOWN BY 56% STRUCTURE COSTS DOWN BY 43% OPEX ($/boe) G&A/G&G Costs ($/boe) 56% 43% Decrease Decrease 16 11 8 8 7 7 7 7 7 6 6 5 6 4 2014 2015 2016 2017 2018 2019 2020 2014 2
Slide 13: Big Margins at Almost Any Oil Price
Capabilities Capabilities&& Efficiencies Excellence Big Margins at Almost Any Operator Low Cost Oil Price COST EFFICIENCIES INCREASE EBITDA AND MARGINS Adjusted EBITDA ($mm) Adjusted EBITDA Margin 58% 55% 363 331 55% 53% 218 176 35% 41% 74 78 2015 2016 2017 2018 2019 2020 Brent ($/bbl) 54 45 55 72 6
Slide 14: Consistent Free Cash Flow & Value Delivery
Consistent Free Cash Flow & Value Delivery 14
Slide 15: Superior Returns on Capital Invested
Resilient Capabilities Cash&Flow Excellence Superior Value Returns Generation on Capital & Invested Delivery CASH GENERATION 2-3X CAPEX IN EVERY OIL PRICE ENVIRONMENT Operating Netback and Capital Expenditures (CAPEX) ($mm) 3x+ 3x+ 447 398 3x+ 2x+ 276 228 2x+ 3x+ 118 122 125 126 106 75 49 39 2015 20
Slide 16: Self-Funded & Flexible 2021 Work Program
Resilient Capabilities Cash &Flow Excellence Self-Funded & Flexible2021 2021Work WorkProgram Program CAPITAL ALLOCATION DISCIPLINE ACCOMMODATES OIL PRICE VOLATILITY DISCIPLINED CAPITAL ALLOCATION METHODOLOGY $40-45 /bbl $50-55 /bbl • Self-Funded work program - OIL PRICE (BRENT)* + • Allocating capit
Slide 17: Resilient Cash Flow: High Return Barrels
Resilient Cash Flow High Return Barrels 2021E OPERATING NETBACKS ($/BOE) Low Breakevens Brent $50-55/bbl - Gas $2-3/mcf 1 50 45 (3) (2) (10) 27 (8) (5) (3) (5) (6) (7) (11) 27 24 10 Colombia Brazil-Argentina-Chile Consolidated Vasconia Differential Op. Netback Transportation OPEX & Commercial Discou
Slide 18: Strong Balance Sheet
Resilient Cash Flow Strong Balance Sheet LOWER DEBT, LOWER COST & IMPROVED DEBT PROFILE Debt Amortization Profile ($mm)* Before and After Strategic Deleveraging (April 2021) Before Current 500 425 350 170 2021 2022 2023 2024 2025 2026 2027 * Does not include an amortizing debt of $3.5 mm with Santan
Slide 19: Downside Oil Price Protection
Resilient Capabilities Cash& Flow Excellence Maximizing Downside the Value Oil Price of Every Protection Barrel HEDGES IN PLACE SECURE BASE OIL PRICE* HEDGING STRATEGY • Provide oil price stability consistent with base budget assumptions Brent $/BBL 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 • Secure price
Slide 20: 2021 Provides Unique Entry Point
Opportunity Opportunity 2021 Provides 2021 ProvidesUnique UniqueEntry Entry Point Point SHARE PRICE PERFORMANCE AND VOLUME (2017-20211) GRPK +130% GRPK -40% S&P 500 +22% S&P 500 15% $16.35 Brent +18% Brent -21% S&P Oil&Gas -10% S&P Oil&Gas -39% GRPK +40% GRPK +60% -4% S&P 500 +32% S&P 500 Brent +23%
Slide 21: Cleanest & Kindest Hydrocarbons
Cleanest & Kindest Hydrocarbons 21
Slide 22: SPEED = ESG+
Sustainability SPEED == ESG+ SPEED ESG+ FOUNDING PRINCIPLES SINCE DAY ONE IN 2002 22
Slide 23: Environment: Leading Low Carbon Intensity
Sustainability Environment ENVIRONMENT TARGET LEADING LOW CARBON INTENSITY IN LLANOS 34 MULTI-YEAR CARBON TARGET 30 (kg CO2e/boe) 20-30% 25 Reduction GHG Intensity (KgCO2e/boe) (2019-2022E) Global Industry Average: 18 Kg CO2e/boe 20 13 kg 25-30% BELOW CO2e/boe 15 INDUSTRY AVERAGE 10-11 kg CO2e/boe 1
Slide 24: Social & Governance
Sustainability Social & Social & Governance Governance SAFETY PROSPERITY EMPLOYEES COMMUNITY DEVELOPMENT COVID-19 440+ mmboe Gender Equality $3.9 million RESPONSE: Gross 2P reserves discovered GeoPark Industry Average In Social Investments (2006-2020) 3.3% of 2019 CAPEX - Protocols in place for work
Slide 25: Third Party Review and Ratings
Sustainability Third Party Review and Ratings ENGAGEMENT WITH ESG RATING PROVIDERS CONSISTENT IMPROVEMENT IN MSCI ESG RATING 6 AAA • Significant improvement in rating since 2018 AA5 • Improved MSCI rating from B to BBB A4 • Working on expanding our third-party rating coverage base • Bloomberg Gender
Slide 26: Thank You
Thank You Cleanest & Kindest Hydrocarbons Best & Smartest Safest, Lowest Cost Oil & Gas Finders & Most Efficient Operator Consistent Free Cash Flow & Value Delivery 26
Slide 27: Disclaimer
Disclaimer The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” implied assessment, based on certain estimates and assumptions, that the resources will or “us”) solely for informational purposes. No representation or warranty, either expressed be discovered and can
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