Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (November 2023)
24 slides from Geopark's investor presentation, November 2023
Slide 1: Corporate Presentation November 2023
CORPORATE PRESENTATION November 2023
Slide 2: Disclaimer
GeoPark The information contained herein has been prepared by GeoPark Limited (“GeoPark“, “we” or “us”) solely for informational purposes. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained her
Slide 3: Long-Term Value Proposition
LEADING INDEPENDENT LATAM E&P COMPANY LONG-TERM VALUE PROPOSITION ENDURING PRINCIPLES AND APPROACH Energy Oil & Gas Latin America GeoPark Approach Building the Right Team Leading Oil and Gas Finders Proven Team and Unique Culture Drilling Success Rate** 75%+ 20 Year Track Record SPEED = ESG+ From Ze
Slide 4: Right Neighborhood
RIGHT NEIGHBORHOOD 4
Slide 5: Llanos 34: A World-Class Asset
RIGHT NEIGHBORHOOD LLANOS 34: A WORLD-CLASS ASSET Chiricoca KEY METRICS VENEZUELA VENEZUELA Chachalaca Llanos Basin LLA-34 Tilo LL-34 COLOMBIA Max ECUADOR COLOMBIA Tigana ECUADOR PERU BRAZIL BRAZIL PERU Guaco Tarotaro 53,367 94% 9.7 kgCO2e/BOE 9.4 Years* Tua Gross BOPD Production efficiency Low emis
Slide 6: Llanos 34: Biggest Discovery in the Last 20 Years in Colombia
RIGHT NEIGHBORHOOD LLANOS 34: BIGGEST DISCOVERY IN THE LAST 20 YEARS IN COLOMBIA GROSS OIL PRODUCTION PROFILE SINCE ACQUISITION ACQUIRED WITH ZERO PRODUCTION AND ZERO PROVEN RESERVES Gross Oil Production (BOPD) 80.000 Cumulative Gross Oil Production 200 (MMBBL) VALUATION 180 70.000 Purchase Price (4
Slide 7: CPO-5: Unlocking the Upside
RIGHT NEIGHBORHOOD CPO-5: UNLOCKING THE UPSIDE KEY METRICS Llanos 34 block Jacana Field VENEZUELA Cabrestero block CPO-5 Llanos Perico 1 Basin Exploration Halcon 1 COLOMBIA Well Exploration Mariposa Well ECUADOR BBRRAAZZILIL Field PERU 16,877 7 2.5x 6.2 Years Indico Field Producing Gross BOPD Produc
Slide 8: CPO-5 Block: Fastest Growing Asset in Colombia
RIGHT NEIGHBORHOOD CPO-5 BLOCK: FASTEST GROWING ASSET IN COLOMBIA GROSS PRODUCTION PROFILE SINCE ACQUISITION IN 2020 SIGNIFICANT EXPLORATION INVENTORY & POTENTIAL UPSIDE TO CONTINUE GROWING PRODUCTION & RESERVES Gross Oil Production (BOPD) Cumulative Gross Oil Production 25.000 (MMBBL) 25 VALUATION
Slide 9: Llanos Basin Champion
RIGHT NEIGHBORHOOD LLANOS BASIN CHAMPION 2024 CAMPAIGN HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN GeoPark Exploration Blocks LLANOS BASIN 3-4 Exploration Wells GeoPark Producing Blocks Consolidated 24-33 Development and Appraisal Wells GeoPark Producing Oil Fields LLANOS 87 Activity Other Producing O
Slide 10: Putumayo & Oriente: Underexplored Proven Basin
RIGHT NEIGHBORHOOD PUTUMAYO & ORIENTE: UNDEREXPLORED PROVEN BASIN KEY HIGHLIGHTS PUTUMAYO KEY HIGHLIGHTS ORIENTE PUT-36 VENEZUELA 2,027 1,318 COLOMBIA Mecaya Gross BOPD Gross BOPD Putumayo PLATANILLO (3Q2023) (3Q2023) Basin ECUADOR PUT-9 BRAZIL OTA PERU PUT-8 95% ~3,480 COLOMBIA Production Gross BOP
Slide 11: Solid and Profitable Business
SOLID AND PROFITABLE BUSINESS 11
Slide 12: Low-Cost & Efficient Operator
SOLID AND PROFITABLE BUSINESS LOW-COST & EFFICIENT OPERATOR PRODUCTION GROWTH (BOEPD) ON THE GROUND OPERATIONAL EXPERIENCE 11% CAGR CONSOLIDATED (2013-2023E) 18% CAGR COLOMBIA (2013-2023E) 37,000-40,000 110+ MM 280+ Net BOE Produced Gross Wells Drilled (2006-2022) (2013-2022) 12 Rigs 480+ / 2,400+ 7
Slide 13: Cost & Capital Efficiency Leads to Superior Results
SOLID AND PROFITABLE BUSINESS COST & CAPITAL EFFICIENCY LEADS TO SUPERIOR RESULTS CASH GENERATION 2-4x CAPEX IN EVERY OIL PRICE ENVIRONMENT Operating Netback ($MM) = Ajusted EBITDA + G&A/G&G 3.5x CAPEX ($MM) ~3x 593 ~3x Operating Netback/CAPEX Ratio (x times) 500-575 470-600 3.5x 3.2x 447 2.7x 398 3
Slide 14: 2024 Work Program: Disciplined Capital Allocation & Capital Structure
SOLID AND PROFITABLE BUSINESS 2024 WORK PROGRAM: DISCIPLINED CAPITAL ALLOCATION & CAPITAL STRUCTURE 2024 WORK PROGRAM HIGHLIGHTS 2024 CAPEX BREAKDOWN ($80-90/BBL BRENT) 37,000-40,000* 35-45 BOEPD of Production Gross Wells $50-60 MM $150-200 MM * Assuming no production from the 2024 exploration drill
Slide 15: 2024 Free Cash Flow & Returns
SOLID AND PROFITABLE BUSINESS 2024 FREE CASH FLOW & RETURNS STRONG FREE CASH FLOW GENERATION 2024E Free Cash Flow* ($MM) at $80-90 per BBL (Brent) 15-27% Free Cash Flow Yield*** 420-550 (100-140) (50-60) (145-160)** (27-30) 90-160 Adjusted EBITDA Development & Appraisal Capex Exploration Capex Cash
Slide 16: Strong Balance Sheet with Safety Nets in Place
SOLID AND PROFITABLE BUSINESS STRONG BALANCE SHEET WITH SAFETY NETS IN PLACE ASSETS AND SAFETY NETS LIABILITIES WELL-STRUCTURED, LOW-COST & LONG-MATURING DEBT PROFILE $106 MM Hedges in Place Securing Cash & Cash Equivalents Base Oil Price (September 30, 2023) $275 MM debt $1.8 BN* Proven Team and Tr
Slide 17: Hedging Program Secures Base Oil Price
SOLID AND PROFITABLE BUSINESS HEDGING PROGRAM SECURES BASE OIL PRICE APPROACH DIVERSIFIED HEDGING COUNTERPARTIES ZERO COST 12-15 30-50% COLLARS MONTHS % PRODUCTION Structure Tenor Hedge Target HEDGE BOOK OVERVIEW 120 $112.6 $110.6 Hedged Production (BBL/D) CEILING CEILING $94.7 $97.0 $99.3 100 $91.8
Slide 18: Returning Value to Shareholders
SOLID AND PROFITABLE BUSINESS RETURNING VALUE TO SHAREHOLDERS 10 YEARS OUTPERFORMING BRENT RETURNED 35% OF MARKET CAP SINCE 2019 210% $61 MM $7.5 MM Quarterly Cash Total Distributed Dividend Yield 2023 Will Exceed 110% Dividend 2019 - 3Q2023 ~5.5%* Shareholder Return Target of +40% 40-50% 10% $149 M
Slide 19: SPEED (ESG+) Since Day One
SPEED (ESG+) SINCE DAY ONE 19
Slide 20: Environment & Social: Employer and Neighbor of Choice
SPEED SINCE DAY ONE ENVIRONMENT & SOCIAL: EMPLOYER AND NEIGHBOR OF CHOICE GHG EMISSIONS INTENSITY REDUCTION TARGETS WELLBEING & QUALITY BIODIVERSITY OF LIFE Contribute to stopping deforestation SCOPES 1 & 2 (GEOPARK OPERATED) BASELINE: 2020 Contribute to meeting basic needs Short Term Medium Term Lo
Slide 21: Governance: Majority Independent Directors
SPEED SINCE DAY ONE GOVERNANCE: MAJORITY INDEPENDENT DIRECTORS INDEPENDENT BOARD MEMBERS EXECUTIVE BOARD MEMBERS Audit Audit Compensation SPEED Nomination & Nomination & Corporate Corporate Technical Technical Governance Governance SPEED Compensation Strategy & Risk Strategy & Risk SPEED SYLVIA ESCO
Slide 22: Consolidator
CONSOLIDATOR 22
Slide 23: Multiple Opportunities in Basins Across Latin America
CONSOLIDATOR MULTIPLE OPPORTUNITIES IN BASINS ACROSS LATIN AMERICA GEOPARK APPROACH STRONG TRACK RECORD OF CREATING VALUE THROUGH ACQUISITIONS • Geology first: best basins, best rocks, best play types selected by G&G Team • Achieve scale with value: production and reserves with upside • Great econom
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