Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (February 2015)
19 slides from Geopark's investor presentation, February 2015
Slide 1: 2015: Adapting to Challenges and Exploiting Opportunities
2015: Adapting to Challenges and Exploiting Opportunities February 2015
Slide 2: Disclaimer
Disclaimer The material that follows comprises information about GeoPark Limited (“GeoPark”) and its subsidiaries, In light of our Rio das Contas acquisition, we have included unaudited Pro forma condensed combined as of the date of the presentation. It has been prepared solely for informational pur
Slide 3: Strong Balance Sheet Positioned to Navigate Turbulence
Strong Balance Sheet Positioned to Navigate Turbulence GEOPARK IS A LEADING INDEPENDENT E&P PLAYER WITH AN EXPERIENCED TEAM, STRONG BALANCE SHEET, PROVEN LOW RISK ASSETS AND HIGH POTENTIAL UPSIDE IN THE GROWING LATIN AMERICAN OIL AND GAS MARKET STRONG LIQUIDITY HIGH PRODUCTION BASE / LOW COST PRODUC
Slide 4: 2015 Strategy and Plan Defensive and Offensive Approach
2015 Strategy and Plan Defensive and Offensive Approach 2015 STRATEGY GUIDED BY THE FOLLOWING PRINCIPLES 2014 VS. 2015 CAPEX PROGRAM ($MM) • Conservative Approach: Reduce work and investment program to maintain flexibility and maintain balance sheet strength 220-250 • Capital Allocation Discipline:
Slide 5: Latin American Asset Base Track-Record, Foundation and Upside
Latin American Asset Base Track-Record, Foundation and Upside PRODUCTION GROWTH TRACK-RECORD 25,000 38.6 CAGR ’06 – ‘14: 53% MMBOE COLOMBIA 20,557 LARGE RISK-BALANCED PROJECT INVENTORY 20,000 7.3 MMBOE Production Assets: 20,557 boe/d (2014) 30.2 MMBOE Development Assets: 3P Reserves of 221 MMboe BRA
Slide 6: Proven Plan + Proven Team Proven Execution
Proven Plan + Proven Team Proven Execution BRAZIL • Biggest non-associated gas field producing in Brazil with COLOMBIA stable cash flow EXPLORER • Biggest growth story in Colombia • Exploration upside in proven • New world class field discovery, on-shore basins Tigana • Introduced new play concept t
Slide 7: High Value Diversified Reserve and Resource Inventory
High Value Diversified Reserve and Resource Inventory DRIVERS OF ORGANIC GROWTH 11 BLOCKS 10 BLOCKS 1.1 MM ACRES COLOMBIA • 31 blocks in 12 basins in 5 countries / 6.0 MM acres 0.3 MM ACRES • 3P reserves development opportunities: 221 MMboe • Exploration resource opportunities: 500 MM to 1.0 billion
Slide 8: Colombia Leading E&P Story in Colombia Today
Colombia Leading E&P Story in Colombia Today • Acquired three companies in 2012 – and in 2 years, drilled 57 wells, discovered 11 new oil fields (6 operated) and increased production by 4+ times PANAMA • Quickly built value by introducing new paradigms - both VIM 3 VENEZUELA above and below the grou
Slide 9: Chile Low Risk Development and Exploration in Proven Area
Chile Low Risk Development and Exploration in Proven Area ARGENTINA • First private oil and gas producer in Chile • Large fully-operated land base across the Magallanes basin, with existing reserves, production and cash flow CHILE • New expanded acreage in TdF Blocks to replicate Tranquilo proven ex
Slide 10: Brazil Positioned to Grow and Capture Opportunities
Brazil Positioned to Grow and Capture Opportunities • Largest producing gas field in Brazil: fully-developed, cash POTIGUAR BASIN • POT-T 664 flow producing, low risk asset, unaffected by oil prices • POT-T 665 • Partnership with Petrobras PARNAIBA BASIN • POT-T 619 • POT-T 620 • Exploration blocks
Slide 11: Peru New Country Entry / Transformational Acquisition
Peru New Country Entry / Transformational Acquisition • Large acreage position in one of most prolific basins in COLOMBIA Latin America (produced over 1 billion bbl) • Discovered oil field with opportunity to bring near- term cash flow ECUADOR • Similar play-type exploration prospects mapped under 3
Slide 12: Profitable Assets at Low Price Scenarios
Profitable Assets at Low Price Scenarios 2015 ESTIMATED OPERATING NETBACK(1)@ 2015 ESTIMATED OPERATING NETBACK(1) @ Oil: $50/BBL, Gas: $5-6/MCF Oil: $60/BBL, Gas: $5-6/MCF *Combined Net Prices after discounts *Combined Net Prices after discounts 34* 34* 32* 41* 30* 3 38* 38* 3 3 34* 5 6 7 9 7 3 17 1
Slide 13: Operational Performance Leads to Financial Performance
Operational Performance Leads to Financial Performance RESERVES GROWTH INCREASING SALES 2P RESERVES (MMBOE): 17% / YEAR REVENUES ($MM): 69+% / YEAR (CAGR ’10 – ’14) (CAGR ’10 – ’13) 122.3 387 348 92.1 35.8 70.2 250 35.8 56.9 49.6 49.5 36.2 29.1 86.5 33.4 32.6 112 56.3 34.1 80 27.8 16.2 16.9 2010 201
Slide 14: Innovative Funding Strategy and Well-Funded Balance Sheet
Innovative Funding Strategy and Well-Funded Balance Sheet OVER $1 BILLION RAISED FROM DIVERSIFIED SOURCES SUMMARY TERMS: BOND 2020 • Indenture covenants are incurrence (and not maintenance) International Bond Market - Ratios are tested to incur more debt or other specific corporate actions (dividend
Slide 15: In Hunt for Value Dislocation Opportunities Consolidation
In Hunt for Value Dislocation Opportunities Consolidation Finding, Closing and Building Value on New Projects • Rapid execution and investment on acquired assets • Track-record converting assets and building value Active Long-term Pipeline of Projects • Technical approach to identify opportunities i
Slide 16: Uniquely-Positioned Oil and Gas Investment Vehicle
Uniquely-Positioned Oil and Gas Investment Vehicle • Oil-Finding and Operating Know-how • Solid Asset Base with Cash Flow and Upside • Operational and Financial Track-Record • Strong Balance Sheet and Access to Capital • New Project Inventory and Alliances • Capital Allocation and Project Efficienci
Slide 17: Contacts
Contacts James F. Park Pablo Ducci Andrés Ocampo Chief Executive Officer Capital Markets Chief Financial Officer Santiago, Chile Nuestra Señora de los Ángeles 179, Las Condes, Santiago, Chile Phone: +(56 2) 2242 9600 Email: ir@geo-park.com
Slide 18: Appendix: Reconciliation of Adjusted EBITDA to Profit Before Income Tax
Appendix RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX ($MM) 2010 2011 2012 2013 9M14 Adjusted EBITDA 41 63 121 167 193 Depreciation -23 -26 -53 -70 -73 Accrual of Stock Awards -3 -5 -5 -9 -8 Impairment and write-off -3 -7 -26 -11 -9 Others 1 1 4 7 1 OPERATING PROFIT 13 26 41 84 104
Slide 19: wha
F. wha is ol GEOPARK