Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (December 2023)
26 slides from Geopark's investor presentation, December 2023
Slide 1: Corporate Presentation December 2023
CORPORATE PRESENTATION December 2023
Slide 2: Disclaimer
The information contained herein has been prepared by GeoPark Limited (“GeoPark”, “we” or “us”) solely for informational purposes. No representation or warranty, GeoPark 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 COLOMBIA LL-34 Max ECUADOR COLOMBIA Tigana PERU BRAZIL ECUADOR 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 RESERVES Gross Oil Production (BOPD) 80,000 Cumulative Gross Oil 200 Production (MMBBL) VALUATION 180 70,000 CUMULATIVE GROSS OIL PRO
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 IL BRAZIL BRAZ Field PERU 16,877 7 2.5x 6.2 Years Indico Field Producing Gross BOPD Prod
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 (MMBBL) VALUATION 25,000 30
Slide 9: Llanos Basin Champion
RIGHT NEIGHBORHOOD LLANOS BASIN CHAMPION 2024 CAMPAIGN HIGH GROWTH POTENTIAL IN WELL-KNOWN BASIN LLANOS BASIN 3-4 Exploration Wells GeoPark Exploration Blocks LLANOS 32 TOTAL ACREAGE Consolidated 24-33 Development and Appraisal Wells GeoPark Producing Blocks Activity GeoPark Producing Oil Fields LLA
Slide 10: Putumayo & Oriente: Underexplored Proven Basin
RIGHT NEIGHBORHOOD PUTUMAYO & ORIENTE: UNDEREXPLORED PROVEN BASIN KEY HIGHLIGHTS PUTUMAYO KEY HIGHLIGHTS ORIENTE PUT-36 VENEZUELA COLOMBIA MECAYA 2,027 ~3,200 Gross BOPD Gross BOPD Putumayo & PLATANILLO Current production Oriente Basin (3Q2023) PUT-9 ECUADOR BRAZIL OTA PERU PUT-8 95% More than COATI
Slide 11: New Growth Fairways
2023 EXPLORATION DRILLING CAMPAIGN SUCCESS OPENING NEW PLAYS NEW GROWTH FAIRWAYS • Initial drilling activities started in 2H2023 • No oil-water contact identified Three New High- • Combined traps (structural & stratigraphic) • Onshore, conventional short-cycle projects Potential Plays in Good access
Slide 12: Solid and Profitable Business
SOLID AND PROFITABLE BUSINESS 12
Slide 13: Low-Cost & Efficient Operator
SOLID AND PROFITABLE BUSINESS LOW-COST & EFFICIENT OPERATOR PRODUCTION GROWTH (BOEPD) ON THE GROUND OPERATIONAL EXPERIENCE 11% CAGR CONSOLIDATED (2013-2024E) 37,000-40,000 18% CAGR COLOMBIA (2013-2024E) 110+ MM 280+ Net BOE Produced Gross Wells Drilled (2006-2022) (2013-2022) 12 Rigs 480+ / 2,400+ 2
Slide 14: 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 15: 2024 Work Program: Disciplined Capital Allocation
SOLID AND PROFITABLE BUSINESS 2024 WORK PROGRAM: DISCIPLINED CAPITAL ALLOCATION 2024 WORK PROGRAM HIGHLIGHTS 2024 CAPEX BREAKDOWN ($80-90/BBL BRENT) $50-60 MM $150-200 MM 37,000-40,000* 35-45 BOEPD Production Gross Wells $100-140 MM * Assuming no production from the 2024 exploration drilling program
Slide 16: 2024 Free Cash Flow & Returns
SOLID AND PROFITABLE BUSINESS 2024 FREE CASH FLOW & RETURNS STRONG FREE CASH FLOW GENERATION 2024E Free Cash Flow* ($MM) at $80-90 per BBL (Brent) 420-550 (100-140) (50-60) (145-160)** (27-30) 90-160 Adjusted EBITDA Development & Appraisal Capex Exploration Capex Cash Taxes Mandatory Debt Service Pa
Slide 17: 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 18: 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 CEILING (BBL/D) CEILING $94.7 $97.0 $99.3 100 $91.8
Slide 19: Returning Value to Shareholders
SOLID AND PROFITABLE BUSINESS RETURNING VALUE TO SHAREHOLDERS 10 YEARS OUTPERFORMING BRENT RETURNED MORE THAN 40% OF MARKET CAP SINCE 2019* 210% $61 MM $7.5 MM Quarterly Cash Total Distributed Dividend Yield 2023 Will Exceed 110% Dividend 2019 - 3Q2023 ~6.0%* Shareholder Return Target of +20% 40-50%
Slide 20: SPEED (ESG+) Since Day One
- Cte ‘ : : ml \ GEOPARK ——. SPEED (ESG+) SINCE DAY
Slide 21: Environment & Social: Employer and Neighbor of Choice
SPEED SINCE DAY ONE ENVIRONMENT & SOCIAL: EMPLOYER AND NEIGHBOR OF CHOICE GHG EMISSIONS INTENSITY REDUCTION TARGETS WELLBEING & BIODIVERSITY QUALITY OF LIFE Contribute SCOPES 1 & 2 (GEOPARK OPERATED) BASELINE: 2020 Contribute to meeting to stopping deforestation basic needs Short Term Medium Term Lo
Slide 22: 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 23: Consolidator
CONSOLIDATOR 23
Slide 24: Multiple Opportunities Across Latin America
CONSOLIDATOR MULTIPLE OPPORTUNITIES 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 economics: short
Slide 25: Annex
Slide 26: Llanos 34: Introducing Horizontal Wells
ANNEX LLANOS 34: INTRODUCING HORIZONTAL WELLS STRUCTURAL MODEL PROJECT HIGHLIGHTS DRILLING FASTER, WITH LOWER COSTS & HIGHER PRODUCTIVITY Horizontal Wells HW1 HW2 HW3 HW4 TD (feet) 13,862 14,032 15,361 15,375 Drilling (feet/day) 322 425 439 530 Lateral Length 1,272 1,680 3,460 3530 (feet) D&C Cost 1