Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (September 2024)
27 slides from Geopark's investor presentation, September 2024
Slide 1: Corporate Presentation September 2024
CORPORATE PRESENTATION September 2024
Slide 2: Disclaimer
GeoPark CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION The information contained herein has been prepared by GeoPark solely for informational purposes. No representation or warranty, either expressed or implied, is DISCLAIMER provided in relation to the accuracy, completeness or relia
Slide 3: About Us
LE A D ING IND E P EN D E NT LA TA M E & P CO MP A NY ABOUT US ENDURING PRINCIPLES AND APPROACH Energy Oil & Gas Latin America GeoPark Approach BRAZIL Right Team Leading Oil and Gas Finders Proven Team and Unique Culture Drilling Success Rate*** 81% 21 Year Track Record SPEED = ESG+ From Zero to 35,
Slide 4: Medium-Term Vision
LE A D ING IND E P EN D E NT LA TA M E & P CO MP A NY MEDIUM-TERM VISION Production 100,000 BOEPD Cash Flow Generation Maintain Cash Generation 2P Reserves 2-4X CAPEX 400 MMBOE ✓ PEOPLE ✓ CAPITAL ✓ ASSETS ✓ PROJECTS Assets Portfolio Capital Allocation ✓ EXECUTION ✓ RETURNS Allocate Capital to Deep a
Slide 5: Right Neighborhoods
RIGHT NEIGHBORHOODS 5
Slide 6: Llanos 34 - A World-Class Asset
R IGH T NEIG HBOR H OOD S LLANOS 34 - A WORLD-CLASS ASSET Chiricoca KE Y ME TRICS VENEZUELA Chachalaca VENEZUEL Llanos A Basin LLA-34 Tilo LL-34 COLOMBIA Max ECUADOR COLOMBIA Tigana BRAZIL ECUADOPERU R BRAZIL PERU Guaco Tarotaro 51,198 95% 7.0 9.0 Years* Tua Gross BOPD Production efficiency kgCO2e/B
Slide 7: CPO-5 - Unlocking the Upside
R IGH T NEIG HBOR H OOD S CPO-5 - UNLOCKING THE UPSIDE KE Y ME TRICS Llanos 34 Block VENEZUELA Per ico 1 Jacana Field CPO-5 Cabrestero Block COLOMBIA ECUADOR BRAZIL PERU Maripo sa Field Cante Flamenco-2 Halcon 1 26,403 10 3.3x 6.6 Years GeoPark Producing Oil Fields Indico Field Other Producing Oil F
Slide 8: Llanos Basin Champion
R IGH T NEIG HBOR H OOD S 2 0 2 4 CA MP AI GN LLANOS BASIN CHAMPION LLANOS 34 18-20 Development and HIGH GROWTH P OTEN TIAL IN WE LL-KNOWN B ASIN Injector Wells Tigana Jacana Ge oPark Explora tion Blocks Ge oPark Pro ducing Blocks Ge oPark Pro ducing Oil Field s LLA NO S 3 2 Cante Flamen co-1 Other
Slide 9: Putumayo & Oriente - Underexplored Proven Basin
R IGH T NEIG HBOR H OOD S PUTUMAYO & ORIENTE - UNDEREXPLORED PROVEN BASIN KE Y HI G HL IG HT S PU TUM AYO KE Y HI G HL IG HT S O RI ENT E VENEZUELA PUT-36 COLOMBIA MECAYA 1,475 3,305 PLATANILLO Gross BOPD Gross BOPD Putumayo & Orito Oriente (2Q2024) (2Q2024) PUT-9 ECUADORBasin BRAZIL PERU OTA PUT-8
Slide 10: New Position in Vaca Muerta - Argentina
R IGH T NEIG HBOR H OOD S NEW POSITION IN VACA MUERTA - ARGENTINA MATA MORA NORTE MATA MORA SU R Rincon de los Sauces • 43,243 acres • 11,861 acres ARGENTINA • Gross Production: 12,508 BOEPD* • Gross Certified 3C Contingent • Gross 2P Reserves: 110 MMBOE Resources: 51 MMBOE • Exploitation License to
Slide 11: Solid and Profitable
SOLID AND PROFITABLE 11
Slide 12: Low-Cost & Profitable Operator
SOLID AND PROFITABLE LOW-COST & PROFITABLE OPERATOR CO M PET I TI VE BREAK EVE NS FO R T HE BAS E BUS IN ESS $/BBL + Shareholder Return + Recent Acquisition Dividends: (~$3.2/BBL) Argentina: ($7-8/BBL) 65.0 (40.4) (14.8) (6.6) (3.3) Brent Operating Development Exploration Debt Service Cash Flow* CAP
Slide 13: 2024 Free Cash Flow & Returns
SOLID AND PROFITABLE 2024 FREE CASH FLOW & RETURNS ST RO NG FRE E CAS H FL OW * G ENE RATI O N F RO M T HE BAS E BUSI NE SS 2024E Free Cash Flow** ($MM) at $80-90 per BBL (Brent) 420-550 (100-140) (50-60) (145-160)*** (27-30) 90-160 Adjusted EBITDA Development & Appraisal Capex Exploration Capex Cas
Slide 14: Strong Balance Sheet with Safety Nets in Place
SOLID AND PROFITABLE STRONG BALANCE SHEET WITH SAFETY NETS IN PLACE AS SETS, LIABILITIES A ND SAFETY NETS CUR RENT CASH P OS I TI O N 63% Hedges in Place Securing ($MM) EBITDA Margin 2Q2024 Base Oil Price 263 58 vs 55% Colombian Peers S R S 114 $1.8 BN* $500 MM Bond 49 2P Net Present Value Maturing
Slide 15: Cost & Capital Efficiency Leads to Superior Results
SOLID AND PROFITABLE COST & CAPITAL EFFICIENCY LEADS TO SUPERIOR RESULTS CAS H GENER ATION 2-4x CAPE X IN EVE RY OIL PRICE EN VIRONMENT Operating Netback ($MM) = Ajusted EBITDA + G&A/G&G ~3x 593 3.5x CAPEX ($MM) 2.5x 470-600 Operating Netback/CAPEX Ratio (x times) 503 3.5x 447 3.2x 398 2.7x 352 3.7x
Slide 16: Returning Value to Shareholders
SOLID AND PROFITABLE RETURNING VALUE TO SHAREHOLDERS 1 0 YEAR S O UTP ERF OR MI NG BRE NT RE TURN ED M OR E THA N 55 % OF MA RKET CAP SI NC E 2 01 9 210% $84 MM $7.5 MM ~6.00% Quarterly Cash Total Distributed $30 MM Dividend Yield* 110% Dividend 2019 – YTD2024 Annually +40% 10% $200 MM $43.7 MM Up t
Slide 17: Hedging Program Secures Base Oil Price
SOLID AND PROFITABLE HEDGING PROGRAM SECURES BASE OIL PRICE APPROACH ❖ Low-Cost Operator 12-15 MONTHS 30-50% 35% AVERAGE HEDGING RATIO (2024) Tenor PRODUCTION ❖ World-Class Asset Quality On track with target Hedge Target HE DG E BO O K OV ERV IE W T OP TI ER AN D DI VERS I FI ED CO UN TER PART S BRE
Slide 18: SPEED (ESG+) Since Day One
SPEED (ESG+) SINCE DAY ONE 19
Slide 19: Environment & Social - Employer and Neighbor of Choice
S P E ED S IN CE D A Y O NE ENVIRONMENT & SOCIAL - EMPLOYER AND NEIGHBOR OF CHOICE G HG EM I SSI O NS I NT ENS IT Y RE DUCT IO N T ARG ET S WELLBEING & BIODIVERSITY SCOPES 1 & 2 (GEOPARK OPERATED) BASELINE: 2020 QUALITY OF LIFE Contribute to stopping deforestation Contribute to meeting basic needs S
Slide 20: Governance - Diverse and Experienced Board
S P E ED S IN CE D A Y O NE GOVERNANCE – DIVERSE AND EXPERIENCED BOARD I NDE PEND ENT B OA RD ME MB ERS EX ECUT IVE BOAR D ME MBE RS Audit Audit Compensation SPEED Nomination & Nomination & Corporate Corporate Technical Technical Governance Governance SPEED Compensation Strategy & Risk Strategy & Ri
Slide 21: GeoPark Named ESG Leader
S P E ED S IN CE D A Y O NE GEOPARK NAMED ‘ SG LEADER’ MSC I: R ATIN GS EVOLU TION CAR BO N DI SCL OS URE P RO JE CT: ESG RATING DISTRIBUTION Beginning the Journey 39% ESG Leaders Climate Change 2022: Score C 26% Climate Change 2023: Score B 17% 13% Water Security 2023: Score C 4% 0% 0% CCC B BB BBB
Slide 22: We Make Assets Better
WE MAKE ASSETS BETTER 23
Slide 23: Creating Value Through Acquisitions
WE MA K E A S S E TS BE TTE R CREATING VALUE THROUGH ACQUISITIONS LLA 34 :GROSS OIL PRODUCTI ON PROFI LE SI NCE ACQUISIT ION C P O-5: GROSS PRO DUCTIO N PRO FIL E SIN C E A CQ UI SITI ON FROM ZERO PRODUCTION TO 70,000 BOPD IN 10 YEARS SIGNIFICANT EXPLORATION INVENTORY & POTENTIAL UPSIDE TO CONTINUE
Slide 24: Latin America Is an Opportunity Rich Environment
WE MA K E A S S E TS BE TTE R LATIN AMERICA IS AN OPPORTUNITY RICH ENVIRONMENT GEOPA RK APPROACH MUL T I P L E OP PO RT U NIT I E S STRONG TRA CK RECORD OF CRE ATING VA LUE THROUGH • Significant Yet To Find (oil/gas) ACQ UI S IT I O NS CO L OM BI A • Multiple proven performance systems • Geology fir
Slide 25: Slide 25
Slide 26: 2024 Work Program - Disciplined Capital Allocation
SOLID AND PROFITABLE 2024 WORK PROGRAM - DISCIPLINED CAPITAL ALLOCATION 2024 WORK PROGRAM HIGHLIGHTS 20 24 C APEX BR EAK D OW N ( $80 -90 /B B L BR ENT ) 90-100** 35,500-39,000* 35-45 $50-60 MM BOEPD Production Gross Wells $100-140 MM $150-200 MM +5,500-6,500** 8-10*** BOEPD Production Gross Wells ~
Slide 27: Differentiated Returns - Improving Returns on Capital Employed
SOLID AND PROFITABLE DIFFERENTIATED RETURNS - IMPROVING RETURNS ON CAPITAL EMPLOYED ROACE - LATAM JUNIOR E& Ps - L AST T WEL VE MONT HS 2 0 1 9 V S 2 0 2 3 50.4% R O A CE 50.4% 37.1% 39.0% 35.7% 2019 2023 31.0% 21.1% 18.7% 13.6% 11.7% GeoPark Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Sou rce