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Bogota, Colombia – November 4, 2020 – GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador reports its consolidated financial results for the three-month period ended September 30, 2020 (“Third Quarter” or “3Q2020”). A conference call to discuss 3Q2020 financial results and the work program and investment guidelines for 2021 will be held on November 5, 2020 at 10:00 am (Eastern Standard Time).

All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when specified. Definitions and terms used herein are provided in the Glossary at the end of this document. This release does not contain all of the Company’s financial information and should be read in conjunction with GeoPark’s consolidated financial statements and the notes to those statements for the period ended September 30, 2020 and 2019, available on the Company’s website.

 

THIRD QUARTER 2020 HIGHLIGHTS


Expanded Production and Restarted Work Program

  • Consolidated oil and gas production of 38,845 boepd in 3Q2020, up 5% compared to 2Q2020
  • Resumed drilling with three wells put on production in the Llanos 34 block (GeoPark operated, 45% WI)
  • Reopened temporarily shut-in production and producing 40,000 boepd by the end of 3Q2020
  • Currently drilling the Indico 2 appraisal well in the CPO-5 block (GeoPark non-operated, 30% WI)


Implemented Decisive Cost and Investment Reduction Plan 

  • Cost and investment reductions totaled over $290 million across regional platform
  • Further improving GeoPark’s cost efficiencies with ongoing cost-cutting initiatives at all levels
  • Production and operating costs reduced by 32% to $28.4 million
  • Operating costs per boe[1]  reduced by 22% to $6.3 per boe
  • G&A/G&G costs reduced by 30% to $13.1 million


Generated Substantial Free Cash Flow

  • Revenue of $98.1 million
  • Adjusted EBITDA of $56.1 million (or $15.9 per boe), 2x Adjusted EBITDA in 2Q2020
  • Operating Profit of $28.5 million / Net Loss of $4.3 million
  • Capital expenditures reduced by 56% to $9.8 million
  • Full-year 2020 work program of $65-75 million targeting 40,000-42,000 boepd annual average production and operating netbacks of $245-270 million assuming Brent of $35-40 per bbl[2]

Built Strong Financial Position and Risk Management 

  • $163.7 million cash ($157.5 million in 2Q2020 and after interest payments of $23.5 million in 3Q2020)
  • $75 million oil prepayment facility, with $50 million committed and no amounts drawn
  • $132.9 million in uncommitted credit lines
  • Long-term financial debt maturity profile with no principal payments until September 2024
  • Continuously adding new hedges for the next 15 months


Increased SPEED/ESG+ Response and Actions

  • Protocols, preventive measures and crisis response plans in place across six-country regional platform
  • Field teams sharply reduced to a minimum with back-up teams and contingencies in place to keep people working safely and production flowing
  • GeoPark closely engaged with local communities implementing a significant range of measures to fight Covid-19 with efforts coordinated at local, regional and federal levels
  • Appointment of Sylvia Escovar and Somit Varma as new independent members of GeoPark’s Board of Directors (filling vacancies)
  • Released GeoPark’s Environmental, Social and Governance (“ESG”) report for 2019, available on the Company’s website

Returning Value to Shareholders by Cash Dividends and Share Buyback Program

  • 2020 Extraordinary cash dividend of $0.0412 per share ($2.5 million) payable on December 9, 2020
  • 2020 Quarterly Dividend of $0.0206 per share ($1.25 million) payable on December 9, 2020
  • Resuming discretionary share buyback program for up to 10% of total outstanding shares

James F. Park, Chief Executive Officer of GeoPark, said: “Thanks to and admiration for the GeoPark team for again performing through this monster storm. Because of its quick, decisive and significant moves, GeoPark today is in a position to re-engage our work program, grow production, build and set into motion an attractive work program for 2021 and begin returning cash to its shareholders in the fourth quarter. And, beyond just surviving the collapse and accommodating to the new environment, our team transformed GeoPark – from a cost, capability, and organizational perspective – into a better and stronger company ready to capture the immense opportunity ahead.”

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