Strong Cash Flow Generation
Quarterly Cash Dividend of $0.147 Per
Share
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent Latin American oil and gas explorer, operator,
and consolidator, reports its consolidated financial results for
the three-month period ended September 30, 2024 (“Third Quarter” or
“3Q2024”). A conference call to discuss these financial results
will be held on November 7, 2024, at 10:00am (Eastern Standard
Time).
THIRD QUARTER 2024 FINANCIAL SUMMARY
In 3Q2024, GeoPark delivered solid financial performance with
$99.8 million Adjusted EBITDA,1 a margin of 63% and $25.1 million
net profit, amidst a softer price environment and operational
challenges. Net profit was 1.2% higher than 3Q2023, demonstrating
resilient profitability in the context of lower oil prices.
Adjusted EBITDA for the nine-month period ended September 30, 2024
was higher than the same period in 2023, underscoring the strength
and consistency of our financial results year-to-date.
GeoPark invested $45.9 million in capital expenditures in
3Q2024, focused on: i) facilities upgrades and advancing
development and appraisal activities in the Llanos 34 Block
(GeoPark operated, 45% WI) in Colombia, including an ongoing
water-flooding campaign and facility expansions; ii) drilling two
exploration wells in the CPO-5 Block (GeoPark non-operated, 30% WI)
in Colombia; iii) ongoing delineation and exploration in the
Toritos and Bisbita fields in the Llanos 123 Block (GeoPark
operated, 50% WI) in Colombia; iv) exploration and workover
activities in the Espejo (GeoPark operated, 50% WI) and Perico
(GeoPark non-operated, 50% WI) Blocks in Ecuador; and v)
infrastructure development, with the construction of drilling pads
in the Put-8 Block (GeoPark operated, 50% WI) in Colombia.
Underscoring its ongoing commitment to disciplined financial
management, GeoPark concluded 3Q2024 with a growing cash balance
that reached $123.4 million at end-September, while net leverage
remained low at 0.8x. GeoPark’s debt profile remains resilient,
with no principal maturities scheduled until January 2027.
Each dollar invested in capital expenditures yielded $2.2 in
Adjusted EBITDA, and the return on average capital employed (ROACE)
reached 34%. These financial achievements and discipline allowed
GeoPark to reward its shareholders once again with a quarterly
dividend of $7.5 million ($0.147 per share), representing an
annualized dividend of $30 million and a yield of approximately
7%.
Quarterly average oil and gas production in 3Q2024 was 33,215
boepd,2 down 4% compared to 3Q2023 mainly due to the divestment of
the Chilean business in 1Q2024, suspended operations at the Manati
gas field in Brazil (GeoPark non-operated, 10% WI), production in
the Llanos 34 Block not offsetting the natural base decline, and
continued blockades affecting operations in the Llanos 34 and CPO-5
Blocks. These factors were previously identified as risks, and
their realization has impacted production within the anticipated
1,500-2,500 boepd average range for the year.
GeoPark’s acquisition of four unconventional hydrocarbon blocks
in Vaca Muerta, Argentina became effective on July 1, 2024, with
the transaction expected to close (pending regulatory approvals) by
the end of 2024.3 During 3Q2024, the development wells in the Mata
Mora Norte Block (GeoPark non-operated, 45% WI) achieved a gross
average production of 12,621 boepd, demonstrating the high
productivity of these assets. The operator is now initiating
production from three exploration wells in the Confluencia Norte
Block (GeoPark non-operated, 50% WI), aimed at unlocking and
de-risking the substantial growth potential of this block. The
Group’s Argentine subsidiary, GeoPark Argentina, S.A., has secured
crucial capital markets approvals, including bank credit lines, an
AA+(arg) credit rating from Fitch Ratings’ local Argentine
affiliate FIX, and authorization from Argentina’s securities
regulator (Comisión Nacional de Valores or “CNV”) to issue up to
$500 million in debt securities over the next five years, providing
strategic financial flexibility to support the future development
of these assets.
Looking ahead, GeoPark plans to release its 2025 Work Program
and Investment Guidelines before year-end. This upcoming framework
will outline GeoPark’s strategic initiatives and capital allocation
priorities, setting the stage for sustainable growth and enhanced
value creation across its asset portfolio.
Andrés Ocampo, Chief Executive Officer of GeoPark, said: “In the
third quarter, we continued to build on our strengths, generating
robust cash flow and efficiently advancing our strategic
initiatives with a disciplined $45.9 million investment in capital
expenditures. This investment focused on key development,
appraisal, and exploration activities across our core assets in
Colombia and Ecuador. Our expansion into Vaca Muerta also took an
important step forward with a recent field trip, where alongside
our partner, Phoenix Global Resources, we hosted a group of fixed
income and equity investors. This visit provided an invaluable
opportunity to showcase our growth strategy first hand and
highlight the scalable, efficient growth potential of our
unconventional assets in Vaca Muerta. We remain committed to
disciplined capital allocation and maximizing shareholder value as
we unlock further potential in our core assets and prepare for
sustained, long-term growth in Argentina.”
Supplementary information is available at the following link:
https://ir.geo-park.com/3Q24-SupplementaryRelease
THIRD QUARTER 2024 HIGHLIGHTS
Oil and Gas Production and Operations
- 3Q2024 consolidated average oil and gas production of 33,215
boepd4
- Production decreased 7% in Colombia compared to 2Q2024, due to
continued blockades affecting operations in the Llanos 34 and the
CPO-5 Blocks, and suspended production at the Manati gas field
- Production in the Mata Mora Norte Block in Vaca Muerta averaged
12,621 boepd gross in 3Q2024, peaking at a record of 15,418 boepd
gross during August 2024
- 9 rigs in operation at the end of 3Q2024 (5 drilling rigs and 4
workover rigs), including one drilling rig in Argentina
Revenue, Adjusted EBITDA and Net Profit
- Revenue of $159.5 million, a decrease of 16% from 2Q2024,
reflecting lower realized oil prices and lower deliveries
- Adjusted EBITDA of $99.8 million (63% Adjusted EBITDA
margin)
- Operating profit of $54.7 million (34% operating profit
margin)
- Net profit of $25.1 million
Cost and Capital Efficiency
- Capital expenditures of $45.9 million
- 3Q2024 Adjusted EBITDA to capital expenditures ratio of
2.2x
- ROACE of 34%5
Balance Sheet Reflects Financial Quality
- Cash in hand of $123.4 million, reflecting strong cash-flow
generation
- Net leverage remained healthy (0.8x), with no principal debt
maturities until January 2027
- Current cash position of $140 million (October 31, 2024)
Commitment to Shareholder Return
- Quarterly cash dividend of $0.147 per share payable on December
6, 2024, to shareholders of record at the close of business on
November 21, 2024
- GeoPark expects to return more than $73 million to shareholders
in full-year 2024 through dividends and buybacks, a potential 18%
capital return yield,6 significantly exceeding 2023 payout
_________________________
1 For reconciliations, see “Reconciliation
of Adjusted EBITDA to Profit Before Income Tax” table below.
2 Reported in the 3Q2024 Operational
Update and not including production from Vaca Muerta.
3 The Vaca Muerta acquisition is not yet
consolidated in our Financial Statements.
4 Not including production from Vaca
Muerta.
5 ROACE is defined as last twelve-month
operating profit divided by average total assets minus current
liabilities.
6 Based on GeoPark’s market capitalization
as of October 31, 2024.
CONSOLIDATED OPERATING PERFORMANCE
Key performance indicators:
Key Indicators
3Q2024
2Q2024
3Q2023
9M2024
9M2023
Oil productiona (bopd)
33,091
35,504
32,510
34,279
33,323
Gas production (mcfpd)
747
623
13,610
2,884
15,898
Average net production (boepd)
33,215
35,608
34,778
34,760
35,973
Brent oil price ($ per bbl)
78.5
85.0
86.0
81.8
82.2
Combined realized price ($ per boe)
65.1
72.0
68.3
67.5
62.9
⁻ Oil ($ per bbl)
67.7
74.9
74.6
70.8
68.4
⁻ Gas ($ per mcf)
6.8
8.9
4.4
5.8
4.7
Sale of crude oil ($ million)
157.5
187.2
185.4
506.9
534.3
Sale of purchased crude oil ($
million)
1.5
2.4
2.2
5.7
4.1
Sale of gas ($ million)
0.5
0.6
5.3
4.6
19.1
Commodity risk management contracts ($
million)
—
—
(0.7
)
(0.1
)
(0.7
)
Revenue ($ million)
159.5
190.2
192.1
517.1
556.9
Production & operating costsb ($
million)
(39.8
)
(41.4
)
(58.2
)
(119.8
)
(171.4
)
G&G, G&Ac ($ million)
(15.7
)
(16.0
)
(14.1
)
(44.4
)
(39.9
)
Selling expenses ($ million)
(3.5
)
(4.4
)
(3.8
)
(12.1
)
(8.3
)
Operating profit ($ million)
54.7
90.3
80.5
229.0
226.6
Adjusted EBITDA ($ million)
99.8
127.9
115.2
339.2
334.0
Adjusted EBITDA ($ per boe)
40.7
48.4
41.0
44.3
37.7
Net profit ($ million)
25.1
25.7
24.8
81.0
84.8
Capital expenditures ($ million)
45.9
49.2
44.1
143.9
132.4
Cash and cash equivalents ($ million)
123.4
66.0
106.3
123.4
106.3
Short-term financial debt ($ million)
5.7
12.5
5.7
5.7
5.7
Long-term financial debt ($ million)
491.1
490.2
487.6
491.1
487.6
Net debt ($ million)
373.3
436.7
387.0
373.3
387.0
Dividends paid ($ per share)
0.147
0.147
0.132
0.430
0.392
Shares repurchased (million shares)
—
4.369
0.500
4.369
2.224
Basic shares – at period end (million
shares)
51,193
51,163
56,118
51,193
56,118
Weighted average basic shares (million
shares)
51,178
52,246
56,513
52,911
57,155
_________________________
a)
Includes royalties and other economic
rights paid in kind in Colombia for approximately 6,073 bopd, 6,956
bopd, and 5,045 bopd in 3Q2024, 2Q2024 and 3Q2023, respectively. No
royalties were paid in kind in other countries. Production in
Ecuador is reported before the Government’s production share.
b)
Production and operating costs include
operating costs, royalties and economic rights paid in cash,
share-based payments and purchased crude oil.
c)
G&A and G&G expenses include
non-cash, share-based payments for $1.4 million, $1.3 million, and
$1.7 million in 3Q2024, 2Q2024 and 3Q2023, respectively. These
expenses are excluded from the Adjusted EBITDA calculation.
All figures are expressed in US Dollars and growth comparisons
refer to the same period of the prior year, except when otherwise
specified. Definitions and terms used herein are provided in the
Glossary at the end of this document. This press release and its
supplementary information do not contain all the Company’s
financial information and the Company’s consolidated financial
statements and corresponding notes for the period are available on
the Company’s website.
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME
TAX
9M2024 (In millions of $)
Colombia
Ecuador
Brazil
Chile
Other(a)
Total
Adjusted EBITDA
338.6
11.7
(2.4
)
(0.1
)
(8.5
)
339.2
Depreciation
(89.3
)
(5.6
)
(1.1
)
—
(0.0
)
(96.0
)
Write-off of unsuccessful exploration
efforts
(6.9
)
(7.7
)
—
—
—
(14.6
)
Share based payment
(1.0
)
(0.0
)
(0.0
)
—
(3.8
)
(4.8
)
Lease Accounting - IFRS 16
4.9
0.0
0.7
—
—
5.6
Others
0.8
0.1
(1.1
)
0.0
(0.2
)
(0.3
)
OPERATING PROFIT (LOSS)
247.1
(1.6
)
(3.9
)
(0.1
)
(12.5
)
229.0
Financial costs, net
(27.0
)
Foreign exchange charges, net
7.2
PROFIT BEFORE INCOME TAX
209.2
9M2023 (In millions of $)
Colombia
Ecuador
Brazil
Chile
Other(a)
Total
Adjusted EBITDA
331.2
2.2
4.5
3.6
(7.4
)
334.0
Depreciation
(71.7
)
(5.1
)
(1.7
)
(7.8
)
(0.0
)
(86.4
)
Write-off of unsuccessful exploration
efforts
(21.5
)
—
—
—
—
(21.5
)
Share based payment
(0.9
)
(0.0
)
(0.0
)
(0.1
)
(4.3
)
(5.3
)
Lease Accounting - IFRS 16
6.1
0.0
0.7
0.7
—
7.6
Others
2.2
(0.5
)
(0.2
)
(2.2
)
(1.1
)
(1.9
)
OPERATING PROFIT (LOSS)
245.4
(3.4
)
3.3
(5.9
)
(12.8
)
226.6
Financial costs, net
(29.9
)
Foreign exchange charges, net
(16.9
)
PROFIT BEFORE INCOME TAX
179.7
_________________________
a)
Includes Argentina and Corporate.
CONFERENCE CALL INFORMATION
GeoPark management will host a conference call on Thursday,
November 7, 2024, at 10:00 am (Eastern Standard Time) to discuss
the 3Q2024 financial results.
To listen to the call, participants can access the webcast
located in the Invest with Us section of the Company’s website at
www.geo-park.com, or by clicking below:
https://events.q4inc.com/attendee/332625400
Interested parties may participate in the
conference call by dialing the numbers provided below:
United States Participants: +1 404-975-4839
Global Dial-In Numbers:
https://www.netroadshow.com/conferencing/global-numbers?confId=68476
Passcode: 027838
Please allow extra time prior to the call to visit the website
and download any streaming media software that might be required to
listen to the webcast.
An archive of the webcast replay will be made available in the
Invest with Us section of the Company’s website at www.geo-park.com
after the conclusion of the live call.
GLOSSARY
2027 Notes
5.500% Senior Notes due 2027
Adjusted EBITDA
Adjusted EBITDA is defined as profit for
the period before net finance costs, income tax, depreciation,
amortization, the effect of IFRS 16, certain non-cash items such as
impairments and write-offs of unsuccessful efforts, accrual of
share-based payments, unrealized results on commodity risk
management contracts and other non-recurring events
Adjusted EBITDA per boe
Adjusted EBITDA divided by total boe
deliveries
Operating Netback per boe
Revenue, less production and operating
costs (net of depreciation charges and accrual of stock options and
stock awards, the effect of IFRS 16), selling expenses, and
realized results on commodity risk management contracts, divided by
total boe deliveries. Operating Netback is equivalent to Adjusted
EBITDA net of cash expenses included in Administrative, Geological
and Geophysical and Other operating costs
Bbl
Barrel
Boe
Barrels of oil equivalent
Boepd
Barrels of oil equivalent per day
Bopd
Barrels of oil per day
G&A
Administrative Expenses
G&G
Geological & Geophysical Expenses
Mcfpd
Thousand cubic feet per day
Net Debt
Current and non-current borrowings less
cash and cash equivalents
WI
Working interest
NOTICE
Additional information about GeoPark can be found in the Invest
with Us section of the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and
percentages included in this press release and its supplementary
information have been rounded for ease of presentation. Percentage
figures included in this press release and its supplementary
information have not in all cases been calculated on the basis of
such rounded figures, but on the basis of such amounts prior to
rounding. In addition, certain other amounts that appear in this
press release and its supplementary information may not sum due to
rounding.
This press release and its supplementary information contain
certain oil and gas metrics, including information per share,
operating netback, reserve life index and others, which do not have
standardized meanings or standard methods of calculation and
therefore such measures may not be comparable to similar measures
used by other companies. Such metrics have been included herein to
provide readers with additional measures to evaluate the Company’s
performance; however, such measures are not reliable indicators of
the future performance of the Company and future performance may
not compare to the performance in previous periods.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION
This press release and its supplementary information contain
statements that constitute forward-looking statements. Many of the
forward-looking statements contained in this press release can be
identified by the use of forward-looking words such as
‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’
‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’
among others.
Forward-looking statements that appear in a number of places in
this press release include, but are not limited to, statements
regarding the intent, belief or current expectations, regarding
various matters, including production, timing for closing of the
acquisition transaction, Work Program and Investment Guidelines,
strategic initiatives, growth and capital allocation.
Forward-looking statements are based on management’s beliefs and
assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties,
and actual results may differ materially from those expressed or
implied in the forward-looking statements due to various
factors.
Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update
them in light of new information or future developments or to
release publicly any revisions to these statements in order to
reflect later events or circumstances, or to reflect the occurrence
of unanticipated events. For a discussion of the risks facing the
Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange
Commission (SEC).
Oil and gas production figures included in this press release
and its supplementary information are stated before the effect of
royalties paid in kind, consumption and losses. Annual production
per day is obtained by dividing total production by 365 days.
Non-GAAP Measures: The Company believes Adjusted EBITDA,
free cash flow and operating netback per boe, which are each
non-GAAP measures, are useful because they allow the Company to
more effectively evaluate its operating performance and compare the
results of its operations from period to period without regard to
its financing methods or capital structure. The Company’s
calculation of Adjusted EBITDA, free cash flow, and operating
netback per boe may not be comparable to other similarly titled
measures of other companies.
Adjusted EBITDA: The Company defines Adjusted EBITDA as
profit for the period before net finance costs, income tax,
depreciation, amortization and certain non-cash items such as
impairments and write-offs of unsuccessful exploration and
evaluation assets, accrual of stock options and stock awards,
unrealized results on commodity risk management contracts and other
non-recurring events. Adjusted EBITDA is not a measure of profit or
cash flow as determined by IFRS. The Company excludes the items
listed above from profit for the period in arriving at Adjusted
EBITDA because these amounts can vary substantially from company to
company within our industry depending upon accounting methods and
book values of assets, capital structures and the method by which
the assets were acquired. Adjusted EBITDA should not be considered
as an alternative to, or more meaningful than, profit for the
period or cash flow from operating activities as determined in
accordance with IFRS or as an indicator of our operating
performance or liquidity. Certain items excluded from Adjusted
EBITDA are significant components in understanding and assessing a
company’s financial performance, such as a company’s cost of
capital and tax structure and significant and/or recurring
write-offs, as well as the historic costs of depreciable assets,
none of which are components of Adjusted EBITDA. For a
reconciliation of Adjusted EBITDA to the IFRS financial measure of
profit, see the accompanying financial tables and the supplementary
information.
Operating Netback per boe: Operating netback per boe
should not be considered as an alternative to, or more meaningful
than, profit for the period or cash flow from operating activities
as determined in accordance with IFRS or as an indicator of the
Company’s operating performance or liquidity. Certain items
excluded from operating netback per boe are significant components
in understanding and assessing a company’s financial performance,
such as a company’s cost of capital and tax structure and
significant and/or recurring write-offs, as well as the historic
costs of depreciable assets, none of which are components of
operating netback per boe. The Company’s calculation of operating
netback per boe may not be comparable to other similarly titled
measures of other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106277775/en/
INVESTORS: Maria Catalina Escobar Shareholder Value and
Capital Markets Director mescobar@geo-park.com Miguel Bello
Investor Relations Officer mbello@geo-park.com Maria Alejandra
Velez Investor Relations Leader mvelez@geo-park.com MEDIA:
Communications Department communications@geo-park.com
Grafico Azioni GeoPark (NYSE:GPRK)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni GeoPark (NYSE:GPRK)
Storico
Da Dic 2023 a Dic 2024
