GeoPark reports first quarter 2019 results

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 March 31, 2019 (“First Quarter” or “1Q2019”). A conference call to discuss 1Q2019 financial results will be held on May 9, 2019 at 11:00 am Eastern 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 March 31, 2019 and 2018, available on the Company’s website.

FIRST QUARTER 2019 HIGHLIGHTS

Continuous Operational Success

• Record consolidated oil and gas production up 23% to 39,557 boepd
• Gross operated production in Colombia, Chile and Argentina surpassed 75,000 bopd
• Oil production increased by 26% to 34,358 bopd
• Gas production increased by 7% to 31.2 mmcfpd
• Seven rigs now operational across the GeoPark platform
• Flowline connecting the Colombian Llanos 34 block (GeoPark operated, 45% WI) to regional pipeline completed

Continuous Cost Efficiency and Cash Generation Growth

• Revenue increased by 21% to $150.1 million
• Net Profit of $19.7 million
• Adjusted EBITDA increased by 46% to $92.3 million
• Adjusted EBITDA per boe increased by 20% to $27.4, in spite of 5% lower Brent oil prices
• Lower transportation costs in Colombia improved Adjusted EBITDA by $2.0/bbl
• Cash Flow from Operating Activities increased to $81.3 million
• Free Cash Flow¹ of $44.0 million

Continuous Financial Track Record and Capital Strengthening

• Record Adjusted EBITDA reaching $359.5 million in the last twelve months
• Return on Capital Employed of 38%² in the last twelve months
• Net debt to Adjusted EBITDA ratio of 0.8x
• Adjusted EBITDA to Capital Expenditures ratio of 2.5x
• Cash and Cash Equivalents of $146.6 million
• 40-45% of 2Q2019 oil production hedged at floors of $55-65/bbl Brent

Continuous Long-Term Project Inventory Expansion

• New country entry into Ecuador and exploration acreage boost: Acquired attractive low-cost, low-risk Espejo and Perico blocks3 (GeoPark, 50% WI), in the prolific Oriente basin in Ecuador

Continuous Value Return to Shareholders

• Invested $16.5 million in the share buyback program initiated in December 2018, buying 1,100,000 shares while executing self-funded growth work programs.

James F. Park, Chief Executive Officer of GeoPark, said: “Congratulations and thanks again to the GeoPark team. We are proud of our continuous streak of quarterly operational and financial records – which is really the reflection of many years of work and consistent execution of our long-term business plan. For this reason, our recent successful entry into Ecuador represents a major development for our Company. One of the biggest most attractive underdeveloped petroleum systems in Latin America – and a long-term target of GeoPark – is the Maranon-Oriente-Putumayo basin complex stretching from Peru through Ecuador and into Colombia with over 10 billion boe of remaining conventional hydrocarbon resources. With our existing platforms in Peru and Colombia, our Ecuador entry into this exciting oil province substantially expands our organic and inorganic growth fairway – laying the groundwork for a future with the potential for many more records and successes.”

→ Read the full press release

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¹ Free cash flow is defined as cash flow from operating activities less cash used in investing activities. Free cash flow is a non-GAAP measure. See reconciliation below.
² Return on capital is defined as operating profit divided by total assets minus current liabilities.